Department, Hyderabad V. M/s Durga Granites

ITTA/30/2023

AI Insights

The case involves an appeal by the Department of Income Tax against the order of the ITAT, which had reversed the findings of the CIT (Appeals) and affirmed the assessment made by the Assessing Officer. The assessment included additions to the income of the partnership firm based on the capital introduced by the partners, which the Assessing Officer deemed unexplained. The CIT (Appeals) had earlier held that the partnership firm need not explain the sources of income of the partners for the capital contributed. The ITAT's reversal led to the Department's appeal, which was contested by the partnership firm, M/s Durga Granites. The High Court of Telangana, after examining the legal provisions and precedents, allowed the appeal of M/s Durga Granites, setting aside the ITAT's order and affirming the CIT (Appeals)'s decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 798005 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 04-09-2023
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax vs. M.Venkateshwar Rao, CIT vs. Anupam Udgog, Nanayondas Kedarnath vs. CIT, CIT vs. Jaisutal Motor Finance, Commissioner of Income Tax vs. Louelg Export (P) LTD
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: SUNDARI PISUPATI
• Assessee Lawyers: A V A KARTIKEYA
• Keywords: Assessment Year 2014-15; Capital introduction; Income Tax; Limited scrutiny; Unexplained credit
• Section: 68; 40(b); 260-A

Judgement Text

"[ 3386 ] IN THE HIGI{ COURT FOR THE STATE OF TELANGANA . ATHYDERABAD MONDAY, THE FOURTH DAY OF SEPTEMBER TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTTCE P.SAM KOSHY AND THE HON'BLE SRI JUSTICE LAXMI NARAYANAALISHETTY t.T.T.A 30 ot2023 lncome Tax Tribunal Appeal Under Section 260,4 of the Income Tax Act, against the order of the lncome Tax Appellate Tribunal, Hyderabad Bench ,A,, Hyderabad in lrA No.1706 tHydl2o17, for assessment year zo14-1s dated 31-01_ 2022 preferred against the Order of the Commissioner of Income Tax (Appeals)-2, Hyderabad, lrA No.0346/2016-17 dated 30-06-2017 preferred against the order of the Commissioner of lncome Tax No.ACTPN4020C dated 21 - 1 2_20,1 B. Between: Department, Hyderabad, PAN/GlR M/s Durga Granites. 2-1O-1-OZgl23, Flat No.406, SRR Enclave, Jyothinagar, Karimnagar - 505 001, Telangana ..APPELLANT AND The Assistant Commissioner.of lncome Tax, Circle _ 1, Karrmnagar, Aayakar Bhavan, Karimnasar - sos oO1, ir;ga;;:\" -\"\"'\" .RESPONDENT Counset for the Appellant: SRI AV.A. SIVA KARTIKEYA counsel for the Respondent: smt. suNoARr R. prsupATr, sR sc FoR cEc AND ST The Court made the following: ORDER ) THE HON'BLE SRI JUSTICE P.SAM KOSHY AND ,fHE HON'BLE SRI JUSTICE LAXMI NARAYANA A,LISHETTY I.T.T.A.No.30 of 2o23 ORDER.'1per Hon'ble Sn Justice P.SAM KOSI-fl) The instalt appeal under Section 260-A of the Income Tax Act, ,l96 1 , is prelerred bv the appellant/ast;essee. The appellant in the in stalt appeal has challengeci the order dated 3l .0 ] .202',1 1;assed bv the FIon'ble Irtcome Tax Appellatc'l'ribur,al Ilvdcrabad Bench'A', IlI'derabad, ln l.T.A.No. 7Obit l,.r.1 i 20i7. lbr the assessrlent 3,'r;ar 201'4- 20i 5. 2. Fk'r,uri Sr-r it /, . Srva l(artil