Hitesh Kumar Singhni, Hyderabad v. ITO, Hyderabad

IN THE INCOME-TAX APPELLATE TRIBUNAL HYDERABAD BENCH 'A' BEFORE SHRI N.R.S.GANESAN AND SHRI CHANDRA POOJARI I.T.A.NO.728/HYD/2008 ASSESSMENT YEAR 2004-05 HITESH KUMAR SINGHVI HYDERABAD. .. APPELLANT (PAN AITPS2032P) VERSUS INCOME-TAX OFFICER WARD 4(2) HYDERABAD. ..RESPONDENT APPELLANT BY : SHRI K.RAGHUNATH RESPONDENT BY : H.PHANI RAJU O R D E R PER N.R.S.GANESAN JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE CIT (APPEALS) V HYDERABAD DATED 29-2-2008 AND PERTAI NS TO ASST. YEAR 2004-05. THE ONLY ISSUE THAT ARISES FOR CONSIDERATION IN THI S APPEAL IS ADDITION UNDER SEC. 68 OF THE INCOME-TAX ACT 1961. 2. SHRI K.RAGHUNATH LEARNED REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS FILED CONFIRMATION LETTERS AND OTH ER DETAILS BEFORE THE CIT (A). THE BANK STATEMENT AND OTHER MATERIALS WERE ALSO FI LED BEFORE THE ASSESSING OFFICER. HOWEVER THE AO HAS NOT ACCEPTED THE CASE OF THE ASSESSEE. REFERRING TO THE COMPUTATION STATEMENT AND OTHER MATERIAL AVA ILABLE IN THE PAPER BOOK THE LEARNED REPRESENTATIVE SUBMITTED THAT THE LOAN CREDITS WERE ALREADY DISCLOSED TO THE DEPARTMENT BY THE ASSESSEE. REFERR ING TO THE LETTER OF THE AO DATED 29-9-2009 STATING THAT SOME OF THE PAPERS WER E NOT AVAILABLE BEFORE HIM THE LEARNED REPRESENTATIVE SUBMITTED THAT THESE PAP ERS WERE FILED BEFORE THE 2 CIT (A). HOWEVER THE MATERIAL AVAILABLE BEFORE THE AO WAS MORE THAN SUFFICIENT TO PROVE THE CREDITS. 3. ON THE CONTRARY SHRI H.PHANI RAJU LEARNED DEPA RTMENTAL REPRESENTATIVE SUBMITTED THAT ONE OF THE GROUNDS TAKEN BY THE ASSE SSEE IS THAT THE AO COMPLETED THE ASSESSMENT IN A HASTE AS IT WAS GETTI NG TIME-BARRED AND ADEQUATE OPPORTUNITY WAS NOT GIVEN TO THE ASSESSEE. ACCORDING TO THE LEARNED DEPARTMENTAL REPRESENTATIVE THIS GROUND IS TAKEN B Y THE ASSESSEE AS GROUND NO.3. IN VIEW OF THE ABOVE THE LEARNED DEPARTMENTA L REPRESENTATIVE SUGGESTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE AO TO GIVE ADEQUATE OPPORTUNITY TO THE ASSESSEE AND TO RE-CONSIDER THE ENTIRE ISSUE. THE LEARNED REPRESENTATIVE FOR THE ASSESSEE HAS NO OBJECTION FO R REMITTING THE MATTER BACK TO THE FILE OF THE AO. 4. WE HAVE ALSO CAREFULLY GONE THROUGH THE ORDERS O F THE LOWER AUTHORITIES. THE ASSESSEE HAS FILED VOLUMINOUS PAPER BOOK BEFORE THIS TRIBUNAL. THE AO BY A LETTER DATED 22-9-2009 ADDRESSED THE DEPARTMENTAL R EPRESENTATIVE STATED THAT SOME OF THE PAPERS AVAILABLE IN THE PAPER BOOK WERE NOT FILED BEFORE THE AO. THE AO ALSO APPEARS TO HAVE COMPLETED THE ASSESSMEN T SINCE IT WAS GETTING TIME-BARRED. THE LEARNED DEPARTMENTAL REPRESENTATIV E SUGGESTED TO REMIT THE MATTER BACK TO THE FILE OF THE AO TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO ESTABLISH THE CASH CREDITS. WE ARE ALSO OF THE O PINION THAT AN OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO EXPLAIN THE CRED ITS BEFORE THE AO. IN VIEW OF THE ABOVE WE SET ASIDE THE ORDERS OF THE LOWER AUT HORITIES AND REMIT THE MATTER BACK TO THE FILE OF THE AO. THE AO SHALL CONSIDER T HE ISSUE AFRESH AFTER GIVING 3 REASONABLE OPPORTUNITY TO THE ASSESSEE AND THEREAFT ER DECIDE THE SAME IN ACCORDANCE WITH LAW. 5. WITH THE ABOVE OBSERVATIONS THE APPEAL OF THE A SSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 29-1-10. SD SD (CHANDRA POOJARI) (N.R.S.GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD 29TH JANUARY 2010. RRRAO. COPY OF THE ORDER FORWARDED TO:- 1. K.RAGHUNATH & CO. CHARTERED ACCOUNTANTS 3-5-804/2 /1 FIRST FLOOR KING KOTHI ROAD HYDERGUDA HYDERABAD 500 029. 2. ITO WARD 4(2) HYDERABAD. 3. CIT IV HYDERABAD. 4. CIT (A) V HYDERABAD. 5. DR ITAT HYDERABAD.