ACIT, Hyderabad V. Smt. Vimala Mahmood, Hyderabad

ITA 1283/HYD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 3279 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 10-03-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 07-10-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DIWAKAR PRASAD
• Assessee Lawyers: K C DEVADAS
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1283/HYD/10 : A SSTT. YEAR 2004-05 ASSTT. COMMISSIONER OF INCOME - TAX ,WARD 7(1), HYDERABAD V/S. SMT. VIMALA MAHMOOD, HYDERABAD ( PAN - ACWPG 9640 C ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI DIWAKAR PRASAD RESPONDENT BY : SHRI K.C.DEVADAS O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEA R 2004- 05 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONE R OF INCOME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER- 1. THE CIT(A)S ORDER IS NOT ACCEPTABLE BOTH IN FA CTS AND IN LAW. 2. THE CIT(A) HAS ERRED IN DELETING THE ADDITION OF RS.20,00,000/- MADE BY THE ASSESSING OFFICER TOWARD S UNEXPLAINED INVESTMENT IN PURCHASE OF 4 FLATS. SINC E THE A.O. HAS MADE THE ADDITION U/S. 69 FOR NON-EXPLANAT ION OF THE SOURCES FOR INVESTING THE SAME IN PURCHASE O F 4 FLATS. 3. LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THERE WAS A SURVEY ACTION UNDER S.133A OF THE ACT ON 28.9 .2005 IN THE PREMISES OF THE HUSBAND OF THE ASSESSEE. FOUR SALE AGREEMENTS EXECUTED ON 3.12.2003 BY SELLER, M/S. MAHESWARI CON STRUCTIONS WERE ITA NO.1283/HYD/10 SMT. VIMALA MAHMOOD, HYDERABAD 2 IMPOUNDED DURING THE COURSE OF SURVEY. HE SUBMITTED THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF INVESTMENT IN THE FOUR FLATS AND ACCORDINGLY, THE ADDITION MADE WAS JUSTIFIED. HE RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE SO CALLED AGREEMENTS FOR PURCHASE OF FOUR FLATS WERE N EVER ACTED UPON AND THE FLATS IN QUESTION WERE NEVER PURCHASED BY T HE ASSESSEE. HE SUBMITTED THAT FLATS WERE PURCHASED BY ANOTHER RELA TIVE OF THE HUSBAND OF THE ASSESSEE NAMED LATE SMT. KUBERA BEG UM AND SHE DECLARED THE INVESTMENT MADE IN THE PURCHASE OF THE FOUR FLATS IN HER COMPUTATION OF INCOME FOR THE ASSESSMENT YEAR 2006- 07. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND HA VE PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A) AND THE COPIES OF THE VARIOUS DOCUMENTS FILED IN THE COMPILATION BEFORE U S BY THE ASSESSEE. WE FIND THAT THE AGREEMENTS FOR THE PURCHASE OF FOU R FLATS IMPOUNDED AT THE TIME OF SURVEY UNDER S.133A AT THE PREMISES OF THE HUSBAND OF THE ASSESSEE ON 28.9.2005 WERE NEVER ACTED UPON. TH E UNREGISTERED SALE AGREEMENTS WERE NOT SIGNED BY THE ASSESSEE. TH E FOUR FLATS IN QUESTION WERE SUBSEQUENTLY PURCHASED BY SISTER IN L AW OF THE ASSESSEES HUSBAND, LATE SMT. KUBERA BEGUM AND SHE HAS DECLARED THE AMOUNT OF INVESTMENT MADE IN THE PURCHASE OF FO UR FLATS IN HER STATEMENT OF ACCOUNT AND THE COMPUTATION OF TOTAL I NCOME FOR THE ASSESSMENT YEAR 2006-07, COPY OF WHICH HAS BEEN FIL ED IN THE COMPILATION BEFORE US. IN THESE FACTS OF THE CASE, WE HOLD THAT THERE IS NO MISTAKE IN THE ORDER OF THE CIT(A) IN HOLDING TH AT THE ASSESSEE COULD NOT BE FASTENED WITH THE LIABILITY OF UNEXPLA INED INVESTMENT IN THE PURCHASE OF FOUR FLATS AT MAHESWARI COMPLEX, AN D DELETING THE ADDITION OF RS.20 LAKHS IN THE HANDS OF THE ASSESSE E. ACCORDINGLY, ITA NO.1283/HYD/10 SMT. VIMALA MAHMOOD, HYDERABAD 3 ORDER OF THE CIT(A) ON THIS ISSUE IS CONFIRMED AND THE GROUNDS OF THE REVENUE IN THIS APPEAL ARE REJECTED. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMIS SED. ORDER PRONOUNCED IN THE COURT ON 3.6.2011 SD/- SD/- (AKBER BASHA) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/- 03-06-2011 COPY FORWARDED TO: 1. SMT. VIMALA MAHMOOD, 10 - 5 - 2/1/8, MAHESWARI COMPLEX, MASAB TANK, HYDERABAD 2. ASST. COMMISSIONER OF INCOME - TAX CIRCLE 7(1), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) V I , HYDERABAD. 4. COMMISSIONER OF INCOME - TAX V I HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S.