THE ITO WARD - 1(2), Vijayawada V. Smt Chaluvadi Padmavathi, Vijayawada

ITA 114/VIZ/2014

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9954 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 3 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 15-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Source of fund; Deemed to accrue or arise in india
• Section: 142(1); 131

Judgement Text

ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.114/VIZAG/2014 ( / ASSESSMENT YEAR:2010-11) ITO, WARD - 1(2), VIJAYAWADA VS. SMT. CH. PADMAVATHI, VIJAYAWADA [PAN: ABXPC 0964B ] ( % / APPELLANT) ( &'% / RESPONDENT) C.O. NO.30/VIZAG/2014 (ARISING OUT OF I.T.A.NO.114/VIZAG/2014) ( / ASSESSMENT YEAR:2010-11) SMT. CH. PADM AVATHI, VIJAYAWADA VS. ITO, WARD - 1(2), VIJAYAWADA ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.N. MURTHY NAIK, DR / RESPONDENT BY : SHRI I. KAMA SASTRY, AR / DATE OF HEARING : 26.07.2016 / DATE OF PRONOUNCEMENT : 12.08.2016 ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 2 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE REVENUE AND CROSS OBJECTI ON FILED BY THE ASSESSEE ARE DIRECTED AGAINST ORDER OF THE CIT(A), VIJAYAWADA DATED 13.1.2014 AND IT PERTAINS TO THE ASSESSMENT YEAR 20 10-11. SINCE, THE FACTS ARE IDENTICAL AND ISSUES ARE COMMON, THEY ARE HEARD TOGETHER AND DISPOSED OFF, BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF MONEY LENDING, FILED HER RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 DECLARING TOTAL INCOME OF ` 1,55,780/-. THE CASE HAS BEEN SELECTED FOR SCRUTINY UNDER CASS TO VERIFY THE SOURCES OF CASH DEPOSITS IN SAVINGS BANK ACCOUNT AS PER AIR INFORMATION AND ACCORDINGLY, NOTICE U/S 143(2) OF THE INCOME TA X ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') ALONG WITH SECTIO N 142(1) OF THE ACT WERE ISSUED. IN RESPONSE TO NOTICE, THE AUTHORIZED REPR ESENTATIVE OF THE ASSESSEE APPEARED FROM TIME TO TIME AND FURNISHED B OOKS OF ACCOUNTS AND OTHER INFORMATION CALLED FOR. DURING THE COURS E OF ASSESSMENT PROCEEDINGS, THE A.O. NOTICED THAT THE ASSESSEE HAS MADE CASH DEPOSIT OF ` 56,36,050/- INTO SAVINGS BANK ACCOUNT MAINTAINED AT THE KARUR VYSYA BANK LTD. VIDE ACCOUNT NO.1414155000017306. IN ORDER TO VERIFY ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 3 THE SOURCES OF CASH DEPOSIT, THE A.O. ISSUED SHOW C AUSE NOTICE AND ASKED TO EXPLAIN THE NATURE AND SOURCE OF CREDITS I N THE BANK ACCOUNT. IN RESPONSE TO SHOW CAUSE NOTICE, THE ASSESSEE SUBM ITTED THAT SHE IS INVOLVED IN THE BUSINESS OF MONEY LENDING AND THE S OURCES FOR CASH DEPOSITS INTO SAVINGS BANK ACCOUNTS WERE OUT OF AMO UNT RECEIVED BACK FROM DEBTORS. THE ASSESSEE FURTHER SUBMITTED THAT SHE HAD LENT MONEY IN THE ORDINARY COURSE OF BUSINESS TO VARIOUS INDIV IDUALS AND THEY HAVE RETURNED THE MONEY WHICH WAS DEPOSITED INTO BANK AC COUNT. TO SUPPORT HER CLAIM FURNISHED LIST OF 9 DEBTORS ALONG WITH TH EIR LEDGER EXTRACTS. THE A.O., IN ORDER TO VERIFY THE CLAIM OF THE ASSES SEE ISSUED SUMMONS U/S 131 OF THE ACT TO ALL THE CREDITORS, HOWEVER, T HE SUMMONS ISSUED TO THE CREDITORS WERE RETURNED UNSERVED BY THE POSTAL AUTHORITIES WITH THE REMARKS INSUFFICIENT ADDRESS. IN THE LIGHT OF TH E ABOVE, ANOTHER LETTER WAS ISSUED TO THE ASSESSEE ON 12.2.2013 PROVIDING O NE MORE OPPORTUNITY TO PRODUCE ALL THE LOAN CREDITORS TO PR OVE HER CLAIM THAT THE CASH RECEIVED FROM THEM WAS DEPOSITED IN THE SAVING S BANK ACCOUNT. IN RESPONSE TO THE LETTER, THE ASSESSEE SUBMITTED THAT AT PRESENT ALL THE DEBTORS MENTIONED ARE NOT CONTINUING BUSINESS WITH HER, HOWEVER, SHE COULD ABLE TO COLLECT LETTERS FROM 6 DEBTORS OUT OF 9 PARTIES. THE ASSESSEE FURTHER SUBMITTED THAT IT IS TRUE THAT I H AVE GIVEN LOAN TO 9 DEBTORS AND WHICH WAS RECORDED IN THE BOOKS OF ACCO UNTS. THE ASSESSEE ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 4 FURTHER SUBMITTED THAT ALL THE AMOUNTS CREDITED IN THE BANK ACCOUNT, DULY FOUND IN THE REGULAR BOOKS OF ACCOUNTS MAINTAI NED FOR THAT YEAR WITH NAME AND ADDRESS OF THE CREDITORS AND ACCORDIN GLY, IT CANNOT BE HELD THAT THE SOURCES FOR CASH DEPOSITS HAS NOT BEE N EXPLAINED. 3. THE A.O. AFTER CONSIDERING THE EXPLANATIONS OF T HE ASSESSEE, HELD THAT THE ASSESSEE HAS FAILED TO PRODUCE ANY COGENT MATERIAL EVIDENCE TO ESTABLISH THE NATURE AND SOURCE OF FUNDS, WHICH WER E DEPOSITED IN HER SAVINGS BANK ACCOUNT. THOUGH, ASSESSEE CLAIMS THAT CASH DEPOSITS ARE FROM THE DEBTORS TO WHOM SHE HAD GIVEN LOAN, EXCEPT IN THE CASE OF ONE DEBTOR, NONE OF THE PARTIES HAVE CONFIRMED THAT THE Y HAVE REPAID LOAN TO THE ASSESSEE. THE SUMMONS ISSUED TO ALL THE PARTIES WERE RETURNED UNSERVED. SINCE THE ASSESSEE FAILED TO PROVE THE I NITIAL ONUS OF SOURCE OF DEPOSIT IN THE BANK ACCOUNT, THE CONTENTION OF T HE ASSESSEE THAT THE DEBTORS HAVE REPAID THE MONEY WHICH WAS THE SOURCE OF CASH DEPOSIT TO BANK ACCOUNT CANNOT BE ACCEPTED. THE A.O. FURTHER HELD THAT AS PER THE PROVISIONS OF SECTION 69A OF THE ACT, IF THE ASSESS EE DOES NOT OFFER THE NATURE AND SOURCE OF ACQUISITION OF MONEY TO THE SA TISFACTION OF THE A.O., THE MONEY MAY BE DEEMED TO BE THE INCOME OF THE ASS ESSEE FOR SUCH FINANCIAL YEAR. THE A.O. FURTHER HELD THAT THERE I S A PRIMA FACIE EVIDENCE AGAINST THE ASSESSEE THAT THE RECEIPT OF MONEY WAS NOT EXPLAINED TO THE ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 5 SATISFACTION OF THE A.O. ACCORDINGLY, THE CASH DEP OSIT TO SAVINGS BANK ACCOUNT IS TREATED AS DEEMED INCOME U/S 69A OF THE ACT. 4. AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). BEFORE THE CIT(A), THE ASSESSEE REITERATED THE SUBMISSIONS MADE BEFORE THE A.O. THE ASSESSEE FURT HER SUBMITTED THAT CASH DEPOSIT INTO SAVINGS BANK ACCOUNT WAS RECORDED IN THE REGULAR BOOKS OF ACCOUNTS MAINTAINED FOR THE FINANCIAL YEAR AND THE SOURCE OF CASH DEPOSITS WAS EXPLAINED BEFORE THE A.O. THE AS SESSEE FURTHER CONTENDED THAT SHE IS INTO MONEY LENDING BUSINESS A ND IN THE NORMAL COURSE OF BUSINESS, SHE LENDS MONEY TO VARIOUS INDI VIDUALS AND RECOVER BACK MONEY FROM THE DEBTORS. THE SOURCES FOR CASH DEPOSIT INTO SAVINGS BANK ACCOUNT WAS OUT OF THE MONEY RECEIVED FROM THE DEBTORS, THEREFORE, THE A.O. WAS NOT CORRECT IN HOLDING THAT CASH DEPOSIT WAS NOT EXPLAINED. THE CIT(A), DURING THE COURSE OF APPELL ATE PROCEEDINGS, FORWARDED THE DETAILS FILED BY THE ASSESSEE TO THE A.O. FOR HIS COMMENTS. THE A.O. VIDE HIS REMAND REPORT SUBMITTED THAT DETA ILS FILED BY THE ASSESSEE BEFORE THE CIT(A) WERE ALREADY FILED BEFOR E THE A.O. AT THE TIME OF ASSESSMENT, EXCEPT FILING LEDGER EXTRACT AN D BANK STATEMENT, THE ASSESSEE HAS FAILED TO PROVE SOURCES OF CASH DEPOSI T INTO BANK ACCOUNT WITH NECESSARY MATERIAL EVIDENCE. THEREFORE, THE AS SESSEES CONTENTION ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 6 THAT THE SOURCES FOR THE CASH DEPOSITS WERE OUT OF MONEY RECEIVED BACK FROM DEBTORS CANNOT BE ACCEPTED. THE CIT(A) AFTER C ONSIDERING THE EXPLANATIONS FURNISHED BY THE ASSESSEE AND ALSO TAK EN INTO ACCOUNT THE REMAND REPORT OF THE A.O., HELD THAT THE ASSESSEE H AS EXPLAINED THE SOURCE OF THE DEPOSIT WHICH HAS BEEN TREATED UNEXPL AINED BY THE A.O. U/S 69A OF THE ACT. THE CIT(A) FURTHER HELD THAT I T IS AN ADMITTED FACT THAT THE ASSESSEE HAS MAINTAINED BOOKS OF ACCOUNTS AND THE CASH DEPOSITS INTO SAVINGS BANK ACCOUNT HAS BEEN RECORDE D IN THE REGULAR BOOKS OF ACCOUNTS MAINTAINED FOR THE FINANCIAL YEAR . THE CIT(A) FURTHER OBSERVED THAT ON PERUSAL OF THE BANK STATEMENT, IT IS NOTICED THAT THERE ARE NUMBER CASH DEPOSITS AND WITHDRAWALS. THE A.O., WITHOUT BRINGING ON RECORD ANY MATERIAL TO ESTABLISH THE FACT THAT T HE CASH WITHDRAWALS HAVE BEEN UTILIZED FOR OTHER THAN THE PURPOSE SPECI FIED BY THE ASSESSEE, SIMPLY MADE ADDITIONS TOWARDS TOTAL CASH DEPOSITS A S UNEXPLAINED MONEY ETC. U/S 69A OF THE ACT. WITH THESE OBSERVATIO NS, DELETED ADDITIONS MADE BY THE A.O. U/S 69A OF THE ACT. AGGR IEVED BY THE CIT(A) ORDER, THE REVENUE IS IN APPEAL BEFORE US. 5. THE LD. D.R. SUBMITTED THAT THE CIT(A) IS ERRED IN DELETING THE ADDITIONS MADE BY THE A.O. TOWARDS UNEXPLAINED MONE Y DEPOSITED IN SAVINGS BANK ACCOUNT. THE D.R. FURTHER SUBMITTED T HAT THE ASSESSEE HAS ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 7 FAILED TO PROVE THE SOURCES OF MONEY DEPOSITED IN S AVINGS BANK ACCOUNT WITH NECESSARY EVIDENCES. THE A.O. HAS CLEARLY BRO UGHT OUT IN HIS ORDER THAT THE ASSESSEE HAS FAILED TO PROVE THE SOURCES O F CASH DEPOSITS INTO BANK ACCOUNT. THOUGH SHE HAD CLAIMED THAT SOURCES WERE OUT OF THE MONEY RECEIVED FROM THE DEBTORS, THE DEBTORS HAVE F AILED TO APPEAR BEFORE THE A.O. AND ALSO THE SUMMONS ISSUED TO THE DEBTORS WERE RETURNED UNSERVED WITH A REASON INSUFFICIENT ADDRE SS. THE D.R. FURTHER SUBMITTED THAT THE CIT(A) FAILED TO TAKE COGNIZANCE OF THE FACT THAT THE QUESTION OF CONSIDERING THE PURPOSE OF UTILIZING CA SH WITHDRAWALS BY THE ASSESSEE WOULD ARISE ONLY WHEN THE ASSESSEE HAD PRO VED SOURCES OF DEPOSIT TO THE SATISFACTION OF THE A.O. IN THE PRE SENT CASE, THE ASSESSEE HAS FAILED TO EXPLAIN THE SOURCES FOR CASH DEPOSITS TO THE SATISFACTION OF THE A.O., ACCORDINGLY THE A.O. HAS RIGHTLY MADE ADD ITIONS U/S 69A OF THE ACT AND HIS ORDER SHOULD BE UPHELD. 6. ON THE OTHER HAND, THE LD. A.R. FOR THE ASSESSEE STRONGLY SUPPORTED THE ORDER OF THE CIT(A). THE A.R. FURTHE R SUBMITTED THAT THE A.O. WAS COMPLETELY ERRED IN INVOKING THE PROVISION S OF SECTION 69A OF THE ACT, WHEN COMPLETE TRANSACTIONS WERE RECORDED I N THE BOOKS OF ACCOUNTS MAINTAINED FOR THE FINANCIAL YEAR. THE A. R. FURTHER SUBMITTED THAT FOR INVOKING THE PROVISIONS OF SECTION 69A OF THE ACT, TWO CONDITIONS ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 8 MUST BE SATISFIED I.E. THE ASSESSEE SHOULD BE FOUND TO BE OWNER OF ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE , SECONDLY, THE SAME SHOULD NOT BE FOUND RECORDED IN THE BOOKS OF ACCOUN TS, IF ANY MAINTAINED BY HIM. IN THE PRESENT CASE ON HAND, TH E ASSESSEE HAS CATEGORICALLY PROVED THAT SHE HAD MAINTAINED BOOKS OF ACCOUNTS AND CASH DEPOSITS INTO BANK ACCOUNT IS FOUND IN THE REG ULAR BOOKS OF ACCOUNTS MAINTAINED BY THE ASSESSEE, THEREFORE, THE A.O. CANNOT MAKE ADDITIONS U/S 69A OF THE ACT. 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE FACTUAL MATRIX OF THE CASE IS THAT THE ASSESSEE HAS MADE CASH DEPOSITS INTO SAVINGS BANK ACCOUNT MAINTAINED AT THE KARUR V YSYA BANK LTD. THE A.O. OBSERVED THAT THE ASSESSEE HAS FAILED TO PROVE SOURCES FOR THE CASH DEPOSITS. THE A.O. FURTHER WAS OF THE OPINION THAT THOUGH ASSESSEE CLAIMS TO HAVE RECEIVED BACK MONEY FROM DEBTORS, TH E DEBTORS HAVE FAILED TO PROVE THE TRANSACTIONS WITH THE ASSESSEE AND ALSO SUMMONS ISSUED TO THE DEBTORS WERE RETURNED UNSERVED. THER EFORE, OPINED THAT THE ASSESSEE HAS NOT DISCHARGED INITIAL ONUS CAST U PON HER TO PROVE THE SOURCES FOR CASH DEPOSITS. THE ASSESSEE EXPLAINED T HAT SOURCES FOR CASH DEPOSITS WERE OUT OF AMOUNT RECEIVED FROM DEBTORS. THE ASSESSEE ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 9 FURTHER EXPLAINED THAT SHE IS INTO BUSINESS OF MONE Y LENDING AND IN THE ORDINARY COURSE OF BUSINESS SHE HAD ADVANCED MONEY TO VARIOUS INDIVIDUALS AND SAME HAS BEEN RECEIVED BACK WHICH W AS THE SOURCE FOR CASH DEPOSITS INTO BANK ACCOUNT. THE ASSESSEE FURTH ER CONTENDED THAT TOTAL TRANSACTION WAS RECORDED IN THE REGULAR BOOKS OF ACCOUNTS MAINTAINED FOR THE FINANCIAL YEAR, THEREFORE, THE A .O. WAS NOT CORRECT IN INVOKING THE PROVISIONS OF SECTION 69A OF THE ACT. WE FIND FORCE IN THE ARGUMENTS OF THE ASSESSEE FOR THE REASON THAT THE A SSESSEE HAS MAINTAINED REGULAR BOOKS OF ACCOUNTS, WHEREIN CASH DEPOSIT INTO SAVINGS BANK ACCOUNT HAS BEEN RECORDED. THE ASSESSEE FURTHE R EXPLAINED THAT SHE LENT MONEY IN THE ORDINARY COURSE OF MONEY LEND ING BUSINESS TO VARIOUS INDIVIDUALS AND SAME WAS RETURNED BY THE DE BTORS, WHICH WAS THE SOURCE OF CASH DEPOSIT INTO BANK ACCOUNT. THE ASSESSEE HAS FILED PAPER BOOK. ON PERUSAL OF THE PAPER BOOK FILED BY T HE ASSESSEE, WE FIND THAT SHE HAS MAINTAINED BOOKS OF ACCOUNTS FOR HER M ONEY LENDING BUSINESS, WHEREIN CASH DEPOSITS INTO SAVINGS BANK A CCOUNT WAS RECORDED IN THE REGULAR BOOKS OF ACCOUNTS MAINTAINED FOR THA T YEAR. THE ASSESSEE ALSO FILED LEDGER ACCOUNT COPIES OF DEBTORS TO PROV E HER STAND THAT THE SOURCES FOR MONEY WAS OUT OF AMOUNT RECEIVED FROM T HE DEBTORS. THEREFORE, WE ARE OF THE OPINION THAT THE A.O. WAS NOT CORRECT IN HOLDING THAT THE ASSESSEE HAS NOT EXPLAINED THE SOURCES FOR CASH DEPOSIT INTO ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 10 BANK ACCOUNT, WHEN THE SAME HAS BEEN RECORDED IN TH E REGULAR BOOKS OF ACCOUNTS MAINTAINED FOR THE FINANCIAL YEAR. 8. THE A.O. MADE ADDITIONS TOWARDS UNEXPLAINED MONE Y U/S 69A TOWARDS CASH CREDITS IN BANK ACCOUNT. THE PROVISION S OF SECTION 69A OF THE ACT, PROVIDES FOR ADDITION, WHERE IN ANY FINANC IAL YEAR THE ASSESSEE FOUND TO BE OWNER OF MONEY, BULLION, JEWELLERY OR O THER VALUABLE ARTICLE AND SUCH MONEY, BULLION, JEWELLERY OR VALUABLE ARTI CLE IS NOT RECORDED IN THE BOOKS OF ACCOUNT, IF ANY, MAINTAINED BY HIM FOR ANY SOURCE OF INCOME, AND THE ASSESSEE OFFERS NO EXPLANATIONS ABO UT THE NATURE AND SOURCE OF ACQUISITION OF MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE, OR THE EXPLANATIONS OFFERED BY THE ASSESSE E IS NOT IN THE OPINION OF THE A.O., SATISFACTORY, THEN THE MONEY AND THE V ALUE OF THE BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE MAY BE DEEMED T O BE THE INCOME OF THE ASSESSEE FOR SUCH FINANCIAL YEAR. A PLAIN READ ING OF PROVISIONS OF SECTION 69A OF THE ACT, MAKES IT CLEAR THAT TO INVO KE THE PROVISIONS, FIRST OF ALL THE ASSESSEE SHOULD BE FOUND TO BE OWNER OF ANY MONEY, BULLION OR JEWELLERY OR OTHER VALUABLE ARTICLE AND SECONDLY, T HE SAME SHOULD NOT BE FOUND RECORDED IN THE BOOKS OF ACCOUNTS, IF ANY MAI NTAINED BY THE ASSESSEE FOR THAT FINANCIAL YEAR. IN THE PRESENT C ASE ON HAND, ON PERUSAL OF THE FACTS AVAILABLE ON RECORD, WE FIND T HAT CASH DEPOSITS INTO ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 11 SAVINGS BANK ACCOUNT IS RECORDED IN THE REGULAR BOO KS OF ACCOUNTS MAINTAINED BY THE ASSESSEE FOR THE FINANCIAL YEAR. THE ASSESSEE EXPLAINED SOURCES OF CASH DEPOSIT TO BANK ACCOUNT W ITH NECESSARY EVIDENCES. THEREFORE, WE ARE OF THE VIEW THAT THE A.O. WAS NOT CORRECT IN INVOKING THE PROVISIONS OF SECTION 69A OF THE AC T, TO MAKE ADDITIONS TOWARDS CASH DEPOSITS INTO SAVINGS BANK ACCOUNT. 9. THE ASSESSEE HAS RELIED UPON THE DECISION OF HON BLE HIGH COURT OF PUNJAB & HARYANA, IN THE CASE OF CIT VS. RAVI KUMAR (2007) 294 ITR 78. THE HONBLE HIGH COURT, UNDER SIMILAR CIRCUMST ANCES HELD THAT TO INVOKE THE PROVISIONS OF SECTION 69A OF THE ACT, TW O CONDITIONS NEED TO BE FULFILLED. THE FIRST CONDITION FOR APPLYING THE PROVISIONS OF SECTION 69A OF THE ACT IS THAT ASSESSEE SHOULD BE FOUND TO BE O WNER OF ANY MONEY, BULLION, JEWELLERY OR OTHER VALUABLE ARTICLE AND SE CONDLY, THE SAME SHOULD NOT BE FOUND RECORDED IN THE BOOKS OF ACCOUNTS, IF ANY, MAINTAINED BY HIM. 10. CONSIDERING FACTS AND CIRCUMSTANCES OF THE CAS E AND ALSO RELIED UPON THE DECISION OF HONBLE HIGH COURT OF PUNJAB & HARYANA, IN THE CASE OF CIT VS. RAVI KUMAR (2007) 294 ITR 78, WE AR E OF THE VIEW THAT THE A.O. WAS ERRED IN INVOKING PROVISIONS OF SEC. 6 9A OF THE ACT. THE CIT(A) AFTER CONSIDERING RELEVANT INFORMATION AND A LSO TAKEN INTO ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 12 ACCOUNT REMAND REPORT OF THE A.O., RIGHTLY DELETED ADDITIONS. WE DO NOT SEE ANY REASONS TO INTERFERE WITH THE CIT(A) ORDER. HENCE, WE INCLINED TO UPHOLD THE CIT(A) ORDER AND DISMISS THE APPEAL F ILED BY THE REVENUE. 11. THE ASSESSEE HAS FILED CROSS OBJECTION IN SUPPO RT OF ORDER OF THE LD. CIT(A). WE DISMISSED APPEAL OF THE REVENUE FOR THE REASONS RECORDED IN THE PRECEDING PARAGRAPHS. THE CROSS OBJ ECTION FILED BY THE ASSESSEE BECOMES INFRUCTOUS. THEREFORE, WE DISMISS CROSS OBJECTION FILED BY THE ASSESSEE AS INFRUCTOUS. 12. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJECTION FILED BY THE ASSESSEE ARE DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 12 TH AUG16. SD/- SD/- ( . ) ( . ) (V. DURGA RAO) (G. MANJUNATHA) /JUDICIAL MEMBER /ACCOUNTANT MEMBER # /VISAKHAPATNAM: ' /DATED : 12.08.2016 VG/SPS ITA NO.114/VIZAG/2014 & CO 30/VIZAG/2014 CH. PADMAVATHI, VIJAYAWADA 13 )# *# /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO WARD-1(2), VIJAYAWADA 2. / THE RESPONDENT SMT. CHALUVADI PADMAVATHI, SHOP NO.286, VASTRALATHA, ONE TOWN, VIJAYAWADA-520 001. 3. + / THE CIT, VIJAYAWADA 4. + ( ) / THE CIT (A), VIJAYAWADAS 5. # . , . , # / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // 12 . (SR.PRIVATE SECRETARY) . , # / ITAT, VISAKHAPATNAM