THE ITO, Guntur V. Sri Swamy Nageswara Rao, Guntur

ITA 367/VIZ/2015

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9973 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 13-10-2015
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: K TIRUMALA RAO
• Keywords: Peak credit
• Section: 143(3)

Judgement Text

ITA NO.367/VIZAG/2015 SRI SWAMY NAGESWARA RAO, GUNTUR 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.367/VIZAG/2015 ( / ASSESSMENT YEAR: 2011-12) ITO, WARD - 2(1), GUNTUR VS. SRI SWAMY NAGESWARA RAO, GUNTUR [PAN: AXYPS363 5A ] ( % / APPELLANT) ( &'% / RESPONDENT) / APPELLANT BY : SHRI M.N. MURTHY NAIK, DR / RESPONDENT BY : SHRI K. TIRUMALA RAO, AR / DATE OF HEARING : 28.07.2016 / DATE OF PRONOUNCEMENT : 09.08.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A)-1, GUNTUR DATED 31.7.2015 FOR THE ASSESSMENT YEAR 2011-12. ITA NO.367/VIZAG/2015 SRI SWAMY NAGESWARA RAO, GUNTUR 2 2. THE ASSESSEE IS IN THE BUSINESS OF PRINTING OF B OOKS, FILED HIS RETURN OF INCOME OF ` 1,86,250/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (H EREINAFTER CALLED AS 'THE ACT') AND AFTER DUE PROCESS ASSESSMENT WAS COM PLETED U/S 143(3) OF THE ACT BY COMPUTING TOTAL INCOME OF ` 44,56,250/-. IN THE ASSESSMENT ORDER, THE A.O. HAS OBSERVED THAT ASSESS EE HAS MADE A CASH DEPOSIT IN AXIS BANK ACCOUNT TO THE TUNE OF ` 42,70,000/- ON VARIOUS DATES. WHEN THE A.O. WAS ASKED TO FILE DETAILS OF T HE CASH DEPOSITS, THE ASSESSEE HAS NOT GIVEN THE DETAILS AND NO EXPLANATI ON WAS GIVEN. ACCORDINGLY, ASSESSING OFFICER HAS ADDED THE DEPOSI TS MADE BY THE ASSESSEE IN AXIS BANK ACCOUNT OF ` 42,70,000/- AS AN INCOME OF THE ASSESSEE AND ASSESSMENT WAS COMPLETED. 3. ON BEING AGGRIEVED, ASSESSEE CARRIED MATTER IN A PPEAL BEFORE THE CIT(A). 4. BEFORE LD. CIT(A), ASSESSEE HAS FILED DETAILS OF THE DEPOSITS AND SUBMITTED THAT ASSESSEE IS HAVING A SOURCE FOR THE DEPOSITS IN THE AXIS BANK ACCOUNT AND PRAYED FOR PEAK CREDIT MAY BE ADOP TED. THE LD. CIT(A) WITHOUT CALLING REMAND REPORT, DIRECTED THE A.O. TO APPLY THE PEAK CREDIT AND APPEAL FILED BY THE ASSESSEE ALLOWE D PARTLY. 5. ON THE BEING AGGRIEVED, REVENUE IS IN APPEAL BEF ORE THE TRIBUNAL. ITA NO.367/VIZAG/2015 SRI SWAMY NAGESWARA RAO, GUNTUR 3 6. THE LD. D.R. HAS SUBMITTED THAT ASSESSEE NEITHER FILED THE DETAILS NOR GIVEN ANY EXPLANATION IN RESPECT OF THE DEPOSIT S MADE IN THE AXIS BANK BUT HE FILED THE DETAILS ONLY BEFORE CIT(A). THE A.O. FURTHER SUBMITTED THAT THE LD. CIT(A) WITHOUT CALLING FOR A NY REMAND REPORT FROM THE A.O., SIMPLY ACCEPTED THE SUBMISSIONS OF T HE ASSESSEE AND DIRECTED THE A.O. TO ADOPT THE PEAK CREDIT, WHICH I S NOT CORRECT. 7. WE HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHOR ITIES BELOW. THE ASSESSEE HAD DEPOSITED AN AMOUNT OF ` 42,70,000/- IN HIS AXIS BANK ACCOUNT. A.O. HAS ASKED THE SOURCE OF DEPOSITS AND EXPLANATION. ASSESSEE NEITHER EXPLAINED NOR GAVE THE SOURCE BEFO RE THE A.O. BUT ONLY FILED DETAILS BEFORE THE LD. CIT(A). LD. CIT(A) BY CONSIDERING THE DETAILS FILED BY THE ASSESSEE DIRECTED THE A.O. TO ALLOW TH E PEAK CREDIT. WE FIND THAT THE DIRECTION GIVEN BY THE LD. CIT(A) IS NOT C ORRECT FOR THE SIMPLE REASON THAT THE ASSESSEE HAS NEITHER FILED DETAILS NOR EXPLAINED THE SOURCES. THEREFORE, THE LD. CIT(A) OUGHT TO HAVE CALLED THE REMAND FROM THE A.O., THEREAFTER HE SHOULD HAVE DIRECTED T HE A.O. HOWEVER, HE HAS FAILED TO DO SO. WE THEREFORE SET ASIDE THE OR DER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE A.O. AND DIRECT HIM TO CONSIDER THE DETAILS IN RESPECT OF THE DEPOSITS AND EXPLANATION OF THE ITA NO.367/VIZAG/2015 SRI SWAMY NAGESWARA RAO, GUNTUR 4 ASSESSEE AND THEREAFTER DECIDE THE MATTER DE-NOVO I N ACCORDANCE WITH LAW. 8. THIS APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 9 TH AUG16. SD/- SD/- ( . ) ( . ) (G. MANJUNATHA) (V. DURGA RAO) /ACCOUNTANT MEMBER /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 9 TH AUG16 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-2(1), GUNTUR 2. / THE RESPONDENT SRI SWAMY NAGESWARA RAO, 5-21-2 00/B, 2/3, BRODIPET, GUNTUR 3. ) / THE CIT, GUNTUR 4. ) ( ) / THE CIT(A)-1, GUNTUR. 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM