Income Tax Officer, Ward-15(3), Hyderabad V. Hemalatha Madireddy , Hyderabad

ITA 308/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 0869 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2013-2014
• Appeal Filed On: 22-06-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Source of fund; Additional evidence; Capital Gains
• Section: 142(1); 43; 13; 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO. 308 /H/20 20 ASSESSMENT YEAR: 2 0 1 3 - 1 4 INCOME - TAX OFFICER, WARD 1 5(3), HYDERABAD VS. HEMALATHA MADIREDDY, HYDERABAD. PAN BAIPM 6850K (APPELLANT) (RESPONDENT) REVENUE BY: SHRI ROHIT MUJUMDAR ASSESSEE BY: NONE DATE OF HEARING: 16 /0 6 /2021 DATE OF PRONOUNCEMENT: 13 /0 7 /2021 O R D E R PER L.P. SAHU, A.M. : THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST CIT(A) 7 , HYDERABADS ORDER DATED 13 / 1 2 /20 19 FOR AY 20 1 3 - 14 INVOLVING PROCEEDINGS U/S 1 44 OF THE INCOME TAX ACT, 1961 ; IN SHORT THE ACT ON THE FOLLOWING SUBSTANTIVE GROUND OF APPEAL: THE LD. CIT(A) ERRED IN LAW AND ON FACTS, IN DELETING THE ADDITIONS MADE TOWARDS UNDISCLOSED LONG TERM CAPITAL GAIN AND UNEXPLAINED SOURCES OF INCOME. I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 2 - : 2. WE NOTICE AT THE OUTSET THAT REVENU ES INSTANT APPEAL S SUFFER FROM 90 DAYS DELA Y . TO THIS EFFECT, THE DEPARTMENT FILED A CONDONATION PETITION STATING THEREIN THAT THE SPECIAL MESSENGER OF THE DEPARTMENT WENT TO THE OFFICE OF ITAT FOR FILING APPEAL ON 23/03/2020 AND THE APPEAL COULD NOT BE SUBMITTED AS IT WAS LEARNT THAT THE INWARD CO UNTERS OF ITAT WERE CLOSED DUE TO THE JANATA LOCK - DOWN IMPOSED BY THE GOVT. DUE COVID - 19, WHICH CAUSED THE IMPUGNED DELAY IN FILING OF THE INSTANT APPEAL. CASE LAW COLLECTOR LAND ACQUISITION VS MST. KATIJI & ORS, 1987 AIR 1353 (SC) AND UNIVERSITY OF DELH I VS. UNION OF INDIA, CIVIL APPEAL NO. 9488 & 9489/2019 DATED 17 DECEMBER, 2019, HOLD THAT SUCH A DELAY; SUPPORTED BY COGENT REASONS, DESERVES TO BE CONDONED SO AS TO MAKE WAY FOR THE CAUSE OF SUBSTANTIAL JUSTICE. WE ACCORDINGLY HOLD THAT REVNEUE S IMPUGNED DELAY IN FILING THE APPEAL IS NEITHER INTENTIONAL NOR DELIBERATE BUT DUE TO THE CIRCUMSTANCES BEYOND ITS CONTROL. THE SAME STANDS CONDONED. CASE IS NOW TAKEN UP FOR ADJUDICATION ON MERITS. 3. AT THE TIME OF HEARING OF THIS APPEAL, NONE APPEA RED ON BEHALF OF THE RESPONDENT - ASSESSEE. HOWEVER, WE PROCEED TO DISPOSE OF THIS APPEAL AFTER HEARING THE LD. DR AND CONSIDERING THE FACTS AVAILABLE ON RECORD. 4. BRIEFLY, TH E FACTS OF THE CASE ARE THAT SINCE THE ASSESSEE DID NOT FILE RETURN OF INCOME FO R AY 2013 - 14, THE AO ISSUED I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 3 - : A NOTICE U/S 148 OF THE ACT ON 26/08/2016, AGAINST WHICH, THERE WAS NO COMPLIANCE FROM THE ASSESSEE. THEREFORE, THE AO ISSUED NOTICE U/S 142(1) OF THE ACT. ASSESSEES HUSBAND SRI M. VENKAT REDDY APPEARED AND FURNISHED INCOMPLETE INFORMATION. HENCE, THE AO ISSUED FINAL SHOW CAUSE NOTICE PROPOSING VARIOUS ADDITIONS AND SINCE THE ASSESSEE COULD NOT FILE SATISFACTORY REPLY, THE AO COMPLETED THE ASSESSMENT U/S 144 IN THE ABSENCE OF INFORMATION AND MADE ADDITION OF RS. 43,56,000/ - TOWA RDS LONG TERM CAPITAL GAINS AND ADDITION OF RS. 1,15,75,212/ - TOWARDS UNEXPLAINED SOURCES OF INCOME AND DETERMINED TOTAL INCOME OF THE ASSESSEE AT RS. 1,59,31,212/ - . 5. AGGRIEVED BY THE ORDER OF AO, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND F ILED ADDIT IONAL EVIDENCE ALONG WITH A CONFIRMATION STATEMENT GIVEN BY SRI MADIREDDY VENKAT REDDY, THE HUSBAND OF THE ASSESSEE WHEREIN SRI M. VENKAT REDDY OWNED UP ALL THE TRANSACTIONS APPEARING IN TWO BANK ACCOUNTS AND THE CONTENTS OF THE SAME WERE REPROD UCED BY THE CIT(A) IN HIS ORDER AT PAGES 3 TO 5. 6 . THE ADDITIONAL EVIDENCE FILED BY THE ASSESSEE WAS FORWARDED TO A O TO FURNISH REMAND REPORT ON THE SUBMISSIONS MADE WITH A DIRECTION TO TAKE REMEDIAL ACTION AS PER LAW ON THE CONFIRMATION STATEMENT GIVEN BY SRI M. VENKAT REDDY VIDE LETTER DATED 19 TH FEBRUARY, 2019. THE AO I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 4 - : FURNISHED A DETAILED REMAND ON THE FACTS AND MER ITS OF THE CASE VIDE HIS LETTER DATED 06/12/2019 AND THE CONTENTS OF THE SAME WERE REPRODUCED BY THE CIT(A) IN HIS ORDER AT PAGES AT 5 & 6. 6 .1 THE CIT(A) FORWARDED THE REMAND REPORT TO THE ASSESSEE FOR FURNISHING HER COMMENTS ON THE REMAND REPORT. THE R EPLY OF THE ASSESSEE WAS REPRODUCED BY THE CIT(A) AT PAGES 7 & 8 IN HIS ORDER. 7 . THE CIT(A) AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, FINDINGS OF THE AO IN THE ASSESSMENT ORDER AND REMAND REPORT, DIRECTED THE AO TO DELETE THE ADDITION OF RS. 43 ,56,000/ - AND RS. 1,15,75,200 BY OBSERVING AS UNDER: 5. 1 HAVE CONSIDERED THE SUBMISSIONS OF THE APPELLANT, FINDINGS OF THE ASSESSING OFFICER IN THE ORDER OF THE ASSESSMENT AND REMAND REPORT CAREFULLY. THE ASSESSING OFFICER ACCEPTED IN THE REMAND REPORT THAT THE TRANSACTIONS APPEARING IN NO. 9900000000006496 DOES NOT BELONG TO HIM AND SAME APPEARS TO BE DUPLICATE AFTER MAKING DUE VERIFICATION. HENCE, THE TOTAL CREDIT AT RS. 56,00,000/ - COMPUTED BY THE ASSESSING OFFICER IN THE ASSESSMENT ORDER REQUIRES TO BE DELETED. REGARDING, THE OTHER TRANSACTIONS APPEARING IN BANK ACCOUNT NO. 16020100016708 WITH FEDERAL BANK LIMITED AND ANOTHER ACCOUNT NO. 0508053000003699 WITH SOUTH INDIAN BANK, THE APPELLANT CONTENDED THAT THE ENTIRE TRANSACTIONS BELONG TO THE APPELLA NT'S HUSBAND. THE ACCOUNT NO. 16020100016708 WITH FEDERAL BANK LIMITED STANDS I N THE NAME OF THE APPELLANT'S HUSBAND ONLY. THE SECOND ACCOUNT NO. 0508053000003699 WITH SOUTH INDIAN BANK IS A JOINT ACCOUNT WITH HER HUSBAND. THE APPELLANT'S HUSBAND SRI. MADI REDDY VENKAT REDDY I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 5 - : OWNED UP ALL THE TRANSACTIONS APPEARING IN THE BANK ACCOUNT NO. 16020100016708 WITH FEDERAL BANK LIMITED AND ANOTHER ACCOUNT NO. 0508053000003699 WITH SOUTH INDIAN BANK. THE ASSESSING OFFICER ALSO OPINED THAT THE ASSESSMENTS OF THE SR I . M VENKAT REDDY ARE RE - OPENED ON THE BASIS OF THE STAND TAKEN IN THE COURSE OF APPELLATE PROCEEDINGS OF THE APPELLANT. THE ASSESSING OFFICER ALSO RECOMMENDED IN THE REMAND REPORT FOR DELETION OF THE ADDITIONS MADE. SINCE THE APPELLANT EXPLAINED THE TRANSAC TIONS IN THE REMAND REPORT, THE ADDITION MADE BY THE ASSESSING OFFICER IN THE HAND OF THE APPELLANT REQUIRES TO BE DELETED. HENCE, THE ASSESSING OFFICER IS DIRECTED TO DELETE THE ADDITION OF RS. 43,56,000/ - AND 'RS. 1,15,75,200/ - . 8 . AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENUE IS IN APPEAL BEFORE THE ITAT. 9 . AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND PERUSING THE MATERIAL ON RECORD AS WELL AS GOING THROUGH THE ORDERS OF REVENUE AUTHORITIES, WE OBSERVE THAT IN THE REMAN D PROCEEDINGS THE AR OF THE ASSESSEE, INTER - ALIA - CONTENDED THAT THE ASSESSEE, SMT. MADIREDDY HEMALATHA, IS A HOUSE WIFE AND SHE IS NOT HAVING ANY INCOME. THE SALE CONSIDERATION RECEIVED FROM THE SALE OF FOUR PLOTS, OBTAINED AS ANCESTRAL PROPERTY, HAS BEEN DEPOSITED IN THE JOINT ACCOUNT. SHE IS NOTHING TO DO WITH THESE DEPOSITS APPEARING IN THE ABOVE STATED JOINT ACCOUNT. THE AO AFTER CONSIDERING THE ABOVE SUBMISSION, STATED THAT THE ASSESSMENT IN THE CASE OF ASSESSEES HUSBAND SRI MADIREDDY VENKAT REDDY HA S ALREADY BEEN REOPENED U/S 147 OF THE IT ACT. THEREFORE, THE ADDITION MADE IN THE HANDS OF THE ASSESSEE ARE NOT I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 6 - : MAINTAINABLE, THEREFORE, THE LD. CIT(A) MAY PLEASE BE DECIDED THE APPEAL ON MERITS. AFTER CONSIDERING THE ABOVE FINDINGS OF THE AO IN THE REMAN D REPORT, THE CIT(A) DIRECTED THE AO TO DELETE THE ADDITION MADE IN THE HANDS OF THE ASSESSEE. THEREFORE , WE FIND NO REASON TO INTERFERE WITH THE ORDER OF THE CIT(A) AND UPHOLDING THE SAME, WE DISMISS THE GROUND RAISED BY THE REVENUE ON THIS ISSUE. 8. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 13 TH JU LY , 2021 . SD/ - SD/ - ( S.S. GODARA ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 13 TH JU LY , 20 2 1 . K V C OPY TO : 1 ITO, WARD 15(3), 5 TH FLOOR, D BLOCK, IT TOWERS, AC GUARDS, MASAB TANK, HYDERABAD. 2 SMT. HEMALATHA MADIREDDY, H.NO. A/22/2, PRASANTH NAGAR, KAPRA, HYDERABAD - 500062 3 C I T(A) 7 , HYDERABAD. 4 PR. CIT - 7 , HYDERABAD 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO. 308 /HYD /2020 SMT. HEMALATHA MADIREDDY, HYD. : - 7 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BE FORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPROVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER