Shri Sriramulu Jagan Kumar, CHENNAI V. ITO, CHENNAI

CO 122/CHNY/2010

• Counselvise Citation: [2010] 122 COUNSELVISE.COM (IT) 5469 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 11 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 02-12-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 22-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V K THIRUPATHY ITA
• Assessee Lawyers: B SRINIVAS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH C BEFORE DR.O.K.NARAYANAN, VICE PRESIDENT AND SHRI GEORGE MATHAN, JUDICIAL MEMBER I.T.A. NO.1566/MDS/2010 ASSESSMENT YEAR : 2007-08 THE INCOME-TAX OFFICER, SALARY WARD-IV(4), CHENNAI-600 034. VS. SHRI SRIRAMULU JAGAN KUMAR FLAT G7 CYBER NEST APTS. SALAI, SHOLLINGANALLUR, CHENNAI-600 119. PAN AVYPS 6413 L (APPELLANT) (RESPONDENT) C.O.NO.122/MDS/2010 (IN I.T.A. NO.1566/MDS/2010) ASSESSMENT YEAR : 2007-08 SHRI SRIRAMULU JAGAN KUMAR CHENNAI 119. VS. THE INCOME-TAX OFFICER, CHENNAI-600 34. (CROSS-OBJECTOR) (APPELLANT IN APPEAL) APPELLANT BY : SHRI B. SRINIVAS RESPONDENT BY : SHRI V.K.THIRUPATHY ITA 1566 & CO 122/10 :- 2 -: O R D E R PER DR.O.K.NARAYANAN ; VP THE APPEAL IS FILED BY THE REVENUE. THE CROSS-OBJ ECTION IS FILED BY THE ASSESSEE. THE RELEVANT ASSESSMENT YEA R IS 2007-08. THE APPEAL AND THE CROSS-OBJECTION ARE FILED AGAINS T THE ORDER OF THE C.I.T.(APPEALS)-VI AT CHENNAI DATED 04.06.2010 AND ARISE OUT OF THE ASSESSMENT COMPLETED UNDER SEC.143(3) OF THE I.T. ACT 1961. 2. THE ASSESSEE, HEREIN IS A SALARIED EMPLOYEE. HE HA D PURCHASED A PROPERTY IN THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR UNDER APPEAL FOR A SUM OF ` 16,00,000/-. IN THE COURSE OF TRANSACTION, A SUM OF ` 12,90,000/- WAS REFLECTED AS CREDITS IN HIS ACCOUNT. THE ASSESSING OFFICER TREA TED THE SUM AS UNEXPLAINED AND ADDED TO THE INCOME OF THE ASSESSEE . 3. IN FIRST APPEAL, THE C.I.T.(APPEALS) EXAMINED THE F ACTS OF THE CASE AND FOUND THAT THE ASSESSEE HAD PROPERLY EXPLA INED THE SOURCES OF CREDITS POINTED OUT BY THE ASSESSING AUT HORITY. IN ORDER TO MEET THE DEADLINE OF THE PAYMENT TO BE MADE TO T HE SELLER OF ITA 1566 & CO 122/10 :- 3 -: THE PROPERTY, THE ASSESSEE HAD TO COLLECT HAND ON LOANS FROM HIS FRIENDS AND RELATIVES WHICH AMOUNTED TO ` 12,90,000/-. IN FACT, THE ASSESSEE HAD APPLIED FOR A LOAN FROM ICICI BANK FOR THE PURPOSES OF PURCHASING THE PROPERTY. AS THE RELEASE OF THE LOAN BY THE BANK WAS NOT MADE BY THE COMMITTED DATE, THE ASSESSEE HA D NO OTHER ALTERNATIVE BUT TO AVAIL FUNDS FROM FRIENDS AND REL ATIVES. LATER ON, THE BANK RELEASED THE LOAN AMOUNT AND THE ASSESSEE PAID OF THE EARLIER LOAN AVAILED BY HIM. 4. IN THE LIGHT OF THE ABOVE SPEAKING FACTS, THE C.I.T .(APPEALS) DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. THE REVENUE IS AGGRIEVED AND THEREFORE, THE APPEAL BEFO RE US. 5. WE HAVE HEARD BOTH SIDES IN DETAIL. THE ORDER OF T HE C.I.T.(APPEALS) SPEAKS THE WHOLE TRUTH OF THE CASE AND JUSTIFIES THE CONCLUSION ARRIVED AT BY HIM. THE C.I.T.(APPE ALS) HAD APPRECIATED THE EVIDENCES PRODUCED BY THE ASSESSEE BEFORE HIM AND AN OPPORTUNITY WAS GIVEN TO THE ASSESSING OFFIC ER TO ENQUIRE THE MATTER AND FILE A REMAND REPORT. IT IS AFTER C ONSIDERING THE REMAND REPORT, THE C.I.T.(APPEALS) HAS COME TO HIS CONCLUSION, WHICH IS JUST AND PROPER. WE HAVE NOTHING TO INTER FERE, THEREIN. THE APPEAL FILED BY THE REVENUE IS LIABLE TO BE DIS MISSED. ITA 1566 & CO 122/10 :- 4 -: 6. THE CROSS-OBJECTION FILED BY THE ASSESSEE SUPPORTS THE ORDER OF THE C.I.T.(APPEALS). AS THE APPEAL FILED BY THE REVENUE STANDS DISMISSED, THE CROSS-OBJECTION IS ALSO TO BE REJECTED AS INFRUCTUOUS. ORDER PRONOUNCED ON THURSDAY, THE 2 ND OF DECEMBER, 2010. SD/- SD/- (GEORGE MATHAN) JUDICIAL MEMBER ( DR.O.K.NARAYANAN) VICE-PRESIDENT CHENNAI : 2 ND DEC.,2010 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR