9911796707
TMI Blog2021 (4) TMI 158X X X X Extracts X X X X X X X X Extracts X X X X ..... lly the assessee filed the return of income for the impugned AY 2007-08 on 14.09.2007, admitting a total income of Rs. 1,98,361/-. The return of income was processed u/s 143(1) of the Act, accepting the returned income. 5.2 Subsequently, the assessment was reopened on the basis of information found during the course of survey u/s.133A of the Act conducted in the case of M/s.Surakshita Homes on 04.09.2008 wherein certain documentary evidence was found that the assessee had received a sum of Rs. 1,40,00,000/- from M/s.Surakshita Homes and M/s.Sidharth Estates represented by smt.C.Amaravathi through the intermediary Sri K.Krishna Reddy towards real estate transactions. Accordingly, the assessment was completed u/s.143(3) rws 147 of the Act, vide order dated 22.12.2011. While doing so, the AO considered the above mentioned amount of Rs. 1,40,00,000/- as full value of consideration, and after allowing indexed cost of acquisition of Rs. 23,80,200/-, a sum of Rs. 1,16,19,800/- was assessed as Long Term Capital Gains (LTCG). 5.3 Aggrieved by the action of the AO, the assessee preferred an appeal before CIT(A)-6, Hyderabad, which came to be dismissed, vide order in F.No. 0327/2011-12/CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect also and complete the assessment as per the facts and law on the subject. Assessee's grounds are allowed for statistical purposes. 7. In the result, appeal of assessee is allowed for statistical purposes". (emphasis supplied) 5.4 As seen from the order of the Hon'ble ITAT, the AO was directed to give proper opportunity to the assessee to explain his stand and also to offer cross examination of the parties, if required. Also, it is observed that the role of Sri. K.Krishna Reddy requires to be examined. Accordingly, the AO issued a notice to the assessee, vide letter dated 11.09.2017, providing an opportunity of being heard. However, the said letter was returned unserved by the postal authorities stating that address is shifted. In view of this, the Inspector of Income Tax had contacted the assessee over phone informing him about the notice issued which has been returned unserved. In response thereto, the assessee stated that he is no longer residing in the same address, but refused to give the current address. In view of this, the AO issued one more notice dated 31.10.2017, which also has been returned unserved. 5.5 Meanwhile, as directed by the Hon'ble ITA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble ITAT, the Hon'ble ITAT vide order in ITAT No: 1379/HYD/2013, dt.31-01-2017 has set aside the issue to the file of the AO to give proper opportunity to the assessee to explain assessee's stand and also to offer cross-examination of the parties, especially one, Sri K Krishna Reddy, if required 3.2 Accordingly, the case was posted for hearing vide this office letter dt 11-09-2017 requesting the assessee to appeal on 22-09-2017 along with supporting documents. However, there was no compliance from the assessee on the said date. Again, an opportunity letter dt 31-10-2017 was issued to the assessee and the case was posted for hearing on 10-11-2017. In response to the same, assessee appeared and sought adjournment. At the request of assessee, the case was reposted for hearing on 27-11-2017. On the said date, he assessee along with Sri p.r.Sarvan Kumar, Tax Advocate & A.R of the assessee appeared and requested for copies of ledger ale and statement of Sri C.R.Jagdish, Smt.C.Amaravathi, Sri B.Balaraj Goud & Sri P.Ramanjaneyulu. Copies of the same were provided immediately. They were requested to submit a note regarding their submissions and the case was adjourned to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been confronted to assessee". It is seen from the same, that the ITAT has appreciated the evidence available on record which is against the assessee and only on technical grounds. i.e giving of opportunity to the assessee, the assessment was set aside. 3.5 As directed by the Hon'ble ITAT, sufficient opportunity was provide to the assessee to contradict the evidence available on record against the assessee and copies of the same were also provided to the assessee. But, in spite of the same, the assessee failed to furnish any submissions. Hence, in the absence of the same, it is presumed that the assessee has no submissions to make and the assessment is completed accordingly." 6.0 ANALYSIS OF THE FACTS AND ADJUDICATION OF THE GROUND: 6.1 The assessee has raised solitary ground of appeal contending that the AO has failed to afford an opportunity to the assessee to cross examine the witness as directed by the Hon'ble ITAT. Accordingly, the assessee has requested the appellate authority to set-aside the order of the AO with a direction to afford an opportunity to cross examine the witness by the assessee. The said ground of appeal is taken up for discussion and adjudicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mpugned order, the case was posted for hearing on various dates, but neither the assessee nor the AR of the assessee had appeared and represented the case. 6.2.5 To be precise, initially the case was posted for hearing on 22.09.2017 requesting the assessee to appear along with supporting documentary evidences as directed by the Hon'ble ITAT. However, as reported in the assessment order, there was no compliance by the assessee on the scheduled date. Thereafter, finally, the AO issued a letter dated 21.12.2017 requesting the assessee to produce Sri K.Krishna Reddy on or before 27.12.2017 on the ground that the efforts made by him by way of issuing summons u/s 131 of the Act could not fructify. However, the assessee did not respond to the said letter, and, therefore, failed to appear before the AO. Also, as directed by the Hon'ble ITAT, the AO provided copies of all the documents to the assessee to file his objections and submissions, if any. The relevant portion of the assessment order in this regard is reproduced below for ready reference: "3.2 Accordingly, the case was posted for hearing vide this office letter dt 11-09-2017 requesting the assessee to appeal on 22-09-20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to you. " 3.3 However, there was no compliance either from the assessee or Sri Krishna Reddy, till date. As directed by the Hon'ble ITAT the copies of the documents requested by the assessee were provided and he was asked to furnish his submissions. " 6.2.6 In view of the above, I am of the considered opinion that the AO has adhered to the directions issued by the Hon'ble ITAT, including making efforts to provide an opportunity of cross examination of the party Sri KKrishna Reddy by the assessee. At this juncture, it may be noted that as clearly observed by the Hon'ble ITAT, a major part of the consideration of Rs. 1,40,00,000/- was routed through Sri KKrishna Reddy's account. 6.2.7 During the course of appellate proceedings, the assessee was afforded three opportunities of being heard, vide this office letter/order sheet noting/notice of hearing u/s 250 of the Act dated 22.10.2018,18.10.2018 and 30.10.2018, posting the case for hearing on 22.10.2018, 30.10.2018 and 06.11.2018, respectively. Though the AR of the assessee appeared on 30.10.2018 and represented the case, but he failed to furnish the requisite details and documentary evidences on merits of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
