Income Tax Appellate Tribunal - Hyderabad
Shanta Sriram Constructions Private ... vs Dy. Commissioner Of Income Tax , ... on 24 March, 2021
IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES "A" : HYDERABAD
(THROUGH VIDEO CONFERENCE)
BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER
AND
SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER
I.T.A. Nos. 188 & 189/HYD/2019
Assessment Years: 2006-07 & 2007-08
Shanta Shriram Constructions The Deputy Commissioner
Private Limited, Vs of Income Tax,
HYDERABAD Circle-3(1),
[PAN: AADCS4180M] HYDERABAD
(Appellant) (Respondent)
For Assessee : Shri S.Rama Rao, AR
For Revenue : Shri Sunil Kumar Pandey, DR
Date of Hearing : 23-02-2021
Date of Pronouncement : 24-03-2021
ORDER
PER S.S.GODARA, J.M. :
These two assessee's appeals for AYs.2006-07 & 2007-08 arise from the CIT(A)-3, Hyderabad's order(s) dated 09-11- 2018 passed in appeal Nos.0229 & 0228/ DCIT-3(1) / Hyd / CIT(A)-3 / 2016-17; respectively in proceedings u/s.154 of the Income Tax Act, 1961 [in short, 'the Act'].
Heard both parties. Case files perused.
2. It transpires at the outset that the assessee's identical substantive ground in both these appeals read as under:
"1) The order of the learned Commissioner of Income-tax (Appeals) is erroneous both on facts and in law.
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ITA Nos. 188 & 189/Hyd/2019
2) The learned Commissioner of Income-tax (Appeals) erred in confirming the action of the Assessing Officer in rejecting the application u/s 154 of the I.T.Act filed by the appellant.
3) The learned Commissioner of Income Tax (Appeals) ought to have considered the fact that the provisions of Sec.40(a)(ia) have no application when the recipient admitted the same as its income and directed to delete the additions made by applying the provisions of Sec.40(a)(ia) of the I.T.Act.
4) The learned Commissioner of Income Tax (Appeals) ought to have seen that for the purpose of completing the assessment u/s 153A, a notice is issued; in response to the same a return of income was filed and that, therefore, the income admitting in the return of income in response to notice u/s 153A should be the basis for assessment;
5) Any other ground or grounds that may be urged at the time of hearing".
3. Learned authorised representative vehemently contended during the course of hearing that both the learned lower authorities have erred in law and on facts in rejecting the assessee's rectification petitions(s) preferred on the ground that Section 40(a)(ia)'s amendment by way of 1st proviso carries retrospective effect as per Virgin Creations' case ITA No. 302/2011, G.A.No.32000/2011. The assessee's case appears to be prima facie justifiable at the first instance. The fact however, remains that the Assessing Officer has declined its rectification(s) for the sole reason that it had itself disallowed the corresponding expenditure in its computation which is very much evident from a perusal of the first round assessment dt.31-12-2009. And the very factual position continued even in Section 143A r.w.s.143(3) assessment dt.30- 12-2014 as well. It was thus an instance of the assessee's computation itself having being accepted at the Assessing Officer's end without any modification therein. Hon'ble apex court's landmark decision in T.S.Balaram, ITO Vs. M/s.Volkart :- 3 -:
ITA Nos. 188 & 189/Hyd/2019 Brothers [82 ITR 50] (SC) holds that a mistake must be an apparent one than requiring a longdrawn process. We thus decline both these assessee's appeals seeking rectification u/s.154 of the Act. Suffice to say it is made clear that our instant adjudication shall not bar the assessee from taking recourse to appropriate remedy under the law; if any.
4. These two assessee's appeals are dismissed in above terms. A copy of this common order be placed in the respective case files.
Order pronounced in the open court on 24 th March, 2021 Sd/- Sd/-
(LAXMI PRASAD SAHU) (S.S.GODARA)
ACCOUNTANT MEMBER JUDICIAL MEMBER
Hyderabad,
Dated: 24-03-2021
TNMM
:- 4 -:
ITA Nos. 188 & 189/Hyd/2019
Copy to :
1.Shanta Sriram Constructions Private Limited, 501, Oasis Centre, Begumpet Main Road, Somajiguda, Hyderabad.
2.The Dy.Commissioner of Income Tax, Circle-3(1), Hyderabad.
3.CIT(Appeals)-3, Hyderabad.
4.Pr.CIT-3, Hyderabad.
5.D.R. ITAT, Hyderabad.
6.Guard File.