ITO, Ward-10(1), Hyd, Hyderabad V. Hitesh Dholakia, Sec'bad, Secunderabad

ITA 1105/HYD/2015

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6549 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-07-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 18-07-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 24-08-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P V SUBBA RAJU
• Keywords: Unexplained cash credit; Unexplained expenditure; Source of fund; Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1105/HYD/2015 ASSESSMENT YEAR: 2010-11 ITO, WARD 10(1), HYDERABAD. VS. SHRI HITESH DHOLAKIA, HYDERABAD. PAN ACGPD0690M (APPLICANT) (RESPONDENT) REVENUE BY : SHRI P.V SUBBARAJU ASSESSEE BY : SHRI SUNIL KUMAR JAIN DATE OF HEARING : 18-07-2018 DATE OF PRONOUNCEMENT : 18-07-2018 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS REVENUES APPEAL FOR THE A.Y 2010-11 AGAINST THE ORDER OF THE LD. CIT(A)-4, HYDERABAD DATED 12.06.2015. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THE LD. CIT(A) ERRED IN DELETING THE ADDITION MADE TOWARDS UNEXPLAINED CASH CREDITS OF RS. 36,40,434/- AS THE ASSESSEE FAILED TO PROVE THAT THE CREDITS WERE OUT OF EARLIER WITHDRAWALS FROM THE SAME BANK ACCOUNT. 2. THE LD. CIT(A) ERRED IN DELETING THE ADDITION OF RS. 14,20,000/- AS THE ASSESSEE HAS NOT FURNISHED ANY EVIDENCE IN SUPPORT OF SOURCE OF FUNDS WHICH WERE INVESTED IN THE ICICI PRUDENTIAL MUTUAL FUND IN HIS INDIVIDUAL CAPACITY. 3. THE LD. CIT(A) OUGHT TO HAVE SUSTAINED THE ADDITION TOWARDS UNEXPLAINED EXPENDITURE INCURRED ON CREDIT CARD TO THE EXTENT OF RS. 4,00,625/- AS AGAINST RS. 1,65,150/- AS CLAIMED BY THE ASSESSEE. 2 ITA.NO. 1105/HYD/2015 SRI HITESH DHOLAKIA, HYDERABAD. 4. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF HEARING. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS BROUGHT TO OUR NOTICE THE CIRCULAR NO. 03/2018 DATED 11.07.2018 ISSUED BY THE CBDT FIXING THE MONETARY LIMIT FOR FILING OF THE APPEALS BY THE DEPARTMENT BEFORE THE HONBLE ITAT TO BE RS. 20 LAKHS. HE ALSO BROUGHT TO OUR NOTICE THAT THE CIRCULAR MENTIONS THAT PENDING APPEALS BELOW THE SPECIFIED TAX LIMIT IN PARA 3 THEREOF MAY BE WITHDRAWN / NOT PRESSED. HE HAS GIVEN THE COMPUTATION OF THE TAX EFFECT IN THE APPEAL BEFORE US, WHICH IS UNDER: THE TAX EFFECT IN RESPECT OF ABOVE ADDITIONS IS AS FOLLOWS: S.NO. GROUND NO. AMOUNT INVOLVED (RS.) 1 (I) 36,40,434/- 2 (II) 14,20,000/- 3 (III) 4,00,625/- TOTAL 54,61,059/- THE TAX EFFECT ON THE ABOVE EVEN IF CONSIDERED @ 30% TAX RATE: TOTAL ADDITIONS: RS.54,61,059/- TAX @ 30%: RS.16,38,317/- ADD: CESS @3%: RS. 49,149/- TOTAL TAX EFFEC: RS.16,87,466/- 3. THE LD. DR ALSO CONFIRMED THAT THE COMPUTATION MADE BY THE ASSESSEE IS CORRECT. IN VIEW OF THE SAME, THE REVENUES APPEAL IS DISMISSED IN VIEW OF THE LOW TAX EFFECT. 3 ITA.NO. 1105/HYD/2015 SRI HITESH DHOLAKIA, HYDERABAD. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 18 TH JULY, 2018. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 18 TH JULY, 2018 KRK 1) SRI HITESH DHOLAKIA, F NO. 106, BLOCK NO. III, DV COLONY, MINISTER ROAD, SECUNDERABAD. 2) ITO, WARD-10(1) HYDERABAD. 3) CIT(A)-4, HYDERABAD 4) ADDL.CIT, RANGE-10, HYDERABAD. 4) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 5) GUARD FILE.