Sri. G. Sivaramakrishna, Hyderabad V. ACIT, Central Cirlce-6, Hyderabad

ITA 235/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66585 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 14-02-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANJANA SAHU
• Assessee Lawyers: K SAI PRASAD
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.235/HYD/2012 ASSESSMENT YEAR 2006-07 SMT. G. SIVARAMA KRISHNA, -VS- ACIT, CENTRAL CIRCLE-6, HYDERABAD. HYDERABAD. PAN:ACAPG 4006C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K. SAI PRASAD RESPONDENTS BY : SMT. ANJANA SAHU (DR) DATE OF HEARING : 17-12-2012 DATE OF PRONOUNCEMENT: 31- 12-2012 ORDER PER CHANDRA POOJARI, A.M: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 21-12-2011 OF CIT (A)-V, HYDERABAD PERT AINING TO THE ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE RAISED A GROUND THAT THE CIT (A) ER RED IN CONFIRMING THE ADDITION U/S 68 OF THE ACT. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSEE FILED HIS RETURN OF IN COME FOR THE ASSESSMENT YEAR UNDER CONSIDERATION ON 9-2-2007 AD MITTING TOTAL INCOME OF RS.10,98,490/-. THE CASE WAS SELECTED FOR SCRUTINY BY THE AO. IT WAS NOTICED BY THE AO THAT THE ASSESSEE INTRODUCED CERTAIN CREDITS IN THE FOLLOWING PERSONS NAMES:- 1. SRI K. SUDHEER RS. 1,89,55,000 2. MS. K. HEMALATHA RS. 10,00,000 2 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. 3.MS. K.SARALA RS 15,00,000 4. SRI CHANDRASEKHAR RS.27,55,00 0 5. SRI G. SATISH RS.10, 00,000 6. MS.G. ARUNA RS.13,0 0,000 7. MS.G. JHANSI RANI RS. 64 ,480 8. SRI SITARAMAN RS.25,0 0,000 ------------------ TOTAL RS.2,90,74,480/- ------------------- THE AO REQUIRED THE ASSESSEE TO FURNISH CONFIRMATIO N LETTER FROM THE ABOVE MENTIONED PARTIES. THIS CASE WAS HEARD B Y THE AO ON 17-12-2008 AND LATER THIS WAS ADJOURNED TO 19-12-20 08 BY THE AO. THE ASSESSEE FURTHER ASKED FOR ADJOURNMENT. TH E CASE WAS AGAIN ADJOURNED TO 26-12-2008 BY THE AO. THE ASS ESSEE APPEARED BEFORE THE AO AND REQUESTED FOR FURTHER TI ME TO FURNISH THE REQUIRED INFORMATION. THE CASE WAS POSTED FOR H EARING N 29- 12-2008 BUT, THE ASSESSEE FAILED TO FURNISH ANY INF ORMATION. AS SUCH, THE AO MADE ADDITION TOWARDS UNEXPLAINED CRED IT U/S 68 OF THE ACT TO THE TUNE OF RS.2,90,74,480/-. AGGRIEVED AGAINST THE ORDER OF THE AO, THE ASSESSEE WENT IN APPEAL BEFORE THE CIT (A). THIS CASE WAS ORIGINALLY WITH THE CIT (A)-I, HYDERA BAD. BEFORE THE CIT (A), THE ASSESSEE FILED WRITTEN SUBMISSIONS STATING THAT HE COULD NOT PRODUCE CONFIRMATION LETTERS FROM THE