Chandramouli Kinnera , Secunderabad V. Income Tax Officer, Ward-10(4), Hyderabad

ITA 1743/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 2809 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 6 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-06-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 06-04-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 28-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; TDS
• Section: 10; 2; 143(3); 201(1); 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER ITA NO. 1743 /HYD./ 2019 ASSESSMENT YEAR: 20 1 5 - 1 6 SHRI CHANDRAMOULI KINNERA VS. ITO, WARD 10 ( 4 ) SECUNDERABAD HYDERABAD [PAN: AGAPK7308M ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SRI PAWAN KUMAR CHAKRAPANI, AR FOR REVENUE : SRI ROHIT MUJUMDAR , DR DATE OF HEARING : 06 /04/2021 DATE OF PRONOUNCEMENT : 22 /06/2021 O R D E R PER S.S. GODARA, J.M. TH IS ASSESSEES APPEAL FOR A.Y. 2015 - 16 ARISE S AGAINST THE CIT(A) - 6 HYDERABADS ORDER DATED 30.09.2019 PASSED IN CASE NO. 10195 /201 7 - 18 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 [FOR SHORT THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. ITA NO. 1743/HYD/2019 AY : 2015 - 16 SHRI CHANDRAMOULI KINNERA, SECBAD. 2 2. THE A SSESSEE S TWIN FOLDED PLEADINGS IN THE INSTANT APPEAL CHALLENG E CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION MAKING UNEXPLAINED INVESTMENT ADDITION OF RS.77,20,525/ - AND SEC.40 (A)(IA) DISALLOWANCE OF RS.4,71,600/ - ; MADE IN THE COURSE OF ASSESSMENT DATED 29.12.2017 AND UPHELD IN THE CIT(A)S LOWER APPELLATE ORDER ; RESPECTIVELY . 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF IMPUGNED DISALLOWANCES/ADDITIONS. THE ASSESSEES FIRST AND FOREMOST PLEA BEFORE US IS THAT THE IMPUGNED UNEXPLAINED INVESTMENT SUM IN FACT REPRESENTS HIS BORROWALS F ROM FRIENDS , RELATIVES AND OTHER SOURCES WHICH COULD NOT BE SUFFICIENTLY EXPLAINED IN EITHER OF THE LOWER PROCEEDINGS. LEARNED COUNSEL NEXT TOOK US TO ASSESSEES LIST OF LOAN CREDITORS APPEARING IN PARA 8.7 PAGE 12 OF CIT(A)S ORDER CONTAINING ALMOST MORE THAN 10 PARTIES WHICH W ERE NO WHERE PUT TO CONFIRMATION. 3.1. THE REVENUES CASE BEFORE US IS THAT THE ASSESSEE COULD NOT PROVE IDENTITY, GENUINENESS AND CREDIT WORTHINESS OF THE SAID PARTIES WHICH FORMED MAIN REASON FOR THE CIT(A) TO CONFIRM THE IMPUGNED ADDITION. FACED WITH THIS SITUATION AND MORE PARTICULARLY IN VIEW OF THE FACT THAT THE ASSESSEE HAD SUBMITTED LIST OF THE CRED ITOR PARTIES WHICH COULD NOT BE EFFECTIVELY PUT FOR FACTUAL VERIFICATION, WE DEEM IT PROPER TO RESTORE THE INSTANT FORMER ISSUE BACK TO THE FILE OF ASSESSING OFFICER WITH A RIDER THAT IT SHALL BE A SSESS EE S DUTY TO PROVE GENUINENESS AND CREDITWORTHINESS OF ALL THE SAID CREDITORS / PARTIES WITHIN THREE EFFECTIVE OPPORTUNITIES , AT HIS OWN RISK AND RESPONSIBILITY ONLY. THIS FORMER SUBSTANTIVE GROUND IS ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. 4. COMING TO SEC.40 (A)(IA) DISALLOWANCE OF RS.47,100/ - , LEARNED COUNSEL FAILS TO DISPUTE THAT ASSESSEE HAS NOT DEDUCTED TDS TOWARDS SHOP RENT PAYMENT OF RS.15,72,000/ - . ITA NO. 1743/HYD/2019 AY : 2015 - 16 SHRI CHANDRAMOULI KINNERA, SECBAD. 3 4.1. LEARNED COUNSELS ONLY PLEA IS THAT THIS ASSESSEE HAS NOWHERE BEEN TREATED AS THE ASSESSEE IN DEFAULT AS PER SEC . 201(1) FIRST PROVISO R.W.S. 40 (A)(IA) SECOND PROVISO AND, THEREFORE, THE IMPUGNED DISALLOWANCE DESERVES TO BE DELETED. HE FAILS TO DISPUTE THAT THERE IS NO MATERIAL IN CASE FILE WHICH COULD INDICATE THE RECIPIENT (S) CONCERNED TO HAVE BEEN ASSESSED QUA THE IMPUGNED RENTAL INCOME. WE THEREFORE DEEM IT PROPER TO RESTORE INSTANT LATTER ISSUE BACK TO ASSESSING OFFICER TO EXAMINE AFRESH IN LIGHT OF SEC.40 (A)(IA) SECOND PROVISO. ORDERED ACCORDINGLY. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 22 /06/2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT M EMBER JUDICIAL MEMBER DATED: 22 ND JUNE, 2021 *GMV COPY OF ORDER FORWARDED TO: 1. SHRI CHANDRAMOULI KINNERA, # 6 - 1 - 114 & 115, FLAT NO 1D, 1 ST FLOOR, SAI SANJEEVANI APARTMENTS, PADMARAO NAGAR, SECUNDERABAD 500 025 2. ITO, WARD 10(4), HYDERABAD 3. ACIT, RANGE 10 , HYDERABAD. 4 CIT(A) - 6 , HYDERABAD 5 PR.CIT - 6 , HYDERABAD. 6 D.R. ITAT HYDERABAD 7 GUARD FILE