Sri Y.Ramachandra Reddy, Hyderabad v. DCIT, Hyderabad

ITA 498/HYD/2009 | 2004-2005
Pronouncement Date: 29-01-2010 | Result: Allowed

Appeal Details

RSA Number 49822514 RSA 2009
Assessee PAN AAEPY9574F
Bench Hyderabad
Appeal Number ITA 498/HYD/2009
Duration Of Justice 9 month(s) 15 day(s)
Appellant Sri Y.Ramachandra Reddy, Hyderabad
Respondent DCIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-01-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 29-01-2010
Date Of Final Hearing 12-01-2010
Next Hearing Date 12-01-2010
Assessment Year 2004-2005
Appeal Filed On 13-04-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.486/HYD/2009 ASSTT. YEARS: 2003 -04 ITA NO.487/HYD/2009 ASSTT. YEARS 2005-06 ITA NO.498/HYD/2009 ASSTT. YEARS 2004-05 SHRI Y. RAMACHANDRA REDDY HYDERABAD VS THE DCIT CIRCLE 3(3) HYDERABAD (PAN AAEPY 9574 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K. VASANT KUMAR RESPONDENT BY : SHRI. G. MALLIGARJUNA DR O R D E R PER : CHANDRA POOJARI ACCOUNTANT MEMBER THESE THREE APPEALS PREFERRED BY THE ASSESSEE ARE DIRECT ED AGAINST THE DIFFERENT ORDERS PASSED BY THE CIT(A)IV HYDERABAD DATED 24.10.2008 AND PERTAINS TO THE ASSESSMENT YEARS 2003-04 A ND 2005- 06. SINCE ISSUES INVOLVED IN THESE THREE APPEALS ARE COMMON IN NATURE THEY ARE CLUBBED TOGETHER HEARD TOGETHER AN D DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS: 2. THE CIT(A) ERRED IN HOLDING THAT REOPENING OF TH E ASSESSMENT IS VALIDLY DONE WITHOUT APPRECIATING THE FACT THAT THE SAME IS DONE DUE TO FAILURE TO SERVE NOTICE U/S 143(2) AND THEREFORE IS NOT VALID. 3. THE CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS.68 05 708 RS.96 75 162 AND RS.76 06 328 BEING INTEREST ON UN SECURED LOANS FOR THE ASSESSMENT YEARS 2003-04 2004-05 AND 2005-06 RESPECTIVELY. 4. THE CIT(A) ERRED IN HOLDING THAT THE HONBLE ITA T HAS CONFIRMED THE FINDING THAT THE UNSECURED LOANS ON WHICH INTEREST IS CLAIMED IS NOT GENUINE IN THE ASSESSMENT YEARS 96-97. 2 2 5. THE CIT(A) FAILED TO APPRECIATE THE FACT THAT FI NDINGS IN THE ORDER OF THE HONBLE ITAT IS ONLY ON CLAIM OF INTEREST AND T HERE IS NO FINDING ON THE UNSECURED LOANS SINCE SUCH LOANS WERE NOT TAKEN DURING ANY OF THESE PREVIOUS YEARS AND THEREBY ERRED IN NOT LOOKI NG INTO THE SUBMISSIONS AFRESH. 6. THE CIT(A) FAILED TO APPRECIATE THE FACT THAT WH EN THERE IS NO PAYMENT OF INTEREST AND THAT THE CLAIM IS ONLY A PR OVISION GENUINENESS OF SUCH CLAIM COULD BE PROVED ONLY BY FILING EVIDEN CE OF PAYMENT PERTAINING TO THE PROVISION MADE IN THE EARLIER YEA RS AND THERE CAN NOT BE ANY EVIDENCE OF PAYMENT OF THE PROVISION IN THE SAME YEAR AND THEREBY ERRED IN NOT ACCEPTING THE EVIDENCE AND CON FIRMING THE DISALLOWANCE. 4. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. I N OUR OPINION INTEREST ON SAME ADVANCE WAS SUBJECT MATTER OF APPEAL BEFORE THIS TRIBUNAL IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEARS 1999- 2000 2000-01 2001-02 AND 2002-03 IN ITA NOS.768 7 68 770 AND 404/HYD/2008 OF THE TRIBUNAL VIDE ITS ORDER DATED 30 TH SEPTEMBER 2009 ALLOWED THE APPEALS OF THE ASSESSEE BY HOLDING THAT TH AT THE PAYMENT OF INTEREST FOR THE ASSESSMENT YEARS UNDER CONSIDERATION HAS BE EN SUBSTANTIATED BY FURNISHING THE DETAILS OF CHEQUES AND B ANK ACCOUNTS AND ALSO BY FILING COPIES OF RETURNS OF INCOME FILED BY THE RESPECTIVE CREDITORS AND OPINED THAT THE GENUINENESS OF THE PAYMEN T OF INTEREST AND IDENTITY OF THE CREDITORS CANNOT BE DOUBTED. IN V IEW OF THE ABOVE FINDINGS OF THE TRIBUNAL WE ARE INCLINED TO ALLOW TH E APPEAL OF THE ASSESSEE ON SIMILAR REASONS. ACCORDINGLY APPEAL OF THE ASSESSE E ALLOWED. 5. IN THE RESULT THE APPEALS OF THE ASSESSEE IN ITA NOS.486 487 & 498/HYD/2009 ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT : 29.1.2010 SD/- SD/- N.R.S. GANESAN CHANDRA POOJARI JUDICIAL MEMBER ACCOUNTANT MEMBER DATED THE 29 TH JANUARY 2010 3 3 COPY FORWARDED TO: 1. SHRI K. VASANTKUMAR ADVOCATE 403 MANISHA TOWERS 10-1- 18/31 SHYAMNAGAR HYDERABAD-4. 2. THE DY. CIT CIRCLE 3 (3) HYDERABAD 3. CIT(A)-IV HYDERABAD. 4. CIT HYDERABAD 5. THE D.R. ITAT HYDERABAD. NP