SAI D CREDITORS AND THERE WERE CERTAIN MISTAKES IN THE FIGURES GIVEN WI TH RESPECT TO A FEW CREDITORS. THE THEN CIT (A) WROTE A LETTER TO THE AO ON 24-8- 2009 TO EXAMINE THE FACTS OF THE CASE AND TO SUBMIT A REMAND REPORT. THE ASSESSEE DID NOT PROVIDE THE DETAILS B EFORE THE AO WHICH WOULD ENABLE THE AO TO FURNISH A REMAND REPOR T BEFORE THE 3 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. CIT (A). IN THE MEANTIME, THE CASE WAS TRANSFERRED TO CIT (A)- VI, HYDERABAD WHO ALSO REQUESTED THE AO TO SEND REM AND REPORT. SINCE THE ASSESSEE HAS NOT PROVIDED ANY INFORMATION TO THE AO, THE AO WAS UNABLE TO SEND REMAND REPORT TO THE CIT (A). THEREAFTER IN FEBRUARY, 2011, THE CASE WAS TRANSFER RED TO THE JURISDICTION OF ADDL. CIT, RANGE-4, HYDERABAD. CON SEQUENTLY ON 30-9-2011, THE CONCERNED AO I.E., DCIT, CIR-4(1), H YDERABAD WROTE A LETTER TO THE ASSESSEE TO APPEAR BEFORE HIM TO PROVIDE THE REQUIRED INFORMATION REGARDING HIS CLAIM. NO SUCH INFORMATION WAS PROVIDED AND NO ONE APPEARED BEFORE HIM. AGAIN ON 18-10- 2011, ANOTHER LETTER WAS WRITTEN BY THE AO TO THE A SSESSEE TO APPEAR AND FURNISH INFORMATION TO ENABLE HIM SO TH AT REMAND REPORT COULD BE MADE. ON 25-10-2011, THE ASSESSED WROTE A LETTER TO THE DCIT,CIR-4(1), HYDERABAD REQUESTING F OR 15 DAYS TIME TO SUBMIT THE REQUIRED INFORMATION. THE INF ORMATION WAS NOT SUBMITTED IN SPITE OF THE TIME PROVIDED BY THE AO. FINALLY, ON 27-10-2011, THE ASSESSEE REQUESTED THE CIT (A) TO P ROVIDE 15 DAYS TIME TO SUBMIT THE REQUIRED INFORMATION. THE CIT (A) GRANTED ONE MONTH TIME FOR SUBMITTING THE REQUIRED INFORMATION AND NO INFORMATION WAS GIVEN TO THE AO EVEN BY 6-12 -2011. THE ASSESSING OFFICER THEREAFTER SENT A REMAND REPORT T O THE CIT (A) STATING THAT NO INFORMATION HAS BEEN PROVIDED BY TH E ASSESSEE. FINALLY, THE CIT (A) CONFIRMED THE ORDER OF THE AO. 3. AGGRIEVED AGAINST THE ORDER OF CIT (A), THE ASS ESSEE IS IN APPEAL BEFORE US. BEFORE US, THE ASSESSEE SUBMITTE D THAT ALL REQUIRED INFORMATION WAS SUBMITTED BEFORE THE AO AN D IN PROOF THEREOF, THE ASSESSEE HAS FILED A LETTER BEFORE US DATED 2-12-2012 WHICH IS REPRODUCED BELOW:- G. SIV A RAMA KRISHNA FLAT NO.101, 4 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. SAI SWAPNA RESIDENCY, ROAD NO.4, FILM NAGAR, JUBILEE HILLS, HYDERABAD-500 034. THE DY. CMMISSIONER OF INCOME-TAX, CIRCLE-4(1), HYDERABAD. SIR, SUB: CALLING FOR EXPLANATION IN CONNECTION WITH WRI TTEN SUBMISSIONS BEFORE CIT (A)-V, HYDERABAD. REF: 1) YOUR LETTER DATED 18-10-2011 2) OUR LETTER DATED 25-10-2011 WITH REFERENCE TO YOUR LETTER DATED 18-10-2011 (CIT ED ABOVE), CALLING FOR EXPLANATION IN CONNECTION WITH WRITTEN SUBMISSIONS BEFORE CIT (A)-V, HYDERABAD AGAINST THE ASSESSMENT ORDER U/S 143(3) F OR THE ASSESSMENT YEAR 2006-07, FURTHER TO MY LETTER DATED 25-10-2011, I H EREBY SUBMIT MY EXPLANATION AS UNDER. THE DETAILS OF UNSECURED LOANS FOR THE FINANCIAL YE AR 2005-06 ARE PROVIDED BELOW. S.NO. NAME OF THE LOAN CREDITOR ADDRESS PAN AMOUNT RECEIVED (RS.) 1. MR. K. SUDHEER PLOT NO.59, NANDAGIRI HILLS, JUBILEE HILLS, HYD. AOAPK7291P 97,55,000 2. MS.K. HEMALATHA 1-11 KONDAPUR, SERILINGAMPALLY, HYD. - 10,00,000 3. MS.K.SARALA PLOT NO.27/A, SITE-III ROAD NO.11, FILM NAGAR, JUBILEE HILLS, HYD. AAFPK8988G 15,00,000 4. MR.G.SATISH NEW MARUTHI NAGAR, KOTHAPET, DILSUKHNAGAR, HYD. AIVPG5008K 10,00,000 5. MS.G. ARUNA 6-3-609/145,FLAT AEVPG3591F 13,00,000 5 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. NO.504, AASHIYANA APARTMENTS, ANANDNAGAR COLONY, KHAIRATABAD, HYD. 6 MS.G . JHANSI RANI FLAT NO.10L, SAI SWAPNA AEFPG3793R 64 , 480 RESIDENCY , ROAD NO . 4, JUBILEE HILLS, HYDERABAD - 500 0 33 . 7 MR . SRINIVAS A N A - 18, HILL RIDGE VILLAS , A FZ PC3 565 J 7 2 , 27 , 5 00 CHANDRA S EKHAR GACHIBOW LI , HYDERABAD - 500 033 8 MR.SEETHARAMAN C/O MIRCO S OF T INDIA R&D PV T AT F PS1904 F 7 2,2 7,500 HARIKRISHNAN LTD, MICRSOFT CAMPU S , GACHIBOW LI, HYDERABAD - 500046 TOTAL 2,90,74,480 REGARDING THE PRESENT POSITION THE ABOVE UNSECURED LOANS, I HAVE MADE A GGREGATE REP A YMEN T S TO THE ABOVE PERSONS TO THE EXTENT OF RS . 2 , 44,29 , 480/ - A S AGAIN ST TH E TO T AL AM O U N T OF LO A N S TAKEN OF RS . 2 , 90,74 , 480/- AND THE BALANCE PAYABLE IS ONLY RS. 46 , 45,000/ - PRE S ENT P O SITION OF THE ABOVE UNSECURED LOANS WITH PERSON WISE DE T AILS OF LOAN S TAKEN AND RE PAID AR E PROV I D E D AS AN ANNEXURE HERETO FOR YOUR INFORMATION . I HAVE OBTAINED THE CONFIRMATION LETTERS FROM ALL T HE ABOVE LOAN CREDITORS FOR THE ASST.YEAR 2006-07, EXCEPT TWO PERSONS, MR.SRINI VASAN CHANDRASEKHAR & MR.SEETHARAMAN HARIKRISHNAN (STATED UNDER S.NO.7 & 8 ABOVE) WHO ARE NOW OUT OF INDIA . THE ORIGINAL CONFIRMATION LETTERS FROM THE REMAININ G CREDITORS ARE ENCLOSED HEREWITH. REGARDING AFORESAID TWO CREDITORS, WHOM I COULD NOT CONTACT NOW, I AM ENCLOSING THE COPIES OF THE CONFIRMATION LETTERS IS SUED BY THEM EARLIER AND THOSE ORIGINA L LETTERS WERE SUBMITTED TO THE DEPARTMENT. I HAVE RE CEIVED RS.72,27,500/- AS LOAN FROM EACH OF TH E SE TWO PERSONS. I AM ALSO ENCLOSING THE COPIES OF THE MY BANK ACCOUNTS EVIDENCING THE R ECEIPTS OF THE AMOUNTS AND ALSO MY REPAYMENTS TO THEM, SINCE I HAVE FULLY REPA ID THESE LOANS TO BOTH OF THEM THROUGH CHEQUES. THANKING YOU YOURS FAITHFULLY SD/- G. G.SIVA RAMAKRISHNA. 6 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. 4. THUS, THE ASSESSEE PLEADED BEFORE US THIS CASE MAY BE REMITTED BACK TO THE LOWER AUTHORITIES FOR FRESH CONSIDERATI ON. 5. ON THE OTHER HAND, THE LEARNED DR STRONGLY OPPOS ED THE CONTENTIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE AND CONTENDED THAT THE LETTER DATED 2/12/2011 DOES NOT BEAR ANY SIGNAT URE OR INWARD NUMBER AND IT SHOULD NOT BE RELIED UPON. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MAT ERIAL ON RECORD. AS SEEN FROM THE FACTS NARRATED ABOVE, THE ISSUE IS PERTAINED TO THE ASSESSMENT YEAR 2006-07, THE AO HAS PROVIDED VA RIOUS OPPORTUNITIES TO THE ASSESSEE TO SUBMIT THE REQUIRED INFORMATION WHILE COMPLETING THE ORIGINAL ASSESSMENT. LATER, THE CIT (A) HAS GIVEN A MPLE OPPORTUNITY TO THE ASSESSEE FOR SUBMITTING THE REQUIRED INFORMATIO N TO THE AO TO ENABLE HIM TO SEND THE REMAND REPORT AND DESPITE SUFFICIEN T OPPORTUNITY AFFORDED, THE ASSESSEE HAS NOT MADE ANY ATTEMPT TO PROVE THE GENUINENESS OF THE CREDITS SUCH AS THE IDENTITY OF THE PARTY, CREDITWORTHINESS OF THE PARTIES AND HIS CAPACITY TO LEND MONIES TO THE ASSESSEE. THE ASSESSEE FILED A COPY OF LETTER DATE D 2/12/2011 PURPORTED TO FILE BEFORE THE DCIT AND IT DOES NOT BEAR ANY S IGNATURE OR INWARD NUMBER AND THEREFORE AUTHENTICITY OF THE SAME IS V ERY MUCH DOUBTED. AFTER CONSIDERING TOTALITY OF FACTS AND THE CIRCUMS TANCES OF THE CASE, WE ARE OF THE VIEW THAT THE ASSESSEE HAS NOT DISCHAR GED HIS INITIAL ONUS WITH RESPECT TO THEN CREDITS. BEING SO, IN OUR OPIN ION, THERE IS NO INFIRMITY IN THE FINDINGS OF THE FIRST APPELLATE AU THORITY AND NO INTERFERENCE IS CALLED FOR. THE GROUNDS RAISED BY THE ASSESSEE ARE REJECTED. 7 ITA NO. 235 OF 2012 SRI G. SIVARAMAKRISHNA, HYD. 7. IN THE RESULT, WE UPHOLD THE ORDER OF THE CIT (A ) AND DISMISS THE APPEAL FILED BY THE ASSESSEE. ORDER PRONOUNCED IN THE COURT ON 31-12-2012. SD/- (SAKTIJIT DEY) JUDICIAL MEMBER SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 31 ST DECEMBER, 2012. COPY TO:- 1) C/O CH. PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, STREET NO.1, ASHOKNAGAR, HYDERABA D. 2) ACIT, CENTRAL CIRCE-6, HYDERABAD. 3)CIT (A)-V, HYDERABAD.. 4.THE CIT CONCERNED, HYDERABAD 5.THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERA BAD. JMR* AMOUNT RECEIVED (RS) 97,55,000 I T, ' ' R :R