M. Ugandhar Reddy, Hyd, Hyderabad V. ITO, Ward-3(2),Hyd, Hyderabad

ITA 1165/HYD/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2653 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 17-08-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 01-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SREEKAR
• Assessee Lawyers: A V RAGHURAM
• Keywords: Peak credit; Additional evidence; Condonation of delay
• Section: 80C; 143(3); 68

Judgement Text

ITA NO 1165 OF 2016 M UGANDHAR REDDY HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A (SMC) BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1165/HYD/2016 (ASSESSMENT YEAR: 2008-09) SRI M. UGANDHAR REDDY SAROORNAGAR,HYDERABAD PAN: AQCPM 4285 F VS INCOME TAX OFFICER WARD 3(2) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V. RAGHURAM FOR REVENUE : SHRI V. SREEKAR, DR O R D E R THIS IS ASSESSEES APPEAL FOR THE A.Y 2008-09. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT (A)-5, HYDERABAD, DATED 31.03.2016 CONFIRMING THE ADDITION S MADE BY THE AO TOWARDS PEAK CREDIT AND UNEXPLAINED DEPOSITS IN THE BANK A/C OF THE ASSESSEE. 2. AT THE OUTSET IT IS NOTICED THAT THERE IS DELAY OF 38 DAYS IN FILING OF THE APPEAL BEFORE THIS TRIBUNAL. THE A SSESSEE HAS FILED THE APPLICATION FOR CONDONATION OF DELAY ALONG WITH AN AFFIDAVIT GIVING THE REASONS FOR THE DELAY. THE DELAY HAS OCC URRED DUE TO SHIFTING OF RESIDENCE FROM BANJARA HILLS TO BALAJI COLONY, JILLELGUDA, SAROORNAGAR AND HAD NOT INFORMED HIS CO UNSEL ABOUT THE CHANGE OF ADDRESS. I HAVE PERUSED FORM NO.35 FI LED BEFORE THE CIT (A) AND FIND THAT THE ADDRESS FOR COMMUNICATION IS GIVEN OF DATE OF HEARING : 23.08.2017 DATE OF PRONOUNCEMENT : 31.08.2017 ITA NO 1165 OF 2016 M UGANDHAR REDDY HYDERABAD PAGE 2 OF 4 BANJARA HILLS, HYDERABAD, WHEREAS THE PRESENT FORM N O.35 IS FILED WITH THE ADDRESS AT BALAJI COLONY, JILLELGUDA. THER EFORE, I AM SATISFIED THAT THE ASSESSEE WAS PREVENTED BY REASON ABLE CAUSE IN FILING THIS APPEAL BEFORE THIS TRIBUNAL WITH A DELA Y OF 38 DAYS. I THEREFORE, CONDONE THE DELAY AND PROCEED TO DISPOSE OF THE APPEAL ON MERIT AS UNDER. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL AND A DIRECTOR IN M/S UGANDHARA INFRASTR UCTURE PVT. LTD, FILED HIS RETURN OF INCOME FOR THE A.Y 2008-09 ON 28.07.2008 DECLARING INCOME OF RS.2,87,400. DURING THE ASSESSM ENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSEE WAS DIRECTED TO PRODUCE THE RELEVANT DOCUMENTS IN SUPPORT OF HIS DE CLARATION OF INCOME. THE ASSESSEES REPRESENTATIVE FILED THE DET AILS ALONG WITH STATEMENT OF HIS ACCOUNT WITH ANDHRA BANK, KOTHUR B RANCH. ON PERUSAL OF THE SAME, THE AO ASKED THE ASSESSEE TO S UBMIT A NOTE ON THE NATURE OF THE DEPOSITS AND DETAILS OF CASH & CHEQUE/TRANSFER, CREDITS IN BANK A/C WITH SOURCES, DETAILS OF ANY OTHER BANK A/C HELD BY THE ASSESSEE AND DOCUMENTARY EVIDENCE IN SUPPORT OF CLAIMS MADE U/S 80C OF THE I.T. ACT. THE ASSESSEE, VIDE LETTER DATED 23.12.2010, SUBMITTED THE SOURCES FOR CASH DEPOSITED IN THE BANK A/C HELD WITH ANDHRA BANK, KOTHUR BRANC H AND DOCUMENTARY EVIDENCE IN SUPPORT OF CLAIMS MADE U/S 80C. THEREAFTER, THE AO GAVE THE ASSESSEE A COPY OF THE ACCOUNT STATEMENT PERTAINING TO THE BANK A/C HELD BY THE AS SESSEE WITH ING VYSYA BANK, SANTOSHNAGAR. THE ASSESSEE HOWEVER, STATED THAT HE WAS NOT AWARE OF THE EXISTENCE OF THE SAID BANK A/C. THEREAFTER, THE ASSESSEE FILED CASH FLOW STATEMENT OF BOTH THE BANK A/CS WITHOUT EXPLAINING THE SOURCES FOR THE DE POSITS. THE AO ITA NO 1165 OF 2016 M UGANDHAR REDDY HYDERABAD PAGE 3 OF 4 THEREFORE, HELD THAT THE ASSESSEE TRIED TO CONCEAL THE EXISTENCE OF THE BANK A/C WITH ING VYSYA BANK AND ALSO HAS FAILE D TO FURNISH THE DETAILS OF THE SOURCES OF THE CREDIT IN THE SAI D BANK A/C. HE, THEREFORE, HELD THAT THE CREDITS IN THE BANK A/C RE MAINED UNEXPLAINED AND ARE LIABLE TO BE TREATED AS UNEXPLA INED AS PER THE PROVISIONS OF SECTION 68 OF THE I.T. ACT. THEREAFTE R, THE AO ALSO CONSIDERED THE CASH CREDITS IN ANDHRA BANK A/C AND ARRIVED AT THE PEAK CREDIT AND HE ACCORDINGLY MADE THE ADDITIO N. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) , BUT HOWEVER, ON THE DATES FIXED FOR HEARING, THE ASSESSEE DID NO T APPEAR AND DID NOT FILE THE EVIDENCE CALLED FOR. THE CIT (A) T HEREFORE, DISMISSED THE ASSESSEES APPEAL AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THIS TRIBUNAL 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE APPEAL WAS FIXED FOR HEARING ONLY ONCE IN TWO Y EARS AND THE ASSESSEE COULD NOT APPEAR ON THE DATES SO FIXED DUE TO VARIOUS REASONS. HE SUBMITTED THAT THE ASSESSEE HAS NOW FUR NISHED THE DETAILS OF ALL THE DEPOSITS MADE INTO THE BANK A/C AS ADDITIONAL EVIDENCE BEFORE THIS TRIBUNAL AND PRAYED THAT THE A DDITIONAL EVIDENCE BE ADMITTED AND REMANDED TO THE FILE OF TH E AO FOR RECONSIDERATION. 5. THE LEARNED DR, HOWEVER, OPPOSED THE ADMISSION O F THE ADDITIONAL EVIDENCE. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD AND ALSO HAVING GONE THROUGH THE ADDITION AL EVIDENCE ITA NO 1165 OF 2016 M UGANDHAR REDDY HYDERABAD PAGE 4 OF 4 FILED BY THE ASSESSEE, I FIND THAT IT PERTAINS TO T HE SOURCES OF THE CASH DEPOSITS WHICH HAS BEEN CONFIRMED BY THE PARTI ES AND ALSO THE COPIES OF THE SALE DEED BY VIRTUE OF WHICH THE ASSESSEE HAS RECEIVED CASH WHICH WAS ALLEGEDLY DEPOSITED INTO TH E BANK A/C. HAVING GONE THROUGH THE MATERIAL, I AM OF THE OPINI ON THAT, IN THE INTEREST OF JUSTICE, THIS ADDITIONAL EVIDENCE NEEDS TO BE ADMITTED AND RECONSIDERED BY THE AUTHORITIES. IN VIEW OF THE SAME, I ADMIT THE ADDITIONAL EVIDENCE AND SET ASIDE THE ORDER OF THE CIT (A) AND REMAND THE ISSUE TO THE FILE OF THE AO WITH A DIREC TION TO RECONSIDER THE ISSUE IN THE LIGHT OF THE ADDITIONAL EVIDENCE NOW FILED BY THE ASSESSEE BEFORE THIS TRIBUNAL. NEEDLES S TO MENTION THAT THE ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF HEARING. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2017. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST AUGUST, 2017. VINODAN/SPS COPY TO: 1 A.V.RAGHU RAM, P.VINOD, ADVOCATES, 610 BABUKHAN E STATE, BASHEERBAGH, HYDERABAD-01 2 INCOME TAX OFFICER WARD 3(2) 7 TH FLOOR, SIGNATURE TOWERS, KONDAPUR HYDERABAD 3 CIT (A)-5 HYDERABAD 4 PR. CIT 5 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER