L. Srinivasa Rao, Vizianagaram V. The ITO, Vizianagaram

ITA 148/VIZ/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 8815 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 29-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C DAS
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON'BLE JUDICIAL MEMBER ITA NO. 1 48 / VIZ /201 6 (ASST. YEAR : 20 11 - 1 2 ) L. SRINIVASA RAO, PROP. M/S. PYDIMAMBA WINES, BONDPALLI VILLAGE, VIZIANAGARAM DISTRICT. VS. ITO, WARD - 2, VIZIANAGARAM. PAN NO. ACHPL 1470 G (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SHRI K.C. DAS - SR. DR DATE OF HEARING : 26 / 0 7 /201 7 . DATE OF PRONOUNCEMENT : 31 / 0 7 /201 7 . O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , VISAKHAPATNAM , DATED 15 /0 2 /201 6 FOR THE ASSESSMENT YEAR 2011 - 12 . 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIVIDUAL CARRYING ON BUSINESS OF PURCHASE AND SALE OF IMFL (INDIAN MADE FOREIGN LIQUOR) IN VIZIANAGARAM DISTRICT. THE ASSESSEE HAD FILED A RETURN OF INCOME BY DECLARING TOTAL INCOME OF 6,89,630/ - . THE RETURN FILED BY THE ASSESSEE WAS INITIALLY PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT'). LATER, AFTER FOLLOWING THE DUE PROCEDURE, ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT BY MAKING 2 ITA NO. 148 / VIZ /201 6 (L. SRINIVASA RAO) ADDITION OF 23,97,62 4/ - ON ACCOUNT OF UNEXPLAINED CAPITAL CONTRIBUTION . 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS , THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE INCURRED A SUM OF 16,96,833/ - DURING JUNE & JULY 2010 TOWARDS FIRST INSTALMENT OF LICENCE FEE, FIRST PURCHASE OF LIQUOR STOCK ETC. THE ASSESSING OFFICER ALSO NOTED THAT THE ASSESSEE HAD SHOWN CAPITAL BALANCE OF 30,73,255/ - IN THE BALANCE SHEET AS ON 31/03/2011 AND ADMITTED NET PROFIT FOR THE PREVIOUS YEAR RELEVANT FOR THE IMPUGNED ASSESSMENT YEAR AT 6,75,631/ - . THE ASSESSING OFFICER ALSO NOTED THAT THE CAPITAL AMOUNT SHOWN AS ON 31/03/2011 IS NOT EXPLAINED. THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO SHOW - CAUSE AS TO WHY THE CAPITAL BALANCE SHOULD NOT BE TREATED AS INCOME. THE ASSESSEE NEITHER APPEARED NOR FILED A N Y SUBMISSIONS. THEREFORE, THE ASSESSING OFFICER HAS TREATED THE CAPITAL CONTRIBUTION TO THE TUNE OF 23,97,624/ - ( 30,73,255 6,75,631) AS UNEXPLAINED CAPITAL AND ADDED THE S AME TO THE TOTAL INCOME OF THE ASSESSEE . 4 . ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAS NOT FIELD ANY DETAILS IN RESPECT OF CONTRIBUTION TOWARDS BUSINESS, THEREFORE, LD.CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. EVEN BEFORE THE TRIBUNAL , THE ASSESSEES COUNSEL SIMPLY SUBMITTED THAT ADDITION MADE BY THE LD.CIT(A) IS NOT CORRECT. 3 ITA NO. 148 / VIZ /201 6 (L. SRINIVASA RAO) 5 . ON THE OTHER HAND, THE LD. D.R. STRONGLY SUPPORTED THE ORDER S PASSED BY THE AUTHORITIES BELOW. 6 . I HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIALS AVAILABLE ON RECORD . 7 . IN THE ASSESSMENT ORDER , THE ASSESSING OFFICER HAS NOTED THAT THE ASSESSEE HAS SHOWN CAPITAL BALANCE OF 30,73,255/ - IN THE BALANCE SHEET AS ON 31/03/2011 BY ADMITTING NET PROFIT FOR THE PREVIOUS YEAR , RELEVANT TO THE IMPUGNED ASSESSMENT YEA R AT 6,75,631/ - . THE ASSESSING OFFICER CALLED THE ASSESSEE TO EXPLAIN THE CAPITAL BALANCE OF 23,97,624/ - SHOULD NOT BE TREATED AS INCOME OF THE ASSESSEE. THE ASSESSEE NEITHER APPEARED BEFORE THE ASSESSING OFFICER NOR FILED ANY DETAILS. EVEN BEFORE T HE LD. CIT(A), NO DETAILS WERE FILED. EVEN BEFORE THE TRIBUNAL, NO DETAILS IN RESPECT OF UNEXPLAINED CAPITAL CONTRIBUTION ARE FILED. IN VIEW OF THE ABOVE, BY CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND ALSO NON - COOPERATION FROM THE ASSESSEE, I FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(A). 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON THIS 3 1 S T DAY OF JULY , 201 7 . S D / - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 3 1 S T JU LY , 201 7 . VR/ - 4 ITA NO. 148 / VIZ /201 6 (L. SRINIVASA RAO) COPY TO: 1. THE ASSESSEE - L. SRINIVASA RAO, PROP. M/S.PYDIMAMBA WINES, BONDPALLI VILLAGE, VIZIANAGARAM DISTRICT. 2. THE REVENUE - ITO, WARD - 2, VIZIANAGARAM. 3. THE P CIT - 1, VISAKHAPATNAM. 4. THE CIT(A) - 1, VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SENIOR PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.