Dy. Commissioner of Income Tax , Circle-16(2), Hyderabad V. Mani Kishore Reddy Burgapally, Hyderabad

ITA 1267/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0542 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-03-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2015-2016
• Appeal Filed On: 13-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 68; 143(3)

Judgement Text

ITA NO 1267 OF 2019 MANI KISHORE REDDY BURGAPALLY HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.1267/HYD/2019 ASSESSMENT YEAR: 2015-16 DY. COMMISSIONER OF INCOME TAX CIRCLE 16(2) HYDERABAD VS. SHRI MANI KISHORE REDDY BURGAPALLY, HYDERABAD PAN:AGNPB5055B (APPELLANT) (RESPONDENT) REVENUE BY: SRI ROHIT MUJUMDAR, DR ASSESSEE BY : N O N E DATE OF HEARING: 24/02/2021 DATE OF PRONOUNCEMENT: 09/03/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2015-16 AGAIN ST THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 13.05. 2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL FILED HIS RETURN OF INCOME ELECTRONICALLY FOR THE A .Y 2015-16 ON 30.03.2016 ADMITTING INCOME OF RS.84,83,730/-. AS T HE CASE WAS SELECTED FOR SCRUTINY UNDER CASS, THE ASSESSMENT PR OCEEDINGS U/S 143(3) WAS TAKEN UP AND THE AO OBSERVED THAT AS PER THE RETURN OF INCOME FOR THE A.Y 2015-16, THE CLOSING C APITAL BALANCE AS ON 31.3.2015 WAS RS.3,00,18,374/-AS AGAINST THE CLOSING CAPITAL BALANCE OF RS.35,10,995/- AS ON 31.3.2014. HE OBSERVED THAT THERE IS INCREASE IN CAPITAL OF RS.2,65,07,379 /- DURING THE YEAR AND THEREFORE, THE ASSESSEE WAS ASKED TO EXPLA IN THE SOURCES ITA NO 1267 OF 2019 MANI KISHORE REDDY BURGAPALLY HYDERABAD PAGE 2 OF 3 OF THE SAME. THE ASSESSEE FILED HIS REPLY. HOWEVER, THE AO WAS NOT CONVINCED WITH THE SAID EXPLANATION AND TREATED THE DIFFERENCE IN CAPITAL AS UNEXPLAINED INCOME AND BROUGHT IT TO TAX U/S 68 OF THE ACT. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BE FORE THE CIT (A) GIVING A DETAILED EXPLANATION AND EXPLAINING THE SO URCES FOR INTRODUCTION OF CAPITAL. THE CIT (A) AT PARA 6 OF H IS ORDER OBSERVED AS UNDER: FROM THE ABOVE, THE AR SUBMITS THAT THE AO OUGHT T O HAVE CONSIDERED THE FACT THAT NO PART OF THE INCREASE IN CAPITAL IS FROM THE UNEXPLAINED SOURCES. I HAVE PERUSED ARS SUBMISSIONS AND I FIND THAT THE AR HAS CLARIFIED TH E REASONS FOR INCREASE IN THE CAPITAL. THEREFORE, THE AO IS D IRECTED TO VERILY DATES OF ACQUISITION OF THE PROPERTIES ALONG WITH THE EXPLANATIONS SUBMITTED BY THE AR AND ON VERIFICATIO N, IF FOUND IN ORDER, THE ADDITION OF RS.2,65,07,379/- MA DE U/S 68 IS DIRECTED TO BE DELETED. AS A RESULT, THE GROU NDS RAISED IN THIS REGARD ARE ALLOWED FOR STATISTICAL PURPOSES . 3. THE LEARNED DR SUBMITTED THAT THE CIT (A) OUGHT NOT TO HAVE REMANDED THE ISSUE TO THE FILE OF THE AO AS HE HAS NO POWER TO REMAND THE ISSUE TO THE AO. NONE APPEARED FOR THE ASSESSEE. HOWEVER, SINCE THE CIT (A) HAS NOT GIVEN RELIEF TO THE ASSESSEE BUT HAS REMANDED THE ISSUE TO FILE OF THE AO FOR VERIFICATION, AND SINCE THE ASSESSEE HAS EXPLAINED THE SOURCES OF THE CAPITAL BEFORE THE CIT (A), THESE SOURCES NEEDS TO BE VERIFIED BY THE AO. THEREFORE, WE ALSO REMIT THE MATTER BACK TO THE FILE OF THE AO FOR DENOVO CONSIDERATION IN ACCORDANCE WITH LAW. NEEDLESS TO MENTION THAT THE ASSESSEE SHALL BE GIVEN A FAIR OPP ORTUNITY OF HEARING. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 9 TH MARCH, 2021. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 9 TH MARCH, 2021. VINODAN/SPS ITA NO 1267 OF 2019 MANI KISHORE REDDY BURGAPALLY HYDERABAD PAGE 3 OF 3 COPY TO: 1 DY.CIT CIRCLE 16(2), 2 ND FLOOR, B BLOCK, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD 2 SHRI MANI KISHORE REDDY BURGAPALLY, FLAT NO.1A US HA MANSION, BEHIND TOPAZ BUILDING, PUNJAGUTTA, HYDERABAD 500082 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER