Late PR Gopala Krishna Reddy Rep by LH P Harshavardhan Reddy & P Shravan Kumar, Hyderabad V. Dy. Commissioner of Income Tax , Central Circle-2, Hyderabad

ITA 1577/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8055 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 05-07-2021
• Assessment Year: 2007-2008
• Appeal Filed On: 25-10-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: LAKKA BHUSHANAM
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 1577 /HYD/20 1 9 ( ASSESSMENT YEAR : 2007 - 08 ) LATE SHRI P.R. GOPALA KRISHNA REDDY (L/R SRI P HARSHAVARDHAN REDDY AND SHRI P. SHRAVAN KUMAR REDDY) HYDERABAD - 500 0 3 8 PAN AAOPP 2423J ..APPELLANT. VS. DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2, HYDERABAD. . . .RESPONDENT. APPELLANT BY : SHRI P.; MURALI MOHANA RAO. RESPONDENT BY : SHRI LAKKA BHUSHANAM (D.R) DATE OF HEARING : 5.7. 2021. DATE OF PRONOUNCEMENT : 23 .0 8 . 2021. O R D E R PER S.S. GODARA , A .M. : THIS ASSESSEES APPEAL ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS ) - 1 , GUNTURS ORDER DT. 25.09 . 2019 PASSED IN CASE NO. 55/2019 - 10 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). 2 ITA NO. 1577 /HYD/2019 HEARD BOTH PARTIES. CASE FILE PERUSED. 2. THE ASSESS EE'S FIRST AND FOREMOST SUBSTANTIVE GRIEVANCE CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITES' ACTION DISALLOWING THE ASSESSEE'S SHORT TERM CAPITAL LOSS (STCL) BROUGHT FORWARD IN ASSESSMENT YEAR 2006 - 07. WE NOTICE AT THE OUTSET THAT IT HAS COME ON REC ORD THAT THE TRIBUNALS CO - ORDINATE BENCH ORDER IN ASSESSEE'S APPEAL ITA 724/HYD/2011 HAS RESTORED BACK THE ISSUE OF CARRYFORWARD LOSSES TO THE ASSESSING OFFICER QUA AFRESH FACTUAL VERIFICATION. THE REVENUES CASE IN LIGHT OF LEARNED LOWER AUTHORITIES' D ISCUSSION IS THAT THE IMPUGNED CLAIM HAS BEEN RIGHTLY DISALLOWED. WE FIND NO MERIT IN THE INSTANT ARGUMENT SINCE THE ASSESSING OFFICER IS YET TO DETERMINE THE EXACT AMOUNT OF CARRY FORWARD CONSEQUENTIAL LOSS ( ES ) IN ASSESSMENT YEAR 2006 - 07. WE THEREFORE R ESTORE THE INSTANT ISSUE BACK TO HIM TO BE DECIDE D IN LIGHT OF HIS FINDINGS IN THE SAID PRECEDING ASSESSMENT YEAR. THIS 3 ITA NO. 1577 /HYD/2019 FIRST AND FOREMOST SUBSTANTIVE GROUND OF THE ASSESSEE IS ACCEPTED FOR STATISTICAL PURPOSES. 3. N EXT COMES SECTION 68 UNEXPLAINED CASH CREDIT ADDITION OF RS.16,20,000 INTER ALIA INVOLVING P. BALARAMI REDDY, P. SUNDARI REDDY, G.N. SANDHYA REDDY AND P. HARSHAVARDHANA REDDY; APPELLANT(S) BEFORE US AS LRS OF THE DECEASED ASSESSEE. IT HAS COME ON RECORD THAT THE ASSESSEE HAD FILED THEIR CONFIRMATION (S) WHICH ALSO STOOD VERIFIED IN ASSESSMENT PROCEEDINGS. ALL THESE PARTIES / FAMILY MEMBERS HAD CLAIMED TO HAVE OBTAINED LOANS TAKEN IN THE EARLIER ASSESSMENT YEAR FROM THE ASSESSEE. THIS EXPLANATION STANDS DECLINED BOTH IN R EMAND REPORT AS WELL AS IN CIT(A)S ORDER ON THE GROUND THAT THERE WAS NO EVIDENCE WHICH COULD CORROBORATE THE IMPUGNED REPAYMENT. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED ADDITION. WE FI ND NO MERIT TO SUSTAIN THE 4 ITA NO. 1577 /HYD/2019 SAME. THIS IS FOR THE REASON THAT ALL THESE FAMILY MEMBERS HAVE CONFIRMED NOT ONLY AS SOURCE OF THE CASH CREDIT S BUT ALSO PURPOSE THEREOF AS REPAYMENT OF LOANS. L EARNED LOWER AUTHORITIES' DECLINE THE SAME BY PIN - POINTING CERTAI N TECHNICAL ASPECTS OF JOINT ACCOUNT S HELD ETC WHICH IS TOTALLY UNSUSTAINABLE IN LAW SINCE THE ASSESSEE IS SUPPOSED TO PROVE IDENTITY, GENUINENESS AND CREDIT WORTHINESS OF THIS AMOUNT OF CASH CREDIT THAN THE CORRESPONDING PAST HISTORY OF LOANS . WE THERE FORE DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION OF RS.16.20 LAKHS. NECESSARY COMPUTATION SHALL FOLLOW AS PER LAW. 5. THIS ASSESSEE'S APPEAL IS PARTLY ALLOWED IN FOREGOING TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 23RD AUG. , 2021. SD/ - SD/ - ( L.P. SAHU ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 23 .0 8 . 2021. * REDDY GP 5 ITA NO. 1577 /HYD/2019 COPY TO : 1. LATE SHRI P.R. GOPALA KRISHNA REDDY, (L/R SRI P HARSHAVARDHAN REDDY AND SHRI P. SHRAVAN KUMAR REDDY), 8 - 2 - 674/B/3/2, ROAD NO.14, BANJARA HILLS,HYDERABAD - 500 038 2. DCIT, CENTRAL CIRCLE 2, HYDERABAD. 3. PR. C I T - VI , HYDERABAD. 4. CIT(APPEALS) - 1 , G UNTUR . 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.