Kollipaka Balaiah, Warangal V. Income Tax Officer, Ward-3, Warangal

ITA 1981/Hyd/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9419 (ITAT-HYDERABAD)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 03-07-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 01-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Assessee Lawyers: S RAMA RAO
• Keywords: Business income; Additional evidence
• Section: 142(1); 68; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B-SMC, HYDERABAD BEFORE SHRI P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1981/HYD/2018 ASSESSMENT YEAR: 2014-15 SHRI KOLLIPAKA BALAIAH, WARANGAL. PAN ANJPB9168J VS. ITO, WARD 3, WARANGAL. (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI S. RAMA RAO REVENUE BY : SHRI NILANJAN DEY DATE OF HEARING : 03-07-2019 DATE OF PRONOUNCEMENT : 05-07-2019 ORDER PER S. RIFAUR RAHMAN, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2014-15 AGAINST THE ORDER OF THE CIT(A)-3, HYDERABAD, DATED 10.07.2018. 2. ASSESSEE, DERIVING INCOME FROM HOUSE PROPERTY AND BUSINESS INCOME, FILED HIS RETURN OF INCOME FOR THE A.Y 2014-15 ON 28.05.2015 DECLARING TOTAL INCOME OF RS. 2,28,520/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS, ACCORDINGLY NOTICES U/S 143(2) AND 142(1) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WERE ISSUED AND SERVED ON THE ASSESSEE. IN RESPONSE, THE ASSESSEE HAS NOT FURNISHED ANY DETAILS OR APPEARED BEFORE THE A.O. SINCE, THE ASSESSEE HAS NOT FURNISHED ANY INFORMATION, THE A.O MADE ADDITION U/S 68 OF THE ACT WITH PEAK CASH DEPOSITS IN 2 ITA.NO. 1981/HYD/2018 SHRI K. BALAIAH, WARANGAL. THE BANKS HELD BY THE ASSESSEE WHICH IS IN ANDHRA BANK, ANDHRA PRADESH GRAMIN VIKAS BANK (APGVB) AND STATE BANK OF HYDERABAD (SBH). FURTHER, A.O NOTICED THAT ASSESSEE HAS NOT DECLARED ANY INTEREST INCOME, WHEREAS EARNED INTEREST INCOME TO THE EXTENT OF RS. 51,629/-. ACCORDINGLY, THE A.O MADE THE ABOVE ADDITIONS U/S 68 OF THE ACT TO THE EXTENT OF RS. 30,25,000/- AND INTEREST INCOME TO THE EXTENT OF RS. 51,629/- AND THE ASSESSMENT WAS COMPLETED U/S 144 OF THE ACT. 3. AGGRIEVED WITH THE ABOVE ORDER THE ASSESSEE PREFERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. HOWEVER, THOUGH THE CIT(A) HAS GIVEN SEVERAL OPPORTUNITIES NONE APPEARED ON BEHALF OF THE ASSESSEE AND ACCORDINGLY LD. CIT(A) DISMISSED THE APPEAL. 4. AGGRIEVED WITH THE ABOVE ORDER ASSESSEE IS IN APPEAL BEFORE US BY RAISING FOLLOWING GROUNDS OF APPEAL. 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH ON FACTS AND IN LAW. 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 30,25,000/- MADE BY THE A.O REPRESENTING THE ENTIRE CASH DEPOSITS MADE INTO THE BANK ACCOUNT. 3. THE LD. CIT(A) OUGHT TO HAVE CONSIDERED THE FACT THAT THE SAID AMOUNT EITHER REPRESENT THE BUSINESS RECEIPTS OR THE REDEPOSITS MADE INTO THE BANK ACCOUNT. 4. ANY OTHER GROUND OR GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING. 5. AT THE TIME OF HEARING, THE LD. AR AND LD. DR AGREED THAT ASSESSEE HAS NOT APPEARED BEFORE THE TAX AUTHORITIES AND BEFORE US THE LD. AR SUBMITTED ADDITIONAL EVIDENCES IN SUPPORT OF THE ASSESSEES CLAIM AGAINST THE DISALLOWANCE 3 ITA.NO. 1981/HYD/2018 SHRI K. BALAIAH, WARANGAL. MADE BY THE A.O U/S 68 OF THE ACT. WE DEEM IT FIT AND PROPER TO REMIT THIS ISSUE TO THE FILE OF THE A.O TO VERIFY THE ADDITIONAL EVIDENCES SUBMITTED BEFORE US. ACCORDINGLY, WE DIRECT THE A.O TO VERIFY THE CLAIM OF THE ASSESSEE AND DECIDE THE ISSUE ON MERIT IN ACCORDANCE WITH LAW. WE DIRECT THE ASSESSEE ALSO TO REPRESENT THE CASE BEFORE THE TAX AUTHORITIES. ACCORDINGLY, GROUND RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 05 TH JULY, 2019. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAHMAN) JUDICIAL MEMEBR ACCOUNTANT MEMBER HYDERABAD, DATED: 05 TH JULY, 2019. KRK 1) SHRI KOLLIPAKA BALAIAH, H. NO. 21-20/1, MAIN ROAD, CHERIAL, WARANGAL 506223. 2) ITO, WARD 3, WARANGAL. 3) CIT(A)-3, HYDERABAD 4) PR.CIT-3, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE.