Sri Siva Nagi Reddy Vazrala, Guntur V. ITO, Ward-1(1), Guntur

CO 67/VIZ/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6336 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 03-05-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 14-08-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Gift
• Section: 143(3); 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 1 5 / VIZ /201 8 (ASST. YEAR : 20 13 - 14 ) ITO, WARD - 1(1), GUNTUR. V S . SRI SIVA NAGI REDDY VAZRALA, D.NO. 3 - 92, ANKIREDDYPALEM, GUNTUR RURAL, GUNTUR DISTRICT PAN NO. AMDPV 6655 M (APPELLANT) (RESPONDENT) C.O.NO. 67/VIZ/2018 (ARISING OUT OF ITA NO. 15 / VIZ /201 8) (ASST. YEAR : 20 13 - 14 ) SRI SIVA NAGI REDDY VAZRALA, D.NO. 3 - 92, ANKIREDDYPALEM, GUNTUR RURAL, GUNTUR DISTRICT . VS. ITO, WARD - 1(1), GUNTUR. PAN NO. AMDPV 6655 M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 29 / 0 4 /201 9 . DATE OF PRONOUNCEMENT : 03 / 0 5 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE REVENUE AND THE CROSS OBJECTION BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER OF COMMISSIONER OF 2 ITA NO. 15/VIZ/2018 & C.O.NO. 67/VIZ/2018 ( SRI SIVA NAGI REDDY VAZRALA ) INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 1 3 /12 /201 7 FOR THE ASSESSMENT YEAR 20 13 - 14 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL DEALING WITH COTTON BUSINESS , FILED HIS RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS. 2,77,720/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). SUBSEQU E NTLY, CASE O F THE ASSESSEE WAS SELECTED FOR SCRUTINY THROUGH CASS . THE ASSESSING OFFICER HAS ISSUED NOTICE S TO THE ASSESSEE AS PER LAW BY CALLING DETAILS IN RESPECT OF SUNDRY CREDITORS AND ALSO GIFT RECEIVED . THE ASSESSEE NEITHER FILED THE DETAILS NOR APPEARED BEFORE THE ASSESSING OFFICER. THEREFORE, THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 144 OF THE ACT ON 27/03/2015 BY ADDING SUNDRY CREDITORS OF RS. 2,05,93,358/ - AND ALSO THE ADDITION ON AC COUNT OF GIFTS OF RS. 12.00 LAKHS . 3 . ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAS RAISED A GROUND IN RESPECT OF SUNDRY CREDITORS AND SUBMITTED THAT THE ADDITION MADE BY THE ASSESSING OFFICER IS NOT CORRECT AND FILED RELEVANT DETAILS. THE LD. CIT(A) HAS CALLED THE REMAND REPORT FROM THE ASSESSING OFFICER BY LETTER DATED 30/12/2016 AND ACCORDINGLY THE ASSESSING OFFICER HAS SUBMITTED THE REMAND REPORT WHICH IS AS FOLLOWS: - 3 ITA NO. 15/VIZ/2018 & C.O.NO. 67/VIZ/2018 ( SRI SIVA NAGI REDDY VAZRALA ) 'AFTER HEARING THE CONTENTIONS OF TH E ASSESSEE AND GOING THR OUGH THE WRITTEN SUBMISSIONS FIL ED BY THE ASSESSEE, THE FOLLOWING ADDITIONS MADE IN THE ASSESSMENT ORDER IS VERIFIED ARE AS UNDER: 1. SUNDRY CREDITORS: THE THEN AO IN THE ASSESSMENT ORDER DATED 27.03.2015 HAS MENTIONED THAT 'CONFIRMATIONS AND THE FACTS OF THE CREDITS ARE NOT FURNISHED AND HENCE ADDED BACK TO THE I NCOME RETURNED - R5.2,05,93,358/ - . ' DURING THE COURSE OF REMAND PROCEEDINGS THE AR OF THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNT, BILLS & VOUCHERS AND THE SAME IS VERIFIED IN RESPECT TO THE SUNDRY CREDITORS AS PER BALANCE SHEET. EVIDENCE FOR BILLS FOR PURCHASES AND VAT RETURNS ARE ALSO VERIFIED AND FOUND PURCHASES MADE FROM THE CREDITORS ARE GENUINE. HENCE, THE SUND R Y CREDITORS AS APPEARING AS PER BALANCE SHEET A RE FOUND TO BE GENUINE.' IN THE LIGHT OF THE ABOVE, AS THE ASSESSEE PRODUCED EVIDENCES FOR SUNDRY CREDITORS BEFORE THE AO IN THE REMAND PROCEEDINGS WHEREIN THE AO ALSO ACCEPTED THE GENUINENESS OF THESE CREDITORS, THE ADDITION MADE IS HEREBY DELETED. 4 . THE LD. CIT(A) BY CONSIDERING THE REMAND REPORT SUBMITTED BY THE ASSESSING OFFICER WH E REIN THE ASSESSING OFFICER SPECIFICALLY ACCEPTED THAT THE SUNDRY CREDITORS AS APPEARING IN THE BALANCE SHEET ARE GENUINE. ACCORDINGLY, HE DELETED THE ADDITION. WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED. 5. SO FAR AS ADDITION IN RESPECT OF GIFT RECEIVED OF RS. 12.00 LAKH ALSO, THE LD. CIT(A) CALLED THE REMAND REPORT . THE RELEVANT PORTION OF THE REMAND REPORT IS REPRODUCED AS UNDER: - 1. AMOUNT NOT CREDITED TO P&L ACCOUNT: THE THEN AO IN THE ASSESSMENT ORDER DATED 2703.2015 HAS MENTIONED THAT 'AMOUNT NOT CREDITED TO P&L ACCOUNT (THE NATURE OF THE AMOUNT AND REASONS FOR HAVI NG NOT CREDITED IN P&L ACCOUNT NOT FURNISHED HENCE ADDED BACK TO THE INCOME RETURNED - R5.12, 00, 000/ - ). ' 4 ITA NO. 15/VIZ/2018 & C.O.NO. 67/VIZ/2018 ( SRI SIVA NAGI REDDY VAZRALA ) DURING THE COURSE OF REMAND PROCEEDINGS THE AR OF THE ASSESSEE COULD NOT PROVE THE GENUINENESS BY PRODUCING EVIDENCES THAT THE AMOUNT RECEIVED BY THE DONOR WAS GIFTED BY HIS GRANDMOTHER, WHICH WAS ACCOUNTED FOR IN THE BOOKS OF ACCOUNT AFTER A GAP THREE YEARS. AND ALSO THE SAID AMOUNT RECEIVED BY THE DONOR IN PARTITION AS PER PARTITION DEED WAS ONLY RS. 10,00,000/ - . THEREFORE, IT IS SUBMITTED THAT IN TH E LIGHT OF THE ABOVE CIRCUMSTANCES THE CLAIM OF GIFT RS.12,00,000/ - BY THE ASSESSEE CLAIMED TO HAVE BEEN RECEIVED FROM SMT. V. SEETERAVAMMA IS NOT PROVED.' 6 . THE LD. CIT(A) AFTER CONSIDERING THE REMAND REPORT HAS OBSERVED THAT T HE ASSESSING OFFICER CONTENDS THAT NO EVIDENCE WAS PRODUCED BY THE ASSESSEE TO PROVE THE GENUINENESS. BUT THE ASSESSEE FILED A COPY OF THE PARTITION DEED WHICH WAS NOT DOUBTED BY THE ASSESSING OFFICER WHEREIN IT WAS STATED THAT THE DONOR RECEIVED RS.10 LAKHS IN CASH ON ACCOUNT OF PARTITION. THE ASSESSING OFFICER HAS NOT BROUGHT ON RECORD THAT THE CASH RECEIVED BY THE DONOR ON PARTITION EITHER INVESTED OR SPENT TO SAY THAT THERE IS NO SOURCE FOR MAKING A GIFT BY THE DONOR. THE CONTENTION OF THE ASSESSEE, THAT RS. 2 LAKHS WAS ACC RUED AS INCOME TO THE DONOR WAS ALSO GIFTED HAS NO EVIDENCE AND THE DONOR COULD HAVE SPENT SOME MONEY FOR HER PERSONAL NEEDS AS DRAWINGS. ACCORDINGLY, THE LD. CIT(A) DELETED THE ADDITION TO THE EXTENT OF RS. 10.00 LAKHS AND CONFIRMED THE ADDITION TO THE E XTENT OF RS. 2.00 LAKHS. WE FIND THAT THE LD. CIT(A) BY CONSIDERING THE DETAILS IN RESPECT OF GIFT RECEIVED BY THE ASSESSEE AND THE SOURCE 5 ITA NO. 15/VIZ/2018 & C.O.NO. 67/VIZ/2018 ( SRI SIVA NAGI REDDY VAZRALA ) OF THE DONOR I.E. THE DON OR HAS RECEIVED RS. 10.00 LAKHS ON ACCOUNT OF PARTI T ION, THIS FACT WAS NOT DOUBTED BY THE A SSESSING OFFICER . E VEN BEFORE US , THE LD. DEPARTMENTAL REPRESENTATIVE HAS NOT BROUGHT ANY MATERIAL ON RECORD TO SHOW THAT THE DONOR IS NOT HAVING CAPACITY TO GIFT AN AMOUNT OF RS. 10.00 LAKHS. UNDER THE SE FACTS AND CIRCUMSTANCES OF THE CASE , WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD. CIT(A). THUS, THIS GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED. 7 . INSOFAR AS ONE OF THE GROUNDS RAISED BY THE REVENUE IN RESPECT OF VIOLATION OF RULE 46A. WE FIND THAT THERE IS NO VIOLATION OF RULE 46A IN THIS CASE. THEREFORE, THIS GROUND OF APPEAL RAISED BY THE REVENUE IS DISMISSED. 8 . CROSS OBJECTION FILED BY THE ASSESSEE IS BARRED BY LIMITATION BY 109 DAYS . NO APPLICATION FOR CONDITION OF DELAY IS FILED AND NO COURT FEE IS FILED. THEREFORE, THIS C.O. FILED BY THE ASSESSEE IS DISMISSED IN LIMINI. 9. IN THE RESULT, APPEAL FILED BY THE REVENUE AND THE C.O. FILED BY THE ASSESSEE ARE DISMISSED. ORDER PRONOU NCED IN OPEN COURT ON TH IS 03 RD DAY OF MAY , 201 9 . SD/ - SD/ - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 03 RD MAY , 201 9 . VR/ - 6 ITA NO. 15/VIZ/2018 & C.O.NO. 67/VIZ/2018 ( SRI SIVA NAGI REDDY VAZRALA ) COPY TO: 1. THE ASSESSEE - SRI SIVA NAGI REDDY VAZRALA, D.NO. 3 - 92, ANKIREDDYPALEM, GUNTUR RURAL, GUNTUR DISTRICT . 2. THE REVENUE ITO,WARD - 1(1), GUNTUR. 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.