Income Tsax Officer, Ward-2, Mahabubnagar Dist V. Sri Bhanuprakash Ranga, Mahabubnagar Dist.

ITA 1641/HYD/2013

• Counselvise Citation: 164122514 RSA 2013
• Duration Of Justice: 1 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-04-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 29-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Assessee Lawyers: MOHD AFZAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI G.C.GUPTA, VICE PRESIDENT AND SHRI P.M.JAGTAP, ACCOUNTANT MEMBER ITA NO.1641/HYD/2013 : ASSESSMENT YEAR 2009 - 10 INCOME TAX OFFICER WARD 2, MAHABUBNAGAR V/S. SHRI BHANU P RAKASH RANGA, JADCHERLA, MAHABUBNAGAR DIST. (PAN AECPR 0957 F) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAJAT MITRA DR RESPONDENT BY : SHRI MOHD AFZAL DATE OF HEARING 30.4.2015 DATE OF PRONOUNCEMENT 01.05.2015 O R D E R PER G.C.GUPTA, VICE PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009 - 10 IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME - TAX(APPEALS) V, HYDERABAD DATED 21.08.2013. 2. GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDER - 1. THE CIT(A) ERRED BOTH IN LAW AND IN FACTS. 2. THE CIT(A) OVERLOOKED THE FACT THAT THE DDS WERE UTILISED NOT AT THE INITIAL STAGES EITHER FOR PARTICIPATING IN THE AUCTION OR TOWARDS PAYMENT OF CAUTION DEPOSIT BUT FOR CARRYING ON THE LIQUOR TRADE TOWARDS PURCHASE OF STOCKS. 3. .. I TA NO. 1641/H YD/20 13 SHRI BHANU PRAKASH RANGA, JADCHERLA, MAHABUBNAGAR DIST. 2 3. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE DEMAND DRAFTS WERE CLAIMED TO HAVE BEEN PURCHASED BY THE FRIENDS OF T H E ASSESSEE A ND NO T BY THE ASSESSEE H I MSELF FOR THE PAYMENT TO THE CONCERNED GOVERNMENT DEPARTMENT, BUT THE ASSESSEE COUL D NOT PROVE THE S AME . HE REFERRED TO THE RELEVANT PO R TION OF THE ASSESSMENT ORDER IN SUPPO R T OF THE CASE OF THE REVENUE. HE HAS RELIED ON THE ORDER OF THE ASSESSING OFFICER. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMI T TED T HAT THE TWO PERSONS, VIZ. SHRI BALAVARDHAN GOUD AND SHRI RAJVARDHAN GOUD WERE FRIENDS OF THE ASSESSEE A ND HE H A S ALLOWED TH E M TO USE HIS ACCOUNT TO DEPOSIT CASH FOR PURCH A SE OF DEMAND DRAFTS PAYABLE TO M/S. AP BEV E RAGES CORPORATION, MAHAB U BNAGAR, AS TH E SE PERSON S WERE NOT HAVING BANK ACCOUNTS AT TH AT TIME. HE SUBMI T TED TH AT ASSESSEE HAS F ILED CONFIRMATION FROM TH E SE TWO PERSONS THAT THEY WERE NO T HAVING ANY BANK ACCOUNT INITIALLY AND AC C OR D IN G LY THE ASSESSEES BANK ACCOUNT WAS UTILISED. HE ALSO SUBMITTED THAT THE TWO PERSONS WERE ASSESSED TO INCOM E - TAX REGULARLY WITH TH E SAME ASSESSING OFFICER WITH WHOM THE JURI S DI C TION OF THE ASSESSEE S ASSESSMENT LIES. ALL THE D ETAILS O F THE CHEQUE NO. DATE, AMOUNT, ETC. A ND ALSO TH E COPY OF THE LEDGER IN THE BOOKS OF M /S.AP BEVERAGES CORPOR A TION LTD., MAHABUBNAGAR WERE FILED BEFORE THE REVENUE AUTHO R ITI E S. HE SUBMITTED THAT THERE IS NO JU S TIFICATION FOR ANY ADDITION MADE IN THE CA S E OF THE ASSESSEE. THE LEARNED COUN S EL FOR THE ASSESSEE FURTHER POINTED OUT THAT BOTH TH E SE PERSONS H A D APP E ARED BEFO R E THE ASSESSING OFFICER IN CONFIRMATION OF THE ABOVE FACTS. HE RELIED ON THE O R DER OF THE CIT(A). 5. WE HAVE CON S I D ERED THE RIVAL SUBMI S SION S AND PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). W E FIND THAT THE ASSESSEE HAS CLAIMED RIGHT FORM TH E ASSESSMENT STAGE THAT THE I TA NO. 1641/H YD/20 13 SHRI BHANU PRAKASH RANGA, JADCHERLA, MAHABUBNAGAR DIST. 3 ABOVE MENTIONED TWO PERSON S WERE HI S FRIENDS AND HE HAS ALLOWED THEM TO USE HIS ACCOUNT TO DEPOSIT CASH FOR PU R CHA S E OF DEMAND DRAFTS PAYABLE TO THE M/S. AP B E VERAGES CORPORATION, MAHABUBNAGAR, AS THESE TWO PERSONS W E RE NOT HA VING BANK AC C OUN T AT THE RELEVANT TIME. THE ASSESSEE HAS FIL E D CON F IRM A TION LET T ERS FROM THE TWO PERSONS TO THE EFFECT THAT THEY WERE NO T HAVING BANK ACCOUNT INITIALLY AND AS SUCH, THE ASSESSEE S BANK ACCOUNT WAS UTILI S ED. IT IS ALSO UN D I S PU T ED THAT TH E SE TWO PERSONS WERE ASSESSED TO INCOME - TAX REGULARLY AND HAVE CON F IRMED TH E SE TRAN SAC T I ONS. ALL TH E RELEVANT DETAILS OF THE BANK WERE SUBMITTED BEFORE THE ASSESSING OFFICER. A COPY OF THE RETAILER LEDGER INFO IN THE BOOKS OF AP BEVERAGES CORPORATION , MAHABU BNAGAR W AS ALSO FILED WHEREIN THE AMOUNTS IN QU E STION WERE CLEARLY REFLECTED AND TALLIED IN THE C A S E OF M/S. KOILKONDA WINES AND SHRI SAI DURGA WINES OWNED BY THE ABOVE MENTIONED TWO FRIENDS O F TH E ASSESSEE . THE ASSESSEE HAS PRODUCED THESE TWO PERSONS B E FO RE THE ASSESSING OFFICER, WHO ARE RE G UL A R IT ASSESSEE S AND HAVE FIL E D T HE IR PAN NUMBERS. IT IS CLAIMED T H A T TH E SE TWO PERSON S ARE I T ASSESSEES WITH THE SAME CIRCLE OF ASSESSING OFFICER, WH E RE THE ASSESSEE HIMSELF IS B E IN G ASSESSED. WE FIND THAT THE CIT(A) HAS GIVEN A FIN D IN G THAT IT H AS VERIFIED UN D ER POWERS VESTED IN HIM UN D ER S.250(4) OF THE A C T THAT THE AMOUNTS MENTIONED IN THE LETTER O F THE B A NK IN RESPECT OF THE BANK ACCOUNT OF TH E ASSESSEE A ND THE AMOUN TS MENTIONED IN THE LEDGER ACCOUNTS OF AP B EVERAGES CORPORATION MAHABUBNAGAR ARE CO R RECT. TH E CIT(A) HAS OB S ER V ED THAT IF THE ASSESSING OFFICER HAD ANY DOUBT ABOUT THE GENUINENESS OF THE CASH DEPOSIT S IN THE ASSESSEES BANK ACCOUNT, HE COUL D HAVE VERIFIED THE IN C OM E - TAX RETURNS OF SHRI BAL A VARDHAN G OUD AND SHRI RAJVARDHAN GOUD FOR THE RELEVANT ASSESSMENT YEARS. IN TH E SE FACTS, WE ARE OF THE VIEW THAT IT COULD NO T B E SAID THAT THE AMOUNTS DEPOSI T ED IN THE BANK ACCOUNT OF TH E ASSESSEE WER E INVESTMENTS OF TH E ASSESSEE AND ACCORD I N G LY, I TA NO. 1641/H YD/20 13 SHRI BHANU PRAKASH RANGA, JADCHERLA, MAHABUBNAGAR DIST. 4 WE CONFIRM THE OR DER O F THE CIT(A) ON THIS ISSUE, DELETING THE ADDITION, AND GROUNDS OF TH E R E VENUE ARE DIS M ISSED. 6. IN THE RESULT, APPEAL OF TH E R E VENUE IS DISMI S SED. ORDER PRONOUNCED IN THE COURT ON 1 ST MAY , 2015 SD/ - SD/ - (P.M.JAGTAP) (G.C.GUPTA) ACCOUNTANT MEMBER VICE PRESIDENT DT/ - 1 ST MAY, 2015 COPY FORWARDED TO: 1. SHRI BHANU P RAKASH RANGA, 31 - 55,GOURI SHANKAR COLONY, JADCHERLA, MAHABUBNAGAR DIST. 2. INCOME TAX OFFICER WARDE 2, MAHABUBNAGAR 3. COMMISSIONER OF INCOME - TAX(APPEALS) V HYDERABAD 4. COMMISSIONER OF INCOME - TAX IV, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S