ITO, Ward-2(4), Hyderabad, Hyderabad V. Sri K Amarnath Reddy, Bangalore

ITA 1810/HYD/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6035 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-02-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 29-02-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 01-12-2014
• Court: TRIBUNAL
• Department Lawyers: M SITARAM
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH ES A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 1 81 0 /H YD /201 4 ASSESSMENT YEAR: 20 0 9 - 1 0 INCOME TAX OFFICER, WARD - 2 ( 4 ), HY DERABAD VS SRI K. AMARNATH REDDY BANGALORE [PAN: A DFPK0202L ] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI M. SITARAM , DR FOR ASSESSEE : NONE DATE OF HEARING : 29 - 0 2 - 201 6 DATE OF PRONOUNCEMENT : 29 - 0 2 - 201 6 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS A REVENUE S APPEAL AGAINST THE ORDER OF THE COM MISSIONER OF INCOME TAX ( APPEALS ) - I II , HYDERABAD , DATED 05 - 0 9 - 201 4 . WHEN THE CASE WAS POSTED EARLIER, NONE APPEARED ON BEHALF OF ASSESSEE. THEREFORE, NOTICES WERE SERVED THROUGH T HE DR, WHO HAS FURNISHED THE ACKNOWLEDGEMENT FOR SERVICE OF NOTICE. SINCE TWICE NOTICES WERE SERVED ON ASSESSEE AND AS THERE IS NO REPRESENTATION FROM ASSESSEE, WE HAVE TAKEN UP THE CASE EX - PARTE RESPONDENT. I.T.A. NO. 1 81 0 / HYD / 201 4 SRI K. AMARNATH REDDY : - 2 - : 2. THE ONLY CONTENTION BY THE REVENUE IN THEIR APPEAL IS THAT LD. CIT(A) OUGHT NOT TO HAVE REMITTED THE ISSUE OF UNEXPLAINED SUNDRY CREDITORS TO THE ASSESSING OFFICER (AO) FOR RE - VERIFICATION AS THE CIT(A) DOES NOT HAVE POWER TO SET ASIDE THE ISSUE AS PER THE PROVISIONS OF SECTION 251(1) OF THE ACT. 3. BRIEFLY STATED, IN THE ASSESSMENT ORDER PASSED BY THE AO, AO HAS BROUGHT TO TAX AN AMOUNT OF RS. 95,63,693/ - CONSISTING OF FRESH UNSECURED LOANS OF RS. 33,20,000/ - AND FRESH SUNDRY CREDITS OF RS. 62,43,693/ - . LD. CIT(A) IN HIS ORDER HAS CONSIDERED THE ISSUE AS UNDER: 8. I HAVE CAREFULLY CONSIDERED THE FACTS AND ISSUE OF THE CASE AND THE SUBMISSIONS MADE BY THE APPELLANT AT THE TIME OF HEARING WITH REFERENCE TO UNEXPLAINED CASH CREDITS. THE THREE LIMBS OF SECTION 68 I.E., IDENTITY, CREDITWORTHINESS A ND GENUINENESS WERE CLEARLY NOT ESTABLISHED AND DETAILS WERE FURNISHED IN APPEAL WHICH ARE IN THE NATURE OF APPEAR AFTERTHOUGHT WITH REFERENCE TO THE ADDITION OF RS. 33,20,000/ - WHICH WAS BROUGHT IN AS UNSECURED LOANS. WITH REFERE NCE TO A SUM OF RS. 62,43 ,693/ - , THE ASSESSING OFFICER IS DIRECTED TO VERIFY THE AUTHENTICITY OF THE SUNDRY CREDITORS AND ALLOW THE SAME IF THE SAME ARE FOUND GENUINE. IN THIS CONTEXT, I AM CONFIRMING THE ADDITION MADE ON ACCOUNT OF CASH CREDITS OF RS. 33,20,000/ - . THE RATIO OF DECISIONS BEFORE VARIOUS JUDICIAL AUTHORITIES IN THE CASES OF AGARWAL COAL CORPORATION VS. ADDL. CIT (135 ITD 270) (INDORE); DHINGRA GLOBAL CREDENCE (T) LTD., V ITO (1 ITR (T) 529 (DEL); CIT V. NOVA PROMOTERS & FINLEASE (342 ITR 169) (DEL); CIT V. N.R. POR TFOLIO (P) LTD (263 CTR 456) (DEL.); GAYATHRI ASSOCIATES V. ITO (221 TAXMAN 143) (AP) ARE RELIED UPON. IN VIEW OF THE SAME, THE UNEXPLAINED CASH CREDIT IS CONFIRMED. REVENUE IS AGGRIEVED ON THE ABOVE DIRECTION OF CIT(A) TO VERIFY THE AUTHENTICITY OF THE SUNDRY CREDITORS. 4. WE WERE NOT INFORMED WHE THER ASSESSEE IS IN APPEAL ON THE AMOUNT SO CONFIRMED. SINCE NO INFORMATION WAS FORTHCOMING FROM ASSESSEE, WITHOUT PREJUDICE TO THE RIGHT OF ASSESSEE IN CONTESTING I.T.A. NO. 1 81 0 / HYD / 201 4 SRI K. AMARNATH REDDY : - 3 - : THE AMOUNTS WHICH WERE CONFIRMED BY THE LD. CIT(A) , TO THE EXTENT O F THE AMOUNT OF RS. 62,43,693/ - , WE ARE OF THE OPINION THAT THE ISSUE REQUIRES RE - EXAMINATION BY THE AO AS OPINED BY THE LD. CIT(A). SINCE THE CONTENTION WAS THAT LD. CIT(A) HAS NO POWER TO SET ASIDE THE ISSUE TO THE AO, WE EXERCISE THE P OWERS GRANTED TO US TO SET ASIDE THE ISSUE TO THE FILE OF THE AO TO EXAMINE THE SUNDRY CREDIT S (ORS) AFTER GIVING DUE OPPORTUNITY TO ASSESSEE. WITH THIS, REVENUES APPEAL IS CONSIDERED ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH FEBRU ARY , 201 6 UPON COMPLETION OF HEARING SD/ - SD/ - (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 29 TH FEBRUARY, 2016 TNMM COPY TO : 1. INCOME TAX OFFICER, WARD - 2 ( 4 ), 8 TH FLOOR, B BLOCK, I.T. TOWERS, MASAB TANK , HYDERABAD. 2 . SRI K. AMARNATH REDDY, FLAT NO. 2104, PRESTIGE KENINGTON GANDEUS, NO. 17, HMT ROAD, JALAHALLI, BANGALORE. 3 . CIT (APPEALS) - I II , HYDERABAD. 4. CIT - I I , HYDERABAD. 5 . D.R. ITAT, HYDER ABAD. 6 . GUARD FILE.