Gnaneswari Maduri, Hyd, Hyderabad V. ITO, Ward-8(3), Hyd, Hyderabad

ITA 275/HYD/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 6261 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 23-06-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 09-03-2016
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER I.T.A. NO. 275/HYD/2016 ASSESSMENT YEAR: 2009-10 GNANESWARI MADURI, HYDERABAD [PAN: AFXPM1051K] VS INCOME TAX OFFICER, WARD-8(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.C. DEVDAS, AR FOR REVENUE : SHRI K.J. RAO, DR DATE OF HEARING : 25-07-2016 DATE OF PRONOUNCEMENT : 27-07-2016 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-2, HYDERABAD, DATED 14-12-2015. 2. AT THE OUTSET, LD. COUNSEL SUBMITTED THAT THE ORDER BY TH E ASSESSING OFFICER (AO) AS WELL AS BY THE CIT(A) ARE EX-PARTE AS ASSESSEE COULD NOT APPEAR BEFORE THE AUTHORITIES. IT WAS SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO ASSESSEE TO SUBMIT THE DETAILS ITA NO. 275/HYD/2016 :- 2 -: WITH REFERENCE TO THE DEPOSITS IN THE SB A/C WITH ICICI BANK. CONSIDERING THE SUBMISSION OF ASSESSEE, WE ARE OF TH E VIEW THAT ASSESSEE SHOULD BE GIVEN ONE MORE OPPORTUNITY TO EXP LAIN THE DEPOSITS IN THE BANK ACCOUNT WHICH ARE TREATED AS INC OME. 3. IT IS NOTICED THAT AO HAS TREATED 50% OF THE CASH DEPO SITS AS INCOME. THE STATUTE SPECIFIES THAT UNEXPLAINED CREDITS A RE TO BE TREATED AS INCOME. THE BASIS OF TREATING FIFTY PERCENT OF DEPOSITS AS INCOME MAY NOT BE CORRECT AS PER LAW. LD. CIT(A) DIS MISSED THE APPEAL INVOKING THE POWERS GIVEN TO THE COURT FOR DISM ISSAL OF APPEALS IF ASSESSEE IS NOT PROSECUTING THEM. IN OUR O PINION, CIT(A) DOES NOT HAVE THE INHERENT POWER TO DISMISS THE APPEAL AS SECTION 251(1) OF IT ACT CLEARLY SPECIFIES THAT IN AN APPEAL A GAINST AN ORDER OF ASSESSMENT, HE MAY CONFIRM, REDUCE, ENHANCE OR AN NUL THE ASSESSMENT, BUT CANNOT DISMISS THE APPEAL FOR NON-PROSE CUTION. IN VIEW OF THIS, WE ARE OF THE OPINION THAT ORDER OF CIT( A) CANNOT BE UPHELD FOR THAT REASON. 4. AS ASSESSEE HAS NOT REPRESENTED BEFORE THE AO AND CIT(A) IN SPITE OF GIVING SUFFICIENT NOTICES, WE ARE OF THE OPIN ION THAT COSTS SHOULD BE LEVIED ON ASSESSEE FOR THE DEFAULT. WE LEV Y COST OF RS. 5,000/- TO BE PAID TO PRIME MINISTERS RELIEF FUND BY ASSESSEE ON OR BEFORE 31 ST OCTOBER, 2016. COPY OF PAYMENT IS TO BE MARKED TO THE AR, ITAT, HYD. AO IS ALSO DIRECTED TO SERVE THE N OTICES AND IF THERE IS NO PROPER COMPLIANCE, CAN INITIATE NECESSARY PENALTY PROCEEDINGS FOR NON-COMPLIANCE. HOWEVER, WE MAKE I T CLEAR THAT ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY TO MAKE SUBMISSIONS IN THIS REGARD BEFORE COMPLETING THE ASS ESSMENT. AO IS DIRECTED TO DECIDE AFRESH ON THE BASIS OF FACTS AN D LAW. THE ORDERS OF THE AO AND CIT(A) ARE ACCORDINGLY, SET ASI DE. WITH THESE ITA NO. 275/HYD/2016 :- 3 -: OBSERVATIONS AND DIRECTIONS, APPEAL IS ALLOWED FOR STA TISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH JULY, 2016 SD/- SD/- (LALIET KUMAR) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 27 TH JULY, 2016 TNMM COPY TO : 1. GNANESWARI MADURI, H.NO. 8-82/1, SRINIVAS A COLONY, R C PURAM, MEDAK DIST., HYDERABAD. 2. INCOME TAX OFFICER, WARD-8(3), HYDERABAD. 3. COMMISSIONER OF INCOME TAX(APPEALS)-2, HYDERABAD , 4. THE PR. COMMISSIONER OF INCOME TAX-2, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.