ITO, Ward-5(1), Hyderabad, Hyderabad V. Krishna Mohan Reddy Nachukuru, Hyd, Hyderabad

ITA 212/HYD/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91714 (ITAT-HYDERABAD)
• Duration Of Justice: 45 year(s) 5 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-06-2015
• Appeal Filed By: Department
• Assessment Year: misc
• Appeal Filed On: 01-01-1970
• Court: TRIBUNAL
• Department Lawyers: RAJAT MITRA
• Keywords: Salary income; Corroborative evidences; Assessment record
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD BEFORE SHRI P. M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.212/HYD/2015 ASSESSMENT YEAR 2010-2011 THE INCOME TAX OFFICER WARD 5(1) HYDERABAD. VS. MR. KRISHNA MOHAN REDDY NACHUKURU, HYDERABAD. PAN AFZPN9342L (APPELLANT) (RESPONDENT) FOR REVENUE : MR. RAJAT MITRA FOR ASSESSEE : -NONE- DATE OF HEARING : 13.05.2015 DATE OF PRONOUNCEMENT : 03.06.2015 ORDER PER P.M. JAGTAP, A.M. THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-IV, HYDERABAD D ATED 29.12.2012. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDU AL WHO FILED HIS RETURN OF INCOME FOR THE YEAR UNDER C ONSIDERATION ON 09.12.2011 DECLARING TOTAL INCOME OF RS.1,19,680 UNDER THE HEAD INCOME FROM SALARY AND INCOME FROM HOUSE PR OPERTY. AS PER THE INFORMATION RECEIVED BY THE A.O, THE ASS ESSEE HAD DEPOSITED CASH OF RS.37,16,200 IN HIS BANK ACCOUNT MAINTAINED WITH ICICI BANK, BEGUMPET BRANCH, HYDERA BAD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A. O. REQUIRED THE ASSESSEE TO EXPLAIN THE SOURCE OF THE CASH DEPOSITED IN HIS BANK ACCOUNT WITH ICICI BANK WHICH WAS ACTUALLY FOUND TO BE RS.38,91,249 INSTEAD OF RS.37, 16,200. THE 2 ITA.NO.212/HYD/2015 MR. KRISHNA MOHAN REDDY, HYDERABAD. ASSESSEE HOWEVER FAILED TO OFFER ANY EXPLANATION DE SPITE SEVERAL OPPORTUNITIES AFFORDED BY THE A.O. IN THIS REGARD. IT WAS ALSO NOTICED BY THE A.O. THAT THE ASSESSEE HAS MAINTAINE D ANOTHER BANK ACCOUNT WITH SBI, HYDERABAD PUBLIC SCHOOL BRAN CH WHEREIN THERE WERE CASH DEPOSITS OF RS.20,12,800 AN D OTHER CREDITS AMOUNTING TO RS.12,10,958. THE ASSESSEE FAI LED TO OFFER ANY EXPLANATION AS REGARDS THESE DEPOSITS/CREDITS A LSO AGGREGATING TO RS.32,23,758 FOUND TO BE MADE IN HIS BANK ACCOUNT WITH SBI. THE A.O. THEREFORE TREATED CREDIT S APPEARING IN THE BANK ACCOUNT OF THE ASSESSEE WITH SBI AMOUNT ING TO RS.32,23,758 AND CREDITS/DEPOSITS AGGREGATING TO RS.63,31,119 IN THE BANK ACCOUNT OF THE ASSESSEE WI TH ICICI BANK AS UNEXPLAINED AND THESE AMOUNTS WERE ADDED BY HIM TO THE TOTAL INCOME OF THE ASSESSEE IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE ORDER DATED 28.03.2013. 3. AGAINST THE ORDER PASSED BY THE A.O. UNDER SECT ION 143(3), THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LD. CIT(A). DURING THE COURSE OF APPEAL PROCEEDINGS BEFORE THE LD. CIT(A), IT WAS POINTED OUT ON BEHALF OF THE ASSESSEE THAT S IMILAR CREDITS APPEARING IN HIS BANK ACCOUNT IN THE PREVIOUS YEAR RELEVANT TO A.Y. 2011-2012 HAVE BEEN TREATED BY THE A.O. AS THE TURNOVER OF THE BUSINESS OF THE ASSESSEE AND PROFIT FROM SUC H TURNOVER ESTIMATED AT 8% WAS ADDED TO THE TOTAL INCOME OF TH E ASSESSEE IN THE ASSESSMENT COMPLETED FOR A.Y. 2011-2012. KEE PING IN VIEW THIS SUBMISSION MADE BY THE ASSESSEE, THE ASSE SSMENT RECORDS PERTAINING TO A.Y. 2011-2012 WERE CALLED FO R AND PERUSED BY THE LD. CIT(A) AND AFTER HAVING FOUND FR OM SUCH PERUSAL THAT THE A.O. IN THE SIMILAR CIRCUMSTANCES HAS TREATED THE CREDITS IN THE BANK ACCOUNTS FOR THE ASSESSEE A S TURNOVER AND ESTIMATED PROFIT AT 8% THEREON IN A.Y. 2011-201 2, HE DIRECTED THE A.O. TO GIVE A SIMILAR TREATMENT TO TH E CREDITS 3 ITA.NO.212/HYD/2015 MR. KRISHNA MOHAN REDDY, HYDERABAD. APPEARING IN THE BANK ACCOUNTS OF THE ASSESSEE FOR A.Y. 2010- 2011 AND ESTIMATED THE PROFIT AT 8% ON SUCH TURNOVE R. 4. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUN AL ON THE FOLLOWING GROUNDS : 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS BOTH IN L AW AND FACTS OF THE CASE. 2. THE LD. CIT(A) OUGHT TO HAVE CONFIRMED THE ADDITION S MADE TOWARDS UNEXPLAINED CASH DEPOSITS AND CREDITS IN THE BANK ACCOUNTS OF SBI AND ICICI, AS THE SAME WERE NOT EXPLAINED BY THE ASSESSEE WITH SUPPORTING EVIDENCE DURING THE COURSE OF ASSESSMENT PROCEEDING S. 3. THE LD. CIT(A) IS ERRED IN LAW IN HOLDING THAT A.O. HAS TO ADOPT ESTIMATION OF INCOME AT CERTAIN PERCENTAGE IN ALL ASSESSMENT YEARS, IF HE HAS DONE THE SAME ESTIMATION FOR A PARTICULAR ASSESSMENT YEAR. 4. THE LD. CIT(A) ERRED IN UPHOLDING DISALLOWANCES MAD E ON THE BASIS OF SPECIFIC ISSUES IN THE RELEVANT ASSESSMENT YEAR AND DIRECTING THE A.O. TO ESTIMATE INCOME @ 8% ON THE TURNOVER OF RS.95,54,877 JUST BECAUSE THE A.O. HAS DONE THE SAME ESTIMATION FOR O NE ASSESSMENT YEAR. 5. THE LD. CIT(A) ERRED IN NOT APPRECIATING THAT THE I NCOME TAX ASSESSMENT PURPOSES, EVERY ASSESSMENT YEAR AS A SEPARATE ENTITY. 6. ANY OTHER GROUND THAT MAY BE RAISED DURING THE COUR SE OF APPEAL PROCEEDINGS. 5. AT THE TIME OF HEARING BEFORE US, NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. THIS APPEAL OF THE REVENUE IS THEREFORE BEING DISPOSED OF EX-PARTE QUA THE RES PONDENT- ASSESSEE AFTER HEARING THE ARGUMENTS OF THE LEARNED D.R. AND PERUSING THE RELEVANT MATERIAL ON RECORD. IT IS OBS ERVED THAT A SIMILAR ISSUE WAS INVOLVED IN ASSESSEES OWN CASE F OR A.Y. 2011-2012 AND AS FOUND BY THE LD. CIT(A) ON PERUSAL OF THE 4 ITA.NO.212/HYD/2015 MR. KRISHNA MOHAN REDDY, HYDERABAD. ASSESSMENT RECORDS FOR A.Y. 2011-2012, THE SIMILAR CREDITS APPEARING IN THE BANK ACCOUNTS OF THE ASSESSEE WERE TREATED BY THE A.O. HIMSELF AS ASSESSEES TURNOVER AND ADDITIO N WAS MADE ONLY TO THE EXTENT OF PROFIT FROM SUCH TURNOVER AS ESTIMATED AT 8%. ON THE BASIS OF THIS FINDING, THE LD. CIT(A) DI RECTED THE A.O. TO GIVE A SIMILAR TREATMENT TO THE CREDITS APP EARING IN THE BANK ACCOUNTS OF THE ASSESSEE BY TAKING THE SAME AS THE TURNOVER OF THE ASSESSEE AND RESTRICT THE ADDITION TO THE EXTENT OF PROFIT FROM SUCH TURNOVER ESTIMATED AT 8% AS DON E BY THE A.O. HIMSELF IN A.Y. 2011-2012. 6. AT THE TIME OF HEARING BEFORE US, THE LEARNED D.R. HAS NOT BEEN ABLE TO CONTROVERT/REBUT THE SPECIFIC FINDING RECORDED BY THE LD. CIT(A) ON PERUSAL OF THE ASSESS MENT RECORDS FOR A.YS. 2010-2011 AND 2011-2012 THAT THE RELEVANT FACTS INVOLVED IN BOTH THESE YEARS ARE MATERIALLY S IMILAR. WE THEREFORE FIND NO JUSTIFIABLE REASON TO INTERFERE W ITH THE IMPUGNED ORDER OF THE LD. CIT(A) DIRECTING THE A.O. TO ESTIMATE THE INCOME OF THE ASSESSEE ON ACCOUNT OF CREDITS FO UND IN HIS BANK ACCOUNTS IN THE SAME MANNER AS DONE IN A.Y. 20 11-2012 AND UPHOLDING THE SAME, WE DISMISS THE APPEAL OF TH E REVENUE. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ORDER PRONOUNCED IN THE OPEN COURT ON 03.06. 2015. SD/- SD/- (SAKTIJIT DEY) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 03 RD JUNE, 2015. VBP/- 5 ITA.NO.212/HYD/2015 MR. KRISHNA MOHAN REDDY, HYDERABAD. COPY TO 1. THE INCOME TAX OFFICER, WARD 5(1), ROOM NO.604, 6 TH FLOOR, AAYAKAR BHAVAN, HYDERABAD. 2. MR. KRISHNA MOHAN REDDY, NACHUKURU, H.NO.4-1- 1236/9, FLAT NO.603, GLENDLE RESIDENCY, KING KOTI R OAD, ABIDS, HYDERABAD. 3. COMMISSIONER OF INCOME TAX (APPEALS)-IV, HYDERAB AD. 4. COMMISSIONER OF INCOME TAX-IV, HYDERABAD. 5. D.R. I.T.A.T. B BENCH, HYDERABAD. 6. GUARD FILE