Sri Perla Venkata Rama Krishna Rao, Srikakulam V. The DCIT, Central Circle-1, Visakhapatnam

ITA 131/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50271 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 16-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA
• Assessee Lawyers: S RAMA RAO
• Keywords: Search and seizure
• Section: 234B

Judgement Text

ITA NO 131 OF 2011 PERLA VENKATA RAMA KRISHNA RAO SRIKAKULAM PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.131/VIZAG/2011 ASSESSMENT YEAR: 2008 - 09 PERLA VENKATA RAMA KRISHNA RAO, SRIKAKULAM VS. DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1 VISAKHAPATNAM (APPELLANT) PAN NO: AERPK 1864 R (RESPONDENT) APPELLANT BY: SHRI S. RAMA RAO, ADVOCATE RESPONDENT BY: SMT. D. KOMALI KRISHNA, SR.DR ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 24.12.2010 PASSED BY LEARNED CIT(A)-I, HYDERABAD AND IT RELATES TO THE ASSESSMENT YEAR 2008-09. 2. THE ASSESSEE IS CHALLENGING THE ADDITION OF RS.1 9,59,045/- CONFIRMED BY THE LEARNED CIT (A). THE ASSESSEE IS ALSO CHALLE NGING THE LEVYING OF INTEREST UNDER SECTION 234A, 234B AND 234C OF THE A CT. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. THE DEPARTMENT CARRIED OUT SEARCH AND SEIZURE OPERATION IN THE RES IDENTIAL AND BUSINESS PREMISES OF THE ASSESSEE ON 22-8-2007. DURING THE COURSE OF SEARCH, A CASH BALANCE OF RS.42,57,110/- WAS FOUND WITH THE A SSESSEE. IN THE STATEMENT TAKEN DURING THE COURSE OF SEARCH, THE AS SESSEE WANTED TO OFFER AN AMOUNT OF RS.40,00,000/- AS HIS UNACCOUNTED INCO ME. HOWEVER, WHILE ITA NO 131 OF 2011 PERLA VENKATA RAMA KRISHNA RAO SRIKAKULAM PAGE 2 OF 3 FILING RETURN OF INCOME, THE ASSESSEE CLAIMED SET O FF OF CASH BALANCES AVAILABLE IN THE BOOKS OF ACCOUNT OF BUSINESS CONCE RNS AND OTHER FAMILY MEMBERS AS DETAILED BELOW: M/S PERLA VASUDEVA RAO & SON - RS. 9,28,971.38 M/S. KAMESWARI & CO. - RS. 2,19,153.74 INDIVIDUAL BOOKS OF ACCOUNT - RS. 9,134.82 HUF ACCOUNT - RS. 4,91,671.86 SUJATHAS ACCOUNT - RS. 3,06,312.33 MS. HIMA KAMESWARI - RS. 3,801.22 TOTAL = RS.19,59,045.35 =========== ACCORDINGLY THE ASSESSEE DECLARED THE BALANCE AMOUN T OF RS.22,98,065/- IN THE RETURN OF INCOME. THE ASSESSING OFFICER CONSIDE RED THE CLAIM OF THE ASSESSEE FOR SUCH SET OFF AS AN AFTER THOUGHT AND A CCORDINGLY DISALLOWED THE SAID CLAIM. THE ASSESSEE CARRIED THE MATTER BEFORE THE LEARNED CIT (A) BUT COULD NOT SUCCEED. HENCE THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE PARTIES. WE NOTICE THAT THE AS SESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE FOR SET OFF OF R S.19,59,045/-, BEING THE CASH AVAILABLE IN THE BOOKS OF ACCOUNT, WITHOUT VER IFYING THE SAID CLAIM VIS- -VIS THE BOOKS OF ACCOUNT. IN OUR VIEW, THE ASSES SING OFFICER SHOULD HAVE VERIFIED THE SAID CLAIM OF THE ASSESSEE WITH THE RE LEVANT BOOKS OF ACCOUNT BY DULY EXAMINING THEM AND THEN SHOULD HAVE TAKEN APPR OPRIATE DECISION IN ACCORDANCE WITH LAW. DURING THE COURSE OF HEARING, BOTH THE PARTIES AGREED THAT THE ISSUE MAY BE SET ASIDE TO THE FILE OF THE ASSESSING OFFICER IN ORDER TO ENABLE HIM TO VERIFY THE CLAIM OF THE ASSESSEE V IS--VIS THE BOOKS OF ACCOUNT. ACCORDINGLY, WE SET ASIDE THE ORDER OF TH E LEARNED CIT (A) AND RESTORE THE IMPUGNED ISSUE TO THE FILE OF THE ASSES SING OFFICER WITH A DIRECTION TO EXAMINE THE CLAIM OF THE ASSESSEE VIS- -VIS THE BOOKS OF ACCOUNT AND TAKE APPROPRIATE DECISION IN ACCORDANCE WITH THE LAW. THE ASSESSEE SHOULD BE GIVEN NECESSARY OPPORTUNITY OF B EING HEARD. SINCE THE ITA NO 131 OF 2011 PERLA VENKATA RAMA KRISHNA RAO SRIKAKULAM PAGE 3 OF 3 MAIN ISSUE IS SET ASIDE TO THE FILE OF THE ASSESSIN G OFFICER, THE ASSESSEE MAY RAISE THE ISSUE RELATING TO CHARGING OF INTEREST BE FORE THE ASSESSING OFFICER. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:29-06-2011 COPY TO 1 SHRI PERLA VENKATA RAMAKRISHNA RAO, 4-167/A PLOT NO.1 BEHIND SAIBABA TEMPLE, VISAKHA B COLONY,SRIKAKULAM 532 0 01 2 THE DY.COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-1 , VISAKHAPATNAM 3 4. THE CIT CENTRAL, HYDERABAD THE CIT(A)-I, HYDERABAD 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM