Dichpalli Venkateswara Rao, Secunderabad V. ITO,Ward 10(4), Hyderabad

CO 2/HYD/2014

• Counselvise Citation: [2014] 122 COUNSELVISE.COM (IT) 9410 (ITAT-HYDERABAD)
• Duration Of Justice: 4 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 04-02-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 31-01-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K HARITA
• Assessee Lawyers: N VENKATARAM
• Keywords: Unexplained cash credit
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA.NO.430/HYD/2013 ASSESSMENT YEAR 2009-2010 ITO, WARD 10 (4) HYDERABAD-4 VS. SRI DICHPALLY VENKATESWARA RAO SECUNDERABAD PAN AFKPD5365A (APPELLANT) (RESPONDENT) CROSS OBJECTION NO.02/HYD/2014 ARISING OUT OF ITA.NO.430/HYD/2013 - ASSESSMENT YEAR 2009-2010 SRI DICHPALLY VENKATESWARA RAO, SECUNDERABAD PAN AFKPD5365A VS. ITO, WARD 10 (4) HYDERABAD (APPELLANT) (RESPONDENT) FOR REVENUE : MS. K. HARITA FOR ASSESSEE : MR. N. VENKATARAM DATE OF HEARING : 04.02.2014 DATE OF PRONOUNCEMENT : 04.02.2014 ORDER PER B. RAMAKOTAIAH, A.M. THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER OF THE CIT(A)-VI, HYDERABAD DATED 31.12.2012. 2. THE REVENUE HAS RAISED FOUR GROUNDS OUT OF WHICH, GROUNDS NO. 1 AND 4 ARE GENERAL IN NATURE AND THEREFORE, IT NEED NOT BE ADJUDICATED. IN GROUND NO.2, THE REVENUE IS CONTESTING THAT CIT(A) OUGHT TO HAVE NOTICED THAT ASS ESSEE HAS FAILED TO FURNISH RELEVANT EVIDENCES TO SUBSTANTIATE THE DEPOSITS MADE IN THE BANK ACCOUNT AND IN GROUND NO.3, THE REVE NUE IS CONTESTING THAT CIT(A) OUGHT TO HAVE ALLOWED OR DISMISSED THE ITA.NO.430/H/13 & CO 02/H/2014 SRI DICHPALLI VENKATESWARA RAO, SECUNDERABAD GROUNDS OF THE ASSESSEE AND WOULD NOT HAVE DIRECTED A.O . FOR VERIFICATION DOES NOT HAVE POWERS AFTER THE AMENDMENT T O SECTION 251(1) OF THE I.T. ACT. THE ASSESSEE IN HIS CRO SS- OBJECTION IS, IN RESPECT OF THE ORDER OF THE CIT(A). 3. BRIEFLY STATED, ASSESSEE IS AN INDIVIDUAL, DERIVE D INCOME FROM VARIOUS SOURCES SUCH AS INCOME FROM COMMISSION, PROPERTY INTEREST ETC., ASSESSMENT IN THIS CASE WAS COMPLETED UNDER SECTION 143 FURNISHED BY MAKING TH E ADDITION OF RS.42,79,586/- TREATING THE CREDITS IN TWO BANK ACCOUNTS OF PUNJAB NATIONAL BANK AND STATE BANK OF HYDERABAD AS UNEXPLAINED CREDITS. 4. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE TH E CIT(A)-VI, HYDERABAD. THE LEARNED CIT(A), IN HIS ORDER D ATED 31.12.2012 HELD THAT THE SUBMISSIONS OF THE ASSESSEE AS REGARDS EXPLAINING SOURCES FOR CREDITS MORE SPECIFICALLY TH E CASH CREDITS NO WAY CHANGES ON EACH STAGE I.E., ASSESSM ENT PROCEEDINGS AS WELL AS THE APPEAL PROCEEDINGS EVEN THO UGH LEARNED CIT(A) GAVE CERTAIN FINDINGS AND OPINED ABOUT VERIFICATION OF BANK ACCOUNTS. ULTIMATELY, IT DIRECTED TH E A.O. TO EXAMINE AND DECIDE THE ISSUES. IT WAS THE CONTENTION OF THE REVENUE THAT LEARNED CIT(A) DID NOT HAVE ANY POWER TO DIRECT VERIFICATION OF THE A.O. AND ACCORDINGLY, DIRECTIONS ARE NOT MAINTAINABLE. 5. AFTER CONSIDERING RIVAL CONTENTIONS WITHOUT GOING INTO THE MERITS OF THE ADDITIONS MADE, WE ARE OF THE OPINI ON THAT THE ISSUE REQUIRED DETAILED EXAMINATION BY THE A. O. BY GIVING DUE OPPORTUNITY TO THE ASSESSEE. EVEN THOUGH ASS ESSEE HAS GIVEN CERTAIN EVIDENCES AND ALSO MADE PRELIMINARY VERIFICATION, THIS IS NOT PROPER ON THE PART OF THE LEARNED C IT(A) TO DIRECT THE A.O. TO VERIFY AGAIN AND DECIDE THE ISSUE , WHICH ITA.NO.430/H/13 & CO 02/H/2014 SRI DICHPALLI VENKATESWARA RAO, SECUNDERABAD HE SHOULD HAVE DECIDE ON HIS OWN. SINCE THE DIRECTIONS OF THE CIT(A) ARE NOT MAINTAINABLE ON THE FACTS OF THE CASE, WE ARE OF THE OPINION THAT THE ISSUE IS TO BE RESTORED TO THE FIL E OF THE A.O. FOR FRESH CONSIDERATION. ACCORDINGLY, WE MODIFY THE DIRECTIONS OF THE CIT(A) AND SET ASIDE THE ORDER OF THE A.O. PASSED UNDER SECTION 143(3) AND RESTORE THE ENTIRE ISSUE FOR EXAMINATION OF CASH CREDITS ALONG WITH THAT ATTENDANT MATTERS TO THE FILE OF THE A.O. FOR FRESH CONSIDERATION. ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY AND FREE TO FURNISH FURTHER EVID ENCES REQUIRED AND THE ISSUES SHOULD BE EXAMINED WITHOUT PR EJUDICE TO THE FINDINGS ALREADY AVAILABLE ON RECORD IN ASSESS ING OFFICERS ORDER AND THE LEARNED CIT(A) ORDER. WITH THESE OBSERVATIONS, APPEAL OF THE REVENUE IS CONSIDERED AS AL LOWED FOR STATISTICAL PURPOSES. 6. CROSS OBJECTIONS FILED BY THE ASSESSEE ARE ACCORDINGLY TREATED AS ACADEMIC IN NATURE AND DISMISSE D. ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY TO EXPLAIN VARIO US CREDITS. 7. IN THE RESULT, ITA.NO.430/HYD/2013 OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES AND C.O.NO.2/HYD/2014 OF THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04.02.2014. SD/- SD/- (D.MANMOHAN) (B.RAMAKOTAIAH) VICE PRESIDENT ACCOUNTANT MEMBER HYDERABAD DATE 04 TH FEBRUARY, 2014 VBP/- ITA.NO.430/H/13 & CO 02/H/2014 SRI DICHPALLI VENKATESWARA RAO, SECUNDERABAD COPY TO 1. ITO, WARD 10(4), ROOM NO.513, 5 TH FLOOR, A BLOCK, I.T. TOWERS, HYDERABAD. 2. SRI DICHPALLY VENKATESWARA RAO, H.NO.6-1-1-3/67, PADMARAO NAGAR, SECUNDERABAD. 3. CIT(A)-VI, HYDERABAD 4. CIT-V, HYDERABAD 5. D.R. A BENCH, ITAT, HYDERABAD.