Borra Rakesh , Nalgonda V. Income Tax Officer, Ward-1, Suryapet

ITA 1308/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3248 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 18-02-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KANIKA AGARWAL
• Section: 142(1); 143(2); 22; 144

Judgement Text

ITA NO 1308 OF 2019 BORRA RAKESH NALGONDA PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1308/HYD/2019 ASSESSMENT YEAR: 2013-14 SHRI BORRA RAKESH NALGONDA PAN:ALSPB8533E VS. INCOME TAX OFFICER WARD-1, SURYAPET NALGONDA (APPELLANT) (RESPONDENT) ASSESSEE BY: SMT. S. SANDHYA REVENUE BY : SMT. KANIKA AGARWAL, DR DATE OF HEARING: 18/02/2021 DATE OF PRONOUNCEMENT: 22/02/2021 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE ORDER OF THE CIT (A)-3, HYDERABAD, DATED 20.05. 2019. 2. AT THE OUTSET, IT IS SEEN THAT THERE IS A DELAY OF 2 DAYS IN FILING OF THIS APPEAL. THE ASSESSEE HAS FILED AN APPLICATION SEEKING CONDONATION OF DELAY. BEING SATISFIED THAT THE DELAY IS NOT WILLFUL OR WANTON, I CONDONE THE DELAY OF 2 DAYS AD PROCEED TO DISPUTE OF THE APPEAL AS UNDER:- 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, RUNNING A FURNITURE SHOP AT BHONGIR TOW N UNDER THE NAME GAYATHRI STEELS AND WOOD FURNITURE WORKS, FI LED HIS RETURN OF INCOME FOR THE A.Y 2013-14 ON 2.4.2014 AD MITTING A NET INCOME OF RS.2,46,230/- ON A TOTAL TURNOVER OF RS.4 5,80,500/-. THE RETURN WAS SELECTED FOR SCRUTINY TO VERIFY THE SOURCES OF CASH DEPOSITS INTO THE BANK A/C WHICH WERE MORE THAN THE TURNOVER ITA NO 1308 OF 2019 BORRA RAKESH NALGONDA PAGE 2 OF 3 DECLARED IN THE RETURN OF INCOME. THOUGH THE NOTICE S U/S 143(2) AND 142(1) WERE ISSUED TO THE ASSESSEE, NONE APPEAR ED ON BEHALF OF THE ASSESSEE. THEREFORE, THE AO WAS CONSTRAINED TO COMPLETE THE ASSESSMENT U/S 144 OF THE I.T. ACT. THE AO OBSE RVED THAT THE ASSESSEE HAD CREDITED A TOTAL AMOUNT OF RS.63,07,49 2/- INTO HIS BANK A/C DURING THE RELEVANT FINANCIAL. AFTER GIVIN G CREDIT TO THE DEMAND DRAFTS FOR AN AMOUNT OF RS.27,81,400/- IN TH E MONTHS OF MAY 2012 TO JULY 2012, AND ALSO THE BUSINESS TURNOV ER OF AMBICA WINES FOR THE PERIOD OF 4 MONTHS I.E. APRIL 2012 TO JULY 2012, THE AO ARRIVED AT A FIGURE OF RS.21,51,393/- AS NOT EXP LAINED BY THE ASSESSEE AND THEREFORE, TREATED IT AS UNDISCLOSED I NCOME OF THE ASSESSEE AND BROUGHT IT TO TAX AS INCOME FROM OTHE R SOURCES. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) AND FILED STATEMENT OF FACTS AND WRITTEN SUBMISSIONS EX PLAINING THE TRANSACTIONS. THE ASSESSEE HAS SUBMITTED THAT THE A O DID NOT EXAMINE THE FACT THAT THERE WAS AN OPENING BALANCE OF RS.59,91,186/- WITH CANARA BANK. THE CIT (A) HAS RE PRODUCED THE SUBMISSIONS OF THE ASSESSEE AS WELL AS THE FIND ING OF THE AO BUT DID NOT GIVE ANY FINDING ON MERITS. THEREFORE, THE ASSESSEE PRAYED FOR AN OPPORTUNITY TO EXPLAIN THE TRANSACTIO NS BEFORE THE AO. 4. THE LEARNED DR WAS ALSO HEARD WHO RELIED UPON TH E ORDERS OF THE AUTHORITIES BELOW. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT THE ASSESSMENT ORDER IS AN E X-PARTE ORDER AND IN THE APPEAL FILED BEFORE THE CIT (A), NO SPEA KING ORDER IS PASSED. THEREFORE, I DEEM IT FIT AND PROPER TO REMA ND THE ISSUE TO THE FILE OF THE AO, FOR DENOVO CONSIDERATION OF ASS ESSEES WRITTEN ITA NO 1308 OF 2019 BORRA RAKESH NALGONDA PAGE 3 OF 3 SUBMISSIONS IN ACCORDANCE WITH LAW. THE ASSESSEES APPEAL IS ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2021. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 22 ND FEBRUARY, 2021. VINODAN/SPS COPY TO: 1 SHRI BORRA RAKESH, H.NO.2-6-74 NALGONDA CHOWRASTA , BHONGIR NALGONDA DISTT. 2 ITO WARD-1 SURYAPET, NALGONDA 3 CIT (A)-3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER