THE ITO, Vijayawada V. Pillupla Pulla Rao, Vijayawada

ITA 205/VIZ/2015

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9675 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2016
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 28-05-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAVI SANKAR NARAYAN
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

ITA NO.205/VIZAG/2015 & CO 22/VIZAG/2015 PILLTLA PULLA RAO, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ./I.T.A.NO.205/VIZAG/2015 ( / ASSESSMENT YEAR: 2009-10) ITO WARD - 3(1), VIJAYAWADA VS. PILLUTLA PULLA RAO, VIJAYAWADA [PAN: ALZPP9847N ] ( / APPELLANT) ( ! / RESPONDENT) C.O. NO.22/VIZAG/2015 (ARISING OUT OF I.T.A.NO.205/VIZAG/2015) ( / ASSESSMENT YEAR: 2009-10) PILLUTLA PULLA RAO, VIJAYAWADA VS. ITO WARD - 3(1), VIJAYAWADA ( / APPELLANT) ( ! / RESPONDENT) / APPELLANT BY : SHRI G.V.N. HARI, AR / RESPONDENT BY : SHRI S. RAVI SANKAR NARAYAN, DR / DATE OF HEARING : 28.9.2016 / DATE OF PRONOUNCEMENT : 28.11.2016 ITA NO.205/VIZAG/2015 & CO 22/VIZAG/2015 PILLTLA PULLA RAO, VIJAYAWADA 2 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A), VIJAYAWADA DATED 30.3.2015 AND THE CROSS OBJECTION IS FILED BY THE ASSESSEE IN SUPPORT OF THE ORDER OF CIT(A), VIJAYAW ADA FOR THE ASSESSMENT YEAR 2009-10. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIV IDUAL FILED HIS RETURN OF INCOME BY DECLARING TOTAL INCOME OF ` 1,47,620/-. AS PER THE AIR INFORMATION THE ASSESSEE HAS MADE A CASH DEPOSIT OF ` 31,46,000/- IN ASSESSEES SAVINGS BANK ACCOUNT OF AXIS BANK. THE A.O. HAS ASKED THE ASSESSEE TO APPEAR AND SUBSTANTIATE HIS CASE. HOWE VER, THE ASSESSEE NEITHER APPEARED PERSONALLY NOR FILED ANY SUBMISSIO NS BEFORE THE A.O. THEREFORE, THE A.O. HAS TREATED THE AMOUNT DEPOSITE D IN THE AXIS BANK ACCOUNT AS UNEXPLAINED CASH CREDIT U/S 68 OF THE IN COME TAX ACT, 1961 (HEREINAFTER CALLED AS 'THE ACT') AND THE SAME IS A DDED BACK TO THE INCOME OF THE ASSESSEE. 3. ASSESSEE CARRIED MATTER IN APPEAL BEFORE THE LD. CIT(A). DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE H AS FILED A CONFIRMATION LETTERS FROM CASH DEPOSITORS WITH OTHE R DOCUMENTARY ITA NO.205/VIZAG/2015 & CO 22/VIZAG/2015 PILLTLA PULLA RAO, VIJAYAWADA 3 EVIDENCE SUCH AS FORMS OF REGISTRATION, NO OBJECTIO N CERTIFICATE FROM REGISTERING & LICENSING AUTHORITY, INSURANCE PAPERS PERTAINING TO VEHICLES DEALT WITH, ETC. THE LD. CIT(A) BY CONSID ERING THOSE DOCUMENTARY EVIDENCES, SHE CAME TO A CONCLUSION THA T SOME OF THE PARTIES HAVE CONFIRMED THAT THEY HAD MADE CASH DEP OSITS INTO THE BANK ACCOUNT OF THE ASSESSEE. FROM THE ABOVE ORDER OF T HE CIT(A), IT IS NOT CLEAR, WHICH PARTY HAS CONFIRMED AND THE AMOUNT BEL ONGING TO WHOM. IN FACT, WHEN THE CIT(A) CALLED FOR THE REMAND REPO RT, THE ASSESSING OFFICER SUBMITTED HIS REPORT BY STATING THAT THE AS SESSEE HAS NOT SUBMITTED ANY EVIDENCE RELATING TO SOURCE OF PARTIE S ON BEHALF OF WHOM THE AMOUNT IS DEPOSITED. EVEN THE LD. CIT(A) WITHO UT CONSIDERING THE RELEVANT EVIDENCE SIMPLY ALLOWED THE APPEAL FILED B Y THE ASSESSEE BY OBSERVING VAGUELY THAT SOME PARTIES MADE THE CASH D EPOSITS IN THE ACCOUNT OF THE ASSESSEE. UNDER THESE FACTS AND CIR CUMSTANCES OF THE CASE, I AM OF THE OPINION THAT THE ISSUE INVOLVED I N THIS APPEAL HAS TO BE EXAMINED AGAIN. THEREFORE, I SET ASIDE THE ORDER P ASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. TO EXAMINE THE CASH DEPOSIT OF ` 31,46,000/- THAT WHETHER IT BELONGS TO THE ASSESSE E OR TO THIRD PARTIES AND DECIDE IN ACCORDANCE WITH LAW AFTER GIVING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. ITA NO.205/VIZAG/2015 & CO 22/VIZAG/2015 PILLTLA PULLA RAO, VIJAYAWADA 4 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S PARTLY ALLOWED FOR STATISTICAL PURPOSES. 5. THE ASSESSEE HAS FILED CROSS OBJECTION IN SUPPOR T OF ORDER OF THE LD. CIT(A). IN VIEW OF THE REASONS RECORDED IN TH E PRECEDING PARAGRAPHS, THE CROSS OBJECTION FILED BY THE ASSESS EE BECOMES INFRUCTUOUS. THEREFORE, I DISMISS CROSS OBJECTION F ILED BY THE ASSESSEE AS INFRUCTUOUS. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 28 TH NOV16. SD/- ( . ) (V. DURGA RAO) /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 28.11.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-3(1), VIJAYAWADA 2. / THE RESPONDENT SRI PULLUTLA PULLA RAO, D.NO.24 -28-4/12, BHARATHI NILAYAM, GANAPATHI RAO STREET, ROKALLAPALEM, VIJAYA WADA-520 003. 3. ) / THE CIT, VIJAYAWADA 4. ) ( ) / THE CIT(A), VIJAYAWADA 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM