Income Tax Officer, Ward-3(1), Hyd, Hyderabad V. Shree Hrishikeshaya Hospitals Private Limited, Hyd, Hyderabad

ITA 1203/Hyd/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 7408 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-05-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-A
• Next Hearing Date: 04-04-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 12-07-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: A V RAGHURAM
• Keywords: Unexplained investment
• Section: 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A ', HYDERABAD BEFORE S MT. P. MADHAVI DEVI , JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN , ACCOUNTANT MEMBER ITA NO. 1203 / HYD/201 7 ASSESSMENT YEAR: 20 09 - 10 INCOME - TAX OFFICER , WARD 3 ( 1 ), HYDERABAD. VS. SHREE HRISHIKESHAYA HOSPITALS PVT. LTD., HYDERABAD. PAN AAMCS5007N APPELLANT RESPONDENT REVENUE BY: S HRI Y.V.S.T. SAI ASSESSEE BY: SHRI A.V. RAGHURAM DATE OF HEARING: 04 / 0 4 / 201 9 DATE OF PRONOUNCEMENT: 03 / 0 5 /201 9 O R D E R PER S. RIFAUR RAHMAN , AM: T H IS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF CIT(A) 3 , HYDERABAD , DATED, 0 3 / 0 5 / /201 7 FOR AY 20 09 - 10 . 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSEE COMPANY E - FILED ITS RETURN OF INCOME FOR THE AY 2009 - 10 ON 21/05/2013 ADMITTING A TOTAL INCOME OF RS. 46,79,077/ - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND ACCORDINGLY, STATUTORY NOTICES WERE ISSUED TO THE ASSESSEE. SINCE THERE WAS NO COMPLIANCE FROM THE ASSESSEE TO THE NOTICES ISSUED BY THE AO, THE AO PROCEEDED TO COMPLETE THE ASSESSMENT U/S 144 OF THE ACT. 2.1 THE AO OBSERVED THAT AS PER THE BALANCE SHEET, THE ASSESSEE COMPANY HAD SHOWN SHARE APPLICATION MONEY OF RS. I.T.A. NO. 1203 /HYD/1 7 SHREE HRISHIKESHAYA HOSPITALS PVT. LTD. 2 6,75,00,000/ - AND SINCE THE ASSESSEE FAILED TO PROVE THE GENUINENESS OF CLAIM AND FURNISH ANY DOCUMENTARY EVIDENCE, THE AO DISALLOWED THE ENTIRE AM OUNT OF RS. 6,75,00,000/ - AS UNEXPLAINED INVESTMENT U/S 68 OF THE ACT. 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND SUBMITTED BEFORE HIM THAT THE ENTIRE SHARE APPLICATION MONEY WAS RECEIVED THROUGH BANKING CHANN ELS FROM SRI K. UPENDER REDDY, WHO IN TURN RECEIVED FROM S. UPENDER REDDY, M/S SRINIVAS INFRASTRUCTURES PVT. LTD, DEEPIKA INFRASTEK PVT. LTD., SRI JITYHENDER REDDY AND G. SUNMOHAN REDDY. 4. THE CIT(A) DIRECTED THE AO TO SEND A REMAND REPORT AFTER GOING T HROUGH THE BANK ACCOUNT COPIES SUBMITTED BY THE ASSESSEE. IN THE REMAND REPORT, THE AO OBSERVED THAT THE SHARE APPLICATION MONEY CONTRIBUTED BY SRI K. UPENDER REDDY TO THE ASSESSEE COMPANY IS GENUINE. SRI K. UPENDER REDDY HAD GIVEN LOAN OF RS. 6.75 CRORES TO THE ASSESSEE COMPANY, HE IN TURN, RECEIVED AMOUNTS FROM BANKING CHANNELS FROM VARIOUS PERSONS, AS DETAILED IN TABULAR FORM BY THE CIT(A) IN HIS ORDER AT PAGES 4 & 5. 4.1 THE CIT(A) HELD THAT AFTER VERIFYING BANK ACCOUNT OF THE ASSESSEE COMPANY AND SR I K. UPENDER REDDY, ALSO BANK ACCOUNT COPIES OF PERSONS WHO HAVE LENT TO SRI K. UPENDER REDDY, THE AO ACCEPTED THAT THE TRANSACTIONS A S GENUINE, HENCE, THE ADDITION MADE BY THE AO OF RS. 6.75 CRORES IS DELETED. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE R EVENUE IS IN APPEAL BEFORE US CHALLENGING THE ACTION OF THE CIT(A) IN I.T.A. NO. 1203 /HYD/1 7 SHREE HRISHIKESHAYA HOSPITALS PVT. LTD. 3 DELETING THE ADDITION OF RS. 6,75,00,000/ - MADE BY THE AO TOWARDS SHARE APPLICATION MONEY. 6. LD. DR RELIED ON THE GROUNDS OF APPEAL AND ORDER OF AO. 7. CONSIDERED THE RIVAL SUBMISSIO NS AND PERUSED THE MATERIAL ON RECO RD. WE NOTICE THAT ASSESSEE FILED DETAILED SUBMISSION BEFORE THE CIT(A) ALONG WITH BANK STATEMENT AS PER WHICH THE ASSESSEE HAS RECEIVED SHARE APPLICATION MONEY FROM MR. K. UPENDRA REDDY THROUGH BANKING CHANNEL. MR. K. UPENDRA REDD Y GAVE THE SOURCES FOR THE ABOVE INVESTMENT WHICH WAS ALSO THROUGH BANKING CHANNEL ONLY. THESE INFORMATIONS WERE FORWARDED TO AO FOR VERIFICATION BY THE CI T(A ) . THE AO IN HIS REMAND REPORT CONFIRMED THAT THE SOURCES SUBMITTED BY THE ASSESSEE ARE GENUINE AND ALL ARE THROUGH B ANKING CHANNELS. BASED ON THE REMAND REPORT, LD. CIT(A) GAVE RELIEF TO THE ASSESSEE. SINCE THERE IS NO EVIDENCE BROUGHT BEFORE US BY THE REVENUE TO CONTRADICT THE FINDINGS OF THE CIT(A), WE ARE INCLINED TO ACCEPT THE FINDINGS OF LD. CIT(A) AND ACCORDINGLY, GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 3 RD MAY , 201 9. SD/ - ( P. MADHAVI DEVI ) JUDICIAL MEMBER SD/ - ( S. RIFAUR RAHMAN ) ACCOUNTANT MEMBER HYDERABAD, DATED 3 RD MAY , 201 9. KV I.T.A. NO. 1203 /HYD/1 7 SHREE HRISHIKESHAYA HOSPITALS PVT. LTD. 4 COPY FORWARDED TO: 1. IT O , WARD 3 ( 1 ), 7 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 2 . SHRI H RISHIKESHAYA HOSPITALS PVT. LTD., 2 - 6 - 71/A, BHARAT NAGAR, NEAR MASJID, UPPAL, HYDERABAD 500 0 3 9 3 . CIT (A) 3, HYDERABAD 4. PR. CIT 3 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE