Annam Naidu Uppada , Secunderabad V. Income Tax Officer, Ward-13(2), Hyderabad

ITA 1307/Hyd/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9312 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2009-2010
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Section: 69A; 13(2)

Judgement Text

ITA NO 1307 OF 2019 ANN AM NAIDU UPPADA SECUNDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A SMC BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1307/HYD/2019 ASSESSMENT YEAR: 2009-10 SHRI ANNAM NAIDU UPPADA SECUNDERABAD PAN:AAMPU9667M VS. INCOME TAX OFFICER WARD 13(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI SUNKU SRINIVAS, DR DATE OF HEARING: 04/11/2019 DATE OF PRONOUNCEMENT: 10/01/2020 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10 AGAIN ST THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 14.05. 2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE A.Y 2009-10 ON 14.5.2019 ADMITTING INCOME OF RS.3,53,684/-. THE CA SE WAS SELECTED FOR SCRUTINY UNDER CASS TO VERIFY: I) THE SOURCES OF EXPENDITURE/INVESTMENTS INCLUDING INFORMATION FROM AIR, VIS--VIS GROSS RECEIPTS. II) THE SOURCE OF CASH DEPOSITS ABOVE THE THRESHOLD LIMIT IN SAVING BANK ACCOUNT MADE BY THE ASSESSEE. 3. THE ASSESSMENT WAS ACCORDINGLY COMPLETED U/S 143 (3) ON 30-12-2011 BY MAKING THE ADDITIONS OF (I) UNEXPL AINED CASH DEPOSITS OF RS.25.00 LAKHS U/S 69A AND (II) INTERES T NOT ADMITTED BY THE ASSESSEE OF RS.20,136/-. ON APPEAL TO THE CI T (A), THE ITA NO 1307 OF 2019 ANN AM NAIDU UPPADA SECUNDERABAD. PAGE 2 OF 4 ADDITION OF RS.25.00 LAKHS WAS DELETED AND ON FURTH ER APPEAL BY THE REVENUE TO THE TRIBUNAL, THE TRIBUNAL REMANDED THE ISSUE TO THE FILE OF THE AO FOR FRESH EXAMINATION AND DECIDI NG THE ISSUE BY AFFORDING THE ASSESSEE AN OPPORTUNITY TO EXPLAIN TH E SOURCES OF THE DEPOSITS. THE ITAT OBSERVED THAT THE ASSESSEE H AS EXPLAINED THE SOURCE OF THE SOURCE BUT NOT THE IMMEDIATE SOUR CE OF THE DEPOSITS BECAUSE THE DEPOSITS HAPPENED MUCH LATER T O THE DEATH OF THE ASSESSEES FATHER-IN-LAW. 4. THE AO THEREFORE, ISSUED NOTICES U/S 142(2) TO T HE ASSESSEE CALLING FOR CERTAIN DETAILS SUCH AS (I) FU RNISHING NAMES OF THE PERSONS FROM WHOM MONEYS WERE COLLECTED SO AS T O DEPOSIT THE SAME INTO BANK A/C AND ALSO TO EXPLAIN THE TIME GAP FROM THE DEATH OF FATHER-IN-LAW AND WHY THE MONEYS ARE KEPT IN F.DS IN THE ASSESSEES NAME WHEN THE SAME WERE TO BE DISTRIBUTE D TO THE HEIRS AS PER THE WILL. THE ASSESSEE WAS ALSO REQUIR ED TO SUBMIT THE HDFC BANK A/C NO.06961930001125 PET BASHEERABAD, HYDERABAD FOR THE PERIOD 16.11.2009 TO 24.09.2010. THE ASSESSEE FURNISHED THE RELEVANT INFORMATION AND EXPLAINED TH AT AS PER THE DIRECTIONS OF HIS FATHER-IN-LAW SHRI BAIRAGI NAIDU, THE ASSESSEES WIFE SMT. U. VANISREE, HAD PUT THE MONEY OF RS.25.0 0 LAKHS IN CIRCULATION BY LENDING IT TO FOUR PERSONS AND AFTER THE DEATH OF SHRI BAIRAGI NAIDU, THE ASSESSEES WIFE COLLECTED M ONEY FROM THE PARTIES AND DEPOSITED IT INTO THE ASSESSEES HDFC B ANK A/C. THE AO, THEREFORE, ISSUED SUMMONS TO THE SAID PERSONS. ONE OF THE PERSONS, MR. M.A. KHALIQ APPEARED AND CONFIRMED THE RECEIPT OF RS.4.00 LAKHS FROM THE ASSESSEE IN THE YEAR APRIL, 2008 AND ALSO CONFIRMED THAT THE SAME WAS REPAID IN DECEMBER, 200 8 AND THE MODE OF PAYMENT WAS THROUGH CASH. ANOTHER PERSON SH RI G. JOGI RAJU ALSO CONFIRMED THE LOAN OF RS.2.00 LAKHS TAKEN FROM THE ITA NO 1307 OF 2019 ANN AM NAIDU UPPADA SECUNDERABAD. PAGE 3 OF 4 ASSESSEE IN THE YEAR APRIL, 2008 AND THAT THE SAME WAS REPAID IN DECEMBER, 2008 AND THE MODE OF PAYMENT WAS THROUGH CASH. THE AO WAS, HOWEVER, WAS NOT CONVINCED WITH THE CONFIRM ATIONS OF THESE TWO PARTIES. THE AO ALSO ASKED THE ASSESSEE T HE REASONS FOR KEEPING THE MONEY IN FDS IN THE NAME OF THE ASSESSE E EVEN AFTER THE DEATH OF SHRI BAIRAGI NAIDU THOUGH HE WAS SUPPO SED TO DISTRIBUTE IT TO HIS HEIRS AS PER THE WILL. THE ASS ESSEE EXPLAINED THAT THOUGH SHRI BAIRAGI NAIDU HAD EXECUTED THE WIL L AND DIED ON 15.06.2008, THE WILL WAS TRACED ONLY IN JANUARY, 20 10 AND IMMEDIATELY THEREAFTER, THE ASSESSEE DISTRIBUTED TH E SAME AMONGST THE HEIRS. THIS EXPLANATION OF THE ASSESSEE ALSO WAS NOT ACCEPTED BY THE AO AND SHE MADE THE ADDITION OF RS. 25.00 LAKHS TO THE RETURNED INCOME OF THE ASSESSEE. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRME D THE ORDER OF THE AO AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL. 5. THE LEARNED COUNSEL FOR THE ASSESSEE REITERATED THE SUBMISSIONS MADE BY THE ASSESSEE BEFORE THE AUTHORI TIES BELOW WHILE THE LEARNED DR SUPPORTED THE ORDERS OF THE AO . 6. I FIND THAT THE ASSESSEE HAS EXPLAINED THE SOURC E OF THE CASH DEPOSITS TO BE THE AMOUNT GIVEN TO HIM BY HIS FATHER-IN-LAW FOR SAFE CUSTODY AND THAT IT HAS KEPT IN CIRCULATIO N AND SUBSEQUENTLY BEEN DISTRIBUTED TO THE LEGAL HEIRS OF HIS FATHER-IN- LAW ACCORDING TO THE WILL EXECUTED BY HIM. I ALSO F IND THAT ALL THE PERSONS WHO HAVE ALLEGEDLY TAKEN LOAN, AND HAVE RET URNED THE MONEY HAVE CONFIRMED THE TRANSACTIONS. THE ASSESSEE HAS FILED THE NECESSARY CONFIRMATION LETTERS BEFORE THE AO AN D ALSO TO THE CIT (A) AND THEREFORE, THE SOURCE FOR THE CASH DEPO SITS INTO THE BANK A/C HAS BEEN EXPLAINED. PARTICULARLY, THE WILL OF MR. BAIRAGI ITA NO 1307 OF 2019 ANN AM NAIDU UPPADA SECUNDERABAD. PAGE 4 OF 4 NAIDU ALSO MENTIONED THE EXISTENCE OF RS.25.00 LAKH S WITH THE ASSESSEE AND THE RELEVANT CONFIRMATION LETTERS OF T HE LRS ALSO PROVES THAT THEY HAVE RECEIVED THE MONEY FROM THE A SSESSEE. THE COPY OF THE WILL EXECUTED BY MR. BAIGARI NAIDU IS P LACED AT PAGES 18A AND 18B OF THE PAPER BOOK FILED BY THE ASSESSEE WHICH IS EXECUTED ON 15.05.2008 IN THE HAND-WRITING OF THE F ATHER-IN-LAW AND IT IS CLEARLY STATED THAT RS.25.00 LAKHS IS DUE FROM THE ASSESSEE TO HIM WHICH HAS TO BE DISTRIBUTED AMONGST HIS LEGAL HEIRS. THEREFORE, I AM CONVINCED ABOUT THE SOURCE O F DEPOSITS INTO THE BANK A/C AND ACCORDINGLY DELETE THE ADDITION OF RS.25.00 LAKHS MADE BY THE AO AND CONFIRMED BY THE CIT (A). THE ASSESSEE GETS RELIEF ACCORDINGLY. 7. IN THE RESULT, ASSESSEES, APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH JANUARY, 2020. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 10 TH JANUARY, 2020. VINODAN/SPS COPY TO: 1 SHRI ANNAM NAIDU UPPADA, FLAT NO.503, PAVANI RESI DENCY, PET BASHEERABAD, JEEDIMETLA VILLAGE, SECUNDERABAD 50005 5 2 ITO WARD 13(2) AYAKAR BHAVAN, BASHEERBAGH, HYDERA BAD 500029 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER