K Ravi Shankar, Hyderabad V. Income Tax Officer, Ward-12(4), Hyderabad

ITA 1460/Hyd/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6064 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-05-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 14-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T CHAITANYA KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1460/HYD/2017 ASSESSMENT YEAR: 2010-11 SRI KOTHAKONDA RAVI SHANKAR, HYDERABAD [PAN: ANWPK2155P] VS THE INCOME TAX OFFICER, WARD-12(4), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI T. CHAITANYA KUMAR, AR FOR REVENUE : SHRI PRABHAT KUMAR GUPTA, DR DATE OF HEARING : 25-05-2018 DATE OF PRONOUNCEMENT : 06-06-2018 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-4, HYDERABAD, DATED 09-03-2017. 2. BRIEFLY STATED, ASSESSING OFFICER (AO) MADE AN ADD ITION OF RS. 19,92,250/- BEING THE DEPOSITS IN BANK ACCOUNT MAINTAINED WITH ICICI BANK, HYDERABAD FOR WHICH ASSES SEE HAS STATED THAT HE HAS BORROWED FROM EIGHT PERSONS TOTALIN G TO RS. 19.50 LAKHS. AO DID NOT ACCEPT THE STEREO-TYPED PROMISSORY NOTE COPIES WITH ASSESSEES SIGNATURE ONLY. HE TREATED THE AMOUNT AS UNEXPLAINED AND BROUGHT TO TAX. I.T.A. NO. 1460/HYD/2017 :- 2 - : 3. BEFORE THE LD.CIT(A), IT WAS CONTENDED THAT THE AMOUNTS WERE BORROWED BUT AS NO OTHER EVIDENCE WAS FURNISHED, LD.CIT(A) DISMISSED THE APPEAL. 4. IT WAS THE PRAYER THAT ONE MORE OPPORTUNITY CAN BE G IVEN TO ASSESSEE TO FURNISH NECESSARY CONFIRMATIONS BEFORE THE AO AND PLEADED FOR RESTORATION OF THE ISSUE TO THE FILE OF AO. IT WAS SUBMITTED THAT ASSESSEE COULD NOT GET CONFIRMATIONS FROM OTHER PARTIES AND NOW IN A POSITION TO PROVE THE GENUI NENESS OF THE BORROWERS. 5. AFTER CONSIDERING THE RIVAL CONTENTIONS, I AM OF THE OPINION THAT ASSESSEE CAN BE GIVEN ONE MORE OPPORTUN ITY TO PROVE THE GENUINENESS. AS SEEN FROM THE PAPER BOOK F ILED, ASSESSEE HAS ONLY PRODUCED COPIES OF THE PROMISSORY NOTES SIGNED BY HIM WITHOUT ANY CONFIRMATION FROM THE OTHER P ARTY. AO ALSO HAS NOT ENQUIRED FROM THEM WHETHER THEY HAVE ADVANCED FUNDS TO ASSESSEE OR NOT. SINCE THERE IS NO PROPER ENQUIRY ON THE PROMISSORY NOTES FURNISHED BY ASSESSE E, I AM OF THE VIEW THAT AO CAN MAKE ENQUIRY AND VERIFY WHETHER ASSESSEE HAS GENUINELY BORROWED OR NOT BEFORE REJECT ING THE CONTENTIONS. HOWEVER, IT IS FOR THE ASSESSEE TO FURNISH NECESSARY CONFIRMATIONS AS THE COPIES OF THE PROMISSO RY NOTES DOES NOT PROVE THAT THE OTHER PERSON HAS LENT THE MONEY UNLESS OTHER PERSON ALSO CONFIRMS THAT HE HAS ADVANCED THE MONEY. THE VERACITY OF THE PROMISSORY NOTES REQUIRE EXAMINATION. THEREFORE, IN THE INTEREST OF JUSTICE, THE ISSUE IS RESTORED TO THE FILE OF AO FOR PROPER VERIFICATION AND TO DECIDE I.T.A. NO. 1460/HYD/2017 :- 3 - : AS PER THE FACTS AND LAW. ASSESSEE SHOULD BE GIVEN D UE OPPORTUNITY TO SUBSTANTIATE THE CLAIMS. 6. IN THE RESULT, APPEAL OF ASSESSEE IS CONSIDERED AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JUNE, 2018 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 6 TH JUNE, 2018 TNMM I.T.A. NO. 1460/HYD/2017 :- 4 - : COPY TO : 1. SRI KOTHAKONDA RAVI SHANKAR, C/O. SHRI T. CHAITA NYA KUMAR, ADVOCATE, FLAT NO. 102, GOURI APARTMENT, URD ULANE, HIMAYATNAGAR, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-12(4), HYDERABAD. 3. CIT (APPEALS)-4, HYDERABAD. 4. PR.CIT-4, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.