Rayanna Gottimukkla, Hyderabad V. Income Tax Officer, Ward-11(2), Hyderabad

ITA 1064/Hyd/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2232 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 22-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N SWAPNA
• Assessee Lawyers: B SHANTHI KUMAR
• Keywords: Peak credit
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1064/HYD/2017 ASSESSMENT YEAR: 2007-08 RAYANNA GOTTIMUKKALA, HYDERABAD [PAN: AEGPG0244N] VS INCOME TAX OFFICER, WARD-11(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI B. SHANTHI KUMAR, AR FOR REVENUE : SMT. N. SWAPNA, DR DATE OF HEARING : 28-12-2017 DATE OF PRONOUNCEMENT : 28-12-2017 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-KURNOOL, DATED 13-04-2017. 2. THE GROUNDS RAISED BY ASSESSEE ARE AS UNDER: 2. THE CIT(APPEALS) ERRED BOTH IN LAW AND ON MERIT S IN UPHOLDING THE ADDITION BY ESTIMATION OF INCOME AT 10% ON CONT RACT RECEIPTS. 3. (WRONGLY TYPED AS 4.) THE CIT(APPEALS) ERRED BOTH IN LAW AND ON MERITS IN UPHOLDING THE ADDITION OF RS. 12,24,500/- MADE U/S. 69A IN THE FACTS AND CIRCUMSTANCES OF ASSESSEES CASE. 3. DURING THE PROCEEDINGS, ASSESSEE FILED ADDITIONAL GROUND WHICH IS LEGAL, AS UNDER: 2. THE CIT(APPEALS) VIDE ORDER IN ITA NO.0701/CIT( A)/KNL/2009- 10, DATED 13-04-2017 DISPOSED THE APPEAL. WHILE ADJ UDICATING THE APPEAL BY THE CIT(A), TELESCOPING OF INCOME FROM CONTRACT RECEIPTS AGAINST THE ADDITION U/S 69A ON ACCOUNT OF CASH DEPOSITS WAS NO T CONSIDERED. THIS I.T.A. NO. 1064/HYD/2017 :- 2 - : ISSUE WAS NOT RAISED BY THE ASSESSEE AS HE DID NOT APPEAR BEFORE THE AO AND CIT(A). CONSEQUENT TO THE ESTIMATION OF INCOME FROM GROSS RECEIPTS, THERE IS AN ADDITION OF RS. 3,79,430/- (8% OF GROSS RECEIPTS RS.6,88,000 MINUS INCOME DECLARED RS.3,08,570/-). THE ASSESSEE PRAYS FOR GIVING TELESCOPING OF INCOME TO THE EXTENT OF RS.3,79,430/ - AGAINST THE ADDITION OF RS.12.24,500/-. 4. BRIEFLY STATED, ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM CIVIL CONTRACT WORKS AND FILED HIS RETURN OF INCOME FO R THE AY. 2007- 08 ON ADMITTING A TOTAL INCOME OF RS. 3,08,570/-. THE CASE HAS BEEN SELECTED FOR SCRUTINY UNDER CASS. THE ASSESSME NT WAS COMPLETED U/S. 144 OF THE INCOME TAX ACT [ACT] BY ESTI MATING THE INCOME OF 10% ON CONTRACT RECEIPTS OF RS. 86 LAKHS WHI CH WORKS OUT TO RS. 8,60,000/- AND RS. 12,24,500/- TOWARDS UNE XPLAINED MONEY U/S. 69A OF THE ACT. 5. LD.CIT(A) IN APPEAL, HOWEVER, CONFIRMED THE ADDITI ON OF PEAK CASH DEPOSIT, BUT REDUCED THE ESTIMATION OF INCOME TO 8% ON GROSS RECEIPTS. 6. IT WAS THE SUBMISSION THAT ASSESSEE COULD NOT REPRES ENT PROPERLY DUE TO ILL-HEALTH AND REQUEST FOR BENEFIT OF T ELESCOPING OF INCOME ESTIMATED AND CASH WITHDRAWAL OF RS. 4,00,000/ - ON 11-11- 2006, WHICH AO HAS NOT CONSIDERED. 7. AFTER CONSIDERING THE RIVAL CONTENTIONS, I AM OF THE OPINION THAT ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE IN REP RESENTING BEFORE AO/CIT(A). ASSESSEE ACCEPTS ADDITION OF INCOM E AT 8% OF RECEIPTS, BUT REQUESTED FOR CREDIT OF INCOME AND WITHD RAWALS MADE WHILE WORKING OUT PEAK CREDIT. SINCE THIS ASPECT REQUIR E VERIFICATION BY AO, I HEREBY SET ASIDE THE ISSUE OF ADDITION OF PEA K DEPOSIT IN I.T.A. NO. 1064/HYD/2017 :- 3 - : BANK A/C TO AO FOR FRESH EXAMINATION, AFTER GIVING DU E OPPORTUNITY TO ASSESSEE. 8. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH DECEMBER, 2017 UPON CONCLUSION OF HEARING SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 28 TH DECEMBER, 2017 TNMM I.T.A. NO. 1064/HYD/2017 :- 4 - : COPY TO : 1. RAYANNA GOTTIMUKKALA, C/O. B. SHANTHI KUMAR, ADVOCATE, 111, TARAMANDAL COMPLEX, 5-9-13, SAIFABAD , HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-11(2), HYDERABAD. 3. CIT (APPEALS)-KURNOOL. 4. PR.CIT-5, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.