Srinivasa Rao Padakanti, Hyderabad, Hyderabad V. ACIT, Circle-12(1) Hyderabad, Hyderabad

ITA 127/HYD/2017

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2378 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 27-01-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: T CHAITANYA KUMAR
• Keywords: Gift
• Section: 143(3); 142(1); 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC), HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 127/HYD/2017 ASSESSMENT YEAR: 2010-11 SRINIVAS RAO PADAKANTI, HYDERABAD. PAN AJXPP 9442P VS ASST. COMMISSIONER OF INCOME-TAX, CIRCLE 12(1), HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI T. CHAITANYA KUMAR FOR REVENUE : SHRI K.J. RAO DATE OF HEARING : 11-05-2017 DATE OF PRONOUNCEMENT : 21-06-2017 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 1, HYDERABAD , DATED 31-10-2016 FOR THE A.Y. 2010-11. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE IS AN INDIVIDUAL FILED HIS RETURN OF INCOME ON 01/07/2010 DECLARING TOTAL INCOME OF RS. 11,19,010/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICES U/S 14 3(2) AND 142(1) WERE ISSUED. THE ASSESSMENT WAS COMPLETE D U/S 143(3) ON 26/03/2013 DETERMINING TOTAL INCOME AT RS . 16,76,380/-. 2.1 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, TH E AO NOTICED THAT THERE WERE HUGE CASH CREDITS IN THE AX IS BANK I.T.A. NO. 127/HYD/2017 SRINIVASA RAO PADAKANTI :- 2 - : ACCOUNTS WHICH WERE EXCEEDING THE RETURN INCOME OF THE ASSESSEE. THE ASSESSEE FURNISHED THE DETAILS OF SUC H CASH CREDITS AS UNDER: 1. GIFT DEED FROM MOTHER RS. 10,61,416 2. ADVANCE RECEIVED FOR THE SALE OF PLOT (LATER ON REPAID THROUGH PAY ORDER AS IT WAS CANCELLED) RS. 4,80,000 3. UNSECURED LOANS FROM VARIOUS PARTIES (CONFIRMATION LETTERS PRODUCED) RS. 2,64,10 0 TOTAL CREDITS RS. 18,05,516 =========== 2.2 THE ASSESSING OFFICER STATED THAT CASH DEPOSITS TO THE TUNE OF RS.15,41,416/WAS FOUND TO BE IN ORDER. CASH DEPOSITS TO THE TUNE OF RS.2,64,100/- OF UNSECURED LOAN WERE NOT SUBSTANTIATED WITH PROOFS LIKE PURPOSE, DA TES ON WHICH LOAN WAS ADVANCED, ITR COPIES FILED BY THEM E TC. THE ASSESSING OFFICER DISALLOWED 50% OF RS.2,64,100/- I .E. RS.L,32,050/-. 3. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFE RRED AN APPEAL BEFORE THE CIT(A). 4. BEFORE THE CIT(A), THE ASSESSEE SUBMITTED THAT THERE IS NO PARTICULAR REASON FOR DLSALLOWING 50% OF THE AMO UNT OF CASH CREDIT. THE CASH DEPOSIT IN THE BANK EITHER IS PROVED OR NOT PROVED, THERE CANNOT BE AMBIGUITY ON THE GENUINENESS ON HALF OF CASH CREDIT. THE ASSESSING O FFICER HAS NOT GONE INTO ANY DETAILS AND THIS IS NOT ADDIT ION BASED ON SUMMARIZED AND ESTIMATION. THE DISALLOWANCE OF H ALF THE I.T.A. NO. 127/HYD/2017 SRINIVASA RAO PADAKANTI :- 3 - : AMOUNT (WRONGLY TYPED AS RS. 5,50,000/-) CANNOT BE ACCEPTED. 5. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSE E, THE CIT(A) OBSERVED THAT THE LOANS RECEIVED BY THE ASSE SSEE FROM FRIENDS/FAMILY ARE NOT CONSIDERED TO BE GENUINE AND HE CONFIRMED THE ADDITION MADE BY THE AO AT RS. 2,64,1 00/- WRONGLY, INSTEAD OF RS. 1,32,050/- MADE BY THE AO. 6. I HAVE HEARD THE SUBMISSIONS OF BOTH THE PARTIES AND PERUSED THE MATERIAL FACTS ON RECORD. ON PERUSAL OF ORDER OF CIT(A), THE CIT(A) WRONGLY CONFIRMED THE ACTION OF THE AO FOR AN AMOUNT OF RS. 2,64,100/- AT PARA 5 OF HER ORDER, AS THE ADDITION MADE BY THE AO WAS ONLY RS. 1,32,050/-. TH E CIT(A) MISSED OUT THAT ONLY 50% OF UNSECURED LOAN O F RS. 264,100/- WAS TAKEN BY THE AO FOR MAKING ADDITION I .E. RS. 1,32,050/-. I FIND THAT THE CONFIRMATION LETTERS FI LED BY THE CREDITORS HAVE SAME WORDINGS, SAME DATE AND ARE AL L FROM SALARIED INDIVIDUALS AND THE LOANS ARE INTEREST FRE E. I ALSO FIND THAT NO MONEY WAS RETURNED TILL DATE NOR WAS T HERE ANY CORRESPONDENCE REGARDING RETURN OF ON MONEY. HENCE, I CONFIRM THE ACTION OF THE AO IN MAKING THE ADDITION OF RS. 1,32,050/-. 7. AS REGARDS CHARGING OF INTEREST U/S 234B IS CONSEQUENTIAL IN NATURE, THE AO IS DIRECTED TO CALC ULATE THE INTEREST U/S 234B ON THE REVISED ADDITION. I.T.A. NO. 127/HYD/2017 SRINIVASA RAO PADAKANTI :- 4 - : 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISS ED. PRONOUNCED IN THE OPEN COURT ON 21 ST JUNE, 2017. SD/- (ASHA V IJAYARAGHAVAIN) JU DICIAL MEMBER HYDERABAD, DATED: 21 ST JUNE , 2017. KV COPY TO 1 SRINIVAS PADAKANI, C/O T. CHAITANYA KUMAR, ADVOCA TE, FLAT NO. 102, GOURI APARTMENT, URDULANE, HIMAYATNAG AR, HYDERABAD. 2 ACIT, CIRCLE 12(1), HYDERABAD. 3 CIT (A)-1, HYDERABAD. 4 PR. CIT 1, HYDERABAD. 5 THE DR, ITAT HYDERABAD 6 GUARD FILE