Bhoopathi Raju Kurapti, Hyderabad V. Asst. Commissioner of Income Tax, Central Circle-2(3), Hyderabad

ITA 317/Hyd/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7038 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 25-07-2019
• Assessment Year: 2015-2016
• Appeal Filed On: 14-02-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y.V.S.T. SAI
• Keywords: Search and seizure; Salary income; Document seized; Corroborative evidences; Documents seized
• Section: 132; 153A

Judgement Text

ITA NO 317 OF 2018 BHUPATHI RAJU KURAPATI HYDERABAD . PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.317/HYD/2018 (ASSESSMENT YEAR: 2015-16) SHRI BHOOPATHI RAJU KURAPATI HYDERABAD PAN: AEDPK3255Q VS ASSTT. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 2(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.A. SAI PRASAD FOR REVENUE : SHRI Y.V.S.T. SAI, CIT(DR) O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2015-16 AGAIN ST THE ORDER OF THE CIT (A)-12, HYDERABAD, DATED 20.12 .2017. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND A PARTNER IN SRI SRI ESTATES, SRI SR I DEVELOPERS, SRI SRI HOUSING & CONSTRUCTION AND SRI SRI AERO GROUP. A SEARCH AND SEIZURE OPERATION U/S 132 OF THE ACT WAS CONDUCTED IN THE GROUP CASES OF SRI SRI GRUHANIRMAN INDIA PVT LTD & GROUP ON 24.12.2014 WHEREIN CERTAIN CASH OF RS.11,83,800/- W AS FOUND IN THE RESIDENTIAL PREMISES OF THE ASSESSEE. AT THE TI ME OF THE SEARCH, THE ASSESSEE COULD NOT EXPLAIN THE SOURCES OF THE C ASH AND EVEN DATE OF HEARING : 25.07.2019 DATE OF PRONOUNCEMENT: 31.07.2019 ITA NO 317 OF 2018 BHUPATHI RAJU KURAPATI HYDERABAD . PAGE 2 OF 4 DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS, TH E ASSESSEE COULD NOT SATISFACTORILY EXPLAIN THE SOURCE. HENCE THE AO BROUGHT THE SAME TO TAX. FURTHER, THE AO ALSO OBSERVED THAT AS PER THE SEIZED DOCUMENTS, THE ASSESSEE HAS PAID ONE SHRI S. KRISHNA AND SRI G. SURESH, AN AMOUNT OF RS.4.00 LAKHS IN CASH, TOWARDS PURCHASE OF LAND AND SINCE THE ASSESSEE COULD NOT S ATISFACTORILY EXPLAIN THE SOURCE OF CASH PAYMENT, THE SUM OF RS.4 .00 LAKHS WAS ALSO ADDED TO THE RETURNED INCOME OF THE ASSESSEE. CERTAIN OTHER ADDITIONS WERE ALSO MADE BY THE AO AGAINST WHICH TH E ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A). 3. THE CIT (A) OBSERVED THAT AS FAR AS RS.4.00 LAKH S IS CONCERNED, IT WAS PAID BY THE ASSESSEE ALONG WITH S HRI SAMA NARASIMHA REDDY AND THEREFORE, ONLY A SUM OF RS.2.0 0 LAKHS IS TO BE BROUGHT TO TAX IN THE HANDS OF THE ASSESSEE. AS REGARDS THE SOURCE FOR CASH OF RS.11,83,800/-, THE ASSESSEE SUB MITTED THAT THE ASSESSEE IS ASSESSED TO INCOME TAX FOR SEVERAL YEARS AND THAT HE HAS BEEN ADMITTING SUBSTANTIAL INCOME TO TAX UND ER THE HEAD SALARY INCOME AND INCOME FROM PROPERTY. HE SUBMIT TED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE H AD ADMITTED GROSS RENTAL RECEIPTS OF RS.8,88,750/- AND ALSO SAL ARY INCOME IN CASH, WHICH WAS SUFFICIENT TO EXPLAIN THE SOURCE OF CASH RS.11,83,800/- FOUND AT THE TIME OF SEARCH. THE CIT (A) HOWEVER, DID NOT ACCEPT THE SAME, BECAUSE THE ASSESSEE HAD N OT STATED SO EITHER DURING THE COURSE OF SEARCH NOR DURING THE A SSESSMENT PROCEEDINGS AND HAD NOT SUBSTANTIATED WITH THE SAME WITH SUPPORTING EVIDENCE. SHE ALSO OBSERVED THAT THE ASS ESSEE HAS NOT MAINTAINED ANY CASH BOOK AS ON THE DATE OF SEARCH N OR HAS FURNISHED ANY SUCH BOOK DURING THE COURSE OF APPELL ATE ITA NO 317 OF 2018 BHUPATHI RAJU KURAPATI HYDERABAD . PAGE 3 OF 4 PROCEEDINGS. SHE THEREFORE, CONFIRMED THE ADDITION OF RS.11,83,800/-. AGGRIEVED, THE ASSESSEE IS IN APPEA L BEFORE US BY RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JU STIFIED IN SUSTAINING THE ADDITION OF RS.11 ,83,800/- AS UNEXPLAINED CASH FOUND ON THE DATE OF SEARCH IGNORI NG THE FACT THAT THE APPELLANT HAD SUFFICIENT SOURCES TO EXPLAIN THE SAME. 2. THE LEARNED FIRST APPELLATE AUTHORITY FAILED TO APPRECIATE THE FACT THAT THE APPELLANT BEING AN INDIVIDUAL IS NOT HAVING REGULAR BOOKS OF ACCOUNTS AND HENCE THE CLAIM OF AVAILABILITY OF CASH CANNOT BE REJECTED ON THE GROUND THAT CASH BOOK WAS NOT PRODUCED. 3. THE LEARNED FIRST APPELLATE AUTHORITY FAILED TO APPRECIATE THE FACT THAT THE APPELLANT HAD SUBSTANT IAL CASH INCOME TO ESTABLISH ITS CASH AVAILABILITY FOUN D ON THE DATE OF SEARCH. 4. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JUS TIFIED IN SUSTAINING THE ADDITION OF RS.2,00,000 BEING THE APPELLANTS SHARE OF PAYMENT TO G.SURESH IGNORING TH E CLAIM THAT THE APPELLANT IS HAVING SUBSTANTIAL SOUR CES TO EXPLAIN THE SAID INVESTMENT. 5. THE APPELLANT CRAVES LEAVE TO ADD AMEND OR ALTER ANY OF THE GROUNDS AT THE TIME OF HEARING OF APPEAL. 4. THE LEARNED COUNSEL FOR THE ASSESSEE, EXCEPT FOR RELYING UPON THE STATEMENTS MADE BEFORE THE CIT (A) , AND ALSO THE COPY OF THE RETURN OF INCOME FILED U/S 153A OF THE ACT FOR THE A.Y 2015-16 AND THE RETURNS OF INCOME OF SRI SRI CONSTR UCTIONS FOR THE A.Y 2014-15 AND 2015-16, HAS NOT FURNISHED ANY OTHER EVIDENCE TO SUBSTANTIATE HIS CLAIM. HE SUBMITTED TH AT THE SALARY IS RECEIVED BY WAY OF CASH, BUT THERE IS NO CONFIRMATI ON FROM THE PARTNERSHIP FIRM THAT THE SALARY IS PAID IN CASH TO THE ASSESSEE. FURTHER, WE FIND THAT THE ASSESSEE HAS NOT TAKEN AN Y SUCH CONTENTION EITHER BEFORE THE SEARCH PARTY OR DURING THE ITA NO 317 OF 2018 BHUPATHI RAJU KURAPATI HYDERABAD . PAGE 4 OF 4 ASSESSMENT PROCEEDINGS. THEREFORE, IT IS CLEARLY AN AFTERTHOUGHT AND WE DO NOT SEE ANY REASON TO INTERFERE WITH THE ORDER OF THE CIT (A) ON BOTH THE ISSUES. THE ASSESSEES APPEAL IS AC CORDINGLY DISMISSED. 5. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2019. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST JULY, 2019. VINODAN/SPS COPY TO: 1 SHRI BHOOPATHI RAJU KURAPATI C/O CH. PARTHASARATH Y & CO. 1-1- 298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE ST. NO.1 ASHOKNAGAR, HYDERABAD 500020 2 ASSTT. CIT CENTRAL CIRCLE 2(3) HYDERABAD 3 CIT (A)-12 HYDERABAD 4 PR. CIT CENTRAL HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER