T.Shoba Rani, Adilabad, Hyderabad V. ITO, Ward-1, Mancherial, Mancherial

ITA 161/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5976 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-11-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: A V RAGHURAM
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NOS. 161/HYD/2016 ASSESSMENT YEAR: 2006-07 T. SHOBA RANI, ADILABAD PAN AIBPT 2676 F VS. INCOME TAX OFFICER, WARD 1, MANCHERIAL (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI A.V. RAGHURAM REVENUE BY : SHRI A. SITARAMA RAO DATE OF HEARING : 30-11-2016 DATE OF PRONOUNCEMENT : 09-12-2016 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A)-2, HYDERABAD, DATED 31/12/2016 FOR AY 200 6-07. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEES CASE WAS TAKEN UP FOR SCRUTINY BASED ON THE INFORMATION RECE IVED FROM ADDL. CIT, RANGE 16, HYDERABAD, VIDE LETTER DATED 17/07 /2008 WITH REGARD TO INVESTMENT OF RS. 6,00,000/- IN MARGADARSHI FINA NCIERS, A UNIT OF RAMOJI RAO, HUF DURING THE AY 2006-07. ACCORDINGLY, NOTICE U/S 148 WAS ISSUED TO THE ASSESSEE ON 01/10/2008. SUBSEQUE NTLY, A LETTER DT. 15/07/2009 WAS ISSUED CALLING FOR INFORMATION. IN RESPONSE, THE ASSESSEE FILED A LETTER DATED 24/07/09 ENCLOSING HE R RETURN OF INCOME FOR THE AY 2006-07. NOTICE U/S 143(2) WAS ISSUED FI XING THE DATE OF HEARING ON 16/10/2009, IN RESPONSE TO WHICH, ASSESS EES HUSBAND APPEARED AND FILED DETAILS REGARDING SOURCE OF DEPO SIT OF RS. 6,00,000/- AND EXPLAINED THAT THE INVESTMENT MADE O UT OF HER SAVINGS. SINCE THE ASSESSEE DID NOT SUBMIT ANY EVIDENCE IN R ESPECT OF SOURCE 2 ITA NOS. 161/H/16 T. SHOBA RANI OF DEPOSIT IN MARGADARSHI FINANCIERS, THE AO ADDED BACK THE DEPOSIT OF RS. 6,00,000/- TO THE RETURNED INCOME AS UNEXPLA INED INVESTMENT. 3. ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) A GAINST THE SAID ORDER OF THE AO. 4. THE CIT(A) PASSED THE ORDER EX-PARTE CONFIRMING THE ADDITION MADE BY THE AO BASED ON THE FACTS AVAILABLE ON RECO RD AS THE ASSESSEE FAILED TO APPEAR AND SUBSTANTIATE HER CLAI M WITH ANY COGENT EVIDENCE WITH REGARD TO THE SOURCES FOR MAKING INVE STMENT OF RS. 6,00,000/-. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESS EE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 2, HYDERABAD, IN DISMISSING THE APPEAL OF THE APPELLAN T IS ERRONEOUS, ILLEGAL AND UNSUSTAINABLE IN LAW. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN SUSTAINING THE ADDITION OF RS.6 LAKHS MADE BY THE A SSESSING OFFICER. THE LEARNED COMMISSIONER (APPEALS) FAILED TO APPRECIATE THAT THE APPELLANT HAD MADE THE INVESTMENT OUT OF H IS CURRENT INCOME AND FROM PAST SAVINGS. 3. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) FAILED TO APPRECIATE THAT THE FINDING OF THE ASSESSING OFFICE R DID NOT FURNISH ANY EVIDENCE IS FACTUALLY INCORRECT AS THE APPELLANT HAS FILED THE CASH FLOW STATEMENT AND OTHER ACCOUNTS. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT TH E TIME OF HEARING, IT IS PRAYED THAT THE HON'BLE TRIBUNAL MAY BE PLEASED TO ALLOW THE APPEAL DELETING THE ADDITION OF RS.6 LAKH S MADE AND SUSTAINED BY THE LOWER AUTHORITIES. 6. BEFORE US, THE LD. AR OF THE ASSESSEE CONTENDED THAT THE REVENUE AUTHORITIES WERE WRONG IN GIVING A FINDING THAT THE ASSESSEE DID NOT FURNISH ANY EVIDENCE TO SUBSTANTIATE HER CL AIM AS THE ASSESSEE HAS FILED THE CASH FLOW STATEMENT AND OTHE R ACCOUNTS BEFORE THEM. THE LD. AR SUBMITTED THAT THE ASSESSEE HAS FI LED THE FOLLOWING 3 ITA NOS. 161/H/16 T. SHOBA RANI DOCUMENTS BEFORE THE REVENUE AUTHORITIES, COPIES OF WHICH ARE FILED IN THE PAPER BOOK BEFORE US: 1. RETURN OF INCOME OF THE APPELLANT FOR THE AY 200 6-07 ALONG WITH COMPUTATION. 2. RETURN OF INCOME OF THE APPELLANT FOR THE AY 200 5-06 ALONG WITH COMPUTATION 3. FURNISHING OF INFORMATION REGARDING EXPLANATION OF DEPOSITS AND SUBMISSION OF FINANCIAL STATE OF AFFAIRS. 7. THE LD. DR, ON THE OTHER HAND RELIED ON THE ORDE RS OF REVENUE AUTHORITIES. 8. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL FACTS ON RECORD. SINCE THE ASSESSEE DID NOT SUBMIT ANY E VIDENCE IN RESPECT OF SOURCE OF DEPOSIT OF RS. 6,00,000/- IN MARGADARS HI FINANCIERS, THE AO MADE THE ADDITION OF THE SAID AMOUNT AS UNEXPLAI NED INVESTMENT AND THE CIT(A) CONFIRMED THE SAID ADDITION BY PASSI NG AN EXPARTE ORDER BY OBSERVING THAT THE ASSESSEE FAILED TO SUBS TANTIATE HER CLAIM WITH ANY COGENT EVIDENCE WITH REGARD TO THE SOURCE FOR MAKING THE SAID INVESTMENT. WHEREAS, THE LD. AR OF THE ASSESSE E SUBMITTED THAT ALL THE INFORMATION HAS BEEN SUBMITTED BY THE ASSES SEE BEFORE THE REVENUE AUTHORITIES AND THEY HAVE FAILED TO CONSIDE R THE SAME. ON CAREFUL PERUSAL OF STATEMENT OF AFFAIRS FOR TWO YEA RS FILED BY THE ASSESSEE IN THE PAPER BOOK, IT REVEALS THAT THE ASS ESSEE HAS THE OPENING DEBTORS AND OTHERS OF RS. 3,47,140/- AND TH IS YEAR EARNINGS OF RS. 1,21,598/- ALONG WITH LOAN FROM SHRI T. SAMB AMURTHY & OTHERS TO THE EXTENT OF RS. 1,76,000/-, THEREFORE, SHE IS IN A POSITION TO MAKE INVESTMENT IN MARGARDARSHI FINANCIERS. THE INFORMA TION FOR THE ABOVE INVESTMENT WAS ALREADY AVAILABLE ON RECORD, THE ASS ESSEE NEED NOT HAVE TO SUBSTANTIATE SEPARATELY FOR THE INVESTMENT. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 4 ITA NOS. 161/H/16 T. SHOBA RANI 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . PRONOUNCED IN THE OPEN COURT ON 9 TH DECEMBER, 2016. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHM AN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 9 TH DECEMBER, 2016 KV COPY TO:- 1) SMT. T. SHOBHA RANI, C/O SHRI K. VASANT KUMAR, A V RAGHURAM, ADVOCATES, FLAT NO. 610, 6 TH FLOOR, BABUKHAN ESTATE, BASHEERBAGH, HYDERABAD 500 001 2) ITO, WARD 1, MACHERIAL, KARIMNAGAR RANGE, JANM ABHOOMI NAGAR, MANCHERIAL 3) CIT(A) - 2, HYDERABAD 4 PR. CIT 2, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE S.NO. DESCRIPTION DATE INTLS DS1. DRAFT DICTATED ON SR.P.S./P.S 2. DRAFT PLACED BEFORE AUTHOR SR.P.S/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER JM/AM 5 APPROVED DRAFT COMES TO THE SR.P.S./PS SR.P.S./ P.S 6. KEPT FOR PRONOUNCEMENT ON SR. P.S./P.S. 7. FILE SENT TO THE BENCH CLERK SR.P.S./P.S 8 DATE ON WHICH FILE GOES TO THE HEAD CLERK 9 DATE OF DISPATCH OF ORDER