ITO., Ward- 13(2), Hyderabad, Hyderabad V. Sri B Laxmaiah, Hyderabad

ITA 1647/HYD/2014

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6392 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2016
• Appeal Filed By: Department
• Bench Allotted: B
• Next Hearing Date: 08-06-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 28-10-2014
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU
• Keywords: Unexplained investment; Gift
• Section: 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1647/HYD/2014 ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER, WARD-13(2), HYDERABAD VS SHRI B. LAXMAIAH, HYDERABAD [PAN: ABHPB6502E] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI K.E. SUNIL BABU, DR FOR ASSESSEE : SHRI K.C. DEVDAS, AR DATE OF HEARING : 27-06-2016 DATE OF PRONOUNCEMENT : 30-06-2016 O R D E R THIS IS AN APPEAL BY REVENUE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-II HYDERABAD D ATED 18-08-2014. THE ONLY ISSUE CONTENDED BY THE REVENUE IS WITH REFERENCE TO DELETION OF THE ADDITION MADE FOR UNEXPLA INED INVESTMENTS. 2. ASSESSEE IS EMPLOYED BY THE GOVERNMENT OF ANDHRA PRADESH AND IS WORKING AS SUPERINTENDENT ENGINEER IN THE DEPA RTMENT OF R&B. ASSESSEE DECLARED INCOME OF RS. 2,36,510/-. A S THERE WERE PROCEEDINGS FROM ACB WITH RESPECT TO DISPROPORTIONATE A SSETS, NOTICE U/S. 148 OF THE INCOME TAX ACT [ACT] WAS ISSUED . ASSESSEE HAS ADMITTED RECEIPT OF GIFTS OF RS. 39 LAKHS IN THE RETU RN FILED ORIGINALLY AND EXPLAINED THAT THE GIFTS WERE RECEIVED F ROM HIS FATHER SHRI B. DANAIAH WHO WAS ASSESSED BEFORE ITO, WARD-4 (2), HYDERABAD. SHRI DANAIAH EXPLAINED THAT HE HAS INCOME FROM I.T.A. NO. 1647/HYD/2014 SRI B. LAXMAIAH :- 2 -: AGRICULTURE, BRICK AND LIME MOTOR MAKING AND FROM PO ULTRY. THE ASSESSING OFFICER (AO) IN THE CASE OF SHRI DANAIAH, HOWEVER, DID NOT ACCEPT THE SOURCES OF MONEY REPORTED IN HIS ASSESS MENT AND MADE AN ADDITION OF RS. 40,00,026/- IN THE HANDS OF SHRI DANAIAH. THE PRESENT AO ALSO DID NOT ACCEPT THE EXPLANATION OF SO URCE OF GIFT AND TREATED THE AMOUNT OF RS. 39 LAKHS AS INCOME OF THE ASSESSEE. 3. ON APPEAL BY SHRI B. DANAIAH, THE ADDITION MADE I N HIS HANDS WAS DELETED BY THE CIT(A)-V, HYDERABAD VIDE HI S ORDER DT. 08-07-2014. IN THAT ORDER, CIT(A)-V, HYDERABAD HAS EXAMINED THE ISSUE IN DETAIL AND ACCEPTED THE SOURCES OF FUNDS. IN THE ASSESSEE CASE, LD. CIT(A) AFTER CONSIDERING THE EXPLANATION OF ASSESSEE AND THE SOURCES IN THE HANDS OF SHRI DANAIAH, DELETED THE ADDITION MADE IN ASSESSEES HANDS BY STATING AS UNDER: 3.2. ON APPEAL BY SRI B. DANAIAH, THE ADDITION WAS DELETED BY THE COMMISSIONER OF INCOME-TAX(APPEALS)-V, HYDER ABAD, VIDE HIS ORDER IN ITA NO. 0112/ITO-4(2)/CIT(A)-V/2013-14 ORD ER DATED 08.07.2014. IN THIS ORDER CIT(A)-V, HYDERABAD HAS EXAMINED THE ISSUE IN DETAIL AND DELETED THE ADDITION MADE BY TH E ASSESSING OFFICER. IT IS ALSO KNOWN FROM THIS APPELLATE ORDE R THAT THE PRINCIPAL SECRETARY TO THE GOVERNMENT OF ANDHRA PRADESH VIDE G.O. RT. NO.742 DATED 20.07.2011 HAD PASSED AN ORDER INFORMI NG THE ENGINEER-IN-CHIEF (R&B) THAT GOVERNMENT AFTER CAREF UL EXAMINATION OF THE MATTER HAS DECIDED TO DROP FURTHER ACTION ON SRI V. LAXMAIAH, IN RESPECT OF POSSESSION OF DISPROPORTIONATE ASSETS . IT WAS FURTHER HELD THAT THE HORTICULTURE OFFICER, SURYAPET, AT TH E INSTANCE OF ACB MADE DETAILED VERIFICATION AND HAD CONCLUDED THAT S RI B. LAXMAIAH WAS CAPABLE OF EARNING AGRICULTURE INCOME OF RS.83. 28 LACS FROM 30 ACRES. AFTER EXAMINING ALL THE DETAILS, THE PATTEDA R PASSBOOK, CERTIFICATE GIVEN BY HORTICULTURE OFFICER, SURYAPET , COPY OF LEASE DEEDS ETC.ETC. THE CIT(A)-V, HYDERABAD HAD GIVEN RE LIEF IN THE HANDS OF SRI B. DANAIAH, THE APPELLANT'S FATHER AND HELD THAT SOURCES TO THE TUNE OF RS.45 LACS STANDS EXPLAINED IN MR.DANAIAH'S HANDS. AS THE SOURCES IN THE HANDS OF DONOR SRI B. DANAIAH, THE F ATHER OF THE APPELLANT, ARE EXPLAINED, THEN THE GIFTS MADE BY SR I B. DANAIAH TO HIS SON SRI B. LAXMAIAH, THE APPELLANT, TO THE TUNE OF RS.39,00,000/- STANDS EXPLAINED. IN VIEW OF THE ABO VE FACTS AND CIRCUMSTANCES THE ADDITION MADE BY THE ASSESSING OF FICER OF RS.39,00,000/- AS UNEXPLAINED INVESTMENT IS DELETED . I.T.A. NO. 1647/HYD/2014 SRI B. LAXMAIAH :- 3 -: 4. LD. DR VEHEMENTLY CONTESTED THE ORDER OF CIT(A) AND RELIED ON THE ORDERS OF AO, WHEREAS LD. COUNSEL SUBMITTED, BY R EFERRING TO VARIOUS DOCUMENTS IN THE PAPER BOOK FILED, THAT SHRI DA NAIAH HAS HIS OWN SOURCES, FILED RETURNS OF INCOME REGULARLY A ND IN HIS HANDS, THE HORTICULTURE OFFICER HAS CONFIRMED THE INCO MES AND PRINCIPAL SECRETARY TO GOVERNMENT OF ANDHRA PRADESH ALSO ACCEPTED THE SOURCES IN ASSESSEE CASE AND HENCE ORDE R OF CIT(A) IS TO BE UPHELD. 5. AFTER CONSIDERING THE RIVAL CONTENTIONS AND PERUSIN G DOCUMENTS PLACED IN THE PAPER BOOK, I DO NOT SEE ANY R EASON TO INTERFERE WITH THE ORDER OF THE LD. CIT(A). NOTHING WAS BROUGHT ON RECORD TO COUNTER THE FINDINGS GIVEN IN VARIOUS CASES . IN FACT, THE GOVERNMENT OF ANDHRA PRADESH ITSELF HAS ACCEPTED THE S OURCES IN THE HANDS OF SHRI B. LAXMAIAH AND INCOMES IN THE HAND S OF SHRI DANAIAH, WHICH WAS THE SOURCE OF GIFTS RECEIVED BY AS SESSEE. IN VIEW OF THE FACTS STATED BY CIT(A), I UPHOLD THE ORDE R AND REJECT THE REVENUES GROUNDS. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2016 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 30 TH JUNE, 2016 TNMM I.T.A. NO. 1647/HYD/2014 SRI B. LAXMAIAH :- 4 -: COPY TO : 1. THE INCOME TAX OFFICER, WARD-13(2), HYDERABAD. 2. SRI B. LAXMAIAH, H.NO. 5-4-143, PLOT NO. 23, KAMA LA NAGAR, VANASTHALIPURAM, HYDERABAD. 3. COMMISSIONER OF INCOME TAX(APPEALS)-II, HYDERABA D 4. COMMISSIONER OF INCOME TAX-I, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.