The ITO, Ward-2(4), Vijayawada V. Sri Kolli Bhupathy Reddy, Vijayawada

ITA 488/VIZ/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 7290 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2011
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-01-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 19-10-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: D S SUNDER SINGH
• Keywords: Unexplained investment; Set aside

Judgement Text

ITA NO.488 OF 2010 KOLLI BHUPATHY REDDY VIJAYAWADA U-S 144 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. 488 /VIZAG/20 10 ASSESSMENT YEAR: 2007 - 08 ITO WARD - 2(4) VIJAYAWADA VS. KOLLI BHUPATHY REDDY, VIJAYAWADA (APPELLANT) (RESPONDENT) PAN NO: AKIPK 3354 M APPELLANT BY: SHRI D.S. SUNDER SINGH, DR RESPONDENT BY: NONE ORDER PER SHRI B. R. BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 13.8.2010 PASSED BY LEARNED CIT(A), VIJAYAWADA AND IT RELATES TO THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE IS ASSAILING THE DECISION OF THE LEA RNED CIT (A) IN DELETING THE ADDITION OF RS.45,07,833/- MADE BY THE ASSESSING OFFICER UNDER THE HEAD UNACCOUNTED INVESTMENT. 3. THE FACTS RELATING TO THE ISSUE ARE STATED IN BR IEF. THE ASSESSEE IS A CIVIL CONTRACTOR AND FILED HIS RETURN OF INCOME F OR THE YEAR UNDER CONSIDERATION ADMITTING A TOTAL INCOME OF RS.2,54,0 70/-. HIS CASE WAS TAKEN UP FOR SCRUTINY AND NOTICES WERE ISSUED CALLI NG FOR CERTAIN INFORMATION AND THE BOOKS OF ACCOUNTS. HOWEVER, THE ASSESSEE DID NOT RESPOND. HENCE THE ASSESSING OFFICER COMPLETED THE ASSESSMENT TO THE BEST OF HIS JUDGMENT AS PER THE PROVISIONS OF SECTI ON 144 OF THE ACT. ITA NO.488 OF 2010 KOLLI BHUPATHY REDDY VIJAYAWADA U-S 144 PAGE 2 OF 3 WHILE SCRUTINIZING THE RETURN OF INCOME FILED BY THE ASSESSEE THE ASSESSING OFFICER NOTICED THAT THE TOTAL COLUMN OF THE TWO SIDES OF BALANCE SHEET SCHEDULE DID NOT TALLY, I.E. THE AS SESSEE HAD DISCLOSED HIS SOURCES OF FUND AS RS.16,13,407/- WHEREAS THE TOTAL APPLICATION OF FUNDS WAS SHOWN AT RS.61,21,240/-. THUS, THERE WAS A DIF FERENCE OF RS.45,07,833/- BETWEEN THE LIABILITIES SIDE AND THE ASSETS SIDE OF THE BALANCE SHEET SCHEDULE. AS PER THE ACCOUNTING PRIN CIPLES BOTH THE ASSETS SIDE AND LIABILITIES SHOULD TALLY WITH EACH OTHER. SINCE NO EXPLANATION WAS FORTH COMING IN THIS REGARD FROM THE ASSESSEE, THE ASSESSING OFFICER TREATED THE DIFFERENCE OF RS.45,07,833/- AS THE INC OME OF THE ASSESSEE. IN THE APPEAL PREFERRED BY THE ASSESSEE THE LEARNED CIT (A) DELETED THE IMPUGNED ADDITION. HENCE THE REVENUE IS IN APPEAL B EFORE US ASSAILING THE DECISION OF THE LEARNED CIT (A). 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTE D THAT THE LEARNED CIT (A) DID NOT CONFRONT THE CONTENTIONS OF THE ASSESSEE THAT THE IMPUGNED DIFFERENCE HAS OCCURRED DUE TO THE MISTAKE IN FILLING UP OF THE INCOME TAX RETURN FORM AND ACTUALLY THERE WAS NO DI FFERENCE BETWEEN THE ASSETS SIDE AND THE LIABILITIES SIDE OF THE BAL ANCE SHEET AS PER THE BOOKS OF ACCOUNT. ACCORDINGLY HE PLEADED THAT THE M ATTER BE SET ASIDE TO THE ASSESSING OFFICER FOR MAKING NECESSARY EXAMINAT ION IN THIS REGARD. LEARNED AUTHORISED REPRESENTATIVE ALSO DID NOT OBJE CT TO THE PLEA MADE BY THE LEARNED DEPARTMENTAL REPRESENTATIVE. 5. HAVING REGARD TO THE SUBMISSIONS MADE BY BOTH TH E PARTIES, WE SET ASIDE THE MATTER TO THE FILE OF THE ASSESSING O FFICER FOR MAKING NECESSARY EXAMINATION OF THE EXPLANATIONS OFFERED B Y THE ASSESSEE VIS-- VIS THE BOOKS OF ACCOUNT. THE ASSESSING OFFICER IS DIRECTED TO DECIDE THE ISSUE IN ACCORDANCE WITH THE LAW AFTER AFFORDING NE CESSARY OPPORTUNITY OF ITA NO.488 OF 2010 KOLLI BHUPATHY REDDY VIJAYAWADA U-S 144 PAGE 3 OF 3 BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FURNISH ALL THE DETAILS THAT MAY BE CALLED FOR BY THE ASSESSING OFFICER. 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS TREA TED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 5 TH JANUARY, 2011. SD/- SD/- (SUNIL KUMAR YADAV) (B R BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PVV/SPS VISAKHAPATNAM, DATE: 05-01-2010 COPY TO 1 THE INCOME TAX OFFICER, WARD - 2(4) CENTRAL REVENUES BUILDING, MG ROAD, VIJAYAWADA 520002 2 SRI KOLLI BHUPATHY REDDY, D.NO.24 - 25 - 41, DURGAPURAM, VIJAYAWADA 3 4. THE CIT VIJAYAWADA THE CIT(A), VIJAYAWADA 5 THE DR, ITAT, VI SAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM