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Income Tax Appellate Tribunal, HYDERABAD BENCH “B-SMC”, HYDERABAD
Before: SHRI A. MOHAN ALANKAMONY
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B-SMC”, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER Assessment Year: 2013-14 Pothula Venkata Reddy, Vs. Income Tax Officer, Prop. M/s. Swagath Wines, Ward-1, H.No.3-247/5/4/2/A, MLA Suryapet. Street, Srinagar Colony, Kodad – 508206. PAN: ADFPP 3160 L (Appellant) (Respondent) Assessee by: Sri Y. Bhanunarayan Rao Revenue by: Sri P. Sunil Kumar, DR Date of hearing: 20/01/2020 Date of pronouncement: 30/01/2020 ORDER
This appeal is filed by the assessee against the order of the Ld. CIT(A)-3, Hyderabad in appeal No.0103/ITO-1/SYT/CIT(A)-2/2016-17, dated 17/05/2018 passed U/s. 143(3) r.w.s 250(6) of the Act for the A.Y. 2013-14.
The assessee has raised the following grounds in his appeal:-
“1. On the facts and in the circumstances of the case, the order of dismissal of appeal passed by the Ld. CIT(A) is erroneous and bad in law. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) ought not to have dismissed the appeal for the reason of non- appearance of the appellant/assessee.
3. On the facts and in the circumstances of the case, the Ld. CIT(A) ought not to have dismissed the appeal by upholding the arbitrary addition of Rs. 10,01,250/- made U/s. 69 of the Act by the Ld.AO.
On the facts and in the circumstances of the case, the Ld. CIT(A) ought to have accepted the income admitted / returned f Rs. 10,76,400 by the appellant / assessee for A.Y. 2013-14.”
Brief facts of the case are that the assessee is engaged in liquor business functioning in the name of M/s. Swagath Wines, e-filed his return of income for the AY 2013-14 on 29.03.2014 declaring total income of Rs. 10,76,400/-. The assessee’s case was selected for scrutiny under CASS. During the scrutiny assessment proceedings, on query with regard to the cash deposit of Rs. 10,01,250/- in the assessee’s SBH bank account, the assessee submitted before the Ld. AO that the amount of Rs. 10,01,250/- is paid against the loan obtained from Mr. B. Venkata Narayana but, the Ld. AO rejected the assessee’s claim in the absence of any cogent evidence and the made the addition U/s. 69 of the Act. On appeal, before the Ld. CIT(A) none appeared on behalf of the assessee and therefore, the ld. CIT (A) dismissed the appeal ex-parte. Aggrieved by the order of the Ld. CIT (A), the assessee is in appeal before us.
4. At the outset, the Ld. AR submitted before us that one more opportunity may be provided to the assessee in order to establish the genuineness of the claim because the assessee now has all the evidence to support his arguments. It was further pleaded that the matter may be remitted back to the file of the Ld. AO for fresh consideration as fresh evidence has to be filed. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on the given dates of hearing, neither the assessee nor his Representative appeared before the Ld. CIT (A). It was further submitted that the Ld. CIT (A) had no other option but to pass ex-parte order on merits based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference and appeal of the assessee may be dismissed.
I have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, I do not find much strength in the arguments advanced by the Ld. AR. Even before us, at this stage, neither the assessee nor its representative has filed any evidence to prove the genuineness of the unsecured loans. However, taking into consideration the arguments advanced by the ld. AR, in the interest of justice, I hereby remit the matter back to the file of Ld. AO for de-novo consideration thereby providing the assessee with one more opportunity of being heard. However, at the same breath I hereby caution the assessee to promptly co-operate before the Ld. Revenue Authorities in their proceedings failing which the ld. Revenue Authorities shall be at liberty to pass appropriate orders in accordance with law and merit based on the materials on record.
In the result, appeal of the assessee is allowed for statistical purposes as indicated hereinabove.
Pronounced in the open Court on 30th January, 2020.