Prakash Chand Gupta , Hyderabad V. Asst. Commissioner of Income Tax, Central Circle-3, Hyderabad

ITA 1574/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6429 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-03-2021
• Assessment Year: 2006-2007
• Appeal Filed On: 25-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P SURESH
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Unexplained investment; Additional evidence
• Section: 143(3); 153A; 132

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 1574/HYD/2019 A.Y. 2006 - 07 PRAKASH CHAND GUPTA, HYDERABAD. PAN: ACGPG 2277 F VS. ACIT, CENTRAL CIRCLE - 3, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHAN RAO REVENUE BY: SHRI P. SURESH, DR DATE OF HEARING: 30/03/2021 DATE OF PRONOUNCEMENT: 16 /04/2021 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), TIRUAPTI IN APPEAL NO.166/2015 - 16/CIT(A)/TPT, DATED 21/8/2019 PASSED U/S. 143(3) R.W.S 153A AND U/S. 250(6) OF THE ACT FOR THE A.Y. 2006 - 07. 2. THE ASSESSEE HAS RAISED SEVEN GROUNDS IN HIS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN DISMISSING THE APPEAL. 3. THE LD. CIT(A) HAS ERRED IN NOT CONSIDERING THE ASSESSEES CONTENTION THAT THE INVESTMENT OF RS. 2,39,040/ - HAS BEEN MADE FROM THE LOAN BORROWED BY THE ASSESSEE. 2 4. THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT THE ASSESSEE HAS SUBMITTED THE AFFIDAVIT AND CONFIRMATION LETTER OF THE LENDOR. 5. THE LD. CIT(A) OUGHT TO HAVE APPRECIATED THAT THE REGISTERED DOCUMENT CANNOT BE AN INCRIMINATING MATERIAL. 6. THE LD. CIT(A) HAS ERRED IN UPHOLDING THE A.O. IN MAKING THE ASSESSMENT U/S. 143(3) R.W.S 153A, THERE BEING NO INCRIMINATING MATERIAL BELONGING TO THE ASSESSEE RELYING ON A CASE LAW: MIDWEST GOLD LTD VS. DCIT. 7. THE APPELLANT MAY, ADD, OR ALTER OR AMEND OR MODIFY OR SUBSTITUTE OR DELETE AND / OR RESCIND ALL OR ANY OF THE GROUNDS OF APPEAL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL . THE ASSESSEE FILED HIS RETURN OF INCOME ON 11/10/2011 FOR THE AY 2006 - 07 DECLARING INCOME OF RS. 49, 000/ - IN RESPONSE TO THE NOTICE ISSUED U/S. 153A OF THE ACT PURSUANT TO SEARCH & SEIZURE OPERATIONS CARRIED OUT U/S. 132 OF THE ACT IN THE CASE OF M/S. M. B . S. JEWELLERS PVT LTD., AND ITS GROUP ON 11/3/201 0 . DURING THE COURSE OF SCRUTINY ASSESSMENT PROCEEDINGS IT WAS REVEALED THAT ASSESS EE HAD PURCHASED 10 GUNTAS OF LAND FOR AN AGGREGATE CONSIDERATION OF RS. 2,39,040/ - FOR WHICH THE ASSESSEE COULD NOT EXPLAIN THE SOURCE. THEREFORE, THE LD. AO TREATED THE AMOUNT OF RS. 2,39,040/ - AS HIS UNEXPLAINED INVESTMENT. THE LD. CIT (A) ALSO CONFIRM ED THE ORDER OF THE LD. AO AS THE ASSESSAEE HAD FAILED TO EXPLAIN BEFORE HIM THE SOURCE FOR THE AMOUNT INVESTED FOR RS. 2,39,040/ - . 3 4. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US THAT THE ASSESSEE HAD OBTAINED LOAN FROM HIS PARTNER FOR RS. 2, 4 0,000/ - FOR WHICH HE HAS GIVEN THE CONFIRMATION STATEMENT . THE LD. AR FURTHER SUBMITTED THAT SINCE THE ASSESSEE WAS NOT ABLE TO OBTAINED THE CONFIRMATION STATEMENT EARLIER , HE COULD NOT PRODUCE THE SAME BEFORE THE LD. REVENUE AUTHORITIES AT THE TIME OF TH E PROCEEDINGS BEFORE THEM. IT WAS THEREFORE REQUESTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD. AO FOR DE - NOVO CONSIDERATION. THE LD. DR DID NOT RAISE ANY SERIOUS OBJECTION FOR REMITTING BACK THE MATTER TO THE FILE OF THE LD. AO FOR FRES H CONSIDERATION. 5. HAVING CONSIDERED THE RIVAL SUBMISSION , WE ARE OF THE VIEW THAT TO MEET THE ENDS OF JUSTICE , THE MATTER NEEDS TO BE REMITTED BACK TO THE FILE OF THE LD. AO FOR DE - NOVO CONSIDERATION. ACCORDINGLY, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF THE LD. AO WITH DIRECT IONS TO ADMIT ANY ADDITIONAL EVIDENCE FILED BY THE ASSESSEE AND AFTER EXAMINING THE SAME PASS APPROPRIATE ORDER AFRESH IN ACCORDANCE WITH MERIT AND LAW. 6. IN THE RESULT, APPEAL OF THE ASSESSEE I S ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE . 4 PRONOUNCED IN THE OPEN COURT ON THE 16 TH APRIL, 2021. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 16 TH APRIL, 2021. OKK COPY TO: - 1) PRAKASH CHAND GUPTA, C/O. P. MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD. 2) ACIT, CENTRAL CIRCLE - 3, OFFICE OF ACIT, CENTRAL CIRCLE - 3, HYDERABAD. 3) THE CIT (A) - 7, HYDERABAD. 4) THE PR. CIT (CENTRAL), HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE