THE ITO,, GUNTUR vs. SRI BATHULA RAMABABU,, GUNTURU DISTT.

ITA No.214/Vizag/2017 Bathula Rambabu, Guntur आयकर अपीऱीय अधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री बी आर बासकारन, ऱेखा सदस्य एिं श्री िुिुरू आर. एऱ. रेड्डी, न्याययक सदस्य के समक्ष BEFORE SHRI B.R. BASKARAN, ACCOUNTANT MEMBER & SHRI DUVVURU R.L. REDDY, JUDICIAL MEMBER आयकर अऩीऱ सं./I.T.A.No.214/Vizag/2017 (ननधधारण वषा / Assessment Year: 2010-11) ITO, Ward-1(3) Bathula Rambabu Guntur Guntur [PAN No.ABGPN4065K] (अपीऱार्थी / Appellant) (प्रत्यार्थी / Respondent) अऩीऱधथी की ओर से / Appellant by : Shri R.S. Aravindakshan, DR प्रत्यधथी की ओर से / Respondent by : N O N E सुनवधई की तधरीख / Date of hearing : 19.03.2018 घोषणध की तधरीख / Date of Pronouncement : 22.03.2018 आदेश / O R D E R PER Duvvuru R.L. Reddy, Judicial Member:

This appeal filed by the revenue is directed against order of the CIT(A)-1, Guntur dated 30.12.2016 for the assessment year 2010-11. The only effective ground raised by the revenue is that the CIT(A) erred in granting relief by deducting the addition made by the Assessing Officer towards sundry creditors of ` 65 lakhs.

ITA No.214/Vizag/2017 Bathula Rambabu, Guntur 2. Brief facts of the case are that the assessee e-filed his return of income for the assessment year 2010-11 on 12.10.2011 admitting total income of ` 4,66,500/-. The assessment was completed u/s 143(3) of the Income Tax Act, 1961 (hereinafter called as 'the Act') on 28.3.2013 by disallowing the credits to the extent of ` 65 lakhs and completed the assessment and total income is assessed at ` 69,66,500/-. Aggrieved by the disallowance of credits, the assessee preferred an appeal before CIT(A)-1, Guntur. After considering the submissions of the assessee, Ld. CIT(A) allowed the appeal of the assessee. 3. Aggrieved, the revenue preferred an appeal before us. The Ld.D.R. submits that the assessee has introduced credits for an amount of ` 65 lakhs and filed no confirmations and details of the creditors, such as PAN/Account copy of the creditors. Therefore, genuineness of the creditors is not acceptable, thus, the addition made on account of disallowance of credits to the extent of ` 65 lakhs be confirmed. 4. Upon perusal of the order of the ld. CIT(A), the assessee is a civil contractor and during the scrutiny proceedings, the Assessing Officer made an addition of Rs. 65 lakhs under the head ‘unexplained credits’. The Assessing Officer has made the addition on the ground that the assessee has not furnished the complete and proper details for sundry creditors. In fact, assessee had furnished all the documents, the 2

ITA No.214/Vizag/2017 Bathula Rambabu, Guntur Assessing Officer failed to consider the ledger extracts of expenditure etc. He further extracted that the major expenditure of the assessee is on tippers rent, tippers maintenance, bulldozer rent, bulldozer maintenance and proclainer rent and unpaid dues are shown as sundry creditors in the balance sheet. The ld. CIT(A) further observed that the assessee has filed the confirmations and the details of the creditors. After considering the same, the ld.CIT(A) allowed the assessee’s appeal. 5. We have heard both the parties, perused the materials available on record and gone through the orders of the authorities below. 6. The main contention of the Ld. D.R. is that the details, which have been filed before the CIT(A) have not been filed before the A.O., therefore, A.O. had no opportunity to examine the same and the CIT(A) also without asking any remand report from the A.O., he has decided the issue in favour of the assessee. Upon perusal of the assessment order, there is no evidence placed before the A.O. to establish the genuineness of the creditors and also the details of sundry creditors etc. The ld. CIT(A) also failed to call for remand report from the Assessing Officer. Therefore, we are of the considered opinion that this is a fit case to remit the matter back to the file of the ld. CIT(A) with a direction to examine this issue afresh after obtaining remand report

ITA No.214/Vizag/2017 Bathula Rambabu, Guntur from the A.O. and after giving an opportunity of being heard to the assessee. 7. In the result, the appeal filed by the revenue is allowed for statistical purposes. The above order was pronounced in the open court on 22nd Mar’ 2018.

Sd/- sd/- (बी आर बासकारन) (िुिुरू आर. एऱ. रेड्डी) (B.R. BASKARAN) (DUVVURU R.L. REDDY) ऱेखा सदस्य/ACCOUNTANT MEMBER न्याययक सदस्य/JUDICIAL MEMBER ववशधखधऩटणम /Visakhapatnam: ददनधंक /Dated : 22/03/2018 VG/Vr आदेश की प्रनतलऱवऩ अग्रेवषत/Copy of the order forwarded to:- 1. अऩीऱधथी / The Appellant – The ITO, Ward-1(3), Guntur 2. प्रत्यधथी / The Respondent – Sri Bathula Rambabu, D.No.7/402, Vaddera Bazar, Dachepalli (PO&Mdl), Guntur Dist. 3. आयकर आयुक्त / The Pr. CIT, Guntur 4. आयकर आयुक्त (अऩीऱ) / The CIT (A)-1, Guntur 5. ववभधगीय प्रनतननधध, आय कर अऩीऱीय अधधकरण, ववशधखधऩटणम / DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधनुसधर / BY ORDER // True Copy // Sr. Private Secretary ITAT, VISAKHAPATNAM