The ACIT, Circle-1(1), Vijayawada V. Smt Mandalapu Ganga Bhavani, Kaikaluru

ITA 471/VIZ/2009

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50159 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 31-03-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 14-09-2009
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K SINGH
• Keywords: Unexplained cash credit

Judgement Text

ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 1 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 471,472&473 /VIZAG/ 20 09 ASSESSMENT YEAR : 2005 - 06, 2006 - 07 & 2 007 - 08 ACIT, CIRCLE - 1(1) VIJAYAWADA VS. SMT. MANDALAPU GANGA BHAVANI KAKINADA (APPELLANT) (RESPONDENT) PAN NO.AEVPM 6610B APPELLANT BY: SHRI R.K. SINGH, DR RESPONDENT BY: SHRI G.V.N. HARI, CA ORDER PER SHRI S.K. YADAV, JUDICIAL MEMBER:- THESE APPEALS ARE PREFERRED BY THE REVENUE AGAINS T THE RESPECTIVE ORDER OF THE CIT(A) ON COMMON GROUNDS, THEREFORE, T HESE WERE HEARD TOGETHER AND BEING DISPOSED OF THROUGH THIS CONSOLI DATED ORDER FOR THE SAKE OF CONVENIENCE. WE HOWEVER, PREFER TO ADJUDICATE T HEM ONE AFTER THE OTHER. ITA NO.471 OF 2009: 2. IN THIS APPEAL THE REVENUE HAS RAISED VARIOUS GR OUNDS OF APPEAL BUT THEY ALL RELATE TO THE DELETION OF ADDITION OF RS.7 ,10,000/- MADE ON ACCOUNT OF UNEXPLAINED CASH CREDIT AFTER ADMITTING THE INFORMA TION WHICH WERE NOT PRODUCED BEFORE THE A.O. IN VIOLATION OF PROVISIONS OF RULE 46A OF THE I.T. RULES. 3. WE HAVE HEARD THE PARTIES AND CAREFULLY EXAMINED THE ORDER OF THE LOWER AUTHORITIES IN THE LIGHT OF RIVAL SUBMISSIONS . DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. NOTICED THAT THE A SSESSEE HAS SHOWN RECEIPTS AND ADVANCES OF RS.15,35,000/- FROM 21 PER SONS TOWARDS SALE OF SHOPS. DURING THE ASSESSMENT PROCEEDINGS, THE A.O. SUMMONED 7 PERSONS AND THEIR STATEMENTS WERE RECORDED ON 17.12.2008 AN D 30.12.2008. ALL THESE CREDITORS HAVE CONFIRMED THE PAYMENTS IN CASH FOR B UYING SHOPS IN BHAVANI ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 2 COMPLEX AND SOURCE OF THE CASH WAS CLAIMED OUT OF A GRICULTURAL INCOME. THEY HAVE ALSO FURNISHED THE COPY OF THE PATTADAR PASS B OOK AND THE AFFIDAVITS. HOWEVER, THEY WERE NOT ALLOTTED SHOPS BUT SUBSEQUEN TLY THESE ADVANCES WERE CONVERTED INTO LOANS ON WHICH INTEREST @ 12% WAS PR OMISED. THE EXPLANATIONS FURNISHED BY THE ASSESSEE WERE NOT ACC EPTED BY THE A.O. AND HE CONCLUDED THAT ASSESSEE HAS FAILED TO PROVE THE IDE NTIFICATION OF THE CREDITORS, CREDITWORTHINESS OF THE CREDITOR AND THE GENUINENES S OF THE TRANSACTIONS AND MADE AN ADDITION OF RS.3,15,000/- WITH RESPECT TO T HE 7 CREDITORS. THE ASSESSEE HAS ALSO RECEIVED A CASH OF RS.6,25,000/- FROM SMT. USHA RANI AND IN SUPPORT OF HER CREDITWORTHINESS SHE FILED AFFIDA VIT ALONG WITH HER INCOME TAX RETURN. THE A.O. WAS SATISFIED WITH THAT EXPLA NATIONS AND NO ADDITION WAS MADE IN THIS REGARD. THE ASSESSEE HAS ALSO RECEIVE D RS.2,00,000/- IN CASH FROM SMT. M. LAXMINARAYANAMMA WHO IS A RETIRED TEAC HER. THE ASSESSEE HAS FURNISHED HER AFFIDAVIT IN SUPPORT OF HER CREDITWOR THINESS BUT THE A.O. WAS NOT CONVINCED WITH IT AND HE MADE THE ADDITION OF THE S AME. THE ASSESSEE HAS ALSO RECEIVED A SUM OF RS.3,95,000/- FROM 12 PERSON S WHO ARE AGRICULTURISTS AND THEY ALSO FILED THEIR AFFIDAVITS ALONG WITH THE COPY OF PATTADAR PASS BOOK. THIS WAS ALSO NOT CONSIDERED TO BE GENUINE BY THE A .O. AND HE MADE THE ADDITION OF THE SAME. 4. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT( A) WITH THE SUBMISSIONS THAT THE A.O. HAS SUMMONED 7 CREDITORS WHO HAVE APPEARED BEFORE THE A.O. AND DEPOSED ABOUT THE NATURE AND SO URCE OF INVESTMENTS. THE COPIES OF PATTADAR PASS BOOK WERE ALSO PLACED B EFORE THE A.O. TO PROVE THEIR CREDITWORTHINESS. THE CIT(A) RE-EXAMINED THE ISSUE IN THE LIGHT OF MATERIAL PLACED BEFORE THE A.O. AND HE WAS CONVINCE D WITH THE EXPLANATIONS OF THE ASSESSEES WITH REGARD TO THE DEPOSIT OF RS.3 ,15,000/- FROM 7 PERSONS AND RS.3,95,000/- FROM 12 PERSONS AND HE DELETED TH E ADDITION OF RS.7,10,000/-. WITH REGARD TO THE ADDITION OF RS.2 LAKHS RECEIVED FROM M. LAXMINARAYANAMMA, CIT WAS ALSO NOT CONVINCED WITH T HE EXPLANATIONS AND THE ADDITION WAS CONFIRMED. THE RELEVANT OBSERVATI ONS OF THE CIT(A) ARE EXTRACTED HEREUNDER: ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 3 THE A.O. HAS SUMMONED 7 PERSONS AND RECORDED THEIR SWORN STATEMENTS AND EVERYONE HAS CONFIRMED THE LOAN. TH ESE PERSONS ARE AGRICULTURISTS AND THEY HAVE ALSO PRODUCED THEIR PA TTADAR PASS BOOKS IN SUPPORT OF OWNERSHIP OF AGRICULTURAL LAND. THE OTHER 12 CREDITORS FOR LOAN OF RS.3,95,000/- H AVE ALSO FURNISHED AFFIDAVITS ALONG WITH THEIR PATTADAR PASS BOOKS AND THEREIN THEY HAVE CONFIRMED TRANSACTIONS WITH THE APPELLANT. THE A.O . HAS, HOWEVER, DISBELIEVED THESE AFFIDAVITS SINCE THEY COULD NOT P RODUCE THEIR BANK PASS BOOKS AND CERTIFICATE FROM MRO BUT HE (A.O.) DID NO T DISBELIEVE THEIR AGRICULTURAL ACTIVITIES AND LAND HOLDINGS. THE AFF IDAVITS, THUS, ESTABLISH THEIR IDENTITY. THESE AGRICULTURISTS HAVE ALSO FURNISHED THEIR PATTADAR PASS BOOKS IN SUPPORT OF LAND HOLDINGS AND NONE OF CREDITOR HAS D ENIED TRANSACTION WITH THE APPELLANT. THE A.O. HAS SUMMONED ONLY 7 CREDITORS AND THEY HAVE ALSO CONFIRMED THEIR TRANSACTIONS WITH THE ASSESSEE. TH E A.O. HAS DISBELIEVED THE CREDIT WORTHINESS OF THE CREDITORS ONLY ON ACCOUNT OF NON-FURNISHING OF A CERTIFICATE FROM MRO REGARDING CROP GROWN AND THE I NCOME EARNED THERE FROM. IT IS THE CREDITOR WHO KNOWS HIS SOURCE OF I NCOME AND SAME HAS BEEN MENTIONED IN THEIR AFFIDAVITS. MOREOVER, DURING AP PELLATE PROCEEDINGS, APPELLANT FURNISHED MRO CERTIFICATES ABOUT CROP GR OWN AND ESTIMATED INCOME THEREFROM. IN VIEW OF THE ABOVE DISCUSSION, THE CR EDITWORTHINESS AND GENUINENESS OF THE TRANSACTION IN RESPECT OF 7 CRED ITORS SUMMONED AND THE 12 AGRICULTURISTS WHO HAVE FILED AFFIDAVITS AND PAT TADAR PASS BOOKS INVOLVING CASH CREDIT AMOUNTING TO RS.3,15,000/- AND RS.3,95, 000/- ARE FOUND EXPLAINED. HOWEVER, THE ASSESSEE FAILED TO PROVE T HE CREDITWORTHINESS OF SMT. M. LAXMINARAYANAMMA WHO RETIRED AS A TEACHER O N 31.8.2001. HER SOURCE OF LOAN OF RS.2 LAKHS HAS BEEN CLAIMED OUT O F THE RETIREMENT BENEFITS. THE RETIREMENT BENEFITS ARE GIVEN BY CHEQUE OR DEMA ND DRAFT AND SAME IS CREDIT INTO THE BANK ACCOUNT. SHE HAS CLAIMED CASH LOAN OF RS.2 LAKHS BY WITHDRAWING THIS AMOUNT FROM HER BANK ACCOUNT. THU S BANK ACCOUNT BECOMES A CRUCIAL EVIDENCE TO PROVE THE SOURCE OF C ASH LOAN OF RS.2 LAKHS OUT OF RETIREMENT BENEFITS. APPELLANT HAS FAILED DURIN G ASSESSMENT PROCEEDINGS AS WELL AS APPELLATE PROCEEDINGS TO SUBSTANTIATE HE R CREDITWORTHINESS BY WAY OF FURNISHING HER BANK STATEMENT. THUS, THE CASH L OAN OF RS.2,00,000/- RECEIVED FROM SMT. M. LAXMINARAYANAMMA REMAINS UNEX PLAINED. HENCE, ADDITION OF RS.7,10,000/- IS HEREBY DELETED AND ADD ITION OF RS.2 LAKHS IN RESPECT OF LOAN FROM SMT. M. LAXMINARAYANAMMA IS UP HELD. 5. DURING THE COURSE OF HEARING OF THE APPEAL, THE REVENUE HAS PLACED A HEAVY RELIANCE UPON THE ORDER OF THE ASSESSING OFFI CER BUT NO SPECIFIC DEFECT WAS POINTED OUT IN THE ORDER OF THE CIT(A). THE LD . COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION WITH REGARD TO THE QUANTU M OF RECEIPTS THAT VARIES FROM RS.20,000/- TO RS.1,50,000/- AND ALSO TO THE F ACT THAT ALL THESE DEPOSITORS ARE AGRICULTURISTS AND WERE HAVING A SUF FICIENT AGRICULTURAL HOLDINGS. IN SUPPORT OF THAT THEY HAVE FURNISHED THE PATTADAR PASS BOOKS. BESIDES, HE HAS ALSO PLACED A RELIANCE UPON THE ORDER OF THE CI T(A). ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 4 6. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE LOWE R AUTHORITIES AND WE FIND THAT THE DEPOSITS VARIES FROM RS.20,000/- TO R S.30,000/- IN MOST OF THE CASES AND ONLY ON 2 CASES, THE DEPOSITS WERE RS.1,0 0,000/- AND RS.1,50,000/- TO PROVE THE GENUINENESS OF THE TRANSACTIONS AND TH E CREDITWORTHINESS OF THE CREDITORS, THE ASSESSEE HAS FILED THE AFFIDAVITS A ND THE COPIES OF PATTADAR PASS BOOK. THE ASSESSING OFFICER HAS DISALLOWED TH E CLAIM ONLY FOR THE REASONS THAT ASSESSEE COULD NOT FURNISH THE BANK ST ATEMENT. THE ABOVE SAID SMALL AMOUNT CAN BE GIVEN OUT OF THE SAVINGS OF THE DEPOSITORS AND IT IS NOT NECESSARY THAT ALL THE TIME THE AGRICULTURIST SHOUL D MAINTAIN THE BANK ACCOUNT. 7. WE HAVE CAREFULLY PERUSED THE ORDER OF THE CIT(A ) AND WE FIND THAT CIT(A) HAS PROPERLY EXAMINED THE ISSUE IN DISPUTE I N THE LIGHT OF MATERIAL AVAILABLE BEFORE HIM AND SINCE WE DO NOT FIND ANY I NFIRMITY IN HIS ORDER, WE CONFIRM THE SAME. ITA NO.472 OF 2009: 8. IN THIS APPEAL THE REVENUE HAS ASSAILED THE ORDE R OF THE CIT(A) ON FOLLOWING GROUNDS: 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AS PER LAW AND ON FACTS. 2. THE APPELLANT/AO CRAVE, LEAVE TO ADD, AMEND OR ALTE R ANY OF THE GROUNDS AS THE CASE MAY ARISE. 3. THE LD. CIT(A) ALLOWED THE ASSESSEES APPEAL ON THE REASON THAT REASONABLE OPPORTUNITY WAS NOT AFFORDED IN TREATING THE INTEREST PAYMENT ON HOUSE PROPERTY AND OTHER SOURCES AND CON SIDERED THE TRANSACTION AS GENUINE THOUGH THE PAYMENTS WERE NOT PAID THROUGH BANK CHEQUES. 4. WITHOUT THE CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, THE ADDITION MADE U/S 69B TOWARES UNEXPLAINED INVES TMENT OF RS.13,33,800/- WAS ALLOWED MERELY RELYING UPON THE NOTARIZED AFFIDAVITS. 5. THE LD. CIT(A) OUGHT NOT TO ADMIT ANY INFORMATION W HICH WAS NOT PRODUCED BEFORE THE A.O. AS PER RULE 46A OF I.T. RU LES 1962, IN ALLOWING CASH CREDITS U/S 68C AND AGRICULTURAL INCO ME TREATED AS EXPLAINED. 6. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME O F HEARING. ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 5 9. GROUND NOS.1 & 2 ARE OF GENERAL IN NATURE AND NE EDS NO INDEPENDENT ADJUDICATION. FROM A READING OF GROUND NO.3 IT IS NOT CLEAR AS TO WHAT IS THE GRIEVANCE OF THE REVENUE. MOREOVER, NO SUCH GROUND WAS ADJUDICATED BY THE CIT(A) IN ITS ORDER, THEREFORE, IT DOES NOT ARISE O UT OF THE ORDER OF THE CIT(A) AND THEREFORE, WE REJECT THE SAME. 10. WITH REGARD TO GROUND NOS.4&5, IT IS NOTICED TH AT THE ASSESSEE HAS RECEIVED A LOAN OF RS.13,33,800/- FROM P. NAGESWARA RAO AND P.V. SRINIVAS BY WAY OF CHEQUE OR DEMAND DRAFT. THE A.O. SUMMONE D P. NAGESWARA RAO FROM WHOM ASSESSEE HAS RECEIVED A SUM OF RS.12 LAKH S AND HAS RECORDED HIS STATEMENT. IN HIS STATEMENT HE HAS CONFIRMED THE L OAN ADVANCED TO THE ASSESSEE. THE A.O. HAS NOT DOUBTED THE REMITTANCE FROM SHRI P.V. SRINIVAS FROM WHOM THE ASSESSEE HAS RECEIVED RS.1,33,800/- A ND ALSO THE WITHDRAWAL MADE BY SHRI P. NAGESWARA RAO FROM HIS ACCOUNT. TH E A.O. HAS DISBELIEVED THE RETURN OF LOANS BY THE ASSOCIATES OF SHRI P. NA GESWARA RAO. DURING THE APPELLATE PROCEEDINGS, THE ASSESSEE HAS FURNISHED T HE CONFIRMATIONS FROM ALL THE CONCERNED PERSONS WHO HAVE RETURNED THE LOAN TO SHRI P. NAGESWARA RAO. THESE FACTS WERE DULY EXAMINED BY THE CIT(A) AND BE ING CONVINCED WITH THE EXPLANATIONS OF THE ASSESSEE, HE DELETED THE ADDITI ONS. 11. NOW THE REVENUE IS BEFORE US AND HAS SIMPLY PLA CED A RELIANCE UPON THE ORDER OF THE A.O. HE DID NOT POINT OUT ANY DEF ECT IN THE ORDER OF THE CIT(A). WE HAVE CAREFULLY PERUSED THE ORDER OF THE LOWER AUTHORITIES AND WE FIND THAT THE A.O. HAS TREATED THIS LOAN TO BE AS N ON-GENUINE BY DOUBTING THE RETURN OF LOAN, WHEREAS, HE IS REQUIRED TO EXAMINE THE GENUINENESS OF THE RECEIPT OF LOAN. THE ASSESSEE HAS ALSO FURNISHED T HE RELEVANT CONFIRMATIONS AND PROVED THE RETURN OF LOANS. ON CAREFUL PERUSAL OF THE ORDER OF THE CIT(A), WE FIND THAT HE HAS PROPERLY EXAMINED THE I SSUE IN RIGHT PERSPECTIVE. SINCE WE FIND NO INFIRMITY IN HIS ORDER, WE CONFIRM THE SAME AND DISMISS THE APPEAL OF THE REVENUE. ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 6 ITA NO.473 OF 2009: 12. IN THIS APPEAL, THE REVENUE HAS PREFERRED AN AP PEAL AGAINST THE ORDER OF THE CIT(A) ON FOLLOWING GROUNDS: 1. THE ORDER OF THE LD. CIT(A) IS ERRONEOUS AS PER LAW AND ON FACTS. 2. THE APPELLANT/AO CRAVE, LEAVE TO ADD, AMEND OR ALTE R ANY OF THE GROUNDS AS THE CASE MAY ARISE. 3. THE LD. CIT(A) ALLOWED THE ASSESSEES APPEAL ON THE REASON THAT REASONABLE OPPORTUNITY WAS NOT AFFORDED IN TREATING THE INTEREST PAYMENT ON HOUSE PROPERTY AND OTHER SOURCES AND CON SIDERED THE TRANSACTION AS GENUINE THOUGH THE PAYMENTS WERE NOT PAID THROUGH BANK CHEQUES. 4. THE GENUINENESS OF THE TRANSACTION OF LOANS/ADVANCE S BORROWED BY ASSESSEE FOR THE PURPOSE OF BUSINESS AND HOUSING NO T ESTABLISHED. THE LD. CIT(A) WITHOUT EXAMINING THE FACTS AND CIRC UMSTANCES INVOLVED ALLOWED THE ASSESSEES APPEAL. 5. THE LD. CIT(A) OUGHT NOT TO ADMIT ANY INFORMATION W HICH WAS NOT PRODUCED BEFORE THE A.O. AS PER RULE 46A OF I.T. RU LES, 1962 IN TREATING THE AGRICULTURAL INCOME AS EXPLAINED. 6. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME O F HEARING. 13. GROUND NOS.1&2 ARE OF GENERAL IN NATURE AND NEE DS NO INDEPENDENT ADJUDICATION. FROM A READING OF GROUND NO.3 IT IS N OT CLEAR AS TO WHAT IS THE GRIEVANCE OF THE REVENUE. MOREOVER, NO SUCH GROUND WAS ADJUDICATED BY THE CIT(A) IN ITS ORDER. SINCE IT DOES NOT ARISE OUT O F THE ORDER OF THE CIT(A), WE REJECT THE SAME. 14. WITH REGARD TO GROUND NOS.4&5 IT IS NOTICED FRO M THE ORDER OF THE LOWER AUTHORITIES THAT ASSESSEE HAS RECEIVED A FRES H LOAN OF RS.6,50,000/- AND RS.2,50,000/- FROM SHRI SEETHARAMA RAJU AND G. TIR UPATHAIAH RESPECTIVELY. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AS SESSEE HAS FURNISHED THE AFFIDAVITS FROM THESE CREDITORS ALONG WITH THE BANK STATEMENT. SINCE THE CREDITORS FAILED TO PRODUCE THE BOOKS OF ACCOUNTS A ND CASH FLOW STATEMENTS, THE A.O. DOUBTED THE GENUINENESS OF THE TRANSACTION S AND DISALLOWED THE SAME. DURING THE COURSE OF APPELLATE PROCEEDINGS, THE ASSESSEE HAS FURNISHED THE COPY OF AFFIDAVITS AND THE PRO-NOTES FILED DURING THE ASSESSMENT PROCEEDINGS. COPY OF THE BANK ACCOUNT WAS ALSO FUR NISHED BEFORE THE CIT(A) WHICH WAS PROPERLY EXAMINED BY HIM. BEING CONVINCE D WITH THE EXPLANATIONS OF THE ASSESSEE, HE DELETED THE ADDITIONS. THE REL EVANT OBSERVATIONS OF THE CIT(A) ARE EXTRACTED HEREUNDER: ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 7 ASSESSEE HAS RECEIVED FRESH LOANS OF RS.6,50,000/- AND RS.2,50,000/- FROM SRI N. SEETHARAMA RAJU AND SRI G. TIRUPATHAIAH RESPECTIVELY. ASSESSEE, DURING ASSESSMENT PROCEEDINGS, FURNISHED AFFIDAVITS FROM THESE CREDITORS ALONG WITH THEIR BANK STATEMENTS. HOWEVER, A.O. HA S OBSERVED THAT THESE CREDITORS FAILED TO PRODUCE BOOKS OF ACCOUNT, CASH FLOW STATEMENTS AND OTHER DETAILS TO SHOW THE UTILIZATION OF THESE CASH WITHD RAWALS. THE A.O. HAS OBSERVED THAT THERE WAS NO NEED FOR CASH WITHDRAWAL FROM BANK AND THE LOANS SHOULD HAVE BEEN GIVEN BY ACCOUNT PAYEE CHEQU ES. THE A.O. HAS ALSO OBSERVED THAT NO CONFIRMATION OR EVIDENCE IN SUPPOR T OF LOAN OF RS.2,50,000/- RECEIVED FROM SRI G. TIRUPATHAIAH HAS BEEN FURNISHE D. THE APPELLANT, DURING APPELLATE PROCEEDINGS, HAS FURNISHED COPY OF THE AF FIDAVITS AND THE PROMOTES FILED DURING ASSESSMENT PROCEEDINGS. APPELLANT HAS ALSO FURNISHED COPY OF BANK A/C NO.11359951139 & 10976465804 STANDING IN T HE NAME OF MR. N. SEETHARAMA RAJU AND SRI G. TIRUPATHAIAH RESPECTIVEL Y. SRI N. SEETHARAMA RAJU IS A RETIRED GOVERNMENT TEACHER AND RECEIVED G RATUITY AND COMMUTED VALUE PENSION OF RS.2,60,783/- AND RS.3,96,769/- ON 6.7.2006 AND 26.7.2006 RESPECTIVELY., THESE CHEQUES WERE DEPOSITED IN HIS ABOVE SAID ACCOUNT AND THEREAFTER CASH WAS WITHDRAWN AND PAID TO THE ASSES SEE ON FOLLOWING DATES. DATE AMOUNT (IN RS.) 21.7.2006 1,00,000 26.7.2006 5,00,000 27.7.2006 50,000 TOTAL 6,50,000 SRI G. TIRUPATHAIAH ALSO RECEIVED PENSION BENEFITS AND SAME WERE CREDITED IN HIS ABOVE SAID S.B. A/C AND THEREAFTER HE WITHDREW CASH OF RS.1,15,000/- AND RS.1,00,000/- ON 17.6.2006 AND 28 .7.2006 RESPECTIVELY AND ADVANCED TO THE APPELLANT. THE MEMO NO.B3/3048 /206 DATED 3.7.2006 ISSUED BY THE DY. DIRECTOR, DISTRICT TREASURY, KRIS HNA DIST. IS IN RESPECT OF GRATUITY AND COMMUTED VALUE OF PENSION FOR RS.2,60, 783/- AND RS.3,96,769/- PAID TO SRI N. SEETHARAMA RAJU. THESE PENSION BENE FITS WERE CREDITED TO HIS ABOVE SAID BANK ACCOUNT AND THEREAFTER CASH OF RS.1 ,00,000/- RS.5,00,000/-, RS.50,000/- WERE WITHDRAWN ON 21.7.2006, 26.7.2006 AND 27.7.2006 RESPECTIVELY. SRI G. TIRUPATHAIAH ALSO RECEIVED RS .1,19,872/- AND RS.1,69,125/- AS A PENSIONARY BENEFITS FROM ACCOUNT ANT GENERAL, ANDHRA PRADERSH, HYDERABAD VIDE PPO NO.17/SGC-013551 DATED 5.6.2006 AND PROCEEDINGS NO.P18/II/T-39/SP 177/2005-06/504 DATED 20.7.2005. THESE AMOUNTS WERE CREDITED TO HIS S.B. A/C NO.1097646580 4 AND THEREAFTER HE WITHDREW CASH AND ADVANCED SUCH CASH TO THE APPELLA NT. THE COPY OF THE AFFIDAVITS, FILED DURING ASSESSMENT PROCEEDINGS, HA VE AGAIN BEEN PRODUCED WHICH CONFIRM THE LOANS AS CLAIMED BY THE APPELLANT . THUS, THE CASH CREDITORS HAVE CONFIRMED THE LOANS AND THEY HAVE ALSO PROVED THE SOURCE OF SAID LOANS. 15. NOW THE REVENUE HAS PREFERRED AN APPEAL BEFORE THE TRIBUNAL AND PLACED A HEAVY RELIANCE UPON THE ORDER OF THE A.O. WHEREAS THE ASSESSEE HAS STRONGLY CONTENDED THAT HE HAS FILED THE CONFIR MATION LETTERS AS WELL AS ITA NO471,472 & 473/V/09 M G BHAVANI, KKD. 8 THE AFFIDAVITS, BANK STATEMENTS AND OTHER EVIDENCE TO PROVE THE CREDITWORTHINESS OF THE CREDITORS. THE A.O. HAS MA DE AN ADDITION ON THE BASIS OF CONJUNCTIONS AND SURMISES. BESIDES, HE PL ACED A RELIANCE UPON THE ORDER OF THE CIT(A). 16. WE HAVE CAREFULLY EXAMINED THE ORDER OF THE LOW ER AUTHORITIES IN THE LIGHT OF RIVAL SUBMISSIONS AND WE FIND THAT THE ASS ESSEE HAS FILED THE AFFIDAVITS AND THE RELEVANT EVIDENCE TO PROVE THE GENUINENESS OF TRANSACTIONS AND CREDITWORTHINESS OF THE CREDITORS BEFORE THE A.O. BUT IT WAS NOT ACCEPTED ONLY FOR THE REASONS THAT THE BANK STATEMENT WAS NOT FIL ED. THE BANK STATEMENT WAS ALSO FILED BEFORE THE CIT(A) AND CIT(A) HAS ACC EPTED THE CLAIM OF THE ASSESSEES AFTER MAKING A NECESSARY VERIFICATION FRO M THE DOCUMENTS. SINCE THE CIT(A) HAS ADJUDICATED THE ISSUE IN RIGHT PERSP ECTIVE AND WE FIND NO INFIRMITY THEREIN, WE CONFIRM THE SAME. 17. IN THE RESULT, THE APPEALS OF THE REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 27.4.2011 SD/- SD/- (BR BASKARAN) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER VG/SPS VISAKHAPATNAM, DATED 27 TH APRIL, 2011 COPY TO 1 ACIT, CIRCLE - 1(1), VIJAYAWADA 2 SMT. MANDALAPU GANGA BHAVA NI, D.NO.10/9 - F, KAIKALURU, KRISHNA DIST. - 521333 3 THE CI T, VIJAYAWADA 4 THE CIT (A) , VIJAYAWADA 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM