G.Venkata Lakshmi, Hyd, Hyderabad V. DCIT, Central Circle-6, Hyd, Hyderabad

ITA 1334/HYD/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6395 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 07-06-2016
• Assessment Year: 2004-2005
• Appeal Filed On: 03-12-2015
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Keywords: Unexplained cash credit; Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1334/HYD/2015 ASSESSMENT YEAR: 2004-05 SMT. G. VENKATA LAKSHMI, HYDERABAD [PAN: ADBPG1396H] VS DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-6, HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI Y. RATNAKAR, AR FOR REVENUE : SHRI M. SITARAM, DR DATE OF HEARING : 23-06-2016 DATE OF PRONOUNCEMENT : 30-06-2016 O R D E R THIS IS AN APPEAL BY ASSESSEE ON THE CONFIRMATION OF AMOUNT OF RS. 13,21,594/- BY THE LD. CIT(A) OUT OF RS. 23,14 ,953/- MADE BY THE ASSESSING OFFICER (AO). 2. BRIEFLY STATED, ASSESSEE IS AN INDIVIDUAL AND IN TH E SEARCH AND SEIZURE OPERATIONS CONDUCTED IN THE RESIDENTIAL PR EMISES OF ASSESSEE AND HUSBAND, CERTAIN TRANSACTIONS HAVE BEEN I DENTIFIED. IN THE BANK ACCOUNT OF ASSESSEE IN ANDHRA BANK, THERE WERE DEPOSITS TO THE EXTENT OF RS. 23,14,953/-. ASSESSEE A LSO RECEIVED A CASH LOAN FROM M/S. LAHARI GREEN PARK, ONE OF THE AS SOCIATE CONCERNS TO AN EXTENT OF RS. 6,78,250/-. ON THE REASON THAT ASSESSEE DID NOT FURNISH THE DETAILS OF SOURCES OF DEP OSITS, AO TREATED BOTH THE AMOUNTS AS UNEXPLAINED CASH CREDITS AND I.T.A. NO. 1334/HYD/2015 SMT. G. VENKATA LAKSHMI :- 2 -: BROUGHT TO TAX AN AMOUNT OF RS. 29,93,203/-. AGGRIEVE D WITH THE ASSESSMENT ORDER, ASSESSEE PREFERRED AN APPEAL BEFOR E THE CIT(A), BUT DELETED THE LOAN RECEIVED FROM M/S. LAHARI GREEN PARK AND SUSTAINED THE ADDITION OF RS. 23,14,953/-. ON FURTHER APPEAL TO ITAT, ITAT VIDE ITS ORDER DT. 04-05-2012, IT SET ASIDE THE ISSUE OF DEPOSITS IN THE BANK TO THE AO FOR RE-CONSIDERING THE I SSUE AFTER GIVING DUE OPPORTUNITY TO ASSESSEE. IN THE ORDER CARR YING OUT THE DIRECTIONS OF ITAT, AO ALLOWED A FURTHER AMOUNT OF RS . 9,93,359/- AND BALANCE AMOUNT OF RS. 13,21,594/- WAS TREATED AS UNEXPLAINED. IN SPITE OF THE DETAILED EXPLANATION OF ASSESSEE, LD. CIT(A) DID NOT ACCEPT. 3. THE BASIC CONTENTION OF ASSESSEE IS THAT ASSESSEES HUSBAND SHRI G. HARI BABU IS CARRYING ON BUSINESS OF PURCHA SING AND SALE OF PLOTS. SOME OF THE PLOTS WERE SOLD IN THE NAME OF HIS WIFE (APPELLANT HEREIN), IN THE NAME OF HIS DAUGHTER MS. S WAPNA AND ALSO IN THE NAME OF HIS SON MR. SANJAY CHOUDARY. AL L THESE TRANSACTIONS ARE UNDERTAKEN BY SHRI G. HARI BABU AND TH E ENTIRE SALES IN ALL THE NAMES WERE OFFERED TO TAX IN THE HAN DS ON SHRI G. HARI BABU. IT WAS ALSO EXPLAINED BY ASSESSEE THAT THE TOTAL DEPOSITS IN THE BANK ACCOUNT ARE SALE PROCEEDS OF TWE NTY SALE DEEDS EXECUTED BY ASSESSEE AND THE AMOUNTS ARE NOTHING BUT PLOT ADVANCES. ASSESSEE HAS FURNISHED A RE-CONCILIATION OF THE AMOUNT AS UNDER TO THE AUTHORITIES: I.T.A. NO. 1334/HYD/2015 SMT. G. VENKATA LAKSHMI :- 3 -: EXTRACT OF BANK ACCOUNT OF G. VENKATA LAXMI, A/C NO. 34 3 SB A/C ANDHRA BANK, APPOLLO BRANCH, JUBILEE HILLS AS ON 1/4/2003 TO 31/3/2004 RECEIPTS RS. PAYMENTS RS. OPENING BALANCE 1,564.00 TRANSFE R TO G. HARI BABU (ANDHRA BANK) (LAHARI GREEN PARK) 22,49,000.00 PLOTS ADVANCES 23,05,055.00 TRANSFER TO LAHARI INPEX (P) LTD., 55,000 CASH DEPOSITS 7,800.00 BANK CHARGES 9,334.00 BANK INTEREST 2,038.68 CLOSING BALANCE 3,123.68 23,14,893.68 23,14,893 .68 IT WAS SUBMITTED THAT THE ENTIRE SALE CONSIDERATION WAS O FFERED BY SHRI G. HARI BABU TO AN EXTENT OF 1.29 CRORES WHICH WAS ALSO ACCEPTED BY THE AO IN HIS RETURN. IT WAS FURTHER SUBM ITTED THAT ALL THE SALE DEEDS WERE FURNISHED AND IN MANY CASES, THE DD NUMBERS WERE CORRELATED EXCEPT TO AN EXTENT OF RS. 1 LAKH. NE ITHER AO NOR CIT(A) HAS CONSIDERED ASSESSEES EXPLANATION FULLY. 4. BEFORE ME, LD. COUNSEL SUBMITTED THAT MOST OF THE SALE DEEDS INDICATE THE DD NUMBERS WHICH WERE MOSTLY FROM GLOBAL TRUST BANK. PURCHASERS HAVE AVAILED LOANS FROM M/S. TATA HOME FINANCE LTD., AND HAD PRIOR ARRANGEMENT WITH GLOBAL T RUST BANK. ALL DDS WERE ISSUED BY GLOBAL TRUST BANK IN VARIOUS PERSONS NAME. SINCE IN RESPECT OF THREE SALE DEEDS, DD NUMBE RS AND AMOUNTS WERE MATCHING, AO, EXCLUDED RS. 3 LAKHS OUT OF THE DEPOSITS WHILE MAKING THE ADDITION IN THE CONSEQUENTIAL ORDERS. IT WAS SUBMITTED THAT EVEN THOUGH DD NUMBERS ARE TALLYING, THE REGISTRATION VALUE WAS LESS. IT WAS SUBMITTED THAT IN CAS E RS. 1 LAKH WAS RECEIVED BY WAY OF DD, THE SAME DD NUMBER W AS MENTIONED IN THE DEED BUT AMOUNT WAS SHOWN AT RS. 30,00 0/- TOWARDS SALE COST. AO WHILE RECONCILING THE DD NUMBER S GAVE I.T.A. NO. 1334/HYD/2015 SMT. G. VENKATA LAKSHMI :- 4 -: CREDIT TO THE VALUE OF RS. 6,93,959/- WHICH WAS THE VAL UE AS PER THE REGISTRARS VALUE MENTIONED IN THE SALE DEEDS. IT WAS SUBMITTED THAT THERE IS NO SEPARATE RECEIPT OF RS. 6,93,959/- IN BANK ACCOUNT AND THIS IS A PART OF RECEIPT OF ENTIRE RS. 23,05,055/ -. IT WAS SUBMITTED THAT THERE CANNOT BE A SEPARATE RECEIPT FOR EXA CT REGISTERED VALUE WHEN ASSESSEE IS ABLE TO RECONCILE D D NUMBERS WHICH ARE CREDITED IN THE BANK ACCOUNT AND ALSO TRANSF ERRED TO SHRI G. HARI BABU IN WHOSE CASE THE AMOUNT WAS BROUGHT TO TAX . 5. LD. DR HOWEVER, RELIED ON THE ORDERS OF THE AO AND CIT(A) TO SUBMIT THAT TO THE EXTENT OF AMOUNTS JUSTIFIED BY ASSESS EE. AO HAS GIVEN CREDIT AND THE BALANCE AMOUNT WAS NOT EXPLAINED. HENCE, THE ADDITION. 6. I HAVE CONSIDERED THE ISSUE AND PERUSED THE DOCUME NTS PLACED ON RECORD. IT IS TO BE NOTED THAT ASSESSEE HAS S OLD OR AT LEAST SIGNED TWENTY SALE DEEDS DURING THE YEAR AND TH E AUTHORITIES ACCEPTED THAT THE PART OF THE CREDITS IN THE BANK ACCOUNT ARE TOWARDS SALE DEEDS. THE ONLY PRACTICAL PROBLEM ARISI NG IN THE ISSUE IS THAT IN SOME SALE DEEDS, THE EXACT DD NUMBER AND SA LE PROCEEDS ARE TALLYING WHEREAS IN SOME OTHER DOCUMENTS, EVEN THE DD NUMBER IS TALLYING, THE AMOUNT IS NOT TALLYING. THE AO GAVE CREDIT TO THE AMOUNTS MENTIONED IN THE SALE DEEDS, IGNORING TH E FACT THAT ASSESSEE COULD RECONCILE ALL THE RECEIPTS WITH REFERE NCE TO SALE DEEDS EXCEPT TO AN EXTENT OF ONE TRANSACTION. SURPRISING LY, THERE IS NO ASSESSMENT OF EITHER SALE OF PROPERTY IN THE HANDS OF ASSESSEE AS BUSINESS NOR CAPITAL GAINS ON THE SAID TWENTY TRAN SACTIONS IN THE ASSESSMENT. THE FACT INDICATES THAT ALL THESE TRANSACT IONS I.T.A. NO. 1334/HYD/2015 SMT. G. VENKATA LAKSHMI :- 5 -: PERTAIN TO ASSESSEES HUSBAND AND THE SALE PROCEEDS W ERE CONSIDERED IN HIS HAND NOT ONLY THAT OF ASSESSEE, BUT A LSO OF SHRI HARI BABUS DAUGHTER AND SON. SINCE THE SALE PROCEE DS OF THE SAID TRANSACTIONS OF PROPERTY ARE NOT BROUGHT TO TAX IN ASSESS EES HANDS, EITHER UNDER THE HEAD CAPITAL GAINS OR UNDER THE HEAD BUSINESS, ASSESSEES EXPLANATION THAT ALL THESE TRANSACTIONS ARE U NDERTAKEN BY ASSESSEES HUSBAND WHO HAS DECLARED THEM IN HIS R ETURNS HAS TO BE ACCEPTED. MOREOVER, ASSESSEE IS ABLE TO RECONC ILE THE RECEIPTS IN THE BANK ACCOUNT TO THAT OF SALE TRANSACTIONS. THEREF ORE, THE ENTIRE AMOUNT DEPOSITED IN BANK ACCOUNT SHOULD HAVE BEE N ACCEPTED AS EXPLAINED. IT CANNOT BE APPRECIATED THA T WHILE IGNORING THE DD NUMBERS, AO GAVE CREDIT ONLY TO THE EX TENT OF AMOUNT MENTIONED IN THE SALE DEED, EVEN THOUGH IT WAS SU BMITTED THAT THE REGISTRATION VALUE IS LESS THAN THE SALE PROCEEDS AND ENTIRE SALE PROCEEDS WERE DECLARED. CONSIDERING THE FACT THA T MOST OF THE PURCHASERS HAVE TAKEN LOANS FROM M/S. TATA HOME FINAN CE LTD., AND GLOBAL TRUST BANK HAS ISSUED DDS, THE ASSESSEES EXPLANATION WITH REFERENCE TO THE SOURCE OF DEPOSITS IN ANDHRA BAN KS IS TO BE ACCEPTED AS GENUINE. CONSIDERING THE ABOVE FACTS, I HAVE NO HESITATION IN DELETING THE AMOUNT. ASSESSEES GROUNDS A RE ALLOWED. 7. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2016 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 30 TH JUNE, 2016 TNMM I.T.A. NO. 1334/HYD/2015 SMT. G. VENKATA LAKSHMI :- 6 -: COPY TO : 1. SMT. G. VENKATA LAKSHMI, PLOT NO. 723/A, ROAD NO. 37, JUBILEE HILLS, HYDERABAD. 2. THE DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCL E-6, HYDERABAD. 3. COMMISSIONER OF INCOME TAX(APPEALS)-11, HYDERABA D 4. PR. COMMISSIONER OF INCOME TAX(CENTRAL), HYDERABA D. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.