K. Hemalatha.,Hyd, Hyderabad V. DCIT, Central Circle-2, Hyderabad

ITA 263/HYD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 53773 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 18-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: PVVS PRASAD
• Keywords: Unexplained cash credit; Source of fund
• Section: 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI CHANDRA POOJARI, A.M AND SMT. ASHA VIJAYARAGHAVAN,J.M ITA NO.263/HYD/2011 ASSESSMENT YEAR 2005-06 SMT. K. HEMALATHA, HYDERABAD. ( PAN AQLPL 6573 D) VS DCIT, CIR CLE - 2, HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PVVS PRASAD RESPONDENT BY : SHRI V. SRINIVAS DATE OF HEARING: 08-11-2011 DATE OF PRONOUNCEMENT: 16 -11-2011. O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED A GAINST THE ORDER OF THE CIT (A)-I, HYDERABAD DATED 27-12-2010 AND IT PERTAINS TO THE ASSESSMENT YEAR 2005-06. IN THIS APPEAL, THE ASSE SSEES GRIEVANCE IS WITH REGARD TO SUSTAINING OF ADDITION OF RS.8,40,50 0/- OUT OF RS.11,94,000/- MADE BY THE ASSESSING OFFICER UNDER SECTION 68 OF THE ACT. 2. BRIEF FACTS OF THE CASE ARE THAT CONSEQUENT TO A SEARCH OPERATION IN THE CASE OF SRI K. SRINIVASA RAO NOTICE UNDER SECTI ON 153C OF THE ACT ITA NO.263/HYD/2011- K. HEMALATHA, HYDERABAD. L.L ========================== 2 WAS ISSUED TO THE ASSESSEE IN RESPONSE TO WHICH THE ASSESSEE FILED A RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION A DMITTING A TOTAL INCOME OF RS.89,310/- AND AGRICULTURAL INCOME OF RS .1,26,500/-. IN COURSE OF THE ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAD SHOWN AN OPENING BALANCE OF RS.22, 94,430/- BEING CREDITED TO THE CAPITAL ACCOUNT. WHEN ASKED TO EXP LAIN THE SAME, THE ASSESSEE SUBMITTED THAT THE OPENING BALANCE MENTION ED IN THE CAPITAL ACCOUNT IS ACCUMULATED OVER A PERIOD OF MORE THAN 1 2 YEARS WHICH INCLUDES AN AMOUNT OF RS.11 LAKHS WHICH IS THE SALE PROCEEDS OF HER HOUSE AT KOVURU FOR WHICH THE SALE DEED HAD BEEN PR ODUCED. THE BALANCE AMOUNT OF RS.11,94,000/- INCLUDES ANNUAL AG RICULTURAL INCOME, TERMINAL BENEFITS RECEIVED ON DEMISE OF HER HUSBAND AND OTHER MISCELLANEOUS INCOME. THE ASSESSING OFFICER HOWEVE R DID NOT ACCEPT THE EXPLANATION IN FULL AND HE OBSERVED THAT THE ASSESS EE HAD NOT FILED ANY RETURN OF INCOME TILL ASSESSMENT YEAR 2004-05 AS SH E DID NOT HAVE ANY TAXABLE INCOME. THIS BEING THE CASE, THERE CANNOT BE ANY ACCUMULATED SAVINGS TO THE EXTENT OF RS.11,94,000/- AS CLAIMED. ACCORDINGLY, THE ASSESSING OFFICER MADE AN ADDITION OF RS.11,94,000/ - BEING UNEXPLAINED CASH CREDIT. AGGRIEVED AGAINST THE ORDER OF THE A SSESSING OFFICER, THE ASSESSEE WENT IN APPEAL BEFORE THE CIT (A). ON APPE AL, THE CIT (A) CONSIDERED THE AGRICULTURAL INCOME AS FOLLOWS:- ASST. YEAR AGRL. INCOME (RS.) 2002-03 1,12,800/- 2003-04 1,15,500 2004-05 1,25,200 ITA NO.263/HYD/2011- K. HEMALATHA, HYDERABAD. L.L ========================== 3 FOR THESE THREE ASSESSMENT YEARS, HE HELD THAT THE TOTAL AGRICULTURAL INCOME EARNED BY THE ASSESSEE IS AT RS.3,53,500/- A ND SUSTAINED THE BALANCE OF RS.8,40,500/-. FURTHER AGGRIEVED BY THE FINDINGS OF THE CIT (A), THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED B EFORE US A CHART WHICH READS UNDER:- STATEMENT OF LAND HOLDINGS OF K. HEMALATHA- ASSTT. YEARS 2004- 05 & 2005-06: S.NO. DOC.DATE & NO. PLACE OF PROPERTY SURVEY NO. AREA IN AC.GUNTAS PURCHASE VALUE (RS.) 1 16-6-99 VATTINAGULPALLY 225 10 AC. 356.711.00 2 25 - 9 - 00 MANIKONDA 124 14 GUNTAS 39,471.00 3 19-1-99 VATTINAGULPALLY 213 15 GUNTAS 25,251.00 4 29 - 3 - 04 - DO - 213(PART) 19 GUNTAS 46,485.00 5 26-6-99 NANAKRAMGUDA 95 1 AC. 223,271.00 6 15 - 3 - 04 VATTINAGULPALLY 203&204 21 GUNTAS 111,600.00 7 1999BEFORE NANAKRAMGUDA 173 3 AC.24 GUNTAS 212,621.00 8 -DO- POOPPATAGUDA 294/2 5 AC. 56,000.00 9 21-6-00 VATTINAGULPALLY 8 AC.6 GUNTAS 454,636.00 IT IS SUBMITTED THAT THE ASSESSEE EARNED AGRICULTUR AL INCOME FROM THE ASSESSMENT YEARS 2000-01 AND 2001-02 AND DUE CREDIT TOBE GIVEN BY THE AUTHORITIES FOR AGRICULTURAL INCOME. HE FURTHE R REQUESTED THAT ON THE TERMINAL BENEFITS RECEIVED BY THE ASSESSEE ON THE D EATH OF THE ASSESSEES HUSBAND, DUE WEIGHTAGE IS TO BE GIVEN. HE DREW OUR ITA NO.263/HYD/2011- K. HEMALATHA, HYDERABAD. L.L ========================== 4 ATTENTION TO THE COPY OF THE WILL DATED 16-10-1994 WRITTEN BY THE ASSESSEES HUSBAND SRI KESAVARAO AND ALSO SUBMITTED THAT THE OPENING BALANCE OF THE ASSESSEES CAPITAL ACCOUNT AVAILABL E AS ON 1-4-2004 AMOUNTING TO RS.22,94,430/- 4. ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPR ESENTATIVE RELIED ON THE ORDER OF THE CIT (A). 5. WE HAVE HEARD THE CONTENTIONS OF THE RIVAL PARTI ES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. AS FOR THE INFO RMATION FURNISHED BEFORE US, THE ASSESSEE OWNED AGRICULTURAL PROPERTY FROM THE FINANCIAL YEARS 199-2000 AND WE FEEL IT JUST AND APPROPRIATE TO CONSIDER THE AGRICULTURAL INCOME AT RS. 1 LAKH FOR ASSESSMENT YE AR 2000-01, RS.1,10,000/- FOR ASSESSMENT YEAR 2001`-02 AFTER TA KING INTO ACCOUNTS THE LANDS HOLDINGS OF THE ASSESSEE. AS SUCH, THE A SSESSEE WILL GET RELIEF OF RS.2,10,000 ON THIS COUNT. FURTHER, THE ASSESS EE HAS NOT PRODUCED ANY EVIDENCE FOR HAVING OTHER SOURCES OF INCOME BEF ORE US. IN VIEW OF THE ABOVE, WE DECLINE TO ENTERTAIN THE OTHER CLAIM OF THE ASSESSEE WITH REGARD TO OTHER SOURCES OF INCOME 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED IN PART. ORDER PRONOUNCED IN THE COURT ON 16 -11-2011 . SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (CHANDRA POOJARI) JUDICIAL MEMBER. ACCOUNTANT MEMBER. DT/- 16-11-2011. ITA NO.263/HYD/2011- K. HEMALATHA, HYDERABAD. L.L ========================== 5 COPY FORWARDED TO: 1. C/O PRASAD & PRASAD, CAS, 301, III RD FLOOR, M.J. T OWERS, ROAD NO.12,, BANJARA HILLS, HYDERABAD. 2. DCIT, CENTRAL CIRCLE-2, HYDERABAD. 3. CIT(A) - I , HYDERABAD. 4. CIT, AP, HYDERABAD. 5. THE D.R., ITAT, HYDERABAD. JMR*