Syed Ahmed Hussain, Hyderabad V. Income Tax Officer, Ward-15(4), Hyderabad

ITA 154/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6794 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 16-03-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 22-01-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained cash credit
• Section: 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. 15 4 /H/20 1 8 ASSESSMENT YEAR: 20 1 3 - 1 4 SYED AHMED HUSSAIN, HYDERABAD. PAN - A CHPH 2593 J VS. INCOME - TAX OFFICER, WARD 1 5 ( 4 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P.C. YADAV REVENUE BY: SHRI ROHIT MUJUMDAR DATE OF HEARING: 1 6 /0 3 /2021 DATE OF PRONOUNCEMENT: 0 8 /04/2021 O R D E R PER L.P. SAHU, A.M. : T H I S APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT( A ) - 7 , HYDERABADS ORDER DATED 24 / 11 /201 7 INVOLVING PROCEEDINGS U/S 1 43(3) OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT . 2. THE ASSESSEE HAS RAISED 9 GROUNDS OF APPEAL, OUT OF WHICH GROUND NOS. 1 AND 3 TO 9 ARE ARGUMENTATIVE IN NATURE. THE ONLY SUBSTANTIVE GROUND IS GROUND NO. 2 THAT THE AUTHORITIES BELOW MADE AN ADDITION OF RS. 20,50,000/ - ITA NO. 154 /H YD/ 20 1 8 SYED AHMED HUSSAIN ., HYDERABAD. : - 2 - : ON ACCOUNT OF CASH DEPOSITS MADE IN S AVINGS BANK (SB) ACCOUNT. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL , FILED HIS RETURN OF INCOME FOR THE IMPUGNED AY 2013 - 14 ADMITTING AN INCOME OF RS. 1,86,310/ - . SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY AND STATUTORY NOTICES WERE ISSUED TO THE ASSESSEE, AGAINST WHICH, THE AR OF THE FURNISHED THE INFORMATION AS CALLED FOR. 3.1 ON VERIFICATION OF THE INFORMATION FURNISHED, THE AO NOTICED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE MADE THE FOLLOWING CASH DE POSITS IN THE SB ACCOUNT BEARING NO. 031704010001469 HELD WITH JAMMU AND KASHMIR BANK LTD., JN ROAD, HYDERABAD AND THE AO ALSO NOTICED THAT THE ASSESSEE DID NOT DISCLOSE THIS BANK ACCOUNT IN HIS RETURN OF INCOME: SL.NO. DEPOSIT ACCOUNT NO. & DATE OF DEPOSI T AMOUNT DEPOSITED (RS.) TYPE OF DEPOSIT 1 0317040100001469 ON 08/11/2012 5,00,000/ - CASH DEPOSIT 2 0317040100001469 ON 15/11/2012 5,00,000/ - CASH DEPOSIT 3 0317040100001469 ON 15/11/2012 10,50,000/ - CASH DEPOSIT 3.2 WHEN ASKED TO FURNISH THE NATURE OF CASH DEPOSITS AND SOURCES FOR THE CASH DEPOSITS REFLECTING IN THE SB ACCOUNT, THE ASSESSEE VIDE HIS LETTER FILED DURING THE COURSE OF ITA NO. 154 /H YD/ 20 1 8 SYED AHMED HUSSAIN ., HYDERABAD. : - 3 - : ASSESSMENT PROCEEDINGS, STATED THAT HE ALONG WITH HIS MOTHER AND TWO BROTHERS SOLD HO USE PROPERTY ON 23/12/2010 FOR A TOTAL CONSIDERATION OF RS. 43,92,000/ - AND THE CASH HAS BEEN KEPT AT HIS HOUSE AND THAT DURING THE MONTH OF NOVEMBER, 2012 AN AMOUNT OF RS. 20,00,000/ - HAD BEEN DEPOSITED IN THE SB ACCOUNT. HOWEVER, THE ASSESSEE COULD NOT F URNISH PROPER EXPLANATION WHY SUCH HUGE AMOUNT HAD BEEN KEPT AT HOME HAVING TWO BANK ACCOUNTS WHEREIN HE WOULD HAVE EARNED INTEREST. THE EXPLANATION OFFERED BY THE ASSESSEE WAS NOT FOUND FAVOUR WITH THE AO AND IN THE ABSENCE OF ANY SATISFACTORY EXPLANATIO N FURNISHED BY THE ASSESSEE REGARDING THE NATURE OF THE CASH CREDITS AND THE SOURCE OF MONEY, THE AO TREATED THE CASH CREDITS OF RS. 20,50,000/ - AS UNEXPLAINED MONEY IN THE HANDS OF THE ASSESSEE U/S 69A OF THE ACT. 4. WHEN THE ASSESSEE PREFERRED AN APPEA L BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE ORDER OF AO. 5. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 6. WE HAVE CONSIDERED THE SUBMISSI ONS OF THE PARTIES AND PERUSED THE MATERIAL ON RECORD AS WELL AS THE ORDERS OF THE REVENUE AUTHORITIES. EVEN BEFORE US, THE AR OF THE ASSESSEE FAILED TO SUBSTANTIATE THE SOURCE OF THE DEPOSITS BY WAY OF ANY DOCUMENTARY EVIDENCE AND REITERATED THE ITA NO. 154 /H YD/ 20 1 8 SYED AHMED HUSSAIN ., HYDERABAD. : - 4 - : SUBMISSIO NS AS MADE BEFORE THE AUTHORITIES BELOW. THEREFORE, CONSIDERING THE FACTS OF THE CASE AND AS CONCEDED BY THE LD. AR OF THE ASSESSEE BEFORE THE BENCH , WE DIRECT THE AO TO CONSIDER 50% OF THE TOTAL DEPOSITS OF RS. 20,50,000/ - , WHICH COMES TO RS. 10,25,000/ - AS UNEXPLAINED CASH CREDITS , AS CONSIDERING THE FACT THAT OVER A PERIOD OF TIME DEPOSIT OF RS. 10,00,000/ - BY SAVINGS IN A BANK IS A REASONABLE AMOUNT TO TREAT AS A GENUINE INCOME . ACCORDINGLY, THE GROUND RAISED BY THE ASSESSEE ON THIS ISSUE IS PARTLY ALL OWED. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 8 TH APRIL , 2021 . SD/ - SD/ - (S . S . GODARA) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 8 TH APRIL , 20 2 1 . KV C OPY TO : 1 SYED AHMED HUSAIN, C/O MM FIRDOS, ADV., 11 - 3 - 942, 1 ST FLOOR, NEW MALLEPALLY, HYDERABAD. 2 I T O , WARD 1 5 ( 4 ), HYDERABAD . 3 CIT( A ) - 7 , HYDERABAD 4 PR. CIT 7 , HYDERABAD. 5 ITAT, DR, HYDERABAD 6 GUARD FILE. ITA NO. 154 /H YD/ 20 1 8 SYED AHMED HUSSAIN ., HYDERABAD. : - 5 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER