The ITO, Ward-1(1), Visakhapatnam v. Sri K Ramu Naidu, Visakhapatnam

ITA 709/VIZ/2004 | 1998-1999
Pronouncement Date: 23-09-2010 | Result: Allowed

Appeal Details

RSA Number 70925314 RSA 2004
Bench Visakhapatnam
Appeal Number ITA 709/VIZ/2004
Duration Of Justice 5 year(s) 10 month(s)
Appellant The ITO, Ward-1(1), Visakhapatnam
Respondent Sri K Ramu Naidu, Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 23-09-2010
Appeal Filed By Department
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 23-09-2010
Assessment Year 1998-1999
Appeal Filed On 23-11-2004
Judgment Text
ITA NO.706 TO 709 /VIZAG/2004&ITA NO.43 OF 05 CO NOS.6 TO 9 & 43 OF 05 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NOS.706 TO 709/VIZAG/2004 ASSESSMENT YEARS: 1995-96 TO 1998-99 RESPECTIVELY ITO WARD-1(1) VISAKHAPATNAM VS. SRI K. RAMU NAIDU VISAKHAPATNAM (APPELLANT) (RESPONDENT) GIR NO: SR-712 CO NOS.6 TO 9/VIZAG/2005 ASSESSMENT YEARS: 1995-96 TO 1998-99 RESPECTIVELY SRI K. RAMU NAIDU VISAKHAPATNAM VS. ITO WARD-1(1) VISAKHAPATNAM (APPELLANT) (RESPONDENT) ITA NO.43/VIZAG/2005 ASSESSMENT YEARS: 1995-96 ITO WARD-1(1) VISAKHAPATNAM VS. SMT. K. VENKATA RATNAM C/O SRI K. RAMU NAIDU VISAKHAPATNAM (APPELLANT) (RESPONDENT) GIR NO.V - 4857 CO NO.18/VIZAG/2005 ASSESSMENT YEARS: 1995-96 ITO WARD-1(1) VISAKHAPATNAM VS. SMT. K. VENKATA RATNAM C/O SRI K. RAMU NAIDU VISAKHAPATNAM (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI J. SIRI KUMAR DR RESPONDENT BY: SHRI C.V.S. MURTHY CA ITA NO.706 TO 709 /VIZAG/2004&ITA NO.43 OF 05 CO NOS.6 TO 9 & 43 OF 05 PAGE 2 OF 4 ORDER PER BENCH: THESE APPEALS FILED BY THE REVENUE ARE DIRECTED AG AINST THE ORDERS PASSED BY LD. CIT(A) VISAKHAPATNAM. THE APPEALS R ELATED TO SHRI K.RAMU NAIDU ARE FOR THE ASSESSMENT YEARS 1995-96 TO 1998- 99 WHILE THE APPEAL RELATED TO SMT. K.VENKATA RATNAM IS FOR THE ASSESSM ENT YEAR 1995-96. BOTH THE ASSESSEES HAVE FILED CROSS OBJECTIONS FOR ALL THESE YEARS. SINCE THESE APPEALS WERE HEARD TOGETHER THEY ARE BEING D ISPOSED OF BY THIS COMMON ORDER. 2. APART FROM THE GROUND RELATING TO THE MERITS THE REVENUE IS CONTENDING THAT THE LEARNED CIT(A) HAS GRANTED RELI EF TO THE ASSESSEE BY ACCEPTING FRESH EVIDENCES PRODUCED BY THE ASSESSEE BEFORE HIM WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSING OFFICER T O EXAMINE THOSE ADDITIONAL EVIDENCES THUS RESULTING IN VIOLATION O F RULE 46A OF THE INCOME TAX RULES. 3. WE HEARD THE PARTIES ON THIS PRELIMINARY GRO UND. THE FACTS NECESSARY TO DISPOSE OF THIS GROUND ARE STATED IN BRIEF. THE ASSESSEE SHRI K.RAMU NAIDU WAS AN EMPLOYEE IN THE MUNICIPAL CORPORATION OF VISAKHAPATNAM. SMT. K.VENKATA RATNAM IS HIS WIFE. CONSEQUENT TO T HE SEARCH CONDUCTED BY THE ANTI CORRUPTION BUREAU (ACB) OF ANDHRA PRADESH GOVERNMENT THE DEPARTMENT COLLECTED CHARGE SHEET FILED AGAINST HIM AND TOOK UP THE ASSESSMENTS FOR THE YEARS UNDER CONSIDERATION FOR S CRUTINY. DURING THE ASSESSMENT PROCEEDINGS THOUGH THE ASSESSEES APPEAR ED BEFORE THE ASSESSING OFFICER YET BOTH THE ASSESSEES DID NOT P RODUCE ANY EVIDENCE IN SUPPORT OF THEIR CLAIM TOWARDS SOURCES OF THE VARIO US ASSETS THAT WERE NOTICED BY THE ACB AUTHORITIES. HOWEVER BEFORE LE ARNED CIT(A) BOTH THE ITA NO.706 TO 709 /VIZAG/2004&ITA NO.43 OF 05 CO NOS.6 TO 9 & 43 OF 05 PAGE 3 OF 4 ASSESSEES FILED FRESH EVIDENCES AND RELYING UPON TH OSE EVIDENCES THE FIRST APPELLATE AUTHORITY GRANTED RELIEF TO THE ASSESSEES . THUS THE REVENUE IS CONTENDING ABOUT THE VIOLATION OF RULE 46A OF THE I NCOME TAX RULES ON THE PART OF LEARNED CIT(A). 4. AS CONTENDED BY LEARNED DEPARTMENTAL REPRESE NTATIVE THE LEARNED CIT(A) IS REQUIRED UNDER RULE 46A(3) TO AFFORD A RE ASONABLE OPPORTUNITY TO THE ASSESSING OFFICER TO EXAMINE THE ADDITIONAL EVI DENCES IF ANY FILED BEFORE HIM. HOWEVER THE ADMITTED FACT IN THE INSTANT CASE S REMAINS THAT THE LEARNED CIT(A) DID NOT AFFORD THE NECESSARY OPPORTU NITY TO THE ASSESSING OFFICER AND THUS THERE IS CLEAR VIOLATION OF RULE 4 6A OF THE INCOME TAX RULES. IN THESE CIRCUMSTANCES WE ARE CONSTRAINED TO SET AS IDE THE ORDERS PASSED BY LEARNED CIT(A) AND RESTORE THE MATTERS BACK TO T HE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO FRAME THE ASSESSMENT AF RESH AFTER TAKING INTO ACCOUNT THE ADDITIONAL EVIDENCES. NEEDLESS TO MENT ION THE ASSESSEES SHOULD BE GIVEN NECESSARY OPPORTUNITY OF BEING HEAR D. SINCE WE HAVE SET ASIDE THE ENTIRE ISSUES TO THE FILE OF ASSESSING OF FICER WE DO NOT FIND IT NECESSARY TO CONSIDER OTHER GROUNDS OF THE REVENUE AS WELL AS THE CROSS OBJECTIONS FILED BY THESE ASSESSEES. 5. IN THE RESULT ALL THE APPEALS OF FILED BY THE RE VENUE ARE ALLOWED AND THE CROSS OBJECTIONS OF THE ASSESSEES ARE DISMISSED . PRONOUNCED IN THE OPEN COURT ON 23 RD SEPTEMBER 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM DATE: 23-09-2010 ITA NO.706 TO 709 /VIZAG/2004&ITA NO.43 OF 05 CO NOS.6 TO 9 & 43 OF 05 PAGE 4 OF 4 COPY TO 1 ITO WARD-1(1) VISAKHAPATNAM 2 SRI K. RAMU NAIDU 8-4-45 FLAT NO.21 DOCTORS C OLONY VISAKHAPATNAM 3 SMT. K. VENKATARATNAM C/O K. RAMUNAIDU 8-4-45 PLOT NO.21 DOCTORS COLONY VISAKHAPATNAM 4 5 THE CIT VISAKHAPATNAM THE CIT(A) VISAKHAPATNAM 6 THE DR ITAT VISAKHAPATNAM. 7 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM