Gundavarapu Srinivasulu, Hyd, Hyderabad V. ITO, Ward-12(4), Hyd, Hyderabad

ITA 155/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6269 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-08-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 12-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B V GOPINATH
• Assessee Lawyers: K V CHALAMAIAH
• Keywords: Salary income
• Section: 143(3); 144

Judgement Text

ITA NO 155 OF 2016 GUNDAVARAPU SRINIVASULU HYDERABA D PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER & SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.155/HYD/2016 (ASSESSMENT YEAR: 2010-11) SRI GUNDAVARAPU SRINIVASULU, HYDERABAD PAN: AKWPG 4385 L VS. INCOME TAX OFFICER WARD 12(4) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.V. CHALAMAIAH FOR REVENUE : SHRI B.V. GOPINATH, DR DATE OF HEARING : 03.08.2016 DATE OF PRONOUNCEMENT : 24.08.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2010-11. IN T HIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF T HE CIT (A) IN DIRECTING THE AO TO TREAT THE SUM OF RS.18,90,000 A S SALARY INCOME FOR THE RELEVANT A.Y. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, FILED HIS RETURN OF INCOME FOR THE A.Y 2010-11 ON 2 2.07.2010 DECLARING A TOTAL TAXABLE INCOME OF RS.2,51,100. ME ANWHILE, THE AO HAD RECEIVED AIR INFORMATION THAT DURING THE FIN ANCIAL YEAR 2009-10 RELEVANT TO THE A.Y 2010-11, THE ASSESSEE H AS MADE CASH DEPOSITS TO THE SAVINGS BANK A/C IN HDFC BANK TO THE TUNE OF RS.18,90,000. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE ASSESSEE WAS ASKED TO EXPLAIN THE S OURCE FOR THIS ITA NO 155 OF 2016 GUNDAVARAPU SRINIVASULU HYDERABA D PAGE 2 OF 3 CASH DEPOSIT. SINCE THE ASSESSEE DID NOT RESPOND, A O COMPLETED THE ASSESSMENT U/S 144 OF THE ACT BY BRINGING THE E NTIRE AMOUNT TO TAX. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) STATING THAT THE SOURCE FOR THESE DEPOSITS IS H IS SALARY RECEIVED BY HIM IN USA AGGREGATING TO RS.18,90,000 WHICH WAS WITHDRAWN ON 17.02.2009 AND 21.02.2009 FOR ACQUIRIN G AN ASSET, BUT SINCE THE TRANSACTION WAS NOT FINALISED, THE AS SESSEE HAD DEPOSITED THE AMOUNTS INTO HIS HDFC BANK A/C. THE C IT (A) ACCEPTED THE ASSESSEES CONTENTION ABOUT THE SOURCE , BUT DIRECTED THE AO TO BRING THE SALARY INCOME TO TAX. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS ALREADY OFFERED HIS SALARY INCOME TO T AX AND THE CIT (A) HAS ALSO ALLOWED THE CLAIMS U/S 80C, 80CC AND 8 0D OF THE ACT WHICH WERE DISALLOWED BY THE AO FOR WANT OF DOC UMENTARY EVIDENCE, AFTER VERIFICATION OF THE DETAILS FURNISH ED BY THE ASSESSEE. THEREFORE, ACCORDING TO THE LEARNED COUNS EL FOR THE ASSESSEE, FURTHER DIRECTION TO BRING THE DEPOSIT OF RS.18,90,000 TO TAX AS SALARY INCOME IS NOT SUSTAINABLE. THE LEA RNED DR, HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BE LOW. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE DID NOT APPEAR BE FORE THE AO AND THEREFORE, THE AO COMPLETED THE ASSESSMENT U/S 144 OF THE I.T. ACT BRINGING TO TAX THE UNEXPLAINED CASH CREDI T OF RS.18,90,000. WE FIND THAT THE ASSESSEE HAD EXPLAIN ED THE SOURCE BEFORE THE CIT (A). FROM THE RETURN OF INCOM E FILED BY THE ASSESSEE, WHICH IS PLACED AT PAGE 1 OF THE PAPER BO OK, WE FIND THAT THE ASSESSEE HAS OFFERED HIS INCOME ONLY UNDER THE HEAD ITA NO 155 OF 2016 GUNDAVARAPU SRINIVASULU HYDERABA D PAGE 3 OF 3 SALARIES AND THE AO HAS ACCEPTED THE SAME. WE ALS O FIND THAT THE ASSESSEE HAS ALSO FILED THE STATEMENT OF THE AS SESSEES HDFC BANK A/C TO DEMONSTRATE THAT THE SALARY AMOUNT WHIC H WAS EARLIER WITHDRAWN, WAS RE-DEPOSITED IN HIS HDFC BAN K A/C. THEREFORE, WE ARE SATISFIED WITH THE EXPLANATION OF THE SOURCE OF THE DEPOSIT IN THE BANK A/C OF THE ASSESSEE. HOWEVE R, AS REGARDS THE DIRECTION OF THE CIT (A) TO BRING TO TAX THIS C ASH DEPOSIT AS THE SALARY INCOME OF THE ASSESSEE, WE ARE OF THE OPINIO N THAT SUCH A DIRECTION IS NOT SUSTAINABLE, AS THE ASSESSEE HAS A LREADY OFFERED THE SALARY INCOME TO TAX. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 24 TH AUGUST, 2016. SD/ - SD/ - (B. RAMAKOTAIAH) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 24 TH AUGUST, 2016. VNODAN/SPS COPY TO: 1. SHRI GUNDAVARAPU SRINIVASULU, S/O G. VENKATANARAYAN A, FLAT NO.2, SRI RESIDENCY, BABU NAGAR, SERILINGAMPAL LI, HYDERABAD 500019 2. INCOME TAX OFFICER WARD 12(4) HYDERABAD 3. CIT(A)-1 HYDERABAD 4. PR. CIT -1, HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER