Jayadarshini Housing (P) Ltd., ... vs Assessee

This is an appeal by assessee against the order of Commissioner of Income Tax (Appeals)-2, Hyderabad, dated 26-12-2014 for the Assessment Year (AY) 2011-12, raising the following Grounds of Appeal:

"1) The order of the learned CIT(A) is erroneous both on facts and in law.

2) The learned CIT(A) erred in confirming the assessment made u/s.

143(3) rws 144 of the I.T.Act.

3) The learned CIT(A) ought to have seen that there is no requirement for the Assessing Officer to make the assessment u/s. 144 of the I.T.Act.

:- 2 -: I.T.A. No. 269/Hyd/2015 Jayadarsini Housing Pvt Ltd.,

4) The learned CIT(A) erred in confirming the action of the Assessing Officer in resorting to estimation of income at 15% of the turnover and further erred in confirming the determination of total income at Rs. 2,72,83,320/- as against the income admitted of Rs. 31,43,390/-.

5) Any other ground or grounds that may be urged at the time of hearing.

2. The brief facts of the case are that, the appellant is a company incorporated under the provisions of the Companies Act, 1956. It is engaged in the business of purchase and sale of plots and construction activities. For the assessment year under consideration, the appellant filed the return of income on 07-11-2011 admitting an income of Rs. 31,43,390/-. Subsequently, the case was taken up for scrutiny assessment. During the course of scrutiny assessment, Assessing Officer (AO) was of the opinion that the assessee could not produce the bills and vouchers in support of the expenses claimed. Therefore, the AO estimated the profit at 15% on the gross receipts u/s. 144 of the Income Tax Act, 1961 (Act) and completed the assessment u/s. 143(3) r.w.s. 144 of the Act vide order dt. 01-03-2014 at a total income of Rs. 2,72,83,315/-. Being aggrieved, assessee preferred an appeal before the CIT(A), who vide order dt. 26-12-2014 dismissed the appeal by holding that the appellant could not substantially state as to how the basic factual details which were sought by the AO were not furnished.

3. There was a delay of 22 days in filing the present appeal. The appellant filed petition for condonation of delay stating that the Managing Director of appellant-company was not attending the office owing to illness of his father. Subsequently, died on 23-03-2015. Certificate was also filed. The order of CIT(A) was served in the office in his absence could not be attended in the absence of any responsible office of the company. When the matter came to the notice of the Managing Director on 15-03-2015, the Managing Director of the :- 3 -: I.T.A. No. 269/Hyd/2015 Jayadarsini Housing Pvt Ltd.,

appellant-company immediately initiated the steps for preparation of appeal and finally appeal was filed on 18-03-2015 and therefore, it is prayed that the delay may be condoned in the interest of justice. The Ld. DR had no serious objection for condonation of delay. Hence, we condone the delay.

4. Now, we shall deal with the merits of the appeal filed. The main contention of the appellant-company is that the CIT(A) should not have confirmed the exparte assessment passed u/s. 144 of the Act. A short prayer before us by the Ld. AR of the appellant-company is that since an exparte order was passed by the AO for non-production of Books of Accounts and bills before him, the matter may be sent back to AO. It was explained that the appellant could not produce the same because of shifting of the office and the employees of the company who are looking after the account leaving the services of the company and therefore it is submitted that a fresh opportunity may be granted to produce the same before the AO. The Ld.CIT-DR had no serious objection for setting aside the case for fresh assessment. Accordingly, the matter is remitted back to the file of AO for denovo assessment in accordance with the provisions of the Act after affording a due opportunity of hearing to the assessee.

5. Accordingly, the appeal is partly allowed for statistical purposes.

Order pronounced in the open Court on 19th June, 2015

Sd/- Sd/-

(SAKTIJIT DEY) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER

Hyderabad, Dated 19th June, 2015 TNMM :- 4 -: I.T.A. No. 269/Hyd/2015 Jayadarsini Housing Pvt Ltd.,

Copy to :

1. Jayadarsini Housing Pvt Limited, D.No. 8-2-580 & 574/C, Flat 202, Najaf Apartments, Road-7 & 8, Imam Khomeini Road, Banjara Hills, Hyderabad. C/o. Sri S. Rama Rao, Advocate, Flat No. 102, Shriya's Elegance, 3-6-643, Street No. 9, Himayatnagar, Hyderabad.

2. The Deputy Commissioner of Income Tax, Circle-2(2), Hyderabad.

3. CIT(Appeals)-2, Hyderabad.

4. CIT-2, Hyderabad.

5. D.R. ITAT, Hyderabad.

6. Guard File.