Sri Shaik Roshan Basha, Hyderabad V. The Income Tax Officer, Ward-6(4), Hyderabad

ITA 221/HYD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91729 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 11-06-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 22-02-2013
• Court: TRIBUNAL
• Department Lawyers: ANJALA SAHU
• Assessee Lawyers: K A SAI PRASAD

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER I.T.A. NO. 221/HYD/2013 ASSESSMENT YEAR: 2009-10 SRI SHAIK ROSHAN BASHA, BANJARA HILLS, HYDERABAD [PAN: AGNPB9250E] VS INCOME TAX OFFICER , WARD-6(4), HYDERABAD (APPELLANT) (RESPONDENT) FOR A SSESSEE : SHRI K.A. SAI PRASAD , AR FOR REVENUE : S MT. ANJALA SAHU , DR DATE OF HEARING : 1 1 - 0 6 - 201 5 DATE OF PRONOUNCEMENT : 30 - 06 - 2015 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-IV, HYDERABAD DATED 31-07-2012. THE ISSUE IN THIS APPEAL IS WITH REFERENCE TO AMOUN TS BROUGHT TO TAX BY THE ASSESSING OFFICER (AO) IN THE FORM OF CASH INTR ODUCED IN THE CAPITAL ACCOUNT. 2. BRIEFLY STATED, ASSESSEE FILED RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 4,18,160/- AND AGRICULTURAL INCOME. IN THE COURSE OF SCRUTINY ASSESSMENT, AO ENQUIRED ABOUT THE CASH DEP OSITS OF RS. 33,18,000/- AND RS. 10,26,000/- IN HIS BANK ACCOUNT WITH AXIS BANK AND HDFC BANK, KURNOOL. ASSESSEE FILED CASH FLOW S TATEMENT IN ORDER TO ITA NO. 221/HYD/2013 SRI SHAIK ROSHAN BASHA :- 2 -: EXPLAIN VARIOUS DEPOSITS AND SOURCES. AO NOTICED T HAT AN AMOUNT OF RS. 9,25,000/- WAS SHOWN AS CAPITAL INTRODUCED IN THE C ASH FLOW AND FURTHER NOTICED THAT THERE WAS NO EXPLANATION FOR THE MONEY S WITHDRAWN AND FUNDS TRANSFERRED. ACCORDINGLY, AN AMOUNT OF RS. 1 9,52,071/- WAS BROUGHT TO TAX AS UNEXPLAINED. BEFORE LD.CIT(A) IT WAS CONTENDED THAT ASSESSEE HAD SOURCES AND MADE EXPLANATION. LD.CIT( A) DID NOT AGREE. HE ACCORDINGLY CONFIRMED THE CASH FLOW AS WELL AS P EAK CASH DEFICIT OF RS. 4,71,182/-. ASSESSEE IS AGGRIEVED AND RAISED G ROUNDS BEFORE US ACCORDINGLY. 3. IT WAS THE SUBMISSION OF THE LD. COUNSEL THAT TH E AMOUNT INTRODUCED AS CAPITAL INTRODUCED IS NOTHING BUT REC OVERY OF DEBTORS OF EARLIER YEARS, WHICH WERE WRONGLY SHOWN AS CAPITAL INTRODUCED. HE SUBMITTED THAT THERE ARE DEBTORS IN THE EARLIER YEA RS AND THOSE AMOUNTS HAVE BEEN RECOVERED WHICH WAS WRONGLY STATED AS CAP ITAL INTRODUCED. WHEN ASKED ABOUT THE RELEVANT BALANCE SHEETS AND SU BSEQUENT BALANCE SHEET WHERE DEBTORS WERE NOT SHOWN, LD. COUNSEL PLA CED ON RECORD BALANCE SHEET OF THIS YEAR TO SUBMIT THAT THERE ARE VARIOUS DISCREPANCIES BETWEEN THE BALANCE SHEET FIGURES AND THE CASH FLOW FIGURES WHICH HE COULD NOT RECONCILE. IT IS SUBMITTED THAT THE MATT ER MAY BE RESTORED TO THE AO AFRESH FOR EXAMINATION WITH THE DOCUMENTS FI LED. LD. DR WHILE SUPPORTING THE ORDER OF CIT(A), HOWEVER, COULD NOT RECONCILE THE AMOUNTS. 4. SINCE WE HAVE NOTICED CERTAIN DISCREPANCIES BETWEEN THE AMOUNTS IN THE BALANCE SHEET AND CAPITAL ACCOUNT SHOWN IN T HE BALANCE SHEET FILED BEFORE US AND THE AMOUNTS SHOWN IN THE CASH F LOW STATEMENT BEFORE THE AO, WE ARE ALSO NOT IN A POSITION TO ACCEPT ASS ESSEE'S CONTENTIONS AS WELL AS AO'S ACTIONS. IN THE CAPITAL ACCOUNT DRAWI NGS WERE SHOWN AS RS. 1,20,000/- WHEREAS IN THE CASH FLOW STATEMENT, MONT HLY FAMILY ITA NO. 221/HYD/2013 SRI SHAIK ROSHAN BASHA :- 3 -: WITHDRAWALS WERE SHOWN AT RS. 20,000/- PER MONTH. THERE ARE OTHER VARIATIONS ALSO IN THE ACCOUNTS. THEREFORE, WITHOU T CONSIDERING THE OBJECTIONS RAISED BY ASSESSEE, WE ARE OF THE OPINIO N THAT THE ENTIRE ASSESSMENT IS TO BE RE-EXAMINED BY THE AO AFRESH AN D ALSO TO CONSIDER WHETHER ANY OF THE DEBTORS HAVE BEEN RECOVERED BY A SSESSEE AS CONTENDED BEFORE US. HOWEVER, WE MAKE IT CLEAR THA T ASSESSEE HAS NOT RAISED ANY OBJECTION WITH REFERENCE TO NOTICE U/S. 143(2) NOR WITH REFERENCE TO THE OBJECTION THAT BANK ACCOUNT CANNOT BE CONSIDERED AS BOOKS OF ACCOUNT. THESE TWO WERE ALREADY DECIDED B Y THE LD.CIT(A) AND SHOULD NOT BE RE-AGITATED. AO IS DIRECTED TO EXAMI NE ALL THE STATEMENTS, BALANCE SHEET AND OTHER STATEMENTS FILED ALONG WITH RETURN NOT ONLY IN THIS YEAR BUT ALSO IN EARLIER YEARS AND ALSO LATER YEAR AND DECIDE THE ISSUE ACCORDINGLY AFRESH. ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY TO EXPLAIN. ASSESSEE IS ALSO DIRECTED TO FURNISH NECE SSARY INFORMATION SO AS TO GET THE TRANSACTIONS EXAMINED BY THE AO. WITH T HESE OBSERVATIONS AND DIRECTIONS, ORDER OF AO AND CIT(A) ARE SET ASID E AND THE ENTIRE ASSESSMENT IS RESTORED TO THE FILE OF AO TO DO IT A FRESH AS PER THE PROVISIONS OF LAW AND FACTS. 5. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH JUNE, 2015. SD/- SD/- (ASHA VIJAYARAGHAVAN) (B. RAM AKOTAIAH) JUDICIAL MEMBER ACC OUNTANT MEMBER HYDERABAD, DATED 30 TH JUNE, 2015 TNMM ITA NO. 221/HYD/2013 SRI SHAIK ROSHAN BASHA :- 4 -: COPY TO : 1. SRI SHAIK ROSHAN BASHA, PLOT NO. 28, A.K. ENCLAV E, PHASE-II, GROUND FLOOR-G3, ROAD NO.3, BANJARA HILLS, HYDERABA D. C/O. CH. PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST. NO.1, ASHOK NAGAR, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-6(4), HYDERABAD. 3. CIT(APPEALS)-IV, HYDERABAD. 4. CIT-III, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.