Venkata Malleswara Rao , Secunderabad V. Income Tax Officer, Ward-15(1), Hyderabad

ITA 311/Hyd/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0301 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-01-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Assessment Year: 2011-2012
• Appeal Filed On: 07-03-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: WAY OF ADDITIONAL GROUND IS HEREBY REJECTED
• Keywords: Business income
• Section: 147; 148; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “B”: HYDERABAD (THROUGH VIRTUAL CONFERENCE) B EFORE SH RI SA TBEER SING H GODA RA, JU DI CIA L MEM BER AND SHR I L AXMI PR AS A D SAHU , AC COUNT ANT MEMBE R ITA No. 311/Hyd/2019 Assessment Years: 2011-12 Venkata Malleswara Rao Kamana, Secunderabad. PAN – AHGPK 9684F Vs. Income-tax Officer, Ward – 15(1), Hyderabad. (Appellant) (Respondent) Assessee by: Shri Mohd. Afzal Revenue by: Shri Rohit Mujumdar Date of hearing: 06/01/2022 Date of pronouncement: /01/2022 O R D E R PER L.P. SAHU, A,M.: This appeal filed by the assessee is directed against CIT(A) – 7, Hyderabad’s order dated 31/01/2019 for AY 2011-12 involving proceedings u/s 143(3) rws 147of the Income Tax Act, 1961 ; in short “the Act”. 2. The assessee has raised 7 grounds of appeal, the sum and substance of which is against the addition of Rs. ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 2 -: 59,90,000/-. He also raised an additional ground with regard to validity of the issue of notice u/s 148 of the Act. 3. Briefly the facts of the case are that the assessee filed his return of income for the AY 2011-12 admitting total income at Rs. 3,57,063/-. The case was reopened u/s 147 and notice u/s 148 was issued on 28/03/2017 and served upon the assessee. The AO completed the assessment u/s 143(3) rws 147 dated 22/12/2017 determined the total income of the assessee at Rs. 63,23,033/- by making the following additions: 1. Cash credit in the ICICI Bank A/c – Rs. 59,90,000 2. Business income - Rs. 79,886/-. 3. When the assessee preferred an appeal before the CIT(A), the CIT(A) confirmed the order of AO. 4. Aggrieved by the order of CIT(A), the assessee is in appeal before the ITAT. 5. The only issued involved in this appeal is whether the amount received by the assessee is on account of the repayment of loan from Sri K.V. Ramana and whether the explanation offered by the assessee in respect of the source of the following amounts credited in the bank account of the assessee is genuine. ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 3 -: 6. The AO asked the assessee to furnish the loan details given to Sri K.V. Ramana and the AR of the assessee did not produce any details and, therefore, the confirmation given by Shri KV Ramana was rejected. The AO, therefore, made the addition of Rs. 59,90,500/- which reflected as credits on various dates in the account of the assessee held with ICICI Bank during FY 2010-11. 7. The CIT(A) after considering the submissions of the assessee, confirmed the addition made by the AO by observing as under: Space left intentionally ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 4 -: ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 5 -: 8. We have considered the rival submissions and perused the material on record as well as gone through the orders of revenue authorities. It is observed that the burden lies upon the assessee to explain the nature of the transactions, when the amounts were given to Sri K.V. Ramana and the rate of interest. The assessee failed to discharge the onus cast upon him to explain the nature and genuineness of the transaction before the revenue authorities and even before us. Therefore, we find no infirmity in the order of the CIT(A) in confirming the addition of Rs. 59,90,000/- towards repayment of loan received from Sri K.V. Ramana. Accordingly, the grounds raised by the assessee on this issue are dismissed. ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 6 -: 9. As regards the additional ground raised by the assessee contending that the notice issued u/s 148 is invalid, In this connection, CIT(A) observed as under: “4.1 On perusal of the information, I find that the Assessing Officer has fully applied his mind about escapement of income with respect to the deposits in the bank account on the basis of the information obtained from Investigation Unit. The Assessing Officer had independently verified the information obtained from Investigation Unit with the return of income filed by the appellant and came to a conclusion that the income of Rs.33,27,859/- had escaped assessment. The contention of the AR of the appellant that the Assessing Officer did not make enquiries to come to a conclusion that Rs.33,27,859/- remained unexplained. This contention of the AR of the appellant is not acceptable. The Assessing Officer while recording the reasons came to a definite conclusion that the deposit of Rs.66,55,718/- belongs to assessee and his spouse and assessee's share worked out at Rs.33,27,859/-. However, during the course of reassessment proceedings, the appellant gave an explanation that all the amounts reflected in the bank account belongs to him only, eventhough, the account is a joint account and on the basis of the further investigation, the Assessing Officer made an addition of Rs.59,90,OOO/-. In view of the above, I am convinced that the Assessing Officer had reasons to believe that an amount of Rs.33,27,859/- escaped assessment. Hence, I am of the considered view that the reopening of assessment made by the AO is legally correct. Hence, this ground of appeal is rejected.” 10. Therefore, the legal ground raised by the assessee by way of additional ground is hereby rejected. ITA No. 311/Hyd/2019 Venkata Malleswara Rao Kamana, Sec’bad. :- 7 -: 11. In the result, appeal of the assessee is dismissed in above terms. Pronounced in the open court on 11 th January, 2022. Sd/- Sd/- (S.S. GODARA) (L. P. SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 11 th January, 2022. kv Copy to : 1 Venkata Malleswara Rao Kamana, C/o Mohd. Afzal, Advocate, 11-5-465, Sherson’s Residency, Flat No. 402, Criminal Court Road, Red Hills, Hyderabad – 500 004. 2 ITO, Ward – 15(1), Hyderabad. 3 CIT(A) - 7, Hyderabad. 4 PR. CIT - 5, Hyderabad. 5 ITAT, DR, Hyderabad. 6 Guard File.