Irfan Sultan , Hyderabad V. Income Tax Officer( Intl.Txn)-2, Hyderabad

ITA 499/Hyd/2020

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8602 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 04-01-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 08-09-2020
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: VIJAY KUMAR MEDICHARLA
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 499/HYD/2020 ASSESSMENT YEAR: 2017-18 IRFAN SULTAN - NRI [PAN: ETXPS2319A] VS INCOME TAX OFFICER, (INTERNATIONAL TAXATION)-2, HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI VIJAY KUMAR MEDICHARLA, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 04-01-2021 DATE OF PRONOUNCEMENT : 11-01-2021 O R D E R PER BENCH : THIS ASSