SHAKTHI CONSTRUCTIONS,HYDERABAD vs. DY. COMMISSIONER OF INCOME TAX, CIRCLE-11(1), HYDERABAD

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ITA 1208/HYD/2017Status: DisposedITAT Hyderabad15 February 2019AY 2006-073 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the CIT(A) dismissing the appeal ex-parte violated principles of natural justice. Therefore, the matter was restored to the CIT(A) for a decision on merits after affording the assessee a reasonable opportunity of being heard.

What were the facts?

The assessee firm engaged in construction filed its return of income. A survey was conducted, and the Assessing Officer (AO) estimated income at 10% of gross receipts due to lack of proper vouchers. The CIT(A) dismissed the assessee's appeal ex-parte for non-appearance.

What were the issues?

Whether the CIT(A) was justified in dismissing the appeal ex-parte without affording a proper opportunity of hearing to the assessee.

Which sections of the Income-tax Act were involved?

Section 133A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI S. RIFAUR RAHMAN

For Appellant: Shri A.V. Raghuram
For Respondent: Shri Murthi Naik

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA No. 1208/Hyd/2017 Assessment Year: 2006-07 Shakthi Constructions, vs. Dy. Commissioner of Income- Hyderabad. tax, Circle – 11(1), Hyderabad. PAN – ABEFS8747H (Appellant) (Respondent) Assessee by : Shri A.V. Raghuram Revenue by : Shri Murthi Naik Date of hearing : 07-02-2019 Date of pronouncement : 15-02-2019

O R D E R PER S. RIFAUR RAHMAN, A.M.: This appeal filed by assessee is directed against the order of CIT(A) – 7, Hyderabad, dated 07/11/2016 for AY 2006-07. 2. Brief facts of the case are that assessee firm engaged in the business of construction of house for private individuals, filed its return of income on 30/10/2006 for AY 2006-07 admitting a total income of Rs. 8,57,660/-. A survey operation u/s 133A of the Income- tax Act, 1961 (in short ‘the Act’) was conducted on 08/03/2007 and the case was converted into scrutiny. The AO observed that during the assessment proceedings, the AR produced books of accounts which were not supported by proper vouchers and hence, estimated the income at 10% of the gross receipts and the income was assessed at Rs. 17,80,725/-. 3. Aggrieved by the order of AO, the assessee preferred an appeal before the CIT(A).

2 ITA No. 1208 /Hyd/2017 Shakthi Constructions, Hyd. 4. The CIT(A) dismissed the appeal of the assessee by observing that though sufficient opportunities given to assessee, the assessee did not appear for any hearing after due service of notices, hence, not interested in pursuing the appeal.

5.

Aggrieved by the order of CIT(A), the assessee is in appeal before us.

6.

In the grounds of appeal, the assessee submitted that the CIT(A) dismissed the appeal in-limine, which is in gross violation of principles of natural justice, as he could have given proper opportunity to the assessee to represent its case.

7.

Referring to the grounds of appeal, ld. AR submitted that the learned CIT(A) decided the matter ex-parte and, therefore, in the interest of justice, the matter may be restored to the file of CIT(A) for deciding various grounds of appeal on merits. The learned DR objected to the aforesaid statement of the learned AR.

7.

Considered the rival submissions and perused the material on record. We are of the view that interest of justice will be served if the matter is restored to the file of first appellate authority for deciding various grounds of appeal of the assessee on merits. Accordingly, the CIT(A) is directed to afford reasonable opportunity of being heard to the assessee and thereafter decide the appeal on merits.

8.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Pronounced in the open court on 15th February, 2019.

Sd/- Sd/- (P. MADHAVI DEVI) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Dated: 15th February, 2019. kv

3 ITA No. 1208 /Hyd/2017 Shakthi Constructions, Hyd. Copy to:- 1) Shakthi Constructions, C/o S/Shri K. Vasantkumar, AV Raghuram, P. Vinod & M. Neelima Devi, Advocates, 610 Babukhan Estate, Basheerbagh, Hyderabad – 500 001. 2) DCIT, Circle – 11(1), IT Towers, AC Guards, Masabtank, Hyderabad – 04. 3) CIT(A) – 7, Hyderabad. 4) Pr. CIT - 7, Hyd. 5) The Departmental Representative, I.T.A.T., Hyderabad. 6) Guard File

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