Singiri Srikanth Padmapriya, CHENNAI V. DCIT Non Corporate Circle 12(1), CHENNAI

ITA 2662/CHNY/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8613 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 1 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 07-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: HARI GOVIND
• Assessee Lawyers: SUSHMA HARINI
• Keywords: Unexplained cash credit

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , , ' BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 2662/CHNY/2017 / ASSESSMENT YEAR : 2013-14 SMT. SINGIRI SRIKANTH PADMAPRIYA, NO. 12, GOVINDAPPA NAICKEN STREET, CHENNAI 600 001. [PAN: AALPP 7763Q] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 12(1), CHENNAI 600 006. ( / APPELLANT) ( #$& /RESPONDENT ) ASSESSEE BY : SHRI. SUSHMA HARINI, ADVOCATE REVENUE BY : SHRI. HARI GOVIND, JCIT 0 /DATE OF HEARING : 03.12.2018 0 /DATE OF PRONOUNCEMENT : 12.12.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI IN ITA NO. 56/CIT(A)-13/2013-14 DATED 21.08.2017 FOR ASSESSMEN T YEAR 2013-14. :-2-: ITA NO.2662/CHNY/2017 2. SMT. SINGIRI SRIKANTH PADMAPRIYA, THE ASSESSEE, AN EMPLOYEE, RECEIVING SALARY FROM M/S. SSS ALLOYS PVT. LTD., IS ALSO HAVING INCOME FROM HOUSE PROPERTY AND CAPITAL GAINS AND INCOME FR OM OTHER SOURCES. WHILE MAKING THE ASSESSMENT FOR ASSESSMENT YEAR 201 3-14, THE ASSESSEE CLAIMED TO HAVE RECEIVED LOANS OF RS. ABOU T 54 LAKHS FROM SIX PERSONS. OUT OF WHICH, THE ASSESSEE SATISFACTORILY EXPLAINED THE CREDIT OF FIVE PARTIES. IN THE CASE OF HEMA JAIN, SINCE, SHE HAS NOT FURNISHED ANY RETURN FOR THE RELEVANT ASSESSMENT YEAR, HE ISS UED SUMMONS AND REQUIRED THE INSPECTOR TO SERVE IT. THE INSPECTOR FOUND THAT NO SUCH PERSONS RESIDING IN THE GIVEN ADDRESS. THE AO COMM UNICATED THIS FACT AND ON SCRUTINIZING THE BANK ACCOUNT OF HEMA JAIN, FOUND THAT JUST ONE DAY BEFORE THE DATE OF LOAN TO THE ASSESSEE, TWO SU MS OF RS. 3,50,000/- AND RS. 1,50,000/- WERE DEPOSITED AND THE NEXT DAY I.E., ON 04.10.2012 SHE ADVANCED RS. 5,00,000/- TO THE ASSESSEE. BUT F OR THIS TRANSACTION, THE AVERAGE BALANCE STANDING IN HER ACCOUNT STOOD A T JUST RS. 1173/-. SO, HE HELD THAT THE CREDITOR LACKS CREDITWORTHINES S AND IN THIS REGARD, RELYING ON THE JUDGMENTS OF THE HONBLE GUJARAT & D ELHI HIGH COURT DECISIONS VIZ., UMESH KRISHNANI VS. ITO (2013) 35 T AXMAN.COM 598 (GUJARAT) AND BLESSING CONSTRUCTION VS ITO (2013) 3 2 TAXMAN.COM 366 (GUJ) AND CIT VS YOUTH CONSTRUCTION (P) LTD (2014) 44 TAXMAN.COM 364 (DEL), HE ASSESSED THE CREDIT WHICH STOOD IN THE NA ME OF HEMA JAIN AT RS. 5,00,000/- AS AN UNEXPLAINED CASH CREDITS U/S. 68. AGGRIEVED, THE :-3-: ITA NO.2662/CHNY/2017 ASSESSEE FIELD AN APPEAL BEFORE THE CIT(A). THE CI T(A) DISMISSED THE APPEAL. 3. AGGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL MAINLY CHALLENGING THE ORDER OF THE CIT(A) ON THE GROUND T HAT ALTHOUGH ALL NECESSARY DOCUMENTS TO PROOF THE CREDITWORTHINESS O F CREDITOR SMT. HEMA JAIN WERE PRODUCED BEFORE THE LD. CIT(A), HE G ROSSLY ERRED IN HIS UNTENABLE CONCLUSION. 4. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. WE FIND THAT THE CIT(A) RECORDS THAT DUR ING THE APPEAL PROCEEDINGS THE ASSESSEE PRODUCED INCOME TAX COMPUT ATION STATEMENT FOR TOTAL INCOME FOR INCOME TAX PURPOSE IN THE CASE OF HEMA JAIN/PAN: AXZPJ2039E, COPY OF TRIAL BALANCE AS ON 31.03.2013, COPY OF CAPITAL ACCOUNT AND COPY OF PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED 31.03.2013 THE ASSESSEE ALSO PRODUCED CONFIRMATION LETTER FROM HEMA JAIN HAVING SHE ADVANCED SUM OF RS. 5,00,000/- TO T HE ASSESSEE. COPY OF PAN NUMBER AND COPY OF BANK ACCOUNT OF HEMA JAIN WITH VIJAYA BANK IS ALSO PRODUCED BEFORE THE APPEAL THE SAME HA S BEEN DULY CONSIDERED AND THE APPEAL ISSUE IS ADJUDICATED AS U NDER. :-4-: ITA NO.2662/CHNY/2017 5. IN THE FINDING, HE HAS NOT APPLIED MIND WITH REF ERENCE TO THE MATERIAL FURNISHED BY THE ASSESSEE. THE ASSESSEE H AS ALSO NOT PLACED THE COPIES OF THOSE DOCUMENTS. IN THE FACTS AND CI RCUMSTANCES, WE DEEM IT FIT TO REMIT THIS ISSUE BACK TO THE LD. CIT (A) FOR A FRESH EXAMINATION AND PASSING A SPEAKING ORDER. THE LD. CIT(A) IS AT LIBERTY TO SEEK APPROPRIATE REPORT FROM THE AO AND DECIDE T HE MATTER IN ACCORDANCE WITH LAW. 6. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 12 TH DAY OF DECEMBER, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 12 TH DECEMBER, 2018 JPV 0#6787 /COPY TO: 1. & / APPELLANT 2. #$& /RESPONDENT 3. : ) ( /CIT(A) 4. : /CIT 5. 7# /DR 6. = /GF