J.Anandam, Hyderabad V. Income Tax Officer, Ward-12(3), Hyderabad

ITA 441/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 1270 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 11-03-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 01-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T CHAITANYA KUMAR
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B-SMC, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO. 441/HYD/2018 ASSESSMENT YEAR: 2008-09 SHRI J. ANANDAM HYDERABAD. PAN ABSPJ4497R VS. ITO, WARD 12(3), HYDERABAD. (APPLICANT) (RES PONDENT) ASSESSEE BY : SHRI T. CHAITANYA KUMAR REVENUE BY : SHRI SOLGY JOSE T. KOTTARAM DATE OF HEARING : 11-03-2019 DATE OF PRONOUNCEMENT : 20-03-2019 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS ASSESSEES APPEAL FOR THE A.Y 2008-09 AGAI NST THE ORDER OF THE CIT(A)-4, HYDERABAD DATED 08.12.20 17. 2. THE ASSESSEE, AN INDIVIDUAL AND SALARIED PERSON, FILED HIS RETURN OF INCOME FOR THE A.Y 2008-09 ON 02.09.2 018, ADMITTING THE TOTAL INCOME OF RS. 4,52,678/-. DURI NG THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A SSESSEE WAS ASKED TO FURNISH THE SOURCES FOR CASH DEPOSITS INTO HIS BANK ACCOUNT OF ANDHRA PRADESH STATE COOPERATIVE LT D., NARAYANAGUDA HYDERABAD. THE ASSESSEE STATED THAT H E HAD BORROWED HUGE AMOUNTS FROM ONE SHRI K. NARAYANA RED DY, WHO RETIRED AS A ZONAL MANAGER OF THE BANK AND OTHE RS, FOR THE WEDDING OF HIS DAUGHTER AND SINCE THE MARRIAGE WAS CANCELLED, THE ASSESSEE HAD TO RETURN BACK THE ENTI RE 2 ITA.NO. 441/HYD/2018 SHRI J. ANANDAM, HYD. AMOUNT TO SHRI K. NARAYANA REDDY AND OTHERS. IT WAS SUBMITTED THAT THE AMOUNTS WERE GIVEN TO THE ASSESS EE BY RAISING DEPOSITOR LOAN OF RS. 1 LAKH EACH ON DIFFER ENT DATES . SINCE, THE MARRIAGE WAS GOT CANCELLED, HE HAD TO DE POSIT THE SAME INTO THE BANK ACCOUNT. HE ALSO EXPLAINED THE SOURCES AS THE LOANS TAKEN FROM HIS CLOSE FRIENDS AND RELATIVE S. THE A.O, HOWEVER, WAS NOT CONVINCED WITH THE ASSESSEES CONT ENTIONS AND BROUGHT THE DEPOSITS OF CASH AS UNEXPLAINED CASH CR EDITS. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), WHO CONFIRMED THE ORDER OF THE A.O ON THE GROUND TH AT THE ASSESSEE DID NOT APPEAR BEFORE HER. AGGRIEVED, THE ASSESSEE IS IN SECOND APPEAL BEFORE US. 3. THE LD. COUNSEL FOR THE ASSESSEE HAS FILED AN AD DITIONAL GROUND OF APPEAL BEFORE US, WHICH READS AS UNDER: 1. WHETHER THE LD. CIT(A) IS CORRECT IN LAW IN UPH OLDING THE ADDITION MADE BY THE A.O APPLYING THE PROVISIONS OF SEC. 68 OF THE ACT ON ACCOUNT OF CASH DEPOSITS APPEARING IN TH E BANK STATEMENT WHEN THE ASSESSEE DOES NOT MAINTAIN ANY B OOKS OF ACCOUNT AND THE BANK STATEMENT CANNOT BE TREATED AS BOOKS OF ACCOUNT AS PER THE SEC. 2(12A) OF THE ACT. 3.1 HE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOU R OF ASSESSEE BY VARIOUS DECISIONS OF THE TRIBUNAL AND P RAYED FOR ADMISSION OF THE SAME. 4. THE LD. DR, HOWEVER, OPPOSED THE ADDITIONAL GROU ND OF THE ASSESSEE. 5. SINCE, THE ADDITIONAL GROUND RAISED BY THE ASSES SEE IS PURELY LEGAL IN NATURE, WE DEEM IT FIT AND PROPER T O ADMIT THE SAME AND REMAND THE ISSUE TO THE FILE OF THE A.O FO R DE-NOVO CONSIDERATION ON MERITS. THE A.O SHALL NOT ONLY DE CIDE THE ADDITIONAL GROUND BUT ALSO RECONSIDER THE EVIDENCE FILED BY THE ASSESSEE IN THE LIGHT OF DECISION TAKEN BY HIM ON T HIS GROUND. 3 ITA.NO. 441/HYD/2018 SHRI J. ANANDAM, HYD. THEREFORE, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 20 TH MARCH, 2019. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED: 20 TH MARCH, 2019 KRK 1) SHRI T. CHAITANYAKUMAR, ADVOCATE, FLAT NO. 102, GOURI APARTMENT, URDULANE, HIMAYATH NAGAR, HYDERABAD. 2) ITO, WARD 12(3), HYDERABAD. 3) CIT(A)-4, HYDERABAD. 4) PR.CIT-1, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., H YDERABAD. 6) GUARD FILE.