DCIT, Circle-9(1), Hyd, Hyderabad V. Venkat Narayan Reddy Ayyalapu, Hyd, Hyderabad

ITA 130/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6018 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 10-11-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 10-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: N NAGARAJU

Judgement Text

ITA NO 130 OF 2016 SRI VENKAT NARAYANA REDDY AYYALA PU HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.130/HYD/2016 (ASSESSMENT YEAR: 2010-11) DY. COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 9(1) HYDERABAD VS SRI VENKAT NARAYANA REDDY AYYALAPU HYDERABAD PAN: AFCPA 0148 Q FOR REVENUE: SMT. U. MINICHANDRAN, DR FOR ASSESSEE: SHRI N. NAGARAJU O R D E R PER SHRI J. SUDHAKAR REDDY, AM THIS REVENUES APPEAL FOR THE A.Y 2011-12 IS DIRECTE D AGAINST THE ORDER OF THE LEARNED CIT (A)-7 HYDERABA D DATED 12.11.2015. GROUNDS OF APPEAL RAISED BY THE REVENUE READ AS FOLLOWS: 1. THE ORDER OF THE LEARNED CIT (A) IS ERRONEOUS IN LAW AND ON FACTS. 2. THE LEARNED CIT (A) ERRED IN DELETING THE ADDITION OF RS.1,08,00,000 WHICH WAS MADE BY THE AO BASED ON THE DEPOSITS IN BANK ACCOUNT WHICH REMAINED UNEXPLAINED DURING THE COURSE OF ASSESSMENT PROCEEDINGS AND ALSO DURING THE COURSE OF THE PRESENT APPELLATE PROCEEDINGS. 3. THE LEARNED CIT (A) ERRED IN DECIDING THE ISSUE IN FAVOUR OF THE ASSESSEE WITHOUT PRODUCTION OF ANY DATE OF HEARING : 10.11.2016 DATE OF PRONOUNCEMENT : 16.11.2016 ITA NO 130 OF 2016 SRI VENKAT NARAYANA REDDY AYYALA PU HYDERABAD PAGE 2 OF 3 EVIDENCE WHATSOEVER WITH REGARD TO THE SAID DEPOSITS IN BANK ACCOUNT. 4. THE LEARNED CIT (A) FAILED TO APPRECIATE THE FACT THAT THE ASSESSEE GAVE A ONE EXPLANATION FOR THE SOURCE OF THE DEPOSITS BEFORE THE AO AND A TOTALLY DIFFERENT EXPLANATION BEFORE THE LEARNED FIRST APPELLATE AUTHORITY. 5. THE LEARNED CIT (A) OUGHT TO HAVE OBTAINED THE CORRECT SOURCES OF THE BANK DEPOSITS IN VIEW OF VARYING EXPLANATIONS OF THE ASSESSEE. 2. AFTER HEARING THE RIVAL CONTENTIONS, WE FIND THA T THE LEARNED CIT (A) HAS CATEGORICALLY STATED THAT THE D EPOSITS IN THE BANKS ARE NOTHING BUT PAYMENTS RECEIVED BY SRI SURY A EDUCATIONAL SOCIETY WHICH HAS PAID RENT TO THE ASSE SSEE. THE TAX WAS ALSO DEDUCTED AT SOURCE BY THE SOCIETY ON SUCH PAYMENTS. THE ASSESSEE HAS FILED A CERTIFICATE IN PROOF OF TH IS FACT. THIS FACTUAL FINDING OF THE LEARNED CIT (A) COULD NOT BE CONTROVERTED BY THE LEARNED DR. THE DEPOSIT IN QUESTION IS OF DECLA RED INCOME. UNDER THE CIRCUMSTANCES, THE ORDER OF THE FIRST APP ELLATE AUTHORITY IS UPHELD AS THE ADDITION OF RS.1,08,00,000 IS RIGH TLY DELETED BY THE LEARNED CIT (A). 3. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH NOVEMBER, 2016. SD/- SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER HYDERABAD, DATED 16 TH NOVEMBER, 2016. ITA NO 130 OF 2016 SRI VENKAT NARAYANA REDDY AYYALA PU HYDERABAD PAGE 3 OF 3 VINODAN/SPS COPY TO: 1 DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 9( 1) BLOCK NO.2D, ROOM NO.245, IT TOWERS, AC GUARDS, HYDERABAD 500004 2 SRI VENKAT NARAYAN REDDY AYYALAPU, 16-2-75/1/C/A/ 114 MALAKPET, HYDERABAD 3 CIT (A)-7 HYDERABAD 4 PR. CIT-7, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER