Panduranga Chary Tadury , Khammam V. Income Tax Officer, Ward-2, Khammam

ITA 1595/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1532 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 06-06-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 25-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A C ROUT
• Assessee Lawyers: C SARANGA PANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A - SMC ', HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 1595 / HYD/201 8 ASSESSMENT YEAR: 20 1 4 - 15 PANDURANGA CHARY TADURY, KHAMMAM PAN A BJPT 1312 L VS. INCOME - TAX OFFICER, WARD 2 , KHAMMAM A PPELLANT RESPONDENT ASSESSEE BY: S H RI C. SARANGA PANI REVENUE BY: S HRI A.C. ROUT DATE OF HEARING: 0 6 / 0 6 / 201 9 DATE OF PRONOUNCEMENT: 14 / 0 6 /201 9 O R D E R THIS IS AN APPEAL OF THE ASSESSEE FOR AY 2014 - 15 AGAINST THE ORDER OF CIT(A) 7, HYDERABAD, DATED 27/04/2018. 2. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE, AN INDIVIDUAL, E - FILED HIS RETURN OF INCOME FOR THE AY 2014 - 15 ON 26/08/2015 DECLARING TOTAL INCOME OF RS. 2,7 1 ,750/ - . THE CASE WAS SELECTED FOR SCRUTINY FOR EXAMINING THE DEPOSITS MADE INTO COOPERATIVE BANK A/C A ND ALSO THE SOURCE S OF INCOME RETURNED IN THE RETURN OF INCOME . THE AO OBSERVED THAT ASSESSEE HAS SHOWN OPENING CASH BALANCE OF RS. 2, 3 5,500/ - AS CASH IN HAND AS ON 01/04/2013 INCLUDING CASH OF RS. 1,00,000 / - DRAWN ON 25/03/2013 FROM BANK. WHEN THE ASSESS EE WAS ASKED TO EXPLAIN THE SOURCE FOR BALANCE OF OPENING CASH BALANCE OF RS. 1,35,300/ - , ASSESSEE DID NOT OFFER ANY EXPLANATION AND, THEREFORE, AO TREATED THE SUM OF RS. 1 , 35,500/ - AS UNEXPLAINED INCOME OF THE ASSESSEE AND BROUGHT IT TO TAX. I.T.A. NO. 1595 /HYD/1 8 PANDURANGA CHARY TADURY, KHAMMAM . 2 3. AGGRIEV ED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) STATING THAT THE SUM OF RS. 1,35,500/ - WAS THE TOTAL OF THE DEPOSITS MADE FROM THE SAVINGS OF EARLIER YEARS. HOWEVER, CIT(A) CONFIRMED THE ORDER OF AO BY OBSERVING THAT ASSESSEE S CLAIM OF HAV ING MADE DEPOSIT O F AMOUNT WITHDRAWN FROM BANK ABOUT 1 YEAR BACK IS NOT ACCEPTABLE. 4. AGGRIEVED, ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNAL RAISING THE FOLLOWING GROUNDS OF APPEAL: 1 . THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX ( APPEALS) IS ERRONEOUS IN LAW AND ON THE FACTS OF THE CASE. 2 THE LEARNED COMMISSIONER OF INCOME - TAX (APPEALS) IGNORED THE FACT THAT THE ASSESSEE AGED 76 YEARS AND ONLY A RETIRED EMPLOYEE AND THE CASH BALANCE IS FROM HIS SAVING ACCUMULATED OVER A NUMBER OF YEARS. 3. ANY OTHER GROUND OF APPEAL THAT MAY BE PLEADED WITH THE PRIOR APPROVAL BY THE HON'BLE TRIBUNAL DURING THE COURSE OF APPELLATE PROCEEDINGS. THE APPELLANT CRAVES LEAVE TO ADD TO, AMEND OR MODIFY THE ABOVE GROUNDS OF APPEAL EITHER BEFORE OR AT THE TIME O F HEARING OF THE APPEAL, IF CONSIDERED NECESSARY. 5. THE L D. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSEE IS AN INDIVIDUAL AND A RETIRED GOVT. EMPLOYEE , AGE D 76 YEARS AND, THEREFORE, ASSESSEE C OU LD N OT HAVE ANY OTHER SOURCE OF INCOME EXCEPT THE PENSIO N THAT HE EARNS. HE SUBMITTED THAT THESE ARE THE SUMS KEPT WITH HIM FOR EMERGENCY PURPOSE S AND SINCE THEY WERE NOT UTILIZED, THE SAME W ERE DEPOSITED IN THE MONTH OF APRIL, 2013. HE, THEREFORE, PRAYED THAT THE ADDITION OF RS. 1 , 35,500/ - BE DELETED. I.T.A. NO. 1595 /HYD/1 8 PANDURANGA CHARY TADURY, KHAMMAM . 3 6. LD. DR, ON THE OTHER HAND, SUPPORTED THE ORDERS OF REVENUE AUTHORITIES AND SUBMITTED THAT THE ASSESSEE FAILED TO EXPLAIN THE SOURCE FOR THE CASH IN HAND AS ON 01/04/2013. 7. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD , I FIND THAT THE ASSES SEE IS A RETIRED GOVT. EMPLOYEE AND HAS BEEN DRAWING PENSION FROM THE GOVT. AND IS NOT EARNING INCOME FROM ANY OTHER SOURCE. AVAILABILITY OF RS. 1 LAKH O N WITHDRAWAL OF RS. 1 LAKH IN THE MONTH OF MARCH HAS BEEN ACCEPTED BY THE AO. BALANCE OF RS. 1,35,300 / - WAS DEPOSIT ED ONLY IN THE MONTH OF APRIL, 2013. ASSESSEES CONTENTION THAT HE KEPT THE MONEY FOR EMERGENCY PURPOSES AND LATER DEPOSITED THE SAME WHEN IT WAS NOT REQUIRED , CANNOT BE SAID TO BE WITHOUT MERIT , PARTICULARLY, WHEN HE HAS NO OTHER SOURCE OF I NCOME . THEREFORE, I CONSIDER IT APPROPRIATE TO DELETE THE ADDITION OF RS. 1,35,300/ - . 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 14 TH JUNE, 2019. SD/ - ( (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 14 TH JUNE , 201 9. KV COPY FORWARDED TO: 1. PANDURANGA CHARY TADURY, H.NO. 11 - 8/195/2, LENIN NAGAR, KHAMMAM. 2 . IT O , WARD 2 , KHAMMAM 3 . CIT (A) - 7 , HYDERABAD 4. PR. CIT - 7 , HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE