Sangani Raju, Hyderabad V. Income Tax Officer, Ward-12(1), Hyderabad

ITA 102/Hyd/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9045 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 24-07-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 11-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K GOPALAKRISHNA
• Assessee Lawyers: S B KABRA
• Keywords: Salary income
• Section: 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC - B ', HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY , ACCOUNTANT MEMBER ITA NO. 102 / HYD/201 8 ASSESSMENT YEAR: 20 10 - 11 SANGANI RAJU , HYDERABAD. PAN A FTPR 5136A VS. INCOME - TAX OFFICER, WARD 12(1), HYDERABAD. A PPELLANT RESPONDENT ASSESSEE BY: S H RI S.B. KABRA REVENUE BY: S HRI K. GOPALA KRISHNA DATE OF HEARING: 24 / 0 7 / 201 9 DATE OF PRONOUNCEMENT: 19 / 0 9 /201 9 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY THE ORDER OF CIT(A) 1, HYDERABAD DATED 29 / 08 /2017 IN APPEAL NO. 0197/CIT(A) - 1/HYD/2013 - 14/2017 - 18 PASSED U/S 14 3(3) R . W . S 25 0(6) OF THE I . T . ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS APPEAL, HOWEVER, THE CRU X OF THE ISSUE IS THAT LD. CIT(A) HAS ERRED IN CONFIRMING THE ORDER OF LD. AO, WHO HAS MADE ADDIT ION OF RS. 17,98,175/ - BEING UNEXPLAINED CASH DEPOSIT IN THE BANK ACCOUNT OF THE ASSESSEE. 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS AN INDIVIDUAL EARNING INCOME FROM SALARY AND OTHER SOURCES FILED HIS RETURN OF INCOME FOR THE AY 2010 - 11 ON 03/08/2 010 ADMITTING TOTAL INCOME OF RS. 3,24,835/ - . THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY AS IT WAS REVEALED IN THE AIR INFORMATION THAT THE ASSESSEE HAD MADE CASH DEPOSITS TO THE TUNE OF RS. 17,98,175/ - IN HIS SAVINGS BANK ACCOUNT. I.T.A. NO . 102 /HYD/1 8 SANGANI RAJU, HYD. 2 3.1 DURING THE COUR SE OF SCRUTINY ASSESSMENT PROCEEDINGS, IT WAS OBSERVED BY THE LD.AO THAT THE ASSESSEE HAD DEPOSITED CASH AMOUNTING TO RS. 17,98,175/ - IN HIS BANK ACCOUNT MAINTAINED WITH SYNDICATE BANK IN THE NAME OF M/S. SARASWATHI EDUCATIONAL SOCIETY BY USING HIS PAN NO., AND FURTHER DEPOSITED CASH OF RS. 4,30,000/ - IN HIS SAVING BANK ACCOUNT MAINTAINED WITH ING VYSYA BANK, BOTH AGGREGATING TO RS. 22,28,175/ - . SINCE THE ASSESSEE DID NOT FURNISH PROPER EXPLANATION WITH RES PECT TO THE SOURCE OF CASH DEPOSITS, LD. AO ADDED THE SAID AMOUNT OF RS. 22,28,175/ - TO THE INCOME OF THE ASSESSEE AS HIS UNEXPLAINED CASH DEPOSITS IN BANK ACCOUNT S . 4. ON APPEAL, LD. CIT(A) DELETED THE ADDITION MADE FOR RS. 4,30,000/ - , HOWEVER, CONFIRME D THE ADDITION OF RS. 17,98,175/ - WITH RESPECT TO THE CASH DEPOSIT MADE IN SYNDICATE BANK IN THE NAME OF SARASWATHI EDUCATIONAL SOCIETY AS THE SAME REMAINED UNEXPLAINED . 5. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 6. AT THE OUTSET, LD. AR SUBMITTED BEFORE ME THAT THE ENTIRE AMOUNT OF RS. 17,98,175/ - RECEIVED BY THE ASSESSEE WAS THE FEE S DUE TO M/S. SARASWATHI EDUCATIONAL SOCIETY AND THE SAME WAS AC COUNTED IN THE BOOKS OF ACCOUNT S OF M/S. SARASWATHI EDUCATIONAL SOC IETY . IT WAS FURTHER SUBMITTED THAT THE AMOUNTS COLLECTED AND DEPOSITED IN THE BANK ACCOUNT WAS SUBSEQUENTLY U TILIZED FOR THE ACTIVIT IES OF M/S. SARASWATHI EDUCATIONAL SOCIETY AND NOT MISAPPROPRIATED BY THE ASSESSEE. LD. AR FURTHER EXPLAINED THAT SINCE BAN K ACCOUNT COULD NOT BE OPENED IN THE NAME OF M/S. SARASWATHI EDUCATIONAL SOCIETY AS IT D ID NOT HAVE PAN NO., THE BANK ACCOUNT WAS OPENED USING PAN NO. , OF THE ASSESSEE. IT WAS, THEREFORE, PLEADED THAT THE I.T.A. NO . 102 /HYD/1 8 SANGANI RAJU, HYD. 3 MATTER MAY BE REMITTED BACK TO THE FILE OF LD. AO FOR FRESH EXAMINATION. 7. LD. DR, ON THE OTHER HAND, DID NOT SERIOUSLY OBJECT TO THE SUBMISSION OF THE LD. AR FOR REMITTING BACK THE MATTER TO THE FILE OF LD. AO FOR VERIFICATION. 8. AFTER HEARING BOTH THE PARTIES, I AM OF THE CONSIDERED VIEW THAT THE FACTS EXPLAINED BY THE LD.AO ARE REQUIRED TO BE EXAMINED PROPERLY BY THE LD. AR AFRESH IN ORDER TO ENSURE MISCARRIAGE OF JUSTICE . AS CLAIMED BY THE LD. AR, IF THE ENTIRE AMOUNT RECEIVED BY THE ASSESSEE WAS ON BEHALF OF M/S.SARASWATHI EDUCATIONAL SOCIETY , BEING THE FEE S DUE TO M/S. SARASWATHI EDUCATIONAL SOCIETY AND FURTHER THE SAME WAS UTILIZED FOR THE ACTIVITIES OF THE M/S.SARASWATHI EDUCATIONAL SOCIETY , THEN IT WOULD NOT BE APPROPRIATE ON THE PART OF THE REVENUE TO TREAT IT AS INCOME IN THE HANDS OF THE ASSESS EE. THEREFORE, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. AO FOR DE - NOVO CONSIDERATION. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 19 TH SEPTEMBER , 2019. SD/ - (A. MOHAN ALANKAMON Y ) ACCOUNTANT MEMBER HYDERABAD, DATED 19 TH SEPTEMBER , 201 9. KV + - I.T.A. NO . 102 /HYD/1 8 SANGANI RAJU, HYD. 4 COPY FORWARDED TO: 1. SRI SANGANI RAJU, PLOT NO. 231, VAIDEHI NAGAR, VANASTHALIPURAM, HYDERABAD 500 070. 2 . IT O, WARD 12(1),HY DERABAD. 3 . C IT( A ) 1 , HYDERABAD. 4. PR. CIT 1 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE