Mothukuri Srinivasa Rao, VIJAYAWADA V. The Asst.Commissioner of Income Tax, Circle-2(1), Vijayawada

ITA 298/VIZ/2024

• Counselvise Citation: [2024] 130 COUNSELVISE.COM (IT) 5123 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 01-09-2024
• Assessment Year: 2016-2017
• Appeal Filed On: 25-07-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: WAYOFEMAILINITBAMODULE.THEREAFTER; OBSERVINGTHATASSESSEEHASNOTFILEDANY

Judgement Text

आयकरअपीलीयअधिकरण,धिशाखापटणमपीठ,धिशाखापटणम INTHEINCOMETAXAPPELLATETRIBUNAL VISAKHAPATNAMBENCH,VISAKHAPATNAM शीद ु व्वआरएलरेडी,नाधयकसदसएिंशीएसबालाकृष्,लेखासदसकेसमक BEFORESHRIDUVVURURLREDDY,HON’BLEJUDICIALMEMBER & SHRISBALAKRISHNAN,HON’BLEACCOUNTANTMEMBER आयकरअपीलसं./I.T.A.No.298/VIZ/2024 (निर्धररवरध/AssessmentYear:2016-17) MothukuriSrinivasaRao D.No.54-28/1-48,Flat.No.305 RidgeGrandeuerApartment Road.No.2,CommercialTaxesColony AutoNagar,KrishnaDistrict AndhraPradesh-520007 [PAN:ADPPM5568D] v.TheAsst.CIT-Circle-2(1) CRBuilding,1stFloorAnnex MGRoad,KrishnaDistrict AndhraPradesh-520002 (अपीलार्/Appellant)(प्र्/Respondent) करद्त्क्पनतनिनरध/AssesseeRepresentedby :M.V.Prasad,AR र्जसक्पनतनिनरध/DepartmentRepresentedby :Dr.AparnaVilluri,Sr.AR सुिव्ईसम्पहोिेकीनतनि /DateofConclusionofHearing :02.09.2024 घोरर्कीत्रीख/DateofPronouncement :05.09.2024 आदेश/ORDER PERSHRIDUVVURURLREDDY,JUDICIALMEMBER: 1.ThisappealisfiledbytheassesseeagainsttheorderofLearned CommissionerofIncomeTax(Appeals),[hereinafterinshort“Ld.CIT(A)”], I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.2 NationalFacelessAppealCentre(NFAC),DelhiinDIN&OrderNo. ITBA/NFAC/S/250/2024-25/1065213549(1)dated29.05.2024arisingoutof orderpassedUndersection143(3)oftheIncomeTaxAct,1961(inshort‘Act’) dated24.12.2018fortheA.Y.2016-17. 2.Brieflystatedfactsofthecasearethat,assesseeis,anIndividual,doing retailbusinessunderthenameandstyleofVaishnaviCommercialCorporation, filedhisreturnofincomefortheA.Y.2016-17on17-10-2016declaringtotal incomeofRs.39,83,030/-andagriculturalincomeofRs.19,14,000/-. Subsequently,thecasewasselectedforlimitedscrutinyunderCASStoexamine whethersundrycreditorsaregenuineandwhetherthesharecapitalisgenuineand fromdisclosedsources.Accordingly,noticesundersection143(2)and142(1)of theActwereissuedtotheassesseebywayofe-mailinITBAmodule.Thereafter, noticeu/s.142(1),dated19-11-2018wasissuedtotheassesseeastherewas changeofIncumbentOfficerbywayofe-mailinITBAmoduleandcertain informationhasbeencalledforfromtheassessee.Inresponse,assesseesubmitted therelevantinformationascalledfor. 3.Duringthecourseofassessmentproceedings,AssessingOfficernoticed thattheassesseehasintroducednewcapitaltotheextentofRs.6,23,60,738/-. Fromthedetailsfiledbytheassessee,theAssessingOfficernoticedthatassessee hasintroducedanamountofRs.19,14,000/-asagriculturalincomeinthenew I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.3 capitalintroduced.AssessingOfficerobservedthatassesseefailedtofurnishany proofofthesaidagriculturalincome.Noproofofagriculturallands,landholding pattern,croppingpatternetc.weresubmittedbytheassessee.Theassesseehas alsonotadmittedanyagriculturalincomeintheIncomeTaxReturnsfiledfor A.Ys.2015-16norforA.Y.2017-18.Hence,itisevidentthatassesseehas introducedunaccountedsumintheformofagriculturalincomeincapitalaccount. 4.FurtheronverificationoftheCapitalAccountLedger,AssessingOfficer noticedthatassesseehasintroducedasumofRs.22,20,585/-bySriRajagopalOil Mills.However,despitegivingseveralopportunities,theassesseefailedto furnishdetailsestablishingtheidentity,genuinenessandcreditworthinessofthe saidtransaction.Hence,theAssessingOfficertreatedthesumofRs.22,20,585/- asunaccountedincomeinthehandsoftheassesseeaspertheprovisionsof Section68oftheIncomeTaxAct,1961.Accordingly,theAssessingOfficer completedtheassessmentbymakingadditionofRs.41,34,585/-(Rs.19,14,000+ Rs.22,20,585)onaccountofunaccountedamountaccordingtoprovisionsof Section68oftheAct. 5.Onbeingaggrieved,assesseepreferredanappealbeforeLd.CIT(A)and thefurnisheddocumentsalongwiththewrittensubmissionson19.10.2021, 08.02.2024,14.04.2024&07.05.2024.Afterconsideringthesubmissionsofthe I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.4 assessee,Ld.CIT(A)dismissedtheappealoftheassesseeandsustainedtheorder oftheAssessingOfficer. 6.Onbeingaggrieved,assesseepreferredanappealbeforetheTribunaland raisedfollowinggroundsofappeal:- “1.TheLearnedCIT(Appeals)iserredinfactsandlawwhilepassing theorder. 2.Onthefactsandcircumstancesofthecase,theLearned CIT(Appeals)isnotjustifiedinconfirmingtheadditionmadeofu/s.68of theI.T.Acttowardsunexplainedcashcreditinrespectofcapital introduction. 3.Onthefactsandcircumstancesofthecase,theLearned CIT(Appeals)isnotjustifiedinconfirmingtheadditionmadeof Rs.22,20,585/-u/s.68oftheI.T.Acttowardsunexplainedcashcreditin respectofcapitalintroduction. 4.Onthefactsandcircumstancesofthecase,theLearned CIT(Appeals)isnotjustifiedindismissingtheappealwithoutconsidering theadmissibilitypetitionfiledunderRule46AoftheI.T.Rules. 5.Onthefactsandcircumstancesofthecase,theLearned CIT(Appeals)erredindismissingtheappealonthepretextthatno documentaryevidenceswerefurnishedinsupportofwrittensubmissions eventhoughnecessarydocumentaryevidenceswerefurnishedonlineinthe portalalongwiththepetitionforadmittanceofadditionalevidencesunder Rule46Aofthe1.T.Ruleson08-02-2024and07-05-2024muchbefore adjudicationofappeal. 6.Onthefactsandcircumstancesofthecase,theLearnedCIT(A) oughttohaveaccordedafurtheropportunitytosinceitwasstatedbythe appellantthattheadditionalcapitalintroducedwereoutofexplainable sourcesandproducedsuchevidences. 7.Anyotherlegalandfactualgroundthatmaybeurgedatthetime ofhearingoftheappeal. I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.5 7.Ld.AuthorisedRepresentative[hereinafter“Ld.AR”]submittedthat Ld.CIT(A)isnotjustifiedinconfirmingtheadditionmadeofu/s.68oftheAct. Further,hesubmittedthatLd.CIT(A)erredindismissingtheappealonthe pretextthatnodocumentaryevidenceswerefurnishedinsupportofwritten submissionseventhoughnecessarydocumentaryevidenceswerefurnished onlineintheportalalongwiththepetitionforadmittanceofadditionalevidences underRule46Aofthe1.T.Ruleson08.02.2024and07.05.2024muchbefore adjudicationofappeal.Ld.ARpleadedthatthemattermayberemittedbackto thefileoftheLd.CIT(A)consideringtheadditions/disallowancemadebythe AssessingOfficer,forfreshverification. 8.Ontheotherhand,Ld.DepartmentalRepresentative[hereinafterinshort “Ld.DR”]heavilyreliedontheorderoftheLd.CIT(A)andpleadedtosustain theorderoftheLd.CIT(A). 9.Wehaveheardboththesidesandperusedthematerialavailableonrecord. OnaperusaloftheLd.CIT(A)orderweobservethatLd.CIT(A)hasdismissed theappealoftheassesseebyobservingthatassesseehasnotfiledany documentaryevidencesinsupportofthecontentionsraisedinitsgroundsof appeal.Beforeus,Ld.ARarguedthatthatnecessarydocumentaryevidences werefurnishedonlineintheportalalongwiththepetitionforadmittanceof additionalevidencesunderRule46Aofthe1.T.Ruleson08.02.2024and I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.6 07.05.2024.Consideringthetotalityoffactsandkeepinginviewtheadditions/ disallowancemadebytheAssessingOfficer,weareoftheopinionthatassessee shouldbegivenonemoreopportunityofbeingheard.Therefore,consideringthe factsandcircumstancesofthecaseandinordertomeettheprinciplesofnatural justice,weareoftheviewthatitisafitcasetoremitthematterbacktothefile oftheLd.CIT(A)forfreshconsideration.Assesseeshallcooperatewiththe proceedingsbeforetheLd.CIT(A)withouttakingunnecessaryadjournmentsand filealltherelevantdocumentaryevidencesinsupportofhiscontentions. NeedlesstosaythattheLd.CIT(A)shallgiveadequateopportunityofbeing heardtotheassesseeanddisposeoffthecaseonmerits.Thus,thisappealis restoredtothefileoftheLd.CIT(A).Groundsraisedbytheassesseeareallowed forstatisticalpurposes. 10.Intheresult,appealoftheassesseeisallowedforstatisticalpurposes. Orderpronouncedintheopencourton05 th September,2024. Sd/- (एसबालाकृष्) (S.BALAKRISHNAN) लेखासदस/ACCOUNTANTMEMBER Sd/- (द ु व्वआर.एलरेडी) (DUVVURURLREDDY) नाधयकसदस/JUDICIALMEMBER Dated:.05.09.2024 Giridhar,Sr.PS I.T.A.No.298/VIZ/2024 MothukuriSrinivasaRao PageNo.7 आदेशकीपनतनलनपअगेनरत/Copyoftheorderforwardedto:- 1. निर्धारती/TheAssessee : MothukuriSrinivasaRao D.No.54-28/1-48,Flat.No.305 RidgeGrandeuerApartment Road.No.2, CommercialTaxesColony AutoNagar,KrishnaDistrict AndhraPradesh-520007 2. र्जस /TheRevenue : TheAsst.CIT-Circle-2(1) CRBuilding,1stFloorAnnex MGRoad,KrishnaDistrict AndhraPradesh-520002 3.ThePrincipalCommissionerofIncomeTax 4.नवभ्गीयपनतनिनर,आयकरअपीलीयअनरकरर,नवश्ख्पटरम/DR,ITAT,Visakhapatnam 5.TheCommissionerofIncomeTax 6.ग्रधफ़्ईल/Guardfile //TrueCopy// आदेश्िुस्र/BYORDER Sr.PrivateSecretary ITAT,Visakhapatnam