Jayant Reddy Marri, Hyderabad V. Income Tax Officer, Ward-9(4) , Hyderabad

ITA 191/Hyd/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 6786 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2021
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Appeal Filed On: 10-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T. SUNIL GOUTAM
• Keywords: Capital Gains
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ A ‘ Bench, Hyderabad (Through Video Conferencing) Before Shri A. Mohan Alankamony, Accountant Member AND Shri S.S. Godara, Judicial Member ITA No.191/Hyd/2020 Assessment Year: 2012-13 Sri Jayant Reddy Marri, Hyderabad. PAN : ACAPM9268N. Vs. ITO, Ward – 9(4), Hyderabad. (Appellant) (Respondent) Assessee by: Sri P. Murali Mohan Rao Revenue by : Sri T. Sunil Goutam Date of hearing: 06/12/2021 Date of pronouncement: 08/12/2021 O R D E R Per S. S. Godara, J.M. This assessee’s appeal for A.Y 2012-13 arises from the Commissioner of Income Tax (Appeals) – 7, Hyderabad’s order dated 27.09.2019 in case No.0160/CIT(A)-7/2016-17 involving proceedings under section 143(3) r.w.s. 147 of Income Tax Act, 1961 (in short, “the Act”). Heard both the parties. Case file perused. ITA No.191/Hyd/2020 2 2. The assessee’s first and foremost substantive grievance raised during the course of hearing challenge correctness of CIT(A)’s action affirming assessing authority findings making unexplained income addition of Rs.2,00,000/- representing cash deposits made in the bank account. Suffice to say; we note with the able assistance coming from the assessee side that he had sold an immovable property in the year 2004-05 and also derived taxable income at maximum rate in the recent preceding assessment years. 3. The Revenue has strongly argued that the assessee is not able to specifically prove the sources of cash as on the date of deposits. We find no merit in either party erred in entirety. It is made clear that the assessee had transferred the capital asset in the year 2005-06 only whereas we are in A.Y. 2012-13. There is further no dispute that the learned lower authorities have nowhere granted him the credit of the said sale proceeds in any other assessment year as well. This is coupled with the fact that the accumulation of such cash in hand cannot be altogether ruled out. We take into account all these facts and hold that a lumpsum addition of Rs.50,000/- only would be just and proper with the rider that the same shall not be treated as a precedent. Assessee gets part relief of Rs.1,50,000/-. Necessary computation shall follow as per law. ITA No.191/Hyd/2020 3 4. Next comes the latter issue of the CIT(A)’s enhancement action amounting to Rs.5,43,000/- towards alleged unexplained personal expenditure. Learned departmental representative vehemently argued that this does not amount to altogether a new addition liable to be deleted in light of CIT Vs. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) since the Assessing Officer had given credit thereof against the assessee’ long term capital gains. It emerges in light of these pleadings that the assessee had also been assessed for his drawings @ Rs.35,000/- per month as per admitted stand of both the parties which appears just and proper in assessment year 2012-13 before us. There is no material taken into consideration by the CIT(A) in his enhancement which could indicate either any specific reason for enhancement in light of hon’ble apex court’s foregoing decision nor there is any justification therein; in our considered opinion. We accordingly direct the Assessing Officer to delete the impugned addition. The assessee has not pressed any other ground before us. 5. This assessee’s appeal is partly allowed in above terms. Order pronounced in the Open Court on 8 th December, 2021. Sd/- Sd/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (S.S. GODARA) JUDICIAL MEMBER Hyderabad, dated 8 th December, 2021. TYNM/sps ITA No.191/Hyd/2020 4 Copy to: S.No Addresses 1 Sri Jayant Reddy Marri, Hyderabad, C/o. P. Murali & Co., Chartered Accountants, 6-3-655/2/3, Somajiguda, Hyderabad – 500082. 2 The Income Tax Officer, Ward – 9(4), Hyderabad. 3 Commissioner of Income Tax (Appeals) – 7, Hyderabad. 4 Principal Commissioner of Income Tax – 7, Hyderabad. 5 DR, ITAT Hyderabad Benches 6 Guard File By Order