Ravinder Roa Guniganti , Hyderabad V. Dy. Commissioner of Income Tax , (International Taxation)-1, Hyderabad

ITA 379/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 6175 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2009-2010
• Appeal Filed On: 22-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Opportunity of being heard; Source of fund; Corroborative evidences
• Section: 147; 68; 69

Judgement Text

ITA NO 379 OF 2019 RAVINDER RAO GUNIGANTI HYDERAB AD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO.379/HYD/2019 ASSESSMENT YEAR: 2009-10 SHRI RAVINDER RAO GUNIGANTI, HYDERABAD PAN:ARAPG6745P VS. DY. COMMISSIONER OF INCOME TAX, ( INTERNATIONAL TAXATION)-1 HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI K.A. SAI PRASAD REVENUE BY : SRI ROHIT MUJUMDAR, DR DATE OF HEARING: 02/02/2021 DATE OF PRONOUNCEMENT: 02/02/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10 AGAIN ST THE ORDER OF THE CIT (A)- 10, HYDERABAD, DATED 24.0 1.2019. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A N INDIVIDUAL AND AN NRI DID NOT FILE HIS RETURN OF IN COME FOR THE A.Y 2009-10. THE AO RECEIVED THE INFORMATION FROM THE I NVESTIGATION WING THAT THE ASSESSEE HAS NO SOURCES OF INCOME BUT HAS PURCHASED IMMOVABLE PROPERTY AND MADE INVESTMENTS I N CONSTRUCTION WORTH RS.8,58,37,409/- DURING THE FINA NCIAL YEAR 2008-09 RELEVANT TO THE A.Y 2009-10. THEREFORE, THE ASSESSMENT WAS REOPENED U/S 147 OF THE I.T. ACT DURING THE COU RSE OF WHICH, THE ASSESSEE WAS REQUIRED TO EXPLAIN THE SOURCES OF INVESTMENT. THE ASSESSEE WAS ALSO REQUIRED TO EXPLAIN THE CASH DEPOSITS MADE ITA NO 379 OF 2019 RAVINDER RAO GUNIGANTI HYDERAB AD PAGE 2 OF 4 IN HIS SAVINGS BANK A/C AND SUBSTANTIATE EACH ENTRY WITH SUPPORTING EVIDENCE. THE ASSESSEE EXPLAINED THE SOU RCES WHICH ARE REPRODUCED BY THE AO AT PARA 2.1 OF HIS ORDER. HOWEVER, THE AO OBSERVED THAT THE ASSESSEE HAS NOT BEEN ABLE TO EXPLAIN THE SOURCES PROPERLY AND WITH DOCUMENTARY EVIDENCE IN S UPPORT OF ASSESSEES CONTENTION. THEREFORE, HE DISALLOWED THE ASSESSEES CLAIM TO THE EXTENT OF RS.3,49,05,687/- AND BROUGHT IT TO TAX. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO DISMISSED THE SAME EX-PARTE THE ASSESSEE, AND THE A SSESSEE IS IN APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS O F APPEAL: 1. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JU STIFIED IN DISPOSING OF THE APPEAL WITHOUT AFFORDING A PROPER OPPORTUNITY OF BEING HEARD. 2. THE LEARNED FIRST APPELLATE AUTHORITY FAILED TO APPRECIATE THE FACT THAT SINCE THE APPELLANT WAS OUT OF STATIO N AND DOOR LOCKED THE NOTICE POSTING THE CASE FOR HEARING ON 2 0.12.2018 COULD NOT BE SERVED. 3. THE LEARNED FIRST APPELLATE AUTHORITY FAILED TO APPRECIATE THE FACT THAT ALL THE INVESTMENTS ARE FULLY EXPLAIN ABLE WITH ENTRIES IN BANK STATEMENT AND THE ADDITIONS WERE MA DE ON PRESUMPTIONS AND ASSUMPTIONS IGNORING THE EVIDENCES ON RECORD. 4. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JUS TIFIED IN SUSTAINING THE ADDITION OF RS.3,61,500 MADE U/S 69 OF THE I.T. ACT. 5. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JUS TIFIED IN SUSTAINING THE ADDITION OF RS.2,20,00,000 MADE U/S 69 OF THE I.T. ACT IGNORING THE CLAIM THAT THE PAYMENTS W ERE DULY REFLECTED IN THE BANK A/CS. 6. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JUS TIFIED IN SUSTAINING THE ADDITION OF RS.4,12,575/- MADE U/S 6 9C OF THE I.T. ACT. 7. THE LEARNED FIRST APPELLATE AUTHORITY IS NOT JUS TIFIED IN CONFIRMING THE ADDITION OF RS.1,48,52,000 BEING CRE DITS IN BANK A/C TREATED AS UNEXPLAINED U/S 68 BY THE AO IG NORING THE CLAIM THAT THE DEPOSITS IN CASH WERE OUT OF WIT HDRAWALS FROM THE BANK BALANCE. ITA NO 379 OF 2019 RAVINDER RAO GUNIGANTI HYDERAB AD PAGE 3 OF 4 8. THE APPELLANT CRAVES LEAVE TO ADD, AMEND OR ALTE R ANY OF THE ABOVE GROUNDS OF APPEAL AT THE TIME OF HEARING OF APPEAL. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAD APPEARED BEFORE THE CIT (A) ON 20. 12.2018 AND MADE A REQUEST FOR ADJOURNMENT AND THE SAME WAS ALS O GRANTED BY THE LEARNED CIT (A) BUT THE NEXT DATE OF HEARING WERE NOT INTIMATED DUE TO WHICH THE ASSESSEE DID NOT ATTEND AND THE APPEAL WAS DISMISSED EX-PARTE THE ASSESSEE. HE SUBM ITTED THAT THE ASSESSEE BEING AN NRI COULD NOT PRODUCE ALL THE DETAILS BEFORE THE AO, BUT THE SOURCES FOR THE INVESTMENTS WERE HI S OWN FUNDS TRANSFERRED FROM HIS OWN ACCOUNT OUTSIDE THE COUNTR Y, AND IF GIVEN AN OPPORTUNITY, HE WILL BE ABLE TO EXPLAIN TH E SOURCES WITH DOCUMENTARY EVIDENCE BEFORE THE AO. 4. THE LEARNED DR, ON THE OTHER HAND, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW AND SUBMITTED THAT THE ASSESSEE DID NOT FILE ANY DETAILS EITHER BEFORE THE AO OR BE FORE THE CIT (A). 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSEE HAD GIVEN EXPL ANATION ABOUT THE SOURCES OF INVESTMENTS AND MOST OF THEM ARE BY WAY OF CHEQUES AND SOME OF THEM WERE FROM CLOSE RELATIVES OF THE ASSESSEE. THE CIT (A) HAS NOT DECIDED THE APPEAL ON MERIT AND THE AO HAS HELD THAT THE ASSESSEE HAS NOT SUBSTANTIATED HIS CONTENTIONS WITH DOCUMENTARY EVIDENCE. THEREFORE, W E DEEM IT FIT AND PROPER TO REMAND THE ISSUE TO THE FILE OF THE A O FOR DENOVO CONSIDERATION IN ACCORDANCE WITH LAW. NEEDLESS TO M ENTION THAT THE ASSESSEE SHALL BE GIVEN A FAIR OPPORTUNITY OF H EARING AND THE ITA NO 379 OF 2019 RAVINDER RAO GUNIGANTI HYDERAB AD PAGE 4 OF 4 ASSESSEE IS ALSO DIRECTED TO FILE ALL THE NECESSARY DETAILS BEFORE THE AO FOR THE EARLY COMPLETION OF THE ASSESSMENT OF HI S INCOME. 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND FEBRUARY, 2021. SD/- SD/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 2 ND FEBRUARY, 2021. VINODAN/SPS COPY TO: 1 SHRI RAVINDER RAO GUNIGANTI, B-101, H.NO.6-1-72 M AHALAXMI MEADOWS, LAKDIKAPUL, HYDERABAD 500004 2 DY. CIT-1(INTERNATIONAL TAXATION), AAYAKAR BHAVAN , BASHEERBAGH, HYDERABAD 3 CIT (A)-10 HYDERABAD 4 CIT (IT & TP) HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER