DCIT, Hyderabad v. Shri T C Reddy, Hyderabad

ITA 878/HYD/2010 | 1999-2000
Pronouncement Date: 10-12-2010 | Result: Dismissed

Appeal Details

RSA Number 87822514 RSA 2010
Assessee PAN ABAPT0655M
Bench Hyderabad
Appeal Number ITA 878/HYD/2010
Duration Of Justice 5 month(s) 29 day(s)
Appellant DCIT, Hyderabad
Respondent Shri T C Reddy, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 10-12-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 10-12-2010
Assessment Year 1999-2000
Appeal Filed On 11-06-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S.GANESAN AND SHRI AKBER BA SHA ITA NO.878/HYD/2010 : ASSESSME NT YEAR 1999-2000 DY. COMMISSIONER OF INCOME- TAX CIRCLE 3(2) HYDERABAD V/S SHRI T.C.REDDY HYDERABAD. ( PAN- ABAPT 0655 M ) (APPLICANT) (RESPONDENT) APPELLANT BY : SHRI K.E.SUNIL BABU RESPONDENT BY : SHRI S.RAMA RAO O R D E R PER AKBER BASHA ACCOUNTANT MEMBER THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE OR DER OF THE CIT(A) TIRUPATI DATED 15.3.2010 FOR THE ASSESSMENT YEAR 1999- 2000. 2. EFFECTIVE GROUNDS OF THE REVENUE IN THIS APPEAL R EAD AS FOLLOWS- '1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FA CTS AND IN LAW. 2. THE CIT(A) OUGHT TO HAVE UPHELD THE ACTION OF THE AO IN DISALLOWING DEDUCTION UNDER S .80HHC. 3. ' 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE IS AN INDIVIDUAL ORIGINALLY FILED RETURN OF INCOME FOR TH E ASSESSMENT YEAR 1999-2000 ON 31.12.1999 DECLARING A TOTAL INCOME OF R S.1 32 963 AFTER CLAIMING INTER-ALIA DEDUCTION UNDER S.80HHC OF R S.82 05 940. THE SAID RETURN WAS PROCESSED UNDER S.143(1) OF THE ACT ON 27.2.2000 ACCEPTING THE INCOME DECLARED. THEREAFTER AS THE ASSESSING OFFICER ITA.NO.878/HYD/2010 SHRI T.C.REDDY HYDERABAD 2 WAS OF THE VIEW THAT INCOME CHARGEABLE TO TAX HAS ESCAPED ASSESSMENT HE REOPENED THE ASSESSMENT BY ISSUING NOTICE UNDER S.148 OF THE ACT. IN RESPONSE TO THE SAID NOTICE ASSESSE E FILED RETURN OF INCOME ON 13.4.2006 CLAIMING THE SAME AS 'REV ISED RETURN OF INCOME' WHEREIN THE ASSESSEE INTER-ALIA CLAIMED DEDUCTI ON UNDER S.80HHC AT RS.61 47 147. THE ASSESSING OFFICER TAKING NO TE OF THE FACT THAT THE ASSESSEE DID NOT FURNISH FORM NO.10CCAC DI SALLOWED THE INTER-ALIA ASSESSEE'S CLAIM FOR DEDUCTION UNDER S.80HHC OF RS.61 47 147 AND COMPLETED THE ASSESSMENT ON A TOTAL IN COME OF RS.86 72 964 VIDE ORDER OF ASSESSMENT DATED 10.12.2007 PASSED UNDER S.143(3) READ WITH S.147 OF THE ACT. 4. DURING THE APPELLATE PROCEEDINGS BEFORE THE CIT( A) ASSESSEE FILED THE REVISED FORM NO.10CCAC AND SOUGHT THE DEDUCTION UNDER S.80HHC TO BE ALLOWED. THIS BEING AN ADDITIONA L ALLOWANCE REMANDED THE MATTER TO THE ASSESSING OFFICER AND AFTER CONSIDERING THE REMAND REPORT OF THE ASSESSING OFFICER OBSERVING TH AT SINCE THE CLAIM OF THE ASSESSEE UNDER S.80HHC IS SUPPORTED BY THE AUD ITOR'S REPORT WHICH IS ADMISSIBLE EVEN AT THE APPEAL STAGE DIR ECTED THE ASSESSING OFFICER TO GRANT DEDUCTION UNDER S.80HHC FOR THE AMOUNT CLAIMED. AGGRIEVED BY THE ORDER OF THE CIT(A) ASSESSEE IS IN PRESENT APPEAL BEFORE US. 5. LEARNED DEPARTMENTAL REPRESENTATIVE STRONGLY REL YING ON THE ORDER OF ASSESSMENT SUBMITTED THAT THE CIT(A) IS NO T JUSTIFIED IN ALLOWING RELIEF UNDER S.80HHC TO THE ASSESSEE. LEARNED CO UNSEL FOR THE ASSESSEE ON THE OTHER HAND STRONGLY RELIED ON THE ORDER OF THE CIT(A). ITA.NO.878/HYD/2010 SHRI T.C.REDDY HYDERABAD 3 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THA T THE ASSESSING OFFICER HAS REJECTED THE ASSESSEE'S CLAIM FOR DEDUCTION UNDER S.80HHC ONLY ON THE GROUND THAT IT WAS NOT SUPPORTED BY THE AUDITOR'S REPORT IN FORM 10CCAC WHICH IS A PRE-REQUISITE FOR AL LOWING DEDUCTION UNDER S.80HHC. SINCE THE ASSESSEE HAS FILED SUCH A REPORT I N THE COURSE OF APPELLATE PROCEEDINGS THE DEFECT IN THE CLAIM OF THE ASSESSEE HAS BEEN CURED. HOWEVER SINCE SUCH A REPORT WAS NOT BEFO RE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND AS SUCH IT CONSTITUTED ADDITIONAL EVIDENCE THE CIT(A) REMA NDED THE MATTER TO THE FILE OF THE ASSESSING OFFICER. AFTER CONSIDE RING THE REMAND REPORT OF THE ASSESSING OFFICER THE CIT(A) DIRECT ED THE ASSESSING OFFICER TO ALLOW THE CLAIM OF THE ASSESSEE FOR RELI EF UNDER S.80HHC IN THE LIGHT OF THE AUDITOR'S CERTIFICATE IN FOR M 10 CCAC FILED DURING THE APPEAL PROCEEDINGS. WE FIND NO INFIRMITY I N THE ACTION OF THE CIT(A). WE ACCORDINGLY UPHOLD THE IMPUGNED ORDER OF THE CIT(A) AND REJECT THE GROUNDS OF THE REVENUE IN THIS APPEAL. 7. IN THE RESULT REVENUE'S APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 10TH DECEMBER 2010. SD/- SD/- (N.R.S.GANESAN) (AKBER BASHA) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 10TH DECEMBER 2010 COPY FORWARDED TO: 1. SHRI T.C.REDDY 8-2-293/82/F/10 ROAD NO.8 FILM NAGAR BANJARA HILLS HYDERABAD 2. DY. COMMISSIONER OF INCOME-TAX CIRCLE 3(2) HYDERAB AD ITA.NO.878/HYD/2010 SHRI T.C.REDDY HYDERABAD 4 3. CIT(A) TIRUPATI 4. COMMISSIONER OF INCOME-TAX-III HYDERABAD. 5. THE D.R. ITAT HYDERABAD. B.V.S.