Arun Gupta, Hyderabad, Hyderabad V. DCIT, Circle-14(1), Hyderabad, Hyderabad

ITA 197/HYD/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8229 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 20-06-2019
• Assessment Year: 2002-2003
• Appeal Filed On: 08-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SIBENDU MOHARANA
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Unexplained cash credit
• Section: 143(3); 153A; 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 197/HYD/2017 ASSESSMENT YEAR: 2002 - 03 SRI ARUN GUPTA, A - 108, JOURNALISTS COLONY, JUBILEE HILLS, HYDERABAD. PAN: ACWPG 9807 B VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE - 14(1), IT TOWERS, A.C. GUARDS, MASAB TANK, HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI P. MURALI MOHAN RAO REVENUE BY: SRI SIBENDU MOHARANA, DR DATE OF HEARING: 20/06/2019 DATE OF PRONOUNCEMENT: 17 /07/2019 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 6, HYDERABAD IN APPEAL NO. 1537/2014 - 15/CIT(A) - 6/16 - 17, DATED 17/11/2016 PASSED U/S. 143(3) R.W.S 153A R.W.S 254 & U/S. 250(6) OF THE ACT FOR THE ASSESSMENT YEAR 2002 - 03. 2. IN THIS APPEAL, ASSESSE E HAS RAISED SEVERAL GROUNDS AS WELL AS ADDITIONAL GROUNDS HOWEVER THE CRU X OF THE ISSUE IS THAT THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT (A) WHO HAD CONFIRMED THE ORDER OF 2 THE LD. AO FOR HAVING MADE ADDITION OF RS. 5,21,382/ - AS UNEXPLAINED C ASH CREDIT U/S. 68 OF THE ACT. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL EARNING INCOME FROM OTHER SOURCES AND REAL ESTATE FILED HIS RETURN OF INCOME IN RESPONSE TO NOTICE U/S. 153A OF THE ACT ON 27/10/2008 ADMITTING TOTAL INCOME O F RS. 81,990/ - . THEREAFTER ASSESSMENT ORDER WAS PASSED U/S. 143(3) R.W.S 153A OF THE ACT ON 31/12/2009 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT RS. 6,33,372/ - WHEREIN ADDITIONS WERE MADE TOWARDS UNEXPLAINED CASH CREDIT OF RS. 5,21,382/ - AND RS.30,000/ - ON ACCOUNT OF LOW WITHDRAWALS. ON APPEAL, THE LD. CIT (A) DISMISSED THE APPEAL OF THE ASSESSEE. THEREAFTER, T HE TRIBUNAL VIDE ITS ORDER DATED 2/7/2013 IN ITA NO. 1518/HYD/2012 REMITTED THE ISSUE WITH RESPECT TO THE UNEXPLAINED CASH CREDIT TO THE FILE OF THE LD. AO WITH DIRECTION TO EXAMINE THE AVAILABILITY OF CASH FROM EARLIER ASSESSMENT YEARS AND THEREAFTER DE CIDE THE MATTER IN ACCORDANCE WITH LAW AND MERIT. IN THE REMAND PROCEEDINGS THE LD. AO OBSERVED THAT THE ASSESSEE HAS DISCLOSED OPENING CASH BALANCE OF RS. 5,21,382/ - AS ON 1/4/2001 WHICH WAS SUBSEQUENTLY INVESTED BY PIECEMEAL OF RS. 44,800/ - ON EACH OCCAS ION DURING THE RELEVANT FY 2001 - 02 IN POST OFFICE FIXED DEPOSIT AGGREGATING TO RS. 5,37,600/ - BETWEEN THE PERIOD 3/4/2001 TO 5/5/2001. FURTHER THE LD.AO WAS OF THE VIEW THAT THE ASSESSEE COULD NOT EXPLAIN THE SOURCE OF THE OPENING BALANCE OF RS. 5,21,383/ - AND 3 THEREFORE ONCE AGAIN ADDED THE SAME AS UNEXPLAINED CASH IN THE HANDS OF THE ASSESSEE. 4. AT THE OUTSET, ON PERUSING THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THE ASSESSEE EARNING INCOME FROM OTHER SOURCE AND PROPERTY HAS EVERY POSSIBILITY TO ACCUMULATE CASH OF RS. 5,21,382/ - OVER THE PERIOD OF YEARS. THE ASSESSEE HAD ALSO SUBMITTED BEFORE THE LD. CIT (A) THAT THE BOOKS OF ACCOUNTS WERE PREPARED AFTER OBTAINING ALL THE SEIZED MATERIALS IN THE CASE OF THE APPELLANT, MRS. PUSHPA GUPTA WIFE OF THE APPELLANT, MS. ADITI GUPTA, DAUGHTER OF THE APPELLANT AND ARUN GUPTA HUF AND IN ALL THE CASE OTHER THAN THAT OF THE ASSESSEE THE OPENING BALANCE OF CASH WAS ACCEPTED. THE ASSESSEE HAD ALSO SUBMITTED THAT HE WAS ASSESSED TO INCOME TAX FOR SEVERAL YEARS WHICH IS REQUIRED TO BE CONSIDERED BEFORE REJECTING THE OPENING CASH BALANCE DECLARED IN HIS BOOKS. HOWEVER, IT APPEARS THAT THE LD. AO HAS NOT EXAMINED ALL THESE FACTS BEFORE ARRIVING AT HIS CONCLUSION. CONSIDERING THE STATURE OF THE ASSESSEE AND THE BA CKGROUND OF HIS FAMILY WE ARE OF THE CONSIDERED VIEW THAT THE AMOUNT OF RS. 5,21,382/ - DISCLOSED AS THE OPENING BALANCE AS ON 01/4/2001 IS NOT EXORBITANT IN ORDER TO HOLD IT AS UNEXPLAINED CASH IN THE HANDS OF THE ASSESSEE. HENCE, WE HEREBY DELETE THE ADDI TION OF RS. 5,21,382/ - MADE IN THE HANDS OF THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. 4 PRONOUNCED IN THE OPEN COURT ON 17 TH JULY, 2019. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 17 TH JULY , 2019 OKK COPY TO: - 1) SRI ARUN GUPTA, C/O. CH. PARTHASARATHY & CO., 1 - 1 - 298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST. NO.1, ASHOKNAGAR, HYDERABAD - 20. 2) THE DY. CIT, CIRCLE - 14(1), I.T. TOWERS, A.C. GUARDS, MASAB TANK, HYDERABAD. 3) THE CIT(A) - 6, HYDERABAD 4) THE PR. CIT - 6, HYDERABAD 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE