Gulraj, Hyderabad V. Asst.Commissioner of Income Tax, Circle-5(1), Hyderabad

ITA 1724/Hyd/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9424 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 27-03-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 05-10-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: K MOHAN REDDYDR
• Assessee Lawyers: S RAMA RAO
• Keywords: Agreed addition; Set aside
• Section: 234B

Judgement Text

ITA NO 1724 OF 2017 GULRAJ VANGANI HYDERABAD. PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B SMC BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RAIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1724/HYD/2017 (ASSESSMENT YEAR: 2007-08) SHRI GULRAJ VANGANI HYDERABAD PAN:ACAPG1016C VS ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 5(1) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S. RAMA RAO FOR REVENUE : SHRI K. MOHAN REDDY,DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2007-08 AGAIN ST THE ORDER OF THE CIT (A)-4, HYDERABAD, DATED 6.7.20 17. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL, HAVING DERIVED INCOME FROM BUSINESS, CA PITAL GAINS AND INCOME FROM OTHER SOURCES DURING THE RELEVANT Y EAR, FILED HIS RETURN OF INCOME FOR THE A.Y 2007-08 ON 31.12.2007 BY DECLARING A NET INCOME OF RS.16,86,220/-. THE CASE WAS SELECT ED FOR SCRUTINY AND THE ORDER U/S 143(3), DATED 29.12.2009 WAS PASSED BY MAKING ADDITIONS TOWARDS LOANS TAKEN OF RS.93,00 0/- AND TOWARDS DEPOSITS MADE IN THE BANK AS ON MONEY REC EIVED WITH REGARD TO IMMOVABLE PROPERTY SOLD OF RS.12,00,000/- AND ADDITION DATE OF HEARING : 27.03.2019 DATE OF PRONOUNCEMENT : 05.04.2019 ITA NO 1724 OF 2017 GULRAJ VANGANI HYDERABAD. PAGE 2 OF 4 TOWARDS LOW HOUSE HOLD EXPENSES OF RS.1,00,000/-. O N APPEAL, THE CIT (A) CONFIRMED ALL THE ADDITIONS AND THEREAF TER, THE ASSESSEE FILED AN APPEAL BEFORE THE ITAT. ITAT SET ASIDE ALL THE ISSUES TO THE FILE OF THE AO WITH A DIRECTION TO PA SS FRESH ORDERS. 3. DURING THE SET ASIDE PROCEEDINGS, THE ASSESSEE W AS DIRECTED TO PRODUCE CREDITORS WHO HAVE ADVANCED LOA NS OF RS.93,000/-. THE ASSESSEE COULD NOT SUBMIT ANY DETA ILS AND THEREFORE, AGREED FOR ADDITION OF RS.93,000/-. FURT HER, WITH REGARD TO THE ADDITION OF RS.12.00 LAKHS ON ACCOUNT OF ON MONEY RECEIVED ON THE SALE OF IMMOVABLE PROPERTY, THE ASS ESSEES EXPLANATION WAS CALLED FOR AND THE AO FOUND THE EXP LANATION TO BE IN ORDER. HE ACCORDINGLY DID NOT REPEAT THE ADDITIO N. AS REGARDS LOW WITHDRAWAL TOWARDS PERSONAL EXPENDITURE, THE AO REDUCED IT TO RS.50,000/- FROM RS.1,00,000/- ADDITIONS MADE EA RLIER FOR WHICH THE ASSESSEE AGREED. 4. HOWEVER, SUBSEQUENTLY THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) AGAINST THE ADDITIONS MAD E BY THE AO. THE CIT (A) CONFIRMED ALL THE ADDITIONS AND THE ASS ESSEE IS IN SECOND APPEAL BEFORE US BY RAISING THE FOLLOWING GR OUNDS OF APPEAL: 1) THE ORDER OF THE LEARNED COMMISSIONER OF INCOME -TAX (APPEALS) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN DECIDING THE APPEAL EX-PARTE. 3) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING ADDITION OF RS.3,46,594/- REPRESENTIN G DISALLOWANCE OF EXPENSES MADE BY THE ASSESSING OFFI CER. ITA NO 1724 OF 2017 GULRAJ VANGANI HYDERABAD. PAGE 3 OF 4 4) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING ADDITION OF RS. 93,000/- REPRESENTING HAND LOANS TREATED AS INCOME BY THE ASSESSING OFFICER. 5) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING ADDITION OF RS.50,000/- MADE BY THE ASSESSING OFFICER ON THE GROUND OF LOW PERSONAL DRA WINGS. 6) THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) ERRED IN CONFIRMING CHARGING OF INTEREST U/S 234A OF RS.1 5,810/- U/S 234B OF RS.1,18,415/- AND U/S 234C OF RS.94,470 /- 7) ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED HEARING. 5. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE DOES NOT WISH TO PRESS GROUND NO.2 AND THEREFORE, IT IS REJECTED AS NOT PR ESSED. AS REGARDS THE OTHER GROUNDS, HE REITERATED THE SUBMIS SIONS MADE BEFORE THE AUTHORITIES BELOW, WHILE THE LEARNED DR SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT, IN SO FAR AS THE ADDITION OF RS.3,46,594/- IS CONCERNED, THE SAID ADDITION WAS CONFIRMED BY TH E CIT (A) IN THE EARLIER PROCEEDINGS AND THE AO IN THE SET ASIDE PROCEEDINGS, HAD NOT DEALT WITH THE SAME. THEREFORE, IT DOES NOT ARISE OUT OF THE ASSESSMENT ORDER BEFORE US. IT IS, THEREFORE, REJEC TED AS NOT ARISING OUT OF THE ASSESSMENT ORDER. 7. AS REGARDS GROUND NO.4, IT IS AN AGREED ADDITION BEFORE THE AO AND EVEN BEFORE US THE ASSESSEE HAS N OT FURNISHED ANY DETAILS/EVIDENCE WITH REGARDS TO THE CREDITORS. THEREFORE, GROUND OF APPEAL NO.4 IS ALSO REJECTED. ITA NO 1724 OF 2017 GULRAJ VANGANI HYDERABAD. PAGE 4 OF 4 8. AS REGARDS THE ADDITION OF RS.50,000/- IS CONCER NED, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE WAS STAYING ALONG WITH HIS FAMILY IN A JOINT FAMILY AND THEREFORE, HE DOES NOT HAVE TO INCUR ANY EXPENDITURE AND THERE FORE, THE ADDITION OF RS.50,000/- WAS ALSO UNWARRANTED. THE L EARNED DR WAS ALSO HEARD. 9. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSMENT ORDER BEFORE IS 2007-08 AND THE ASSESSEE IS ALLEGEDLY STAYING WITH HIS JOIN T FAMILY AND THEREFORE, HE MAY NOT HAVE INCURRED EXPENDITURE EVE N TO THE EXTENT OF RS.50,000/- DURING THE SAID PERIOD. THERE FORE, WE RESTRICT THE DISALLOWANCE TO RS.30,000/- AND DELETE THE ADDITIONS TO THE EXTENT OF RS.20,000/-. GROUND OF APPEAL NO.5 IS THUS PARTLY ALLOWED. 10. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH APRIL, 2019. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 5 TH APRIL, 2019. VINODAN/SPS COPY TO: 1 SHRI GULRAJ VANGANI, 5-9-48/5&6 BASHEERBAGH, HYDE RABAD 500063 2 ASTTT. CIT, CIRCLE 5(1) I.T. TOWERS, AC GUARDS, H YDERABAD 3 CIT (A)-4 HYDERABAD 4 PR. CIT 4, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER