Nageswara Rao Kadiyam , Hyderabad V. Income Tax Officer, Ward-6(2), Hyderabad

ITA 1744/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4683 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 23-09-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 28-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A VENKATA RAO
• Assessee Lawyers: Y V BHANU NARAYAN RAO
• Keywords: Opportunity of being heard
• Section: 13; 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 1 7 44 /H/20 19 ASSESSMENT YEAR: 2 0 13 - 14 NAGESWARA RAO KADIYAM, HYDERABAD. PAN A DFPK 5172 M VS. INCOME - TAX OFFICER, WARD 6 ( 2 ), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: S HRI Y.V. BHANU NARAYAN RAO REVENUE BY: S HRI A. VENKATA RAO DATE OF HEARING: 23 /0 9 /2021 DATE OF PRONOUNCEMENT: 27 /0 9 /2021 O R D E R PER L.P. SAHU, A.M. : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST CIT(A) - 6 , HYDERABAD S ORDER DATED 03 / 0 9 / 20 1 9 FOR AY 20 1 3 - 1 4 INVOLVING PROCEEDINGS U/S 14 4 OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT . 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL AND MANAGING PARTNER OF THE FIRM BY NAME, M/S SHILPA ELECTRIFICATION, FILED HIS RETURN OF INCOME ON I TA NO. 1744 /HYD /20 19 SHRI NAGESWARA RAO KADIYAM, HYD. : - 2 - : 09/06/2014 ADMITTING TAXABLE INCOME OF RS. 1,98,120/ - . SUBSEQUENTLY, THE CASE WAS SELECTE D FOR SCRUTINY UNDER CASS AND ACCORDINGLY, STATUTORY NOTICES WERE ISSUED TO THE ASSESSEE, AGAINST WHICH, THE AR OF THE ASSESSEE FURNISHED THE INFORMATION. 2.1 SINCE THE CASE WAS SELECTED FOR SCRUTINY TO EXAMINE THE SOURCES OF CASH DEPOSITS MADE INTO SB A CCOUNT HELD BY THE ASSESSEE, THE AR OF THE ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF CREDITS IN THE BANK ACCOUNTS ALONG WITH SOURCES THEREOF AND THE AR OF THE ASSESSEE FILED STATEMENTS CONTAINING THE SOURCES OF CASH DEPOSITS INTO SBI AND IN THE STATEMEN T THE ASSESEEE EXPLAINED THAT SOURCES WERE THAT OF FROM THE WITHDRAWAL FROM THE FIRM M/S SHILPA ELECTRIFICATION AND IN SUPPORT OF THE CLAIM, FILED THE BANK ACCOUNT STATEMENT OF THE FIRM. THE AO WAS OF THE VIEW THAT TILL THE ASSESSEE FURNISHES THE EVIDENCES TO THE EFFECT THAT CASH WITHDRAWALS WERE UTILIZED FOR CREDITING INTO ASSESSEES SB ACCOUNT, ASSESSEES CLAIM COULD NOT BE ACCEPTED AND HENCE, REQUESTED THE ASSESSEE TO FURNISH THE BOOKS OF ACCOUNT. SINCE THE ASSESSEE FAILED TO FURNISH THE BOOKS OF ACCOUNT , THE AO ESTIMATED 10% OF CASH DEPOSITS, WHICH COMES TO RS. 4,74,040/ - AND ADDED THE SAME TO THE RETURNED INCOME OF THE ASSESSEE. 2.2 HE FURTHER OBSERVED THAT SINCE THE ASSESSEE COULD NOT FURNISH ANY EVIDENCES AND SOURCES FOR THE CASH DEPOSITS I TA NO. 1744 /HYD /20 19 SHRI NAGESWARA RAO KADIYAM, HYD. : - 3 - : MADE INTO THE SB ACCOUNTS OF KARUR VYSYA BANK AND CANARA BANK, THE PEAK CASH OF KARUR VYSYA BANK WAS WORKED OUT TO RS. 7,49,921/ - AND THE DEPOSITS IN CANARA BANK WAS WORKED OUT TO RS. 12,45,000/ - , TOTALING TO RS. 19,94,921/ - , WHICH TREATED AS UNEXPLAINED CASH DEPOSI TS AND ADDED U/S 68 OF THE ACT. THE AO FINALLY PASSED THE ASSESSMENT ORDER U/S 144 OF THE ACT DETERMINING THE INCOME OF THE ASSESSEE AT RS. 26,67,080/ - BY MAKING THE ABOVE ADDITIONS. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE AND ENHANCED THE ASSESSMENT TO THE EXTENT OF RS. 51,40,860/ - . 4. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE ITAT. 5. IN THE COURSE OF HEARING, IT WAS POINTED OUT BY THE LEARNED COUNSEL O F THE ASSESSEE THAT THE AO HAS PASSED THE EX - PARTE ORDER AND BEFORE THE CIT(A), THOUGH THE LD. A R OF THE ASSESSEE WAS PRESENT, UNABLE TO SUBSTANTIATE ASSESSEES CLAIM BY WAY OF DOCUMENTARY EVIDENCE WITH REGARD TO THE CASH DEPOSITS. THEREFORE, IT WOULD BE I N THE INTEREST OF JUSTICE, THE MATTER MAY BE RESTORED TO THE FILE OF AO TO REPRESENT ASSESSEES CASE BY WAY OF DOCUMENTARY EVIDENCE TO ENABLE THE AO TO DECIDE THE MATTER ON MERITS AND IN ACCORDANCE WITH LAW. THE LEARNED DR AGREED WITH THE AFORESAID STATE MENT OF THE LEARNED AR. I TA NO. 1744 /HYD /20 19 SHRI NAGESWARA RAO KADIYAM, HYD. : - 4 - : 6 . WE HAVE CONSIDERED THE FACTS OF THE CASE AND THE REQUEST MADE BY THE LEARNED AR. WE ARE OF THE VIEW THAT INTEREST OF JUSTICE WILL BE SERVED IF THE MATTER IS RESTORED TO THE FILE OF THE AO TO DECIDE THE APPEAL OF THE ASSESSEE ON MERITS AS THE AO HAS PASSED EX - PARTE ORDER . ACCORDINGLY, THE AO IS DIRECTED TO AFFORD REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND THEREAFTER DECIDE THE APPEAL ON MERITS AND IN ACCORDANCE WITH LAW . WE DIRECT THE ASSE SSEE TO APPEAR BEFORE AO WITH ALL THE RELEVANT EVIDENCES; AT HIS OWN RISK AND RESPONSIBILITY TO BE FOLLOWED BY THREE EFFECTIVE OPPORTUNITIES OF HEARING. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 7. I N THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. PRONOUNCED IN THE OPEN COURT ON 27 TH SEPTEMBER , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 27 TH SEPTEMBER , 20 2 1 . K V I TA NO. 1744 /HYD /20 19 SHRI NAGESWARA RAO KADIYAM, HYD. : - 5 - : C OPY TO : 1 SHRI NAGESWARA RAO KADIYAM , H.NO. 7 - 1 - 246/A/1/77, RENUKA NAGAR, BALKAMPET, HYDERABAD 500 016 2 IT O , WARD 6 ( 2 ), ROOM NO. 744, 7 TH FLOOR, D BLOCK, IT TOWERS, AC GUARDS, HYDERABAD 3 C I T(A) - 6 , HYDERABAD 4 PR. CIT - 6 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE.