Venkatapathi Raju Dhantuluri, Hyderabad V. Dy. Commissioner of Income Tax ,Central Circle-9, Hyderabad

ITA 207/Hyd/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9763 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 24-07-2019
• Assessment Year: 2003-2004
• Appeal Filed On: 30-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R S ARVIND DAKSHAN
• Keywords: Unexplained cash credit; Reassessment proceedings
• Section: 143(3); 201; 207; 147; 148; 12; 144; 68

Judgement Text

IN THE INCOME TAX A PPELLATE TRIBUNAL HYDERABAD BENCH SMC - B ', HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY , ACCOUNTANT MEMBER ITA NO. 207 / HYD/201 8 ASSESSMENT YEAR: 2003 - 04 VENKATAPATHI RAJU DHANTULURI, HYDERABAD. PAN ABPPD 8329R VS. DY. COMMISSIONER OF INCOME - TAX, CENTRAL CIRCLE 9, HYDERABAD. A PPELLANT RESPONDENT ASSESSEE BY: S H RI K.C. DEVDAS REVENUE BY: S HRI R.S. ARVIND DAKSHAN DATE OF HEARING: 24 / 0 7 / 201 9 DATE OF PRONOUNCEMENT: 19 / 0 9 /201 9 O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY THE ORDER OF CIT(A) 12, HYDERABAD DATED 15/11/2017 IN APPEAL NO. 2203/2011 - 12 PASSED U/S 144 RWS 147 AND 25 0(6) OF THE I . T . ACT. 2. THE ASSESSEE HAS RAISED SIX GROUNDS AND FOUR ADDITIONAL GROUNDS IN HIS APPEAL. HOWEVER, THE CRUXES OF THE ISSUES ARE THAT, I) LD. CIT(A) HAS FAILED TO NOTE THAT THE ENTIRE REASSESSMENT PROCEEDINGS OF A COMPLETED ASSESSMENT U/S 143(3) OF THE ACT WITHIN THE PERIOD OF 4 YEARS WAS WITHOUT JURISDICTION AND UNREASONABLE AND II) LD. CIT(A) HAS ERRED IN UPHOLDING THE ORDER OF LD. AO, WHO HAS MADE ADDITION OF RS. 2,66,000/ - U/S 68 OF THE ACT. 3. BRIEF FACTS OF THE CASE ARE THAT ASSESSEE IS AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR THE RELEVANT AY 2003 - 04 ON 26/09/2003 ADMITTING HIS TOTAL INCOME OF RS. 4,98,644/ - . SINCE THE ASSESSEE WAS A TRUSTED EMPLOYEE OF SRI B. RAMALINGA I.T.A. NO . 207 /HYD/1 8 VENKATAPATHI RAJU DHANTULURI, HYD. 2 RAJU, EX - CHAIRMAN OF M/S. SATYAM COMPUTER SERVICES LTD, AN ACCUSED IN CERTAIN SCAMS AND PU RSUANT TO THE EVENTS FOLLOWED THEREAFTER, WHEREIN SEVERAL IRREGULARITIES WERE NOTICED BY VARIOUS INVESTIGATING AGENCIES, THE CASE OF THE ASSESSEE WAS ALSO REOPENED BY ISSUANCE OF NOTICE U/S 148 OF THE ACT. 4. DURING THE COURSE OF SCRUTINY ASSESSMENT PRO CEEDINGS, IT WAS OBSERVED BY THE LD. AO THAT THE ASSESSEE HA D DEPOSITED CASH IN HIS ICICI BANK ACCOUNT AND BNP PARIBAS BANK ACCOUNT AGGREGATING TO RS. 12,39,788/ - . ON A QUERY, THE ASSESSEE IN HIS REPLY DATED 08/08/2011, HA D INTIMATED THAT HE WAS IN JUDICIA L CUSTODY AND, THEREFORE, SOUGHT TIME FOR FURNISHING THE DETAILS CALLED FOR. HOWEVER, SINCE THE ASSESSMENT WAS GETTING TIME BARRED, LD. AO ADDED THE ENTIRE AMOUNT OF RS. 12,39,788/ - IN THE HANDS OF THE ASSESSEE AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT . 5. ON APPEAL, LD. CIT(A) AFTER CONSIDERING THE EXPLANATION TENDERED BY THE ASSESSEE DELETED CERTAIN ADDITIONS. HOWEVER, WITH RESPECT TO THE ADDITION MADE FOR RS. 2,66,000/ - , THE LD. CIT(A) CONFIRMED THE SAME, THOUGH THE ASSESSEE HAS SUBMITTED CONFIRMATI ON LETTER FROM MR. M. SATYANARAYANA RAJU , FROM WHOM THE ASSESSEE HAS OBTAINED LOAN . 5.1 BEFORE THE CIT(A), THE ASSESSEE HAS EXPLAINED THAT HE HAD OBTAINED LOAN FROM MR. M. SATYANARAYANA RAJU, HIS CHILDHOOD FRIEND FOR RS. 2,66,000/ - AND ALSO FURNISHED CONFIRMATION STATEMENT . HOWEVER , THE LD. CIT(A) AGREED WITH THE VIEW OF THE LD. AO STATED IN THE REMAND REPORT THAT , THE SUBMISSION OF THE ASSESSEE IS NOT VERIFIABLE AS HE HAS NOT PROVIDED PAN DETAILS, OR THE RETURN OF INCOME FILED BY MR. M. SATYANARAYANA RAJU. I.T.A. NO . 207 /HYD/1 8 VENKATAPATHI RAJU DHANTULURI, HYD. 3 6. AGGRIEVED BY THE ORDER OF CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 7. BEFORE ME, LD. AR SUBMITTED THAT , WHEN THE ASSESSEE HAD FURNISHED THE CONFIRMATION STATEMENT FROM THE PERSON WHO ADVANCED LOAN TO THE ASSESSEE ALONG WITH HIS ADDRESS, IT WOULD HAVE BEEN APPROPRIATE ON THE PART OF THE REVENUE TO EXAMINE MR. M. SATYANARA YANA RAJU BEFORE COMING TO THE CONCLUSION THAT LOAN OBTAINED BY THE ASSESSEE IS BOGUS TRANSACTION . IT WAS, THEREFORE, PLEADED THAT SINCE THE REVENUE AUTHORITIES HAD NOT CARRIED OUT THEIR OBLIGATION IN THE APPROPRIATE MANNER , THE ADDITION MADE IN THE HANDS OF THE ASSESSEE FOR RS. 2,66,000/ - IS NOT SUSTAINABLE AND THE SAME MAY BE DELETED. 8. LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSION OF THE LD. AR AND FURTHER RELYING ON THE REMAND REPORT OF THE LD.AO PLEADED FOR CONFIRM ING THE ORDER OF LD. CIT(A). 9. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIAL ON RECORD. FROM THE FACTS OF THE CASE, IT IS CRYSTAL CLEAR THAT , THE ASSESSEE HA D FURNISHED BEFORE THE LD. CIT(A) IN THE APPELLATE PROCEEDINGS, THE CONFIRMATI ON STATEMENT FROM MR. M. SATYANARAYANA RAJU , WITH RESPECT TO THE LOAN OBTAINED FROM HIM. MOREOVER, IT ALSO APPEARS FROM THE REMAND REPORT OF THE LD.AO THAT , IN THE REMAND PROCEEDINGS THE LD.AO HA D NEITHER CROSS EXAMINED MR. M. SATYANARAYANA RAJU NOR EXAMIN ED/ VERIFIED THE LOAN TRANSACTION THOUGH THE ADDRESS OF MR. M. SATYANARAYANA RAJU WAS VERY MUCH AVAILABLE BEFORE HIM. FURTHER FROM THE ORDER OF THE LD.CIT(A) I T IS APPARENT THAT , HE HAD SUSTAINED THE ADDITION OF RS. 2,66,000/ - WITHOUT MAKING ANY FURTHER ENQ UIRY /EXAMINATION , WHICH IS NOT I.T.A. NO . 207 /HYD/1 8 VENKATAPATHI RAJU DHANTULURI, HYD. 4 APPROPRIATE . CONSIDERING THESE FACTS AND CIRCUMSTANCES OF THE CASE, I AM OF THE CONSIDERED VIEW THAT THE ADDITION MADE BY THE LD. AO, WHICH WAS FURTHER CONFIRMED BY LD. CIT(A) FOR RS. 2,66,000/ - TOWARDS THE LOAN RECEIVED BY THE ASSESSEE FROM HIS CHILDHOOD FRIEND MR. M. SATYANARAYANA RAJU IS ERRONEOUS. THEREFORE, I HEREBY DIRECT THE LD. AO TO DELETE THE ADDITION OF RS. 2,66,000/ - MADE IN THE HANDS OF THE ASSESSEE INVOKING THE PROVISIONS OF SECTION 68 OF THE ACT. 10. SINCE I HAVE DECIDED THE APPEAL OF THE ASSESSEE ON MERITS IN FAVOUR OF THE ASSESSEE, I DO NOT FIND IT NECESSARY TO ADDRESS THE ISSUE WITH RESPECT TO JURISDICTION AS IT WOULD BE ONLY ACADEMIC . 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 19 TH SEPTEMBER , 2019. SD/ - (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER HYDERABAD, DATED 19 TH SEPTEMBER , 201 9. KV COPY FORWARDED TO: 1. SRI VENKATAPATHI RAJU DHANTULURI, C/O SEKHAR & CO., 133/4, RASHTRAPATHI ROAD, SECUNDERABAD 500 003. 2 . DCIT, CENTRAL CIRCLE 9, HYDERABAD. 3 . C IT( A ) 1 2, HYDERABAD. 4. PR. CIT CENTRAL, HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE