Arun Tallapalli Karanam , Hyderabad V. Income Tax Officer, Ward-12(4) , Hyderabad

ITA 208/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3268 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2016-2017
• Appeal Filed On: 17-02-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: NARAYANA MURTHY NAIK
• Section: 143(3); 201; 208; 22; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S. GODA R A, JUDICIAL MEMBER ITA NO. 208 /HYD./2020 ASSESSMENT YEAR: 201 6 - 17 SHRI ARUN TALLAPALLI KARANAM VS. ITO, WARD 12 (4) HYDERABAD HYDERABAD [PAN: AHRPT2823L ] (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI N. MOHAN KUMAR , AR FOR REVENUE : SH. NARAYANAMURTHY NAIK, D.R. DATE OF HEARING : 27/01/2021 DATE OF PRONOUNCEMENT : 22 /02/2021 O R D E R TH IS ASSESSEES APPEAL ARISE S AGAINST THE C OMMISSIONER OF INCOME TAX (APPEALS) - 1 [CIT(A)] HYDERABAD S ORDER DATED 23.08.2019 PASSED IN CASE NO. 10620/2018 - 19 /ITO 12(4)/CIT(A) - 1/HYD/2019 - 20 IN PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT THE ACT] FOR AY 201 6 - 17 . HEARD SHR I N. MOHAN KUMAR REPRESENTING THE ASSESSEE AND SHRI NARAYANAMURTHY NAIK, DR FOR D EPARTMENT. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES THE CORRECTNESS OF UNEXPLAINED BANK DEPOSITS OF RS.5,67,950/ - (INVOLVING NET AMOUNT OF RS. 3.77 LAKHS) ADDED IN THE COURSE OF ASSESSMENT AND AFFIRMED IN CIT(A)S ORDER PASSED EX PARTE. LEARNED COUNSEL STATED AT THE OUTSET THAT THE CIT(A) HAD NOT ENSURED SERVICE OF LOWER APPELLATE HEARINGS ITA NO. 208/HYD/2020 AY 2016 - 17 ARUN TALLAPALLI KARANAM 2 NOTICE (S) . HIS FURTHER CASE IS THAT THE ASSESSING OFFICER AND THE CIT(A) HAVE ERRED IN LAW AND ON FACTS IN MAKING UNEXPLAINED BANK DEPOSITS MADE I N CASH TO THE TUNE OF RS.3,76,528/ - DESPITE THE FACT THAT HE HAD SUFFICIENTLY PROVED TO BE OWNING AGRICULTURAL INCOME IN THE FAMILY MEMBERS NAMES. I FIND NO REASON TO EXPRESS MY AGREEMENT WITH ASSESSEES FOREGOING ARGUMENTS IN ENTIRETY. I AM OF THE VIEW THAT EVEN IF IT IS ACCEPTED THAT LOWER AUTHORITIES COULD N OT HAVE ACTUALLY SERVED NOTICE ON THE ASSE SS EE, THE FACT REMAINS THERE IS NO INDI C ATION EVEN IN ASSESSMENT ORDER AS TO WHETHER HE HAD FILED ANY RECORD S QUA SALES OF AGRICULTURAL PRO DUCE FROM LAND OWNED BY HIM OR HIS FAMILY MEMBERS. LEARNED DR ALSO FAILS TO DISPUTE THAT ASSESSEES FAMILY MEMBERS OWN SUFFICIENT CHUNKS OF AGRICULTURAL LAND S IN THE CORRESPONDING REVENUE ESTATE(S). I TAKE INTO ACCOUNT ALL THESE MITIGATING FACTS AND CIRCUMSTANCES AND H OLD THAT THE IMPUGNED NET ADDITION OF RS.3,76,528/ - IS LIABLE TO BE CONFIRMED ONLY TO THE EXTENT OF RS.76,528/ - . IT IS MADE CLEAR THAT THE T RIBUNALS INSTANT ESTIMATION SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER CASE . NECESSARY COMPUTATION TO BE FOLLOWED AS PER LAW. TH IS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN OPEN COURT ON 22 /02/2021. SD/ - (S.S. GODARA) JUDICIAL MEMBER DATED: 22 ND FEBRUARY, 2021 GMV ITA NO. 208/HYD/2020 AY 2016 - 17 ARUN TALLAPALLI KARANAM 3 COPY OF ORDER FORWARDED TO: 1. SRI ARUN TALLAPALLI KARANAM, F LAT NO. 401, ROHIWAL WINDSOR APARTMENT, HILL FORT ROAD, SAIFABAD, HYDERABAD 500 004 , TELANGANA. 2. ITO, WARD 12 (4) , HYDERABAD 3. ACIT, RANGE 12 , HYDERABAD 4. CIT(A) - 1 , HYDERABAD. 5. PR.CIT - 1 , HYDERABAD 6 D.R. ITAT HYDERABAD 7. GUARD FILE