The ITO, Ward-2(1), Vijayawada V. Smt M Jayaprada, Vijayawada

ITA 372/VIZ/2005

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 2911 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2010
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2002-2003
• Appeal Filed On: 08-08-2005
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: J SIRI KUMAR AL REPRESENTATIVE
• Assessee Lawyers: C SUBRAMANYAM
• Keywords: Set aside

Judgement Text

ITA NO.372/IZAG/2005 MADDALA JAYAPRADA, VIJAYAWADA PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO.372/VIZAG/2005 ASSESSMENT YEAR: 2002-03 ITO WARD 2(1), VIJAYAWADA MADDALA JAYAPRADA, VIJAYAWADA (APPELLANT) VS. (RESPONDENT) PAN NO:AFNPM 1359 J APPELLANT BY: SHRI J. SIRI KUMAR, DEPARTMENTAL REPRESENTATIVE RESPONDENT BY: SHRI C. SUBRAMANYAM, CA ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 27-05- 2005 PASSED BY LEARNED CIT (A), VIJAYAWADA AND IT R ELATES TO THE ASSESSMENT YEAR 2002-03. 2. THE REVENUE IS ASSAILING THE DECISION OF THE LEA RNED CIT (A) IN DELETING THE ADDITION OF RS.4,74,250/- MADE BY THE ASSESSING OFFICER. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. DURING THE COURSE OF SCRUTINY PROCEEDINGS THE ASSESSING OFFICER NOTIC ED THAT DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS MADE CASH DEP OSITS ON VARIOUS DATES AGGREGATING TO RS.5,10,000/- IN HIS SB A/C NO.32170 MAINTAINED WITH STATE BANK OF HYDERABAD. WHEN QUESTIONED ABOUT THE SOURC E, THE ASSESSEE EXPLAINED THAT THE SAID DEPOSITS WERE MADE FROM OUT OF COLLECTIONS RECEIVED FROM THE OPENING BALANCE OF SIX DEBTORS. THE ASSES SING OFFICER EXAMINED THE SAID PERSONS/REPRESENTATIVES IN THIS REGARD. OU T OF THE SIX PERSONS ITA NO.372/IZAG/2005 MADDALA JAYAPRADA, VIJAYAWADA PAGE 2 OF 3 EXAMINED, THE DEPONENT SHRI V.SAMBAIAH, SHRI V. VEE RAIAH, AND SHRI BANDARU SIVA KOTESWARA RAO HAVE DENIED TO HAVE TAKE N LOANS FROM THE ASSESSEE. THE OTHER THREE PERSONS SMT. PUPPALA LAKS HMI, SMT. REDDY VENKATESWARA RAO AND SMT. PUPPALA SAMPOORNAMMA COUL D NOT SUBSTANTIATE THE TAKING OF LOANS AND ITS REPAYMENT WITH ANY EVIDENCE. ACCORDINGLY THE ASSESSING OFFICER CAME TO THE CONCL USION THAT THE DEPOSIT OF RS.5,10,000/- MADE INTO THE BANK WAS NOT PROPERLY E XPLAINED. HOWEVER, THE ASSESSING OFFICER RESTRICTED THE ADDITIONS TO THE E XTENT OF RS.4,74,250/- AS PER THE DETAILS GIVEN BELOW: 1 SMT. P. LAKSHMI RS.92,000 2 SRI P. SAMBAIAH RS.42,750 3 SRI V. VEERAIAH RS.97,750 4 SRI B. SIVA KOTESWARA RAO RS.52,000 5 SMT. P.V. SAMPOORNAMMA RS.97,750 6 SMT.REDDY VENKATESWARA RAO RS.92,000 TOTAL RS.4,74,250 IN THE APPEAL PREFERRED BY THE ASSESSEE, THE LEARNE D CIT (A) DELETED THE SAID ADDITION. HENCE THE REVENUE IS IN APPEAL BEFOR E US. 4. ON GOING THROUGH THE PAPER BOOK FILED BY THE DEPARTMENT, WE NOTICE THAT THE ASSESSING OFFICER VIDE HIS LETTER DATED 7- 3-2005, HAS PROVIDED AN OPPORTUNITY TO THE ASSESSEE TO CROSS EXAMINE ALL TH E SIX PERSONS FROM WHOM THE STATEMENT WAS TAKEN ON OATH BY THE ASSESSING OF FICER. HOWEVER, THE ASSESSEE, VIDE HIS LETTER DATED 11-3-2005, HAD SOUG HT TIME FOR CROSS EXAMINING THE SAID PERSONS. HOWEVER, THE ASSESSING OFFICER HAS COMPLETED THE ASSESSMENT WITHOUT PROVIDING ANY FURTHER OPPORT UNITY AS THE ASSESSMENT WAS GETTING TIME BARRED. WE ARE OF THE VIEW THAT BEFORE COMPLETING THE ASSESSMENT, THE ASSESSEE SHOULD HAVE BEEN PROVIDED WITH AN OPPORTUNITY TO CROSS EXAMINE THE ABOVE CITED PER SONS. ACCORDINGLY WE SET ASIDE THE ORDER OF THE LEARNED CIT (A) AND REMI T THE MATTER BACK TO THE ITA NO.372/IZAG/2005 MADDALA JAYAPRADA, VIJAYAWADA PAGE 3 OF 3 FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO P ROVIDE NECESSARY OPPORTUNITY TO THE ASSESSEE TO CROSS EXAMINE THE AB OVE CITED PERSONS AND THEREAFTER DECIDE THE ISSUE IN ACCORDANCE WITH THE LAW. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED ARGUMENTS ON TH E MERITS OF THE ADDITION. SINCE THE ENTIRE ISSUE HAS BEEN REMITTED BACK TO THE ASSESSING OFFICER, WE DO NOT FIND IT NECESSARY TO ADDRESS THE SAME. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 5 TH AUGUST, 2010. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE:05-08-2010 COPY TO 1 THE INCOME TAX OFFICER, WARD-2(1), ROOM NO. 107, CR BUILDINGS, MG ROAD, VIJAYAWADA 2 SMT. MADDALA JAYAPRADA, C/O C.SUBRAMANYAM, CA, 10 2 LAKSHMI APARTMENTS, FACOR LAYOUT, WALTAIR UPLANDS, VISAKHAP ATNAM 530003 3 4. THE CIT VIJAYAWADA THE CIT(A), VIJAYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM