Ramesh Gade , Warangal V. Income Tax Officer, Ward-1, Warangal

ITA 1406/Hyd/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 0846 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-12-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 13-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUNIL KUMAR PANDEY
• Keywords: Unexplained investment
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NO. 1406/HYD/2019 ASSESSMENT YEAR: 2016-17 RAMESH GADE, WARANGAL [PAN: AKTPG9987B] VS INCOME TAX OFFICER, WARD-1, WARANGAL (APPELLANT) (RESPONDENT) FOR ASSESSEE : SMT. S.SANDHYA, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 17-12-2020 DATE OF PRONOUNCEMENT : 18-12-2020 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY TH E ORDER OF THE LD.COMMISSIONER OF INCOME TAX (APPEALS) 3, HYDERABAD, IN APPEAL NO.10342/ITO-1/WGL/CIT(A)-3/20 18- 19, DATED 12-06-2019. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN THIS A PPEAL. HOWEVER, THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN CONFIRMING THE ADDITION MADE BY THE LD.AO WITH REGA RD TO THE CASH DEPOSITS TO THE EXTENT OF RS.16,08,305/- BY TREA TING IT TO BE UNEXPLAINED INVESTMENT. ITA NO.1406/HYD/2019 :- 2 -: 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL, FILED HIS RETURN OF INCOME ON 10-04-2017 , DECLARING TOTAL INCOME OF RS.2,97,498/- FROM SALARY AND HOUSE P ROPERTY. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS FOR LI MITED SCRUTINY TO EXAMINE THE CASH DEPOSITED. ACCORDINGLY, N OTICE U/S.143(2) AND 142(1) OF THE ACT AND SHOW CAUSE NOTICE WERE ISSUED TO THE ASSESSEE. DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS, IN SPITE OF SEVERAL OPPORTUNIT IES, THE ASSESSEE FAILED TO FURNISH THE REQUISITE DOCUMENTS CA LLED-FOR BY THE LD.AO. THEREFORE, THE LD.AO MADE THE ADDITION OF RS.16,08,305/- AS UNEXPLAINED INVESTMENT U/S.69 OF THE ACT, DUE TO LACK OF EVIDENCE EXPLAINING THE SOURCE OF ACCO UNTED INCOME FOR HAVING MADE THE INVESTMENT. 4. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). HOWEVER, THE ASSESSEE FAILED TO FURNISH THE SUPPORTING DOCUMENTS/DETAILS TO SUBSTANTIATE THE CASH DEPOSITS BEFOR E THE CIT(A) ALSO. THEREFORE, THE LD.CIT(A) DISMISSED THE APPEAL, DULY SUSTAINING THE ADDITION OF RS.16,08,305/- MADE BY THE LD.AO TOWARDS UNEXPLAINED CASH DEPOSITS. 5. AGGRIEVED BY THE ORDER OF THE LD.CIT(A), THE ASSES SEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL. 6. AT THE OUTSET, LD.AR SUBMITTED BEFORE ME THAT THE LD.AO HAS NOT OFFERED PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD AND PASSED EX-PARTE ORDER, WHICH WAS FURTHER CONFIRMED BY THE LD.CIT(A) . THE LD.AR ALSO SUBMITTED THAT, THE ASSESSEE ITA NO.1406/HYD/2019 :- 3 -: IS NOW IN POSSESSION OF THE REQUISITE DOCUMENTS/DETAIL S TO SUBSTANTIATE THE SOURCE OF THE ACCOUNTED INCOME WITH RESP ECT TO THE CASH DEPOSITED IN THE BANK ACCOUNT. IT WAS THEREF ORE REQUESTED THAT THE CASE MAY BE REMITTED BACK TO THE FILE O F LD.AO FOR FRESH CONSIDERATION. 7. THE LD.DR VEHEMENTLY OPPOSED THE SUBMISSIONS OF THE LD.AR AND REQUESTED FOR CONFIRMING THE ORDER OF THE L D.CIT(A). 8. HAVING HEARD THE RIVAL SUBMISSIONS THROUGH VIDEO CONFERENCE AND CAREFULLY PERUSING THE MATERIALS ON R ECORD, I FIND THAT THE ASSESSEE HAD FAILED TO FURNISH THE DETAILS OF THE SOURCE OF INCOME WITH REGARD TO THE CASH DEPOSITS MAD E IN THE BANK ACCOUNT OF THE ASSESSEE. FURTHER, THE ASSESSEE H AS FAILED TO APPEAR BEFORE THE LD.CIT(A) AT THE TIME OF HEARING A ND HAS NOT PROPERLY CO-OPERATED BEFORE THE LD.AO IN HIS PROCE EDINGS. IN THIS SITUATION, I DO NOT FIND MUCH MERIT IN THE ARGUM ENTS ADVANCED BY THE LD.AR. HOWEVER, CONSIDERING THE SUBMI SSIONS OF THE LD.AR THAT THE ASSESSEE IS NOW IN POSSESSION OF SUFFICIENT DOCUMENTS TO ESTABLISH HIS ACCOUNTED SOURCE O F INCOME, IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE A PPEAL BACK TO THE FILE OF LD.AO FOR FRESH CONSIDERATION. NEE DLESS TO MENTION THAT ASSESSEE SHALL BE PROVIDED WITH FAIR OPPO RTUNITY OF BEING HEARD. I ALSO MAKE IT CLEAR THAT IF THE ASSESSEE/ASSESSEES COUNSEL FAIL TO PROMPTLY CO-OPERA TE BEFORE THE LD.REVENUE AUTHORITIES IN THEIR PROCEEDINGS, THE LD.REVENUE AUTHORITIES SHALL BE AT LIBERTY TO PASS APPR OPRIATE ITA NO.1406/HYD/2019 :- 4 -: ORDER IN ACCORDANCE WITH LAW AND MERIT BASED ON THE M ATERIALS BEFORE THEM. 9. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED A S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 18 TH DECEMBER, 2020 SD/- ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 18-12-2020 TNMM ITA NO.1406/HYD/2019 :- 5 -: COPY TO : 1.SHRI RAMESH GADE, H.NO.35-3-1452, SRI GANESH NAGA R COLONY, BHIMARAM (RURAL), WARANGAL. 2.THE INCOME TAX OFFICER, WARD-1, WARANGAL. 3.CIT(APPEALS)-3, HYDERABAD. 4.THE PR.CIT-3, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.