Smt Yadlapalli Kalisree, Eluru V. The ACIT, Circle-1, Eluru

ITA 193/VIZ/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2764 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2010
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 27-09-2010
• Assessment Year: 2002-2003
• Appeal Filed On: 22-03-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Keywords: Unexplained investment
• Section: 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 193 /VIZAG/ 20 10 ASSESSMENT YEAR : 2002 - 03 SMT. YADLAPALLI K ALISREE ELURU ACIT, CIRCLE - 1 ELURU (APPELLANT) VS. (RESPONDENT) PAN NO.APVPK 2058N APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SHRI D.S. SUNDER SINGH, DR ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER : - THIS APPEAL IS PREFERRED BY THE ASSESS EE AGAINST THE ORDER OF THE CIT(A) ON A SOLITARY GROUND RELATING TO THE ADDITION OF RS.1,83, 2 00/ - ON ACCOUNT OF UNEXPLAINED INVESTMENT IN THE AGRICULTURAL LAND U/S 69 OF THE ACT. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE ORDER OF TH E AUTHORITIES BELOW AND DOCUMENTS PLACED ON RECORD AND WE FIND THAT DURING THE COURSE OF SURVEY, IT WAS NOTICED THAT ASSESSEE HAS PURCHASED 2.5 ACRES OF AGRICULTURAL LAND FOR RS.1,65,000/ - AND PAID A STAMP DUTY OF RS.18,200/ - . THE ASSESSEE WAS ASKED TO EX PLAIN THE SOURCE OF THIS INVESTMENT OF RS.1,83,200/ - AND IN RESPONSE THERETO ASSESSEE HAS EXPLAINED THAT SHE HAD RECEIVED 2 ACRES OF AGRICULTURAL LAND, 20 SOVER E IGNS OF GOLD AND 5 KG S . OF SILVER ARTICLES AS S TRIDHAN AT THE TIME OF HER MARRIAGE THAT TOOK PLACE IN THE YEAR 1988. THEREAFTER S HE HAS ALSO ACCUMULATED THE PERSONAL SAVINGS AND OUT OF THE ACCUMULATED FUNDS, THE AGRICULTURAL LAND WAS PURCHASED. THE A.O. WAS NOT CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE AND HE HAS TREATED THE ENTIRE INVESTM ENT AS UNEXPLAINED AND MADE THE ADDITION OF RS.1,83,200/ - . 3. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) BUT DID NOT FIND FAVOUR WITH HIM. 2 4. NOW THE ASSESSEE IS BEFORE US AND S HE HAS REITERATED ITS CONTENTIONS. IN THE ALTERNATIVE IT WAS CON TENDED THAT OVER A PERIOD OF TIME, ASSESSEE MUST HAVE ACCUMULATED CERTAIN FUNDS OF WHICH CREDIT SHOULD HAVE BEEN GIVEN BY THE A.O. BUT HE HAS NOT GIVEN CREDIT OF SINGLE PENNY AND TREATED THE ENTIRE INVESTMENT AS UNEXPLAINED. 5 . THE LD. D.R. PLACED A RE LIANCE UPON THE ORDER OF THE CIT(A). 6 . HAVING HEARD THE RIVAL SUBMISSIONS AND ON CAREFUL PERUSAL OF RECORD, WE FIND THAT THE ASSESSING OFFICER HAS TREATED THE ENTIRE INVESTMENT OF RS.1,83,200/ - AS UNEXPLAINED WITHOUT GIVING A CREDIT OF PERSONAL SAVINGS A CCUMULATED OVER YEARS. IT IS NOT A CASE OF REVENUE THAT ASSESSEE HAS ALSO MADE INVESTMENT IN SOME OTHER ITEMS , SO THERE MAY NOT BE ANY POSSIBILITY OF ACCUMULATED FUNDS. SINCE THE ASSESSEE HAS MADE THE SOLITARY INVESTMENT, WE ARE OF THE VIEW THAT CREDIT O F SOME ACCUMULATED FUNDS SHOULD HAVE BEEN GIVEN WHILE TREATING THE INVESTMENT IN THE LAND AS UNEXPLAINED . T O MEET THE ENDS OF JUSTICE , WE ESTIMATE THE ACCUMULATED FUNDS OF RS.50,000/ - OVER A PERIOD OF YEARS WHICH MIGHT HAVE BEEN INVESTED IN THE PURCHASE O F AGRICULTURAL LAND. WE ACCORDINGLY, DIRECT THE A.O. TO GIVE A CREDIT OF RS.50,000/ - OF THE ACCUMULATED FUNDS AND RESTRICT THE ADDITIONS OF THE BALANCE. ACCORDINGLY, THE ADDITION IS RESTRICTED TO RS.1,33, 2 00/ - . 7 . IN THE RESULT, THE APPEAL OF THE ASSES SEE IS PARTLY ALLOWED. PRONOUNCED IN THE OPEN COURT ON 8.10 .20 10 SD/ - SD/ - (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 8 TH OCTOBER , 20 10 3 COPY TO 1 SMT. YADLAPALLI KALISREE, D .NO.3B - 2 - 50, WESTERN STREET, NEAR AMBICA THEATRE, ELURU - 1 2 ACIT, CIRCLE - 1, ELURU 3 THE CIT, RAJAHMUNDRY 4 THE CIT(A), RAJAHMUNDRY 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER