Sri Badarla Deva Dass, Vijayawada V. The ITO Ward-2(4) Vijayawada, Vijayawada

ITA 229/VIZ/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 56803 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 13-06-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D KOMALI KRISHNA
• Section: 68

Judgement Text

ITA NO 229 OF 2011 BADRALA DEVA DAS VIJAYAWADA PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.229/VIZAG/2011 ASSESSMENT YEAR: 200 6 - 07 BADARLA DEVA DAS, VIJAYAWADA VS. ITO WARD-2(4) VIJAYAWADA (APPELLANT) PAN NO.AHEPD 8445 R (RESPONDENT) APPELLANT BY: SHRI G.V.N. HARI, CA RESPONDENT BY: SMT. D. KOMALI KRISHNA, SR.DR DATE OF HEARING: 10-08-2011 DATE OF PRONOUNCEMENT: 23-08-2011 ORDER PER SHRI B.R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 31.03.2011 PASSED BY THE LD CIT (A) VIJAYAWADA AND IT RELATES TO THE ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE IS CHALLENGING THE ADDITION OF RS.4 .00 LAKHS MADE UNDER SECTION 68 OF THE ACT RELATING TO CASH CREDIT. 3. THE FACTS RELATING TO THE ISSUE BEFORE US ARE SE T OUT IN BRIEF. THE ASSESSEE FILED HIS RETURN OF INCOME FOR THE YEAR UNDER CONSI DERATION DECLARING A TAXABLE INCOME OF ` 1,08,329/-. THE ASSESSEE DID NOT ENCLOSE ANY PROFIT & LOSS A/C OR BALANCE SHEET WITH THE RETURN OF INCOME. THE ASSESS EE DID NOT ALSO RESPOND TO VARIOUS NOTICES ISSUED BY THE ASSESSING OFFICER. T HE ASSESSING OFFICER NOTICED THAT THE ASSESSEE IS MAINTAINING A BANK ACCOUNT WIT H STATE BANK OF INDIA AND ACCORDINGLY PROCEEDED TO COLLECT THE DETAILS OF DEP OSITS MADE BY HIM IN THAT BANK ACCOUNT. THE ASSESSING OFFICER NOTICED THAT THE ASS ESSEE HAD DEPOSITED ` 7,55,837/- IN THE SAID BANK ACCOUNT DURING THE YEAR UNDER CONSIDERATION. IT ALSO CAME TO THE KNOWLEDGE OF THE ASSESSING OFFICER THAT THE ASSESSEE HAD DEPOSITED ITA NO 229 OF 2011 BADRALA DEVA DAS VIJAYAWADA PAGE 2 OF 4 AN AGGREGATE AMOUNT OF ` 17,74,000/- IN ING VYSYA BANK AND ` 15,59,500/- IN HDFC BANK. ACCORDINGLY, THE ASSESSEE WAS ASKED TO EXPLAIN ABOUT THESE DEPOSITS. IN RESPONSE THERETO, THE ASSESSEE FURNISH ED A CASH BOOK COPY, WHEREIN ALL THE BANK TRANSACTIONS WERE DULY REFLECTED. TH E ASSESSING OFFICER FURTHER ASKED THE ASSESSEE TO EXPLAIN VARIOUS TRANSACTIONS IN THE SAID CASH BOOK. HOWEVER, THE ASSESSEE FILED A BALD REPLY WITHOUT FU RNISHING ANY DETAILS. ACCORDINGLY THE ASSESSING OFFICER PROCEEDED TO COMP UTE THE TOTAL INCOME OF THE ASSESSEE ON THE BASIS OF AVAILABLE INFORMATION. THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS SHOWN INITIAL CASH BALANCE OF ` 15,000/- IN THE CASH BOOK EXTRACT AND ON THE FIRST DAY OF THE ACCOUNTING YEAR, I.E., ON 1.4.2005, THE ASSESSEE HAD INTRODUCED A SUM OF ` 4.00 LAKHS IN THE NAME OF HIS WIFE SMT. V. RAGHAVAM MA AS LOAN. SINCE THE ASSESSEE DID NOT PRODUCE ANY EVIDE NCE IN SUPPORT OF THE SAID LOAN, THE ASSESSING OFFICER ADDED THE SAME AS UNPRO VED CASH CREDIT UNDER SECTION 68 OF THE ACT. IN THE SIMILAR MANNER THE ASS ESSING OFFICER MADE VARIOUS ADDITIONS AND FINALLY DETERMINED THE INCOME AT ` 22,37,330/-. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE CIT (A). H OWEVER, BEFORE THE LD CIT (A), THE ASSESSEE SOUGHT HIS PERMISSION TO WITHDRAW THE GROUND RELATING TO THE ADDITION OF ` 4.00 LAKHS, I.E. THE ADDITION PERTAINING TO THE LOA N TAKEN FROM HIS WIFE SMT. V. RAGHAVAMMA. ACCORDINGLY THE LD CIT (A ) PERMITTED TO WITHDRAW THE SAID GROUND AND ACCORDINGLY DISMISSED THE SAME. NO W THE ASSESSEE IS IN APPEAL BEFORE US ON THE VERY SAME GROUND, WHICH HE WITHDRE W BEFORE THE LD CIT (A). 4. THE LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT T HE IMPUGNED ADDITION HAS BEEN MADE U/S 68 OF THE ACT. HE FURTHER SUBMITTED THAT THE IMPUGNED ADDITION CANNOT BE MADE UNDER SECTION 68 OF THE ACT, SINCE T HE ASSESSEE DID NOT MAINTAIN ANY BOOKS OF ACCOUNT. HE CONTENDED THAT THE IMPUGN ED GROUND COULD BE URGED BEFORE THE TRIBUNAL, EVEN IF IT HAD BEEN WITHDRAWN BEFORE THE LD CIT (A), SINCE IT PERTAINS TO A LEGAL ISSUE. ON THE OTHER HAND THE L D DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE DOES NOT HAVE THE RIGHT TO URGE THE VERY SAME GROUND BEFORE THE TRIBUNAL, SINCE HE HAD CONCEDED T HE SAID GROUND BEFORE THE LD CIT (A). ON MERITS, THE LD DEPARTMENTAL REPRESENTA TIVE SUBMITTED THAT THE ASSESSEE HAS FILED A CASH BOOK BEFORE THE ASSESSING OFFICER AND HENCE THE ITA NO 229 OF 2011 BADRALA DEVA DAS VIJAYAWADA PAGE 3 OF 4 ASSESSING OFFICER IS RIGHT IN LAW IN MAKING THE IMP UGNED ADDITION U/S 68 OF THE ACT. 5. FROM THE ASSESSMENT ORDER, WE NOTICE THAT THE AS SESSEE HAS PREPARED A CASH BOOK REFLECTING ALL THE TRANSACTIONS CARRIED T HROUGH THE BANK ACCOUNTS MAINTAINED BY THE ASSESSEE. THERE IS NO DISPUTE TH AT THE ASSESSEE HAS SHOWN THE IMPUGNED LOAN OF ` 4.00 LAKHS, CLAIMED TO HAVE BEEN RECEIVED FROM HIS WIFE SMT. V. RAGHAVAMMA, IN THE SAID CASH BOOK. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF THE ASSESSING OFFICER IN INVOKIN G THE PROVISIONS OF SEC. 68 OF THE ACT FOR MAKING THE IMPUGNED ADDITION. THE CONT ENTION OF THE ASSESSEE THAT A GROUND, WHICH WAS ALREADY WITHDRAWN BEFORE THE LEAR NED CIT(A) COULD AGAIN BE URGED BEFORE THE TRIBUNAL IF IT INVOLVES A LEGAL IS SUE IS NOT SUPPORTED BY ANY CASE LAW. HENCE WE ARE UNABLE TO AGREE WITH THE SAID PR OPOSITION URGED BEFORE US. 6. ACCORDINGLY, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 23 RD AUGUST, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:23-08-2011 COPY TO 1 SHRI BADARLA DEVA DAS, 28-10-27 MOSQUE STREET, SA I MANASA APARTMENTS, ARUNDALPET, VIJAYAWADA 520 002 2 THE ITO WARD-2(4), VIJAYAWADA 3 4. THE CIT VIJAYAWADA THE CIT(A), VIJAYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL ITA NO 229 OF 2011 BADRALA DEVA DAS VIJAYAWADA PAGE 4 OF 4 VISAKHAPATNAM