THE ITO, WARD - 4, Rajahmundry V. G.S.L.Educational Society, Rajahmundry

ITA 358/VIZ/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2058 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 9 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 20-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: I SARISH KUMAR
• Assessee Lawyers: C SUBRAHMANYAMAR
• Section: 143(3)

Judgement Text

ITA NO.358/VIZAG/2013 G.S.L. EDUCATIONAL SOCIETY, RAJAHMUNDRY 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./I.T.A.NO.358/VIZAG/2013 ( / ASSESSMENT YEAR: 2009-10) ITO WARD - 4 RAJAHMUNDRY VS. G.S.L. EDUCATIONAL SOCIETY RAJAHMUNDRY [PAN: AADFG 7866P ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI I. SARISH KUMAR, DR / RESPONDENT BY : SHRI C. SUBRAHMANYAM,AR / DATE OF HEARING : 01.03.2016 / DATE OF PRONOUNCEMENT : 02.03.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINS T THE ORDER OF CIT(A)-11, MUMBAI (CAMP: VISAKHAPATNAM) DATED 13.3. 2013 FOR THE ASSESSMENT YEAR 2009-10. ITA NO.358/VIZAG/2013 G.S.L. EDUCATIONAL SOCIETY, RAJAHMUNDRY 2 2. THE ASSESSEE, GSL EDUCATIONAL SOCIETY, FILED IT S RETURN OF INCOME BY DECLARING TOTAL INCOME AT RS.NIL. THE CASE OF T HE ASSESSEE WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (H EREINAFTER CALLED AS THE ACT). THEREAFTER, AFTER FOLLOWING THE DUE PR OCESS ASSESSMENT WAS COMPLETED U/S 143(3) OF THE ACT BY DETERMINING TOTA L INCOME OF RS.2,17,72,376/-. DURING THE COURSE OF THE ASSESSM ENT PROCEEDINGS, THE AO HAS NOTED THAT THE ASSESSEE HAS MADE A CASH DEPO SIT IN THREE BANK ACCOUNTS HELD BY THE ASSESSEE WITH ANDHRA BANK, AMO UNTING TO RS.5,73,29,243/-, WHEREAS AS PER THE STATEMENT FURN ISHED BY THE ASSESSEE DURING THE COURSE OF THE ASSESSMENT PROCEE DINGS, THE TOTAL CASH DEPOSITS HELD WITH THE ABOVE BANK STANDING IN THE NAMES OF GSL EDUCATIONAL SOCIETY AMOUNTING TO RS.3,55,56,867/-. THEREFORE, THERE IS A DIFFERENCE OF EXCESS CASH DEPOSIT MADE TO THE TUN E OF RS.2,17,72,376/- (RS.5,73,29,243/- MINUS RS.3,55,56 ,867/-). ACCORDINGLY, ADDITION WAS MADE. 3. ON APPEAL BY ASSESSEE, THE LD. CIT(A) CALLED THE REMAND REPORT FROM THE AO AND BY CONSIDERING THE REMAND REPORT SU BMITTED BY THE ASSESSING OFFICER, THE LD. CIT(A) HAS OBSERVED THAT THE HEAD OFFICE OF ANDHRA BANK AT HYDERABAD HAS CERTIFIED THAT THE CAS H DEPOSITS HELD BY THE ASSESSEE IN THE ABOVE THREE ACCOUNTS IN THE NAM E OF GSL ITA NO.358/VIZAG/2013 G.S.L. EDUCATIONAL SOCIETY, RAJAHMUNDRY 3 EDUCATIONAL SOCIETY HAVE BEEN WRONGLY REFLECTED IN AIR WHICH OCCURRED DUE TO UPLOADING OF TRANSACTIONS AND SOFTWARE PROBL EM APPEARS TO BE CORRECT SINCE THE ASSESSEE HAS ACCOUNTED FOR THE TR ANSACTION ORIGINALLY TOOK PLACE IN THE SAID ACCOUNTS. THEREFORE, IT IS STATED BY THE AO THAT THE ADDITION MADE ON THIS ACCOUNT OF RS.2,17,72,376 /- IS NOT CORRECT AND THE ACTUAL CASH DEPOSITS IN THE BANK ACCOUNTS WITH ANDHRA BANK STANDS EXPLAINED AND TALLIED. IN VIEW OF THE REPORT OF TH E AO THIS GROUND IS ALLOWED. 4. ON BEING AGGRIEVED, REVENUE CARRIED THE MATTER I N APPEAL BEFORE THE TRIBUNAL. THE LD. D.R. RELIED UPON THE ORDER O F THE AO. 5. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSES SEE STRONGLY SUPPORTED THE ORDER PASSED BY THE CIT(A) AND ALSO P RODUCED A LETTER ISSUED BY THE ANDHRA BANK DATED 17.8.2012 AND SUBMI TTED THAT THERE IS A DISCREPANCY IN UPLOADING THE TRANSACTION PERTAINI NG TO THE ASSESSEE. THE ACTUAL DEPOSITS MADE BY THE ASSESSEE ARE TO THE TUNE OF RS.1,61,04,650/-, RS.1,61,50,723/- & RS.35,47,044/- AND THE CERTIFICATE ISSUED BY THE ANDHRA BANK TO THE CIT RAJAHMUNDRY HA S TO BE ACCEPTED. 6. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE HA S DEPOSITED AN AMOUNT OF RS.5,73,29,243/- AND AS PER THE STATEMENT SUBMITTED BY THE ITA NO.358/VIZAG/2013 G.S.L. EDUCATIONAL SOCIETY, RAJAHMUNDRY 4 ASSESSEE, IT WORKS OUT TO RS.3,55,56,867/- AND THER EFORE THE DIFFERENCE OF RS.2,17,72,376/- IS ADDED AS AN INCOME OF THE AS SESSEE. ON APPEAL, THE LD. CIT(A), BY CONSIDERING THE REMAND REPORT, D ELETED THE ADDITION MADE BY THE AO. WE HAVE ALSO EXAMINED THE LETTER IS SUED BY THE ANDHRA BANK HEAD OFFICE, HYDERABAD TO THE COMMISSIO NER OF INCOME TAX, RAJAHMUNDRY, WHEREIN IT IS CLEARLY STATED THAT THERE IS A DISCREPANCY IN UPLOADING THE TRANSACTION PERTAINING TO THE ACCO UNTS OF THE ASSESSEE SOCIETY DUE TO SOFTWARE PROBLEM AND THE ACTUAL DEPO SITS MADE BY THE ASSESSEE FOR THE PERIOD FROM 1.4.2008 TO 31.3.2009 ARE OF RS.1,61,04,650/-, RS.1,61,50,723/- & RS.35,47,044/- . KEEPING IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, T HE DEPARTMENT HAS NOT BROUGHT ANY MATERIAL ON RECORD TO SHOW THAT THE ORDER PASSED BY THE CIT(A) IS NOT CORRECT. UNDER THESE FACTS AND CIRCU MSTANCES OF THE CASE, WE FIND NO REASON TO INTERFERE WITH THE ORDER PASSE D BY THE LD. CIT(A). THIS APPEAL FILED BY THE REVENUE IS DISMISSED. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 2 ND MAR16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 02.03.2016 VG/SPS ITA NO.358/VIZAG/2013 G.S.L. EDUCATIONAL SOCIETY, RAJAHMUNDRY 5 '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO WARD-4, RAJAHMUNDRY 2. / THE RESPONDENT G.S.L. EDUCATIONAL SOCIETY, D.N O.23-12-04, SRI RAM NAGAR, RAJAHMUNDRY 3. ) / THE CIT-2, VISAKHAPATNAM 4. ) ( ) / THE CIT(A),VISAKHAPATNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM