Kalyani Refineries Limited, Hyderabad V. Income Tax Officer, Ward-2(1), Hyderabad

ITA 196/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4396 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 24-02-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 12-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Unexplained cash credit
• Section: 143(3); 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO. 196 /HYD./201 9 ASSESSMENT YEAR : 2013 - 14 M/S KALYANI REFINERIES LTD. VS. ITO , WARD 2 (1) HYDERABAD HYDERABAD [PAN: AAACK4429N ] (APPEL LANT) (RESPONDENT) FOR ASSESSEE: SHRI P. MURALI MOHAN RAO, AR FOR REVENUE: SHRI SUNIL KUMAR PANDEY, D.R. DATE OF HEARING : 24/02/2021 DATE OF PRONOUNCEMENT : 21 /05/2021 O R D E R PER S.S. GODARA, J.M. THIS ASSESSEES APPEAL FOR AY 2013 - 14 ARISES FROM CIT(A) - 2 HYDERABADS ORDER DATED 04.12.2018 PASSED IN CASE NO. 10058 /201 6 - 17 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 FOR SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES COR RECTNESS OF BOTH LOWER AUTHORITIES ACTION TREATING UNSECURED LOAN OF RS . 6,40,000/ - AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. THE ASSESSING OFFICERS ASSESSMENT ORDER DATED 24.3.2016 2 HELD THAT NEITHER THE ASSESSEE COULD PRODUCE CONFIRMATION NOR COULD IT PROVE IDENTITY OF THE CREDITOR PARTIES. THE CIT(A) HAS ALSO UPHELD THE ASSESSING OFFICERS ACTION. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS. IT EMERGED DURING THE COURSE OF HEARING THAT THE IMPUGNED SUM REPRESENTS RS.4,00,0 00/ - AND RS.2,40,000/ - FROM DR. VV SUBBA RAO AND SMT VV KALYANI WHOSE RETURNS OF INCOME, PANS , LEDGER ACCOUNTS ALREADY FORM PART OF THE RECORDS BEFORE THE CIT(A). AND ALSO THAT THE SAID TWO CREDITOR PARTIES ARE FAMILY MEMBERS OF THE ASSESSEES /PROMOTERS FAMILY ONLY. WE CONCLUDE IN THIS VIEW OF THE FACT THAT SUCH KIND OF UNSECURED LOANS COMING FROM THE DIRECTORS OR PROMOTERS FAMILY MEMBERS INVOLVING SMALLER AMOUNTS CANNOT BE ALTOGETHER RULED OUT AND MORE SO WHEN THE ASSESSING OFFICER BEFORE US HAS SIMP LY BRUSHED ASIDE ALL THE CORRESPONDING DETAILS AFTER ALLEGING THAT ASSESSEE HA D NOT EVEN PROVED IDENTITY OF THE LOAN CREDITORS. WE, THEREFORE, HOLD THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN MAKING THE IMPUGNED UNEXPLAINED CASH CRED IT ADDITION OF RS.6,40,000/ - . T HE SAME IS DIRECTED TO BE DELETED. 4. THIS ASSESSEES APPEAL IS ALLOWED. PRONOUNCED IN OPEN COURT ON 21 ST MAY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 21 ST MAY, 2021. * GMV 3 COPY OF THE ORDER FORWARDED TO: 1. M/S KALYANI REFINERIES LTD., C/O P MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, SOMAJIGUDA, HYDERABAD 500 082. 2. ITO, WARD 2 (1), HYDERABAD. 3. ACIT, RANGE 2 , HYDERABAD - 4. CIT(A) - 2 , HYDERABAD. 5. PR.CIT - 2 , HYDERABAD 6.DR, ITAT, HYDERABAD. 7. GUARD FILE.