Madan Goud Dora , Secunderabad V. Income Tax Officer, Ward-11(3), Hyderabad

ITA 1265/Hyd/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 5203 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 12-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Unexplained cash credit
• Section: 143(3); 201; 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A: HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. 1 265 /H/2018 ASSESSMENT YEAR: 201 4 - 1 5 MADAN GOUD DORA, SECUNDERABAD. PAN AYUPD 0799F VS. INCOME - TAX OFFICER, WARD 11(3), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHAN RAO REVENUE BY: SHRI S UNIL KUMAR PANDEY DATE OF HEARING: 28 /01/2021 DATE OF PRONOUNCEMENT: 29 /01/2021 O R D E R PER BENCH: T H IS A SSESSEE S APPEAL FOR AY 201 4 - 1 5 IS DIRECTED AGAINST THE CIT(A) - 5 , HYDERABAD S ORDER DATED 05 / 0 3 / 201 8 PASSED IN CASE NO. 503 /201 6 - 17/CIT(A) - 5 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME - TAX ACT, 1961 ; IN SHORT THE ACT. WE HAVE HEARD BOTH THE PARTIES. CASE F ILE PERUSED. ITA NO. 1265 /HYD/1 8 MADAN GOUD DORA, SECBAD. : - 2 - : 2. WE NOTICE FROM A PERUSAL OF ASSESSEES PLEADINGS THAT HE HAS RAISED 10 SUBSTANTIVE GROUNDS THEREBY CANVASSING TWO I SSUES OF CHALLENGING CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION TREATING RS. 10,06,977/ - AND RS. 18,40,000/ - AS UNEXPLAINED CASH CREDITS IN HIS BANK ACCOUNT. LEARNED COUNSEL SUBMITTED DURING THE COURSE OF HEARING THAT IN VIEW OF PAGE 224 OF PAPER B OOK I.E. ASSESSEES P&L ACCOUNT FOR THE PERIOD FROM 01/04/2014 TO 31/03/2015, THAT AN AMOUNT OF RS. 18,40,000/ - IN QUESTION REPRESENTED ADVANCES FROM M/S KMR ESTATES & BUILDERS PVT. LTD. AS PER THE ASSESSING OFFICERS DETAILED DISCUSSION IN PAGE 5 . A ND AL SO THAT THE ASSESSEE HAD RECEIVED TOTAL AMOUNT OF RS. 51,05,000/ - IN AY 2014 - 15 WHEREAS THE TURNOVER REGARDING THE SAID PARTY INVOLVED A SUM OF RS. 32,97,981/ - ONLY LEAVING BEHIND THE IMPUGNED BALANCE FIGURE. LEARNED COUNSEL THEREFORE CONTENDED THAT THE ASSESSEE HAD ACCOUNTED AND DISCLOSED THE REMAINING SUM OF RS. 18,40,000/ - IN ITS COMPUTATION OFFERED IN SUBSEQUENT AY 2015 - 16 SINCE THE CORRESPONDING ACCRUAL(S) COULD BE SETTLED ONLY IN LATTER ASSESSMENT YEAR ONLY . WE THEREFORE ITA NO. 1265 /HYD/1 8 MADAN GOUD DORA, SECBAD. : - 3 - : DEEM IT FIT AND PROPER TO RESTORE THE INSTANT FORMER ISSUE BACK TO THE ASSESSING OFFICER FOR HIS NECESSARY FACTUAL VERIFICATION. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE ASSESSING OFFICER IN PERSON OR THROUGH ITS A UTHORISED R EPRESENTATIVE ON OR BEFORE 30/06/2021 WHICH SHALL BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES. 3. NEXT COMES THE LATTER ISSUE OF BANK BALANCE OF RS. 10,06,977/ - . THE A SSESSEES ONLY CASE BEFORE US IS THAT IT HAD WITHDR AWN THE SAME FROM ONE BANK ACCOUNT (S) AND DEPOSITED IN OTHER AS PER THE BANK STATEMENT FORMING PART OF THE RECORD. WE OBSERVE IN THESE FACTS AND CIRCUMSTANCES THAT LARGER INTEREST OF JUSTICE WOULD BE MET IF A SSESSING OFFICER DECIDES TH IS ISSUE AS WELL AFTE R TAKING NOTE OF THE ASSESSEES CREDITS AND WITHDRAWALS IN ALL OF ITS BANK ACCOUNTS AS PER LAW . THIS LATTER SUBSTANTIVE GROUND IS ALSO ACCEPTED FOR STATISTICAL PURPOSES. 4. BEFORE PARTING, WE ALSO WISH TO MAKE IT CLEAR THAT THERE APPEARS SAME PRIMA - FACIE DISCREPANCY (IES) IN ITA NO. 1265 /HYD/1 8 MADAN GOUD DORA, SECBAD. : - 4 - : ASSESSEES TWIN GROUNDS INVOLVING GROSS SUM OF RS. 28,40,000/ - AS AGAINST AN AMOUNT OF RS. 26,93,089/ - TAKEN IN THE ASSESSMENT ORDER. THE ASSESSING OFFICER SHALL ALSO BE AT LIBERTY TO EXAMINE THIS DISCREPANCY AS WELL IN CONSEQUENTIAL PROCEEDINGS. 5. THIS ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 29 TH JANUARY, 2021 SD/ - SD/ - ( LAXMI PRASAD SAHU) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDE RABAD, DATED : 29 TH JANUARY, 20 2 1 K V C OPY TO : 1 SHRI MADAN GOUD DORA, C/O P. MURALI & CO., CAS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82 2 IT O, WARD 11(3), , HYDERABAD . 3 CIT(A) 5 , HYDERABAD. 4 PR. CIT - 5 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.