Obula Shivamma., Nandyal V. Income Tax Officer, Ward-1., Nandyal

ITA 1388/Hyd/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2528 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 20-02-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 04-08-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: M NARMADA
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Unexplained cash credit; Opportunity of being heard; Peak credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A SMC BENCH: HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT ITA. NO.1388/HYD/2017 ASSESSMENT YEAR: 2010 - 2011 SMT. OBULA SHIVAMMA, H.NO. 17 - 145 - C, PARK ROAD, NANDYAL 518501. PAN: BAJPS 4510 B VS. INCOME TAX OFFICER, WARD - 1, KURNOOL. (APPELLANT) (RESPONDENT) FOR ASSESSEE: SHRI K.A. SAI PRASAD FOR REVENUE : SMT. M. NARMADA, DR DATE OF HEARING : 22.02.2018 DATE OF PRONOUNCEMENT : 22.02.2018 ORDER PER D. MANMOHAN , VP. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY LD. CIT(A) - KURNOOL AND IT PERTAINS TO THE ASSESSMENT YEAR 2010 - 11. 2. ONE OF THE GROUNDS URGED BEFORE THE TRIBUNAL WAS WITH REGARD TO EX - PARTE ORDER PASSED BY THE LD. CIT(A), WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD. IN FACT THE ADDITION IN DISPUTE IS TO THE TUNE OF RS.19,91,955/ - TOWARDS UNEXPLAINED CASH CREDITS BY INVOKING THE PROVISIONS OF SECTION 68 OF THE ACT. THE MAIN SOURCE OF INCOME FOR THE ASSESSEE WAS RENT FROM HOUSE PROPERTY AND INTEREST. FOR THE YEAR UNDER CONSIDERATION, SHE DECLARED TOTAL INCOME OF RS. 1,86, 610/ - . THE CASE OF THE ASSESSEE WAS TAKEN UP FOR SCRUTINY IN ORDER TO VERIFY THE CASH DEPOSITS MADE IN VIJAYA BANK AND CITY UNION BANK. THE A.O. CALLED UPON THE ASSESS EE TO FILE INFORMATION / EXPLANATION FOR THE CASH DEPOSITS 2 MADE IN THE AFOREMENTIONED BANKS. THE ASSESSEE HAVING NOT COMPLIED WITH THE DIRECTION GIVEN BY THE A.O., HE PROPOSED TO MAKE AN ADDITION OF RS. 19,91,955/ - , WHICH IS EQUIVALENT TO 50% OF THE CASH CREDITS IN BOTH THE BANKS. IN CASE OF VIJAYA BANK THE TOTAL DEPOSITS WERE TO THE TUNE OF RS. 12,49,350/ - WHEREAS IN CITY UNION BANK , THE DEPOSITS MADE WORTH TO THE TUNE OF RS. 27,34,559/ - ; 50% THEREOF WORKS OUT TO R S.19,91,955/, WHICH WAS ADDED U/S 68 OF THE ACT. 3. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY BY CONTENDING THAT THE INFORMATION WAS SUBMITTED ON 19.12.2012 WHEREAS THE A.O. PROCEEDED TO COMPLETE THE ASSESSMENT WITHOUT C ALLING FOR ANY FURTHER DETAILS. IT WAS ALSO CONTENDED THAT THE ASSESSEE FURNISHED BANK ACCOUNT COPIES , WHICH WERE HANDED OVER TO THE ASSESSING OFFICER PERSONALLY AND THE SAID TRANSACTIONS WERE DULY RECORDED IN THE BOOKS OF ACCOUNT MAINTAINED IN WHICH EVEN T THERE IS NO LOGIC IN ADDING 50% OF THE CASH DEPOSITS. THE CASE OF THE ASSESSEE WAS FIXED FOR HEARING FROM TIME TO TIME WHEREIN THE ASSESSEE DID NOT APPEAR BUT SOUGHT ADJOURNMENTS. THOUGH INITIALLY ADJOURNMENT WAS GRANTED, WHEN THE CASE WAS POSTED FOR H EARING ON 11.05.2017, THE ASSESSEE NEITHER APPEARED NOR FILED SUBMISSIONS AND THEREFORE, THE LD. CIT(A) PROCEEDED TO COMPLETE THE ASSESSMENT EX - PARTE , WHEREIN HE OBSERVED THAT THE FIRST APPELLATE AUTHORITY HAS INHERENT POWERS TO DISMISS THE APPEAL FOR NON - APPEARANCE AND ACCORDINGLY AFFIRMED THE ACTION OF THE A.O. FURTHER AGGRIEVED, ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. , 4. LD COUNSEL FOR THE ASSESSEE PLACED BEFORE THE TRIBUNAL COPIES OF THE BANK ACCOUNTS AND THE DETAILED LIST OF WITHDRAWALS / DEPOSIT S TO HIGHLIGHT THAT THERE IS NO BASIS FOR MAKING AN ADDITION OF RS. 19,91,955/ - . EVEN AS PER THE BANK STATEMENTS, THE PEAK CREDIT WORKS OUT TO AROUND RS. 8 LAKHS. 3 5. I HAVE ALSO HEARD THE LEARNED DEPARTMENTAL REPRESENTATIVE IN THIS REGARD AND CAREFULLY PER USED THE RECORD. ON A PERUSAL OF THE BANK ACCOUNTS, IT IS NOTICED THAT PEAK CREDIT WAS NOT CORRECTLY WORKED OUT. THEREFORE, I N THE INTEREST OF SUBSTANTIAL JUSTICE, I SET ASIDE THE MATTER TO THE FILE OF THE A.O, WHO IS DIRECTED TO WORK OUT THE PEAK CREDIT AFRESH. NEEDLESS TO OBSERVE THAT THE ASSESSEE SHALL BE GIVEN AN OPPORTUNITY OF BEING HEARD . 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND FEBRUARY, 2018. S D / - (D. MANMOHAN) VICE PRESIDENT HYDERABAD, DATED: 22 ST FEBRUARY, 2018. OKK, SR.PS COPY TO 1. SMT. OBULA SHIVAMMA C/O. CH. PARTHASARATHY & CO., 1 - 1 - 298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST. NO.1, ASHOKNAGAR, HYDERABAD - 500 020. 2. INCOME TAX OFFICER, WARD - 1, AAYAKAR BHAVAN, OPP. CHILDERNS PARK, N.R. PET, KURNOOL - 518001. 3. CIT (A) , KURNOOL 4. PR. COMMISSIONER OF INCOME TA X, KURNOOL 5. DR, ITAT, HYDERABAD. 6. GUARD FILE