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Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”, HYDERABAD
Before: SMT. P. MADHAVI DEVI & SHRI INTURI RAMA RAO
PER INTURI RAMA RAO, A.M. :
This appeal filed by assessee-company is directed against the order of the Commissioner of Income Tax (Appeals)-1, Hyderabad, dated 14-06-2016 for the AY. 2000-01. The appellant raised the following Grounds of Appeal:
“1. The order of the learned Commissioner of Income-Tax (Appeals) is erroneous both on facts and in law. 2. The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in treating the share
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application money to an extent of Rs. 2,25,000/- as the income of the appellant. 3. The learned Commissioner of Income-Tax (Appeals) erred in confirming the disallowance of depreciation of Rs. 5,88,249/-. 4. The learned Commissioner of Income-Tax (Appeals) erred in not considering the additional ground of appeal contesting the addition of Rs. 15 lakhs made by the Assessing Officer towards share application money. 5. Any other ground that may be urged at the time of hearing”.
Brief facts of the case are as under: The assessee is a domestic company, engaged in the business of poultry farm, filed its return of income for the AY. 2000-01 on 28-11-2000, declaring loss of Rs. 24,125/-. Against the said return of income, assessment was completed u/s. 143(3) of the Income Tax Act [Act] vide order dt. 13-03-2003 at a total income of Rs. 12,95,008/-. The said return of income was revised on 23-01-2001, disclosing total income at Rs. 4,81,808/-. In the revised return of income, the appellant had offered undisclosed income of share application money of Rs. 15 Lakhs and claimed depreciation under Income tax rules for Rs. 11,69,017/- and accordingly offered total income of Rs. 4,81,808/-. Against the said return of income, assessment was completed by the Assessing Officer u/s. 143(3) of the Act vide order dt. 13-03-2003. While doing so, the Assessing Officer made an addition on account of alleged unexplained investment in the form of share application money of Rs. 2,25,000/-, excess deprecation of Rs. 5,88,200/- was disallowed. Being aggrieved, the appellant preferred an appeal before the CIT(A) and raised the additional grounds of appeal.
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The appellant also filed application for admission of one additional ground of appeal, which reads as under:
PETITION FOR ADMISSION OF ADDITIONAL GROUNDS OF APPEAL:
The appellant herein is a company in which public are not substantially interested carrying on the business of poultry farming: For the assessment year 2000-2001, the Assessing Officer completed the assessment on 13.3.2003 determining the total income at Rs.12,95,008/-. This includes an amount of Rs.15 lakhs offered by the appellant towards share application money. The appellant obtained letters of confirmation and filed before the Assessing officer during the course of assessment proceedings even in respect of share application money of Rs.15 lakhs. The Assessing Officer did not consider the letters of confirmation filed with regard to Rs.15 lakhs. While filing the appeal before the Hon'ble Commissioner of Income- Tax (Appeals), the appellant did not raise a specific ground contesting the addition of Rs.15 lakhs. The appellant, therefore, is submitting this application for admission of the following additional ground.
GROUND OF APPEAL:
"The Assessing Officer erred in making an addition of Rs.15 lakhs towards share application money received from various persons inspite of the fact that the share applicants filed the letters of confirmation and also admitted the source for such investment"
The appellant requests the Hon'ble Commissioner of Income-Tax (Appeals) to kindly admit the above mentioned ground of appeal and pass appropriate order in the matter”.
On perusal of the impugned order, we find that the CIT(A) had not adjudicated this additional ground of appeal by holding that this ground of appeal is related to Ground No.1. However, we find that both the issues are not connected with each other and this additional ground of appeal is required to be adjudicated by the CIT(A). Hence we remand the same to the file of CIT(A) for denovo adjudication in accordance with
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law, after giving an opportunity of being heard to the appellant.
In the result, the appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court on 31st August, 2018
Sd/- Sd/- (P. MADHAVI DEVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated 31st August, 2018 TNMM
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Copy to : 1. Abhyudaya Farms (P) Ltd., C/o. Sri S. Rama Rao, Advocate, Flat No. 102, Shriya’s Elegance, 3-6-643, Street No. 9, Himayat Nagar, Hyderabad.
The Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad.
CIT(Appeals)-1, Hyderabad.
Pr.CIT-1, Hyderabad.
D.R. ITAT, Hyderabad.
Guard File.