BAREGUNDI JAGADISHA YADIYALA,UDUPI V. INCOME TAX OFFICER, WARD-1 & TPS, UDUPI

ITA 1948/BANG/2024

AI Insights

The case involves Baregundi Jagadhisha Yadiyala, a senior citizen and an individual taxpayer, who filed an appeal against the order of the Commissioner of Income Tax (Appeals) [CIT(A)]. The appeal arose from an assessment order where the AO treated the allotment of shares worth Rs. 25.27 crores, received in exchange for agricultural land sold to a builder, as unexplained credit. The CIT(A) dismissed the appeal without admitting additional evidence provided by the assessee. The ITAT found that the CIT(A) had not adequately considered the additional evidence and restored the case to the AO for a fresh assessment.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 34133 (ITAT-BANGALORE)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-11-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 19-11-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 05-10-2024
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D.K. MISHRA
• Assessee Lawyers: SUNIL KUMAR A.
• Keywords: Additional evidence; Unexplained cash credit

Judgement Text

"ITA No.1948/Bang/2024 Baregundi Jagadhisha Yadiyala, Udupi IN THE INCOME TAX APPELLATE TRIBUNAL “A’’ BENCH: BANGALORE BEFORE SHRI PRASHANT MAHARISHI, VICE PRESIDENT AND SHRI PRAKASH CHAND YADAV, JUDICIAL MEMBER ITA No.1948/Bang/2024 Assessment Year: 2018-19 Baregundi Jagadhisha Yadiyala S/o Devrao Patel Sanyasigudde Ullooru Road Moodlkatte Posst Kundapura TQ Udupi Dist 576 217 Karnataka PAN NO : AEFPY1845J Vs. ITO Ward-1 & TPS Udupi APPELLANT RESPONDENT Appellant by : Sri Sunil Kumar A., A.R. Respondent by : Sri D.K. Mishra, D.R. Date of Hearing : 19.11.2024 Date of Pronouncement : 21.11.2024 O R D E R PER PRAKASH CHAND YADAV, JUDICIAL MEMBER: Present appeal of the assessee is arising from the order of ld. CIT(A) dated 7.8.2024 having DIN & Order No.ITBA/NFAC/S/250/2024-25/1067412043(1) and it relates to the assessment year 2018-19. 2. Facts giving rise to the filing of present appeal are that the assessee is an individual and a senior citizen, filed his return of income for the impugned year declaring a loss of Rs.6,48,189/- including agricultural income of Rs.3,30,890/-. The case of the assessee was selected for scrutiny. ITA No.1948/Bang/2024 Baregundi Jagadhisha Yadiyala, Udupi Page 2 of 3 2A During the course of assessment proceedings, the AO observed that the assessee has entered into an agreement to sell with one builder namely Ashwagandha Energy & Infratech Pvt. Ltd. It has been observed that assessee handed over certain land to the builder and in consideration received equity shares for value of Rs.25.27 crores. The AO was of the view that the assessee has failed to substantiate the source of this credit of Rs.25.27 crores. Accordingly, the AO treated the allotment of shares as unexplained credit and added the same to the income of the assessee. 3. Aggrieved with the order of AO, the assessee preferred an appeal before the ld. CIT(A) and filed certain additional evidences. However, the ld. CIT(A) observed that there is no application from the side of assessee, requesting for the admission for the additional evidence and hence, the additional evidences filed by the assessee remained unadmitted. Thereafter, the ld. CIT(A) dismissed the appeal of the assessee. Aggrieved with the order of ld. CIT(A), the assessee has come up in appeal before us and has raised four grounds of appeal. 4. At the outset, the ld. Counsel for the assessee argued ground Nos.2, 3 & 4 and prayed that the matter may kindly be restored to the file of AO for fresh adjudication in the interest of justice. It is pertinent to note here that counsel for the assessee has not pressed ground No.1. Therefore, the ground no.1 is dismissed as not pressed. 5. The ld. D.R. appearing on behalf of the revenue relied upon the orders of the authorities below. 6. After considering the rival submissions, we observe that in this case, the assessee is a senior citizen and has explained to the AO that he has sold certain agricultural lands to one builder and in lieu of that he has got equity shares equivalent to the value of R.25.27 ITA No.1948/Bang/2024 Baregundi Jagadhisha Yadiyala, Udupi Page 3 of 3 crores. We further observe that in this case, the assessee has responded to the notice of AO on 11.8.2021 and the ld. AO has framed the impugned assessment on 27.8.2021. Similarly, we observe that the ld. CIT(A) has also dismissed the appeal without looking into the documentary evidence filed before him. Therefore, considering the facts and circumstances of the case and in the interest of justice, we restore this matter to the file of ld. AO for fresh examination needless to say that the AO will grant meaningful opportunities to the assessee before concluding the assessment. 6. In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 21st Nov, 2024 Sd/- (Prashant Maharishi) Vice President Sd/- (Prakash Chand Yadav) Judicial Member Bangalore, Dated 21st Nov, 2024. VG/SPS Copy to: 1. The Applicant 2. The Respondent 3. The CIT 4. The DR, ITAT, Bangalore. 5 Guard file By order Asst. Registrar, ITAT, Bangalore. "