Kuldeep Singh Bagga, Hyderabad v. DCIT, Hyderabad

ITA 906/HYD/2008 | 2004-2005
Pronouncement Date: 13-01-2011 | Result: Allowed

Appeal Details

RSA Number 90622514 RSA 2008
Bench Hyderabad
Appeal Number ITA 906/HYD/2008
Duration Of Justice 2 year(s) 7 month(s) 27 day(s)
Appellant Kuldeep Singh Bagga, Hyderabad
Respondent DCIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 13-01-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 13-01-2011
Assessment Year 2004-2005
Appeal Filed On 16-05-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI AKBER BASHA ACCOUNTANT MEMB ER ITA NO.906/HYD/08 : ASST. YEAR: 2004-05 KULDEEP SINGH BAGGA NARAYANAGUDA HYDERABAD. (PAN:ABXPB 9324 Q) VS DCIT CENTRAL CIR. 1 HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. RAMA RAO RESPONDENT BY : SMT. VASUNDHARA SINHA O R D E R PER AKBER BASHA ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDE R OF THE CIT (A)-I HYDERABAD DATED 25-2-2008 AND IT PERT AINS TO THE ASSESSMENT YEAR 2004-05. THERE IS A DELAY OF 11 DAYS IN F ILING THE APPEAL. IN THIS REGARD IT IS SUBMITTED THAT DURING T HE RELEVANT PERIOD ALL THE INCOME-TAX MATTERS OF THE ASSESSEE WERE BEING LO OKED AFTER BY THE CHARTERED ACCOUNTANT AND THE APPEAL PAPERS WERE PR EPARED WELL IN TIME AND THE APPEAL FEE WAS ALSO REMITTED INTO THE B ANK ON 26-4-2008 I.E. BEFORE THE DUE DATE FOR FILING THE APPEAL. B UT THE SAID CHARTERED ACCOUNTANT ABRUPTLY LEFT THE SERVICES OF THE ASSESSEE TOWARD S THE END OF APRIL 2008 AND THERE WAS SOME DELAY IN APPOINTING TH E NEW INCUMBENT. LATER WHEN THE NEW INCUMBENT JOINED THE SERVICES WHILE GOING THROUGH THE PENDING PAPERS IT WAS NOTICED THAT THE APPEAL PAP ERS WERE LYING IN THE OFFICE OF THE ASSESSEE. IMMEDIATELY THEREAFTER TH E APPEAL WAS FILED ITA NO. 906/HYD/08 KULDEEP SINGH BAGGA HYD. 2 BEFORE THE TRIBUNAL ON 16-5-2008 AND IT IS FURTHER SUBMITTED THAT THE DELAY IN FILING THE APPEAL IS FOR THE REASONS BEYOND T HE CONTROL OF THE ASSESSEE AND IS NOT INTENTIONAL. AFTER CONSIDERING THE E XPLANATION OF THE ASSESSEE WE ARE SATISFIED THAT THERE IS A REASONABLE CA USE FOR THE SAID DELAY IN FILING THE APPEAL BEFORE THE TRIBUNAL AND THEREFORE WE CONDONE THE DELAY OF 11 DAYS AND ADMIT THE APPEAL FOR DISPOSAL. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS AGAINST THE IN CLUSION OF THE PROFIT OF RS.79 06 356/- OF M/S BAGGA TAMILNADAU MARKETING AGENCIES IN THE HANDS OF THE ASSESSEE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE AN INDIV IDUAL DERIVES INCOME FROM SALARY AND BUSINESS AND OTHER SOURCES OF INCOME. FOR THE ASSESSMENT YEAR UNDER CONSIDERATION HE HAS FILED HIS RETURN OF INCOME DECLARING TOTAL INCOME OF RSA.4 26 050/- AND THE RETURN WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. LATER THE SAM E WAS CONVERTED INTO SCRUTINY ASSESSMENT BY ISSUE OF NOTICE UNDER SECTION 143(2) OF THE ACT. THE ASSESSING OFFICER DETERMINED THE TOTAL INCOME OF THE ASSESSEE AT RS.83 32 404/-. WHILE DETERMINING THE TO TAL INCOME OF THE ASSESSEE THE ASSESSING OFFICER INCLUDED THE PROFIT OF R S.79 06 356/- OF BAGGA TAMILNADU MARKETING AGENCIES. AGGRIEVED AGAI NST THE ORDER OF THE ASSESSING OFFICER THE ASSESSEE WENT IN APPEAL BEFORE TH E CIT (A). ON APPEAL THE CIT(A) BY CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN INCLUDING THE PROFIT OF RS.79 06 356 OF M/S BAGGA T AMILNADU MARKETING AGENCIES IN THE HANDS OF THE ASSESSEE AND ACCORD INGLY DISMISSED THE APPEAL OF THE ASSESSEE. FURTHER AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US. ITA NO. 906/HYD/08 KULDEEP SINGH BAGGA HYD. 3 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND THAT THIS ISSUE HAD COME UP BEFORE THIS TRIBUNAL IN THE CASE OF THE ASSESSEE FOR THE A SSESSMENT YEAR 2001-02 IN IT [SS] A NO.116/H/05 AND ITA NO.698/H/0 5 DATED 17-8- 2007 AND GAVE A FINDING THAT IN FACT THERE WAS A MERG ER OF BAGGA TAMILNADU MARKETING AGENCIES INTO GEMINI DISTILLERIES [HYDERABAD] PVT. LTD AND HENCE THE PROFIT OF BAGGA TAMILNADU MARKETI NG AGENCIES BELONGED TO GEMINI DISTRILLERIES AND THE SAME SHOULD NO T BE INCLUDED IN THE HANDS OF THE ASSESSEE. THUS RESPECTFULLY FOLLOWING THE EARLIER ORDER OF THE TRIBUNAL WE HOLD THAT THE PROFIT OF BAGGA T AMILNADU MARKETING AGENCIES CAN NOT BE INCLUDED IN THE HANDS OF THE ASSESSEE FO R THE YEAR UNDER CONSIDERATION. ACCORDINGLY WE DELETE THE ADDITI ON. 5. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON 13-01-2011. SD/- SD/- (N.R.S. GANESAN) (AKBER BASHA) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 13-01-2011. COPY FORWARDED TO: 1. SHRI S. RAMA RAO ADVOCATE STREET NO.7 FLAT NO. 103 INDIRADEVI NILAYAM HIMAYATNAGAR HYDERABAD. 2. 3. 4.. 5. JMR* DCIT CENTRAL CIRCLE-I HYDERABAD. CIT (A)-I HYDERABAD. CIT AP. HYDERABAD. THE DR ITAT HYDERABAD.