Cheekoti Krishna Murthy , Siddipet V. Income Tax Officer, Ward-1, Siddipet

ITA 1557/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 9182 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-02-2021
• Assessment Year: 2016-2017
• Appeal Filed On: 21-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.SWAPNA
• Section: 11; 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES SMC, HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A. NO. 1557/HYD/2019 ASSESSMENT YEAR: 2016-17 SRI CHEEKOTI KRISHNA MURTHY, SIDDIPET [PAN: AXLPK5064C] VS INCOME TAX OFFICER, WARD-1, SIDDIPET (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A.V.RAGHURAM, AR FOR REVENUE : SMT. S.SWAPNA, DR DATE OF HEARING : 24-02-2021 DATE OF PRONOUNCEMENT : 22-03-2021 O R D E R THIS ASSESSEES APPEAL FOR AY.2016-17 IS DIRECTED A GAINST THE CIT(A)7, HYDERABADS ORDER DATED 09-08-2019 PAS SED IN APPEAL NO.0133/CIT(A)-7/2018-19 INVOLVING PROCEEDIN GS U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEE HAS RAISED THE FOLLOWING TWO SUBSTAN TIVE GROUNDS IN THE INSTANT APPEAL: 2.THE LEARNED CIT(A) ERRED IN CONFIRMING THE ADDIT ION MADE BY THE AO OF RS.24,40,000 AS UNEXPLAINED. 3.THE LEARNED CIT(A) ERRED IN NOT ALLOWING SET OFF OF LOSS OF RS.10,59,792 ON ACCOUNT OF COMMODITY TRADING THOUGH THE SAME IS ALLOWABLE TO BE SET OFF. ITA NO. 1557/HYD/2019 :- 2 -: 3. I NOTICE WITH THE ABLE ASSISTANCE OF BOTH THE LEARNED REPRESENTATIVES THAT NEITHER THE ASSESSEE HAS BEEN ABLE TO SUFFICIENTLY EXPLAIN SOURCES OF THE IMPUGNED SUM TO THE TUNE OF RS.24.40 LAKHS NOR THE LEARNED LOWER AUTHORITIES HAVE GIVEN HIM ANY CREDIT OF EITHER CASH IN HAND OR PAST SAVINGS AS WELL AS THE CORRESPONDING WITHDRAWALS IN THE RELEVANT PREVIOUS YEAR. 4. LEARNED DEPARTMENTAL REPRESENTATIVE FAILS TO DISPUTE TH AT THE ASSESSEE HAS BEEN TREATED AS PROPRIETOR OF M/S.BALA JI CANVASSING VIZ. COMMISSION AGENCY/BROKERAGE IN FOOD GRAINS AND PULSES. THE POSSIBILITY OF HAVING SOME CASH IN HIS HANDS CANNOT BE ALTOGETHER RULED OUT THEREFORE. FACED WITH THI S SITUATION, I DEEM IT PROPER THAT THE LARGER INTEREST WOULD BE MET IN CASE THE IMPUGNED FORMER ADDITION OF RS.24.40 L AKHS IS RESTRICTED TO THE EXTENT OF RS.20 LAKHS ONLY THEREBY GRANTI NG RELIEF OF REMAINING SUM OF RS.4.40 LAKHS. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. IT IS FURTHER MADE CL EAR THAT THE INSTANT ESTIMATION SHALL NOT BE TAKEN AS PRECEDENT IN ANY OTHER CASE. 5. NEXT COMES THE LATTER ISSUE OF SET-OFF OF LOSS(ES) O F RS.10,59,792/-. THE REVENUES CASE IS THAT SECTION 11 5BBF(2) BARS SUCH SET-OFF AGAINST AN ADDITION MADE U/S.68 OF THE ACT. THE FACT HOWEVER REMAINS THAT THE SAID STATUTORY PROVISI ON BARRING SET-OFF LOSS TO THIS EFFECT IN SECTION 115BBE( 2) STOOD INSERTED IN THE ACT VIDE FINANCE ACT, 2016 W.E.F.01-04 -2017, WHEREAS THE IMPUGNED ASSESSMENT YEAR IS AY.2016-17 ON LY. I THEREFORE DEEM IT APPROPRIATE TO RESTORE THIS LATTER ISSUE BACK TO THE ASSESSING OFFICER FOR HIS NECESSARY FACTUAL VER IFICATION OF THE ASSESSEES LOSS SET-OFF FIGURES OF RS.10,59,792/ - IN ITA NO. 1557/HYD/2019 :- 3 -: COMMODITY TRADING. THE ASSESSEE OR HIS AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE ASSESSING OFFIC ER ON OR BEFORE 31-08-2021 WITH ALL THE RELEVANT DETAILS AT HIS O WN RISK AND RESPONSIBILITY. 6. THIS ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWE D FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON THE 22 ND MARCH, 2021 SD/- ( S.S.GODARA ) JUDICIAL MEMBER HYDERABAD, DATED: 22-03-2021 TNMM ITA NO. 1557/HYD/2019 :- 4 -: COPY TO : 1.SRI CHEEKOTI KRISHNA MURTHY, C/O.FLAT NO.610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2.THE INCOME TAX OFFICER, WARD-1, SIDDIPET. 3.CIT(APPEALS)-7, HYDERABAD. 4.PR.CIT-7, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.