Income Tax Appellate Tribunal - Hyderabad
Parakala Prabhakar, Hyd, Hyderabad vs Ito, Ward-8(2), Hyd, Hyderabad on 31 May, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES "B" (SMC), HYDERABAD
BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER
I.T.A. No. 393/HYD/2016
Assessment Year: 2009-10
Shri Parakala Prabhakar, Income Tax Officer,
HYDERABAD Vs Ward-8(2),
[PAN: AEJPP6040A] HYDERABAD
(Appellant) (Respondent)
For Assessee : Shri A.V. Raghu Ram, AR
For Revenue : Smt Praveena, DR
Date of Hearing : 31-05-2017
Date of Pronouncement : 31-05-2017
ORDER
This is an appeal filed by assessee against the order of the Commissioner of Income Tax (Appeals)-2, Hyderabad, dated 18-01-2016 (wrongly typed as 18-01-2006). Assessee has raised the main ground that Ld.CIT(A) erred in confirming the assessment as was done by the Assessing Officer (AO) u/s. 144 of the Income Tax Act [Act], without giving an opportunity.
2. AO in the course of assessment completed ex-parte u/s. 144 made an addition of unexplained credits in the bank account to an extent of Rs. 16,56,530/- and disallowed claim of 80C to an extent of Rs. 21,028/-. While making the addition, AO noticed that assessee had deposits to an extent of Rs. 20,02,281/- out of which, he has given credit for interest income and receipts shown by I.T.A. No. 393/Hyd/2016 :- 2 -:
assessee and balance amount of Rs. 16,56,530/- was brought to tax. AO also disallowed the claim u/s. 80C on the reason that no evidence was furnished.
3. Even though appeal was preferred before the Ld.CIT(A), Ld.CIT(A) confirmed the addition as made by the AO, as assessee did not appear before him.
4. At the outset, Ld. Counsel submitted that assessee was not in receipt of any notices and hence, he had no opportunity to explain the credits. Further, it was submitted that even though Ld.CIT(A) mentioned that hearing notices were sent, assessee was not in receipt of any notices and accordingly, there is no opportunity to appear before the Ld.CIT(A) also. It was the pleading that the matter may be set aside to the AO for examination of the issues afresh.
5. After considering the rival contentions, I am of the opinion that assessee should be given one more opportunity to explain the credits in the bank accounts. It is also noticed that AO in the show cause notice dt. 10-10-2011 states that the credits in the bank accounts are to the tune of Rs. 22,51,900/-. However, in para 3 while concluding the addition, it was noted that the total receipts are to the tune of Rs. 20,02,281/-. Even though, AO proposed addition of Rs. 22,51,900/- he reduced it to Rs. 16,56,530/-. There is no reconciliation of either the receipts or the credits given in the assessment. Ld.CIT(A) also did not specify the dates of hearing in the order. He has simply confirmed the order of the AO, stating that the assessee has not appeared before him. In I.T.A. No. 393/Hyd/2016 :- 3 -:
these circumstances, without going to the merits of the orders of AO and CIT(A), I am of the opinion that the entire issue of assessment is to be restored to the file of AO to do it afresh, after giving due opportunity to assessee. If assessee did not receive any notice within three months from the date of service of the order, assessee is advised to furnish the correct address for service of notice and also furnish necessary details before the AO, so as to complete the assessment after due verification. With these observations, the orders of the AO and CIT(A) are set aside and the assessment is restored to the file of AO to do it afresh as per law and facts. Grounds are allowed for statistical purposes.
6. In the result, appeal of assessee is allowed for statistical purposes.
Order pronounced in the open court on 31st May, 2017 upon conclusion of hearing Sd/-
(B. RAMAKOTAIAH) ACCOUNTANT MEMBER Hyderabad, Dated 31st May, 2017 TNMM I.T.A. No. 393/Hyd/2016 :- 4 -:
Copy to :
1. Shri Parakala Prabhakar, Hyderabad. C/o. Samuel Nagadesi, Chartered Accountant, 408, Sri Ramakrishna Towers, Besides Image Hospitals, Nagarjuna Nagar, Ameer Pet, Hyderabad.
2. Income Tax Officer, Ward-8(2), Hyderabad.
3. CIT (Appeals)-2, Hyderabad.
4. Pr.CIT-2, Hyderabad.
5. D.R. ITAT, Hyderabad.
6. Guard File.