K Balachandra Reddy, Nellore V. ACIT, Nellore

ITA 208/HYD/2010

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 3308 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-05-2010
• Assessment Year: 2006-2007
• Appeal Filed On: 10-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: R V SESHAIAH NAIDU
• Keywords: Additional evidence
• Section: 208

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI G.C. GUPTA, V.P AND SHRI AKBER BASHA ,AM ITA NO.208/HYD/10 : ASSTT. YEAR 2006-07 K. BALACHANDRA REDDY, -V- ACIT, COMPANY CIR- 1, NELLORE NELLORE PAN: ALPPK 0653H (APPLICANT) (RESPON DENT) ITA NO.285/HYD/10 : ASST. YEAR 2006-07 ACIT, COMPANY CIR-1, K. BALACHANDRA REDDY, NELLORE. NELLORE. PAN: ALPPK 0653H (APPELLANT) (RESPONDENT) ASSESSEE BY : SRI R.V. SESHAIAH NAIDU DEPARTMENT BY : SRI K.V.N. CHARYA ORDER PER AKBER BASHA, ACCOUNTANT MEMBER: THESE CROSS APPEALS ARE DIRECTED AGAINST THE ORDE R OF THE CIT (A), GUNTUR DATED 27-11-2009 PERTAINING ASSESSMENT YEAR 2006-07. 2. AT THE OUTSET, WE FIND THAT THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED ADDITIONAL EVIDENCE I.E. LETTER FROM SRI VENUGOPALA SWAMY DEVASTHANAM, NELLORE DATED 17-4-2006 STATING THAT S RI VENKATA RAMANA REDDY, CONTRACTOR AND OTHERS HAD PAID NEAR ABOUT RS .3,71,97,000 IN THE SHAPE OF DEMAND DRAFTS AND CASH WHICH HAS BEEN ADJU STED IN ASSESSEE'S ACCOUNT ACCORDING TO HIS REQUEST. THIS EVIDENCE I S PLACED AT PAGE-8 OF THE ASSESSEE'S PAPER BOOK WHICH WAS NEITHER PRODUCED BE FORE THE ASSESSING OFFICER NOR BEFORE THE APPELLATE AUTHORITY. IN OUR VIEW, TH IS ADDITIONAL EVIDENCE GOES TO ITA NOS. 208 AND 285/HYD/10 K. BALACHANDRA REDDY, NELLORE. 2 THE ROOT OF THE MATTER. UNDER THESE CIRCUMSTANCES, WE FEEL IT PROPER AND JUST TO RESTORE THE ISSUE OF ADDITION MADE ON ACCOUNT OF UN EXPLAINED CASH CREDIT OF RS.3,71,97,000 TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. SINCE THE MAIN ISSUE WAS SET A SIDE TO THE FILE OF THE ASSESSING OFFICER, OTHER GROUNDS RELATING TO ADDITI ON ON ACCOUNT OF TRADE EXPENSES AND INTEREST PAYMENTS ALSO RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR FRESH CONSIDERATION IN ACCORDANCE WITH LAW. 3. SIMILARLY, THE GROUND RAISED BY THE REVENUE CONT ENDING THAT THE CIT (A) ERRED IN ALLOWING RELIEF TO THE TUNE OF RS.22,90,00 0 FROM THE ADDITION MADE TOWARDS OTHER CREDITORS WHICH ARE UNEXPLAINED, IN V IEW OF OUR DECISION IN ASSESSEE'S APPEAL, THIS ISSUE IS ALSO RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RECONSIDERATION IN ACCORDANCE WITH LAW. 4. FOR STATISTICAL PURPOSE, BOTH THE APPEALS OF THE ASSESSEE AS WELL AS REVENUE ARE TREATED AS ALLOWED. ORDER WAS PRONOUNCED IN THE COURT ON 18-5-2010. SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT ACCOUNTANT MEMBER. DATED: 18-5-2010 . COPY FORWARDED TO: 1. SRI R.V. SESHAIAH NAIDU, ADVOCATE & TAX CONSULTA NT, NO.12/82, OLD HOSPITAL ROAD, NELLORE. 2. ACIT, CIR-I, NELLORE. 3. COMMISSIONER OF INCOME TAX (A), GUNTUR. 4. COMMISSIONER OF INCOME TAX, AP, HYDERABAD. 5. THE D.R., ITAT, HYDERABAD. JMR