Deputy Commissioner of Income Tax, Hyderabad V. Sri J.Bhaskar Rao, Hyderabad

ITA 1337/HYD/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 74740 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2006-2007
• Appeal Filed On: 04-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKARA RAO
• Assessee Lawyers: S RAMA RAO
• Keywords: Income from undisclosed sources; Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NOS. 1335 TO1341/HYD/13 ASSESSMENT YEARS: 2004-05 TO2010-11. DY. CIT, HYDERABAD. -V- S IR. J. BHASKAR RAO, HYDERABAD. HYDERABAD. PAN:ABZPJ3502C (APPELLANT) (RESPONDENT) APPELLANT BY SHRI D. SUDHAKARA RAO RESPONDENT BY SRI S. RAMA RAO DATE OF HEARING 06-02-2014 DATE OF PRONOUNCEMENT 21-03-2014 ORDER PER SAKTIJIT DEY, J.M: THESE APPEALS FILED BY THE DEPARTMENT IN THE CASE OF THE SAME ASSESSEE ARE DIRECTED AGAINST COMMON ORDER OF CIT (A)-I , HYDERABAD PERTAINING TO THE ASSESSMENT YEARS 2004-05 TO 2010-11 . SINCE COMMON AND IDENTICAL GROUNDS ARE INVOLVED IN ALL THESE APPEA LS, THESE ARE TAKEN UP TOGETHER AND DISPOSED OF BY THIS COMBINED ORDER FOR TH E SAKE OF CONVENIENCE. 2. THE GROUND RAISED BY THE DEPARTMENT IN ALL THE AP PEALS IS COMMON EXCEPT FIGURES WHICH READ AS UNDER: 2 ITA NOS. 1335 TO 1341 OF 2013 SRI J. BHASKARA RAO, HYD. THE CIT (A) IS NOT JUSTIFIED IN DELETING THE ADDIT ION MADE TOWARDS UNACCOUNTED CASH RECEIPTS OF RS.83,00,000/- FOR THE ASST. YEAR 2004- 05 ON ACCOUNT OF FAILURE ON THE PART OF THE ASSESSE E TO BRING IT TO TAX. 3. BRIEFLY THE FACTS ARE, THE ASSESSEE IS THE CHAI RMAN OF M/S JB EDUCATIONAL SOCIETY AND M/S JOGINPALLY BR EDUCATIONAL S OCIETY. AS A CONSEQUENCE OF SEARCH AND SEIZURE OPERATIONS CONDUCTED IN CASE OF THE AFORESAID EDUCATIONAL INSTITUTIONS, VARIOUS DOCUMENTS W ERE FOUND AND SEIZED WHICH REVEALED COLLECTION OF AMOUNTS OVER AND AB OVE THE PRESCRIBED FEES AND WHICH ARE NOT RECORDED IN THE BOOKS OF ACCOUNT. ON THE BASIS OF SEIZED MATERIAL, STATEMENTS RECORDED AN D SUBMISSIONS MADE AS WELL AS INDEPENDENT VERIFICATIONS CARRIED OUT THE UNACCOUNTED INCOME WAS QUANTIFIED FOR DIFFERENT YEARS. THE ASSESS ING OFFICER STATED IN THE ASSESSMENT ORDER THAT ON VERIFICATION OF THE SEI ZED MATERIAL, IT IS CLEAR THAT THE ADMISSIONS INTO MANAGEMENT QUOTA ARE OP ERATED AT HEAD OFFICE, HYDERABAD UNDER THE CONTROL AND SUPERVISION OF S RI J. BHASKARA RAO AND OTHER MEMBERS OF THE SOCIETY AS WELL AS THE ST AFF LIKE SRI K. ASHOK MEHTA REDDY, SRI PURNACHANDRA PUSTI AND SRI G. MEGHANATH. CONSIDERING THE FACTS AND MATERIALS AVAILABLE ON RECO RD, THE ASSESSING OFFICER HELD THAT THE MONEY COLLECTED ULTIMATELY REAC HED THE CHAIRMAN OF THE GROUP, SRI J. BHASKARA RAO, I.E., PRESENT ASSE SSEE. THE INCOME EARNED THROUGH JB EDUCATIONAL SOCIETY AND JOGINAPALLY BR EDUCATIONAL SOCIETY WAS BROUGHT TO TAX ON SUBSTANTIVE BASIS AT THE HANDS OF JB EDUCATIONAL SOCIETY AND JOGINAPALLY BR EDUCATIONAL S OCIETY AND ON PROTECTIVE BASIS AT THE HANDS OF THE ASSESSEE IN THE FOLLOWING MANNER:- ASST. YEAR AMOUNT OF ADDITION 3 ITA NOS. 1335 TO 1341 OF 2013 SRI J. BHASKARA RAO, HYD. 2004-05 RS.83,00,000/- 2005-06 RS.78,00,000/- 2006-07 RS.1,17,00,000/- 2007-08 RS.1,99,50,000/- 2008-09 R S.3,36,00,000/- 2009-10 RS.4,07,91,000/- 2010-11 RS.4,42,94,600 4. THE ASSESSEE CHALLENGED THE ADDITION MADE ON PROTEC TIVE BASIS BY FILING APPEALS BEFORE THE CIT (A). DURING THE APPE AL PROCEEDINGS, THE CIT (A) CALLED FOR REMAND REPORT AND AFTER OBTAINING T HE REMAND REPORT FROM THE ASSESSING OFFICER HELD THAT THE SAME INCOME HAS BEEN TAXED AT THE HANDS OF DIFFERENT ASSESSEES I.E., PRESIDENT , SECRETARY, GENERAL SECRETARY OF SOCIETY. THE CIT (A) NOTED AS UNDER: 8.1. IT MAY BE NOTED THAT IN THE CASE OF JB EDUCATIONAL SOCIETY AND JOGINPALLY BR EDUCATIONAL SOCIETY, THE ADDITIONS MA DE ON ACCOUNT OF DONATIONS ON SUBSTANTIVE BASIS HAS BEEN CONFIRMED B Y MY PREDECESSOR VIDE ORDER NO.156 TO 162/11-12/CC-1,/HY D/CIT(A)-1/11- 12 AND ORDER NO.163 TO 168/CC-1,HYD/CIT (A) -1/11-1 2 DT. 29-10- 2012 RESPECTIVELY. SINCE THE SAME AMOUNT CANNOT BE TAXED TWICE AND ALSO THE FACT THAT THE ADDITION IN THE CASE OF THE APPELLANT WHO IS THE PRESIDENT OF THE GROUP WAS MADE ON PROTECTIVE B ASIS, AS STATED BY THE ASSESSING OFFICER AND THE ADDL. CIT IN THE R EMAND REPORT THE ADDITIONS AMOUNTING TO RS.83,00,000/- IN ASST. YEAR 2004-05; RS.78,00,000 IN ASST. YEAR 2007-08; RS.9,82,50,000/ - IN ASST. YEAR 2008-09; RS.9,35,56,800/- IN ASST. YEAR 2009-10 AND RS.8,77,54,600/- 4 ITA NOS. 1335 TO 1341 OF 2013 SRI J. BHASKARA RAO, HYD. IN ASST. YEAR 2010-11 CANNOT BE SUSTAINED AND THERE FORE, THE SAME IS ORDERED TO BE DELETED. THE GROUND RAISED ON THIS I SSUE IS DECIDED IN FAVOUR OF THE APPELLANT. 5. THE LEARNED AR, SUBMITTED BEFORE US SIMILAR ADDI TIONS MADE ON PROTECTIVE BASIS IN CASE OF OTHER INDIVIDUALS I.E., I N CASE OF J.V. KRISHNA RAO AND SRI J. VAMSIDHAR RAO WERE ALSO DELETED BY THE CIT (A) AND WHEN THE DEPARTMENT CAME IN APPEAL BEFORE THE TRIBUNAL, T HE TRIBUNAL ALSO CONFIRMED THE ORDER OF THE CIT (A) IN THIS REGARD IN ITA NOS. 1440/HYD/13 AND OTHERS DATED 8-1-2014. 6. THE LEARNED DEPARTMENTAL REPRESENTATIVE ALSO AGR EED WITH THE CONTENTION OF THE LEARNED AR THAT IDENTICAL ISSUE HAS BEEN DECIDED BY THE TRIBUNAL IN FAVOUR OF OTHER INDIVIDUALS WHERE SIMI LAR ADDITIONS WERE MADE ON PROTECTIVE BASIS. 7. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI AL ON RECORD. IT IS THE CONTENTION OF THE LEARNED AR BEFORE US THAT THE ISSUE IN DISPUTE WAS CRYSTALLISED BY THE ORDERS OF THE INCOME-TAX APPEL LATE TRIBUNAL, B- BENCH IN CASES OF M/S J.B. EDUCATIONAL SOCIETY AND M/ S JOGINAPALLY B.R. EDUCATIONAL SOCIETY IN ITA NOS. 29/HYD/2013 AND OTHERS DATED 28-10- 2013 WHEREIN THE INCOMES ARE ADMITTED/ASSESSED IN TH E HANDS OF R. KONDAL RAO VIDE PARA-52 OF THE ORDER. FURTHER, WHATEV ER AMOUNTS WERE NOT CONSIDERED IN THE HANDS OF R. KONDAL RAO WAS DIREC TED TO BE CONSIDERED AT THE HANDS OF M/S J.B. EDUCATIONAL SOCIET Y AND M/S JOGINAPALLY B.R. EDUCATIONAL SOCIETY. THEREFORE, IT WA S CONTENDED THAT THE PROTECTIVE ASSESSMENT IN CASE OF THE PRESENT ASSE SSEE DOES NOT SURVIVE. 5 ITA NOS. 1335 TO 1341 OF 2013 SRI J. BHASKARA RAO, HYD. 8. CONSIDERING THE SUBMISSIONS OF THE PARTIES, WE ARE OF THE VIEW THAT THE INCOME TO THE EXTENT ALREADY CONSIDERED AT TH E HANDS OF SRI R. KONDAL RAO AND M/S J.B. EDUCATIONAL SOCIETY AND M/S JOGI NAPALLY B.R. EDUCATIONAL SOCIETY CANNOT BE CONSIDERED AGAIN AT THE H ANDS OF THE ASSESSEE. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INFI RMITY IN THE ORDER OF THE CIT (A) WHICH IS ACCORDINGLY CONFIRMED. THERE FORE, GROUNDS RAISED BY THE REVENUE FOR ALL THE YEARS UNDER CONSIDERATION ARE DISMISSED. 9. IN THE RESULT, ALL THE APPEALS FILED BY THE REVE NUE STAND DISMISSED. ORDER PRONOUNCED IN THE COURT ON 21 -03-2014. S D / - (CHANDRA POOJARI) ACCOUNTANT MEMBER S D / - (SAKTIJIT DEY) JUDICIAL MEMBER HYDERABAD, DATED THE 21 ST MARCH, 2014. JMR* COPY TO:- 1) DCIT, CENTRAL CIR-1, 7 TH FLOOR, AAYAKAR BHAVAN, BASHEERBAGH,HYDERABAD. 2) SRI J. BHASKARA RAO,H.NO.6-3-248/3, ROAD NO.1, BANJ ARA HILLS, HYDERABAD. 3) CIT(A)-I, HYDERABAD. 4) CIT-I, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABA D. 6 ITA NOS. 1335 TO 1341 OF 2013 SRI J. BHASKARA RAO, HYD.