Putlur Nageswar Reddy, Anantapur, Hyderabad V. ITO, Ward-2, Anantapur, Anantapur

ITA 1057/HYD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1952 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-08-2018
• Assessment Year: 2009-2010
• Appeal Filed On: 27-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Section: 144; 154

Judgement Text

ITA NO 1057 OF 2016 PUTLUR NAGESWAR REDDY ANANTAPU R. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.1057/HYD/2016 (ASSESSMENT YEAR: 2009-10) SHRI PUTLUR NAGESWAR REDDY, ANANTAPUR PAN: AFNPP6912L VS INCOME TAX OFFICER WARD-2 ANANTAPUR (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI NI L ANJAN DEY, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10 AGAIN ST THE ORDER OF THE CIT (A)-KURNOOL, DATED 29.04.2016. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE ORDER OF THE CIT (A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ADDI TION OF RS.20,05,253 REPRESENTING THE DEPOSITS MADE INTO TH E BANK A/C. 3. THE LEARNED CIT (A) OUGHT TO HAVE SEEN THAT THE DEPOSITS MADE INTO THE BANK A/C ARE PROPERLY EXPLAINED AND THEREFORE, THE LEARNED CIT (A) OUGHT TO HAVE ALLOWE D THE RELIEF AS PRAYED FOR, 4. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. DATE OF HEARING: 29.08 . 201 8 DATE OF PRONOUNCEMENT: 31.08.2018 ITA NO 1057 OF 2016 PUTLUR NAGESWAR REDDY ANANTAPU R. PAGE 2 OF 3 2. THE LEARNED COUNSEL FOR THE ASSESSEE WHILE REITE RATING THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE AUT HORITIES BELOW, SUBMITTED THAT THE ASSESSEE HAD BORROWED FUN DS FROM VARIOUS PARTIES WHO ARE HIS FRIENDS AND RELATIVES, TO ENABLE THE ASSESSEES SON AND DAUGHTER-IN-LAW TO GET ELIGIBILI TY FOR FURTHER STUDY ABROAD AND IMMEDIATELY AFTER THE VISA WAS GRA NTED, THE AMOUNTS WERE RETURNED TO THE RESPECTIVE PARTIES. BU T THE CIT (A) HAS NOT ACCEPTED THE ASSESSEES CONTENTION AND HAS MADE THE ADDITION MADE BY THE AO U/S 154 OF THE ACT. HE FILE D THE COPY OF THE BANK STATEMENT AND ALSO THE CERTIFICATE OF ELIG IBILITY OF GETTING STUDENT VISA (F-1) TO SUPPORT HIS CONTENTION. 3. THE LEARNED DR HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSMENT WAS COMPLETE D U/S 144 OF THE ACT AND BEFORE THE CIT (A), THE ASSESSEE HAS FU RNISHED THE RELEVANT INFORMATION AND THE REMAND REPORT WAS ALSO CALLED FOR BY THE CIT(A). IN THE REMAND REPORT, THE AO HAD ONLY C OMMENTED THAT THE ASSESSEES VERSIONS ARE BASELESS AND AFTER THOUGHTS, BUT HE HAD NOT GIVEN ANY ADVERSE COMMENTS ON THE EVIDEN CE, SUCH AS F-1 CERTIFICATE AND ALSO THE BANK STATEMENTS FURNIS HED BY THE ASSESSEE. THE ASSESSEE SUBMITTED THAT HE WAS ALSO F ILED THE CONFIRMATION LETTERS FROM THE RESPECTIVE PARTIES AN D THE EVIDENCE IN SUPPORT OF THEIR CREDITWORTHINESS, BUT THE SAME WAS NOT CONSIDERED BY THE AO. WE FIND THAT THE F-1 CERTIFIC ATE WAS ISSUED IN THE MONTH OF MARCH, 2009 AND THE DEPOSITS WERE A LSO MADE IN ITA NO 1057 OF 2016 PUTLUR NAGESWAR REDDY ANANTAPU R. PAGE 3 OF 3 THE SAME MONTH. THEREFORE, WE FIND THAT THE ASSESSE ES CONTENTION THAT THE AMOUNTS WERE SHORT TERM BORROWALS FOR MEET ING THE VISA REQUIREMENTS SEEMS PROBABLE. THE ASSESSEES CONTENT ION THAT HE HAS WITHDRAWN THE ENTIRE AMOUNT AND REPAID THE AMOU NT TO THE RESPECTIVE PARTIES AFTER THE INTERVIEW ALSO HAS NOT BEEN VERIFIED BY THE AUTHORITIES BELOW. IN VIEW OF THE SAME, WE DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE AO FO R VERIFICATION OF THE ASSESSEES CONTENTION AND IF IT IS FOUND THAT T HE DEPOSITS AND THE WITHDRAWALS ARE AROUND THE DATE OF THE ASSESSEE S CHILDREN VISA INTERVIEW, THEN NO ADDITION SHALL BE MADE. 5. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2018. SD/- SD/- (INTURI RAMA RAO) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL M EMBER HYDERABAD, DATED 31 ST AUGUST, 2018. VINODAN/SPS COPY TO: 1 SHRI S.RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYA'S ELEGANCE, 3-6- 643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 500029 2 ITO WARD-2 AAYAKAR BHAVAN, OPP: SAI BABA TEMPLE, ANANTAPUR 3 CIT (A)-KURNOOL 4 PR. CIT - KURNOOL 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER