Maram Surender Reddy, Hyderabad V. Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad

ITA 1524/Hyd/2017

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7606 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 9 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2011-2012
• Appeal Filed On: 30-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: T. SUNIL GOUTAM
• Keywords: Capital Gains
• Section: 119

Judgement Text

ITA No of 1524 of 2017 Maram Surender Reddy Page 1 of 12 आयकर अपील य अ धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member ITA No.1524/Hyd/2017 Assessment Year: 2011-12 Maram Surender Reddy Hyderabad PAN:ADDPM1818J Dy. CIT, Circle-1(1) Hyderabad (Appellant) (Respondent) Assessee by : Sri A. Srinivas, CA Revenue by: Sri T. Sunil Goutam, DR Date of hearing: 01/06/2022 Date of pronouncement: 14 /06/2022 ORDER Per R.K. Panda, A.M This appeal filed by the assessee is directed against the order dated 15.5.2017 of the learned CIT (A)-1, Hyderabad for the A.Y 2011-12. 2. There is a delay of 3 days in filing of this appeal by the assessee for which the assessee has filed a condonation application along with an affidavit explaining the reasons for the delay which is on account of medical problem in the immediate family. After considering the contents of the condonation application and after hearing the learned DR, the delay in filing of this appeal is condoned and the appeal is admitted for adjudication. ITA No of 1524 of 2017 Maram Surender Reddy Page 2 of 12 3. Facts of the case, in brief, are that the assessee is an individual and Director in Analogies Technologies India Ltd. He derives income from salary, house property, other sources and capital gains. He filed his return of income on 28.7.2011 declaring taxable income of Rs.41,86,317/-. During the course of assessment proceedings the Assessing Officer noted from the Bank A/c filed by the assessee that an amount of Rs.12 lakhs was deposited in cash on various dates. He therefore asked the assessee to explain the source of such deposits. It was submitted by the assessee that he had withdrawn cash of Rs.3,50,000/- on 8.4.2010, Rs.1,00,000/- on 12.4.2010 and Rs.1,00,000/- on 23.4.2010 which were deposited on 13.5.2010 (Rs.3.00 lakhs) 14.5.2010 (Rs.2.00 lakhs). Similarly, the amount of Rs.5.00 lakhs deposited on 18.3.2010 and Rs.2.00 lakhs on 29.3.2011 are out of the agricultural income earned during the year. It was submitted that the assessee intended to purchase gold and jewellery for which the money was withdrawn in the month of April. However, he deferred his idea of buying gold, since the gold prices were expected to come down in the near future. He, therefore did not purchase the gold and the amounts were deposited in the Bank A/c. In the absence of any satisfactory explanation, the Assessing Officer made addition of Rs.12.00 lakhs to the total income of the assessee. 4. So far as the agricultural income of Rs.5.50 lakhs declared in the return of income is concerned, the assessee explained that he got 19 acres of mango plantation at Papireddy Guda Village, Keshampet Mandal, Mahaboobnagar distt. The assessee filed a copy of the sale deed and patta passbook holding the land. However, no proof regarding existence of mango ITA No of 1524 of 2017 Maram Surender Reddy Page 3 of 12 plantation was filed. The Assessing Officer noted from the pass book that the land is shown as dryland which was categorised in Col.3 of the Patta Pass Book. There was no mention of any mango plantation which should have been entered in Patta Pass Book as well as Col.9 of the Patta Pass Book. Therefore, in absence of any concrete proof regarding the agricultural income, the Assessing Officer disallowed the same and treated the income as income from other sources. Thus the Assessing Officer made an addition of Rs.17.50 lakhs to the total income of the assessee. 5. Before the CIT (A), the assessee reiterated the same arguments as made before the Assessing Officer. So far as the addition of Rs.12.00 lakhs is concerned, it was submitted that after withdrawing the money from the Bank for purchase of gold, he deferred the idea of buying gold since the gold prices were expected to come down. Therefore, assessee redeposited the amount of Rs.3.00 lakhs on 13.5.2010 and Rs.2.00 lakhs on 14.5.2010. It was further submitted that the time gap between the date of withdrawal and date of deposit is around one month. 6. So far as the agricultural income of Rs.5.50 lakhs declared in the return of income is concerned, it was submitted that he was doing agricultural activity in the land of 19 acres and the assessee was declaring agricultural income in the earlier A.Ys also. It was submitted that he sells the agricultural produce in the mid of March every year because the mango fruits harvesting and sales will commence from first week of April onwards. Accordingly the assessee received Rs.5.50 lakhs as income from agricultural activities which was deposited in his savings bank a/c. ITA No of 1524 of 2017 Maram Surender Reddy Page 4 of 12 7. However, the learned CIT (A) was not satisfied with the arguments advanced by the assessee. So far as the addition of Rs.12.00 lakhs made by the Assessing Officer is concerned, he upheld the action of the Assessing Officer by observing as under: “6.3 The contention of the appellant is not supported by any evidence. The appellant has submitted that for purchase of gold he has withdrawn some money to be paid immediately to the jewellers, as jewellers are not receiving cheques/bank cards. Appellant has not given the name of the jewellery shop were sales have been made with non-banking transactions. Nor the appellant has given an explanation regarding why the purchase of gold was differed and why it took a month to differ. It may be pertinent to say that as per the bank account submitted by the appellant, he has received cash payment : a) 13.05.2011 cash deposit of 1<5.3 lakhs by Sri C.H.Dharrnendra b) 14.05.2011 cash deposit of R5.2 lakhs by Self c) 28.05.2011 cash deposit of R5.5 lakhs by Self d) 29.03.2012 cash deposit of I