Sri Kongala Buchaiah, R.R. Dist, Hyderabad V. The ITO, Ward-8(2), Hyderabad

ITA 1110/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59146 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-01-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 09-06-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: DR B V PRASAD REDDY
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBE R. ITA NO.1110/HYD/2011 (ASSESSMENT YEAR 2007-08) SHRI KONGALA BUCHAIAH, HYDERGUDA, RAJENDRANAGAR. RANGA REDDY DIST. (PAN - APWPK 5678 K ) V/S INCOME - TAX OFFICER, WARD - 8(2), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K.A.SAI PRASAD RESPONDENT BY : SHRI DR.B.V.PRASAD REDDY DATE OF HEARING 19. 1.2012 DATE OF PRONOUNCEMENT 19.1.2012 O R D E R PER ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE CIT(A), VIJAYAWADA, DATED 30.3.2011 FOR THE ASS ESSMENT YEAR 2007-08. 2. EFFECTIVE GROUNDS OF THE ASSESSEE IN THIS APPE AL READ AS FOLLOWS- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) IS NOT JUSTIFIE D IN CONFIRMING THE ADDITION OF RS. 60,57,980. 2. FOR THE ABOVE AND ANY OTHER GROUND OR GROUNDS TH AT MAY BE URGED DURING THE COURSE OF HEARING, IT IS PRAYED THAT THE HONBLE INCOM E TAX APPELLATE TRIBUNAL BE PLEASED TO DIRECT THE ASSESSING OFFICER TO DELETE THE ABOVE AD DITION. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSES SEE FILED RETURN OF INCOME DECLARING AN INCOME OF RS.1,66,190. IN TH E COURSE OF ASSESSMENT, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAD ITA NO.1110/HYD/2011 SHRI KONGALA BUCHAIAH, HYDERGUDA, RAJENDRANAGAR. 2 MADE SEVERAL DEPOSITS AGGREGATING TO RS.35,76,268 I N HIS SB ACCOUNT AND TO RS.44,63,231 IN ABG ACCOUNT WITH ANDHRA BANK ATTAPUR BRANCH; AND TO AN AMOUNT OF RS.18,56,727 IN ANDHRA BANK, KARWAN BRANCH, DURING THE RELEVANT PERIOD. THOUGH THE ASS ESSEE ATTENDED THE ASSESSMENT PROCEEDINGS INITIALLY AND FILED CERTAIN EVIDENCE IN SUPPORT OF ITS CASE WITH REGARD TO THE DEPOSITS IN QUESTION , FAILED TO OFFER SATISFACTORY EXPLANATION, AND TO THE ULTIMATE SHOW CAUSE NOTICE ISSUED, THERE WAS NO RESPONSE FROM THE ASSESSEE. HENCE, DR AWING AN ADVERSE INFERENCE, THE ASSESSING OFFICER MADE AN ADDITION O F RS.60,57,980 AS UNEXPLAINED INVESTMENT DURING THE YEAR, AFTER REDUC ING AN AMOUNT OF RS.44,40,000 CLAIMED AS SALE PROCEEDS OF LAND SOLD BY THE ASSESSEE DURING THE YEAR. THE ADDITIONAL INCOME BROUGHT TO TAX INCLUDES RS.54,57,225 REPRESENTING DEPOSITS IN THE BANK ACCO UNTS AND INVESTMENT OF RS.6,01,755 IN PROPERTY DURING THE YE AR. ON APPEAL, THE CIT(A) CONFIRMED THE ADDITIONS THUS MADE BY THE ASS ESSING OFFICER. HENCE, ASSESSEE IS IN SECOND APPEAL BEFORE US. 4. WE HEARD BOTH THE PARTIES AND PERUSED THE MATER IAL ON RECORD. WE FIND THAT THE IMPUGNED ADDITIONS OF RS. 60,57,980 WERE MADE BY THE ASSESSING OFFICER, DRAWING AN ADVERSE I NFERENCE IN VIEW OF NON-COMPLIANCE ON THE PART OF THE ASSESSEE TO THE U LTIMATE SHOW- CAUSE NOTICE ISSUED BY HIM IN THAT BEHALF. IT WAS THE CLAIM OF THE ASSESSEE BEFORE THE CIT(A) THAT DESPITE EFFORTS, TH E PURCHASER OF THE PROPERTY FROM THE ASSESSEE COULD NOT BE CONTACTED F OR CONFIRMATION, AS HE WAS LIVING ABROAD, IN VIEW OF THE ABSENCE OF AN Y EVIDENCE TO SUBSTANTIATE THE CLAIM OF THE ASSESSEE, THE CIT(A) CONFIRMED THE ACTION BY THE CIT(A). DURING THE COURSE OF HEARING BEFORE US, LEARNED COUNSEL FOR THE ASSESSEE, PLEADED FOR ONE MORE OPPORTUNITY TO SUBSTANTIATE THE CASE OF THE ASSESSEE, FOR WHICH THE LEARNED DEPARTM ENTAL REPRESENTATIVE TOO DID NOT RAISE ANY SERIOUS OBJECT ION. IN THIS VIEW OF ITA NO.1110/HYD/2011 SHRI KONGALA BUCHAIAH, HYDERGUDA, RAJENDRANAGAR. 3 THE MATTER, TO MEET THE ENDS OF JUSTICE, WE SET ASI DE THE IMPUGNED ORDERS OF THE LOWER AUTHORITIES AND RESTORE THE MAT TER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO REFRAME THE A SSESSMENT IN ACCORDANCE WITH LAW, AFTER GIVING ONE MORE REASONAB LE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE ITS CASE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 19.1.2012 SD/- SD/- (CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER. JUDICIAL MEMBER. DT/- 19TH JANUARY, 2012 COPY FORWARDED TO: 1. SHRI KONGALA BUCHAIAH, ( HYDERGUDA, RAJENDRANAGAR. RANGA REDDY DIST), C/O. M/S. CH.PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, STREET NO.1, ASHOKNAGAR, HYDERABAD 500 020. 2. INCOME - TAX OFFICER, WARD - 8(2), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS), VIJAYAWADA 4. COMMISSIONER OF INCOME - TAX - II L HYDERABAD 5. THE D.R., ITAT, HYDERABAD. B.V.S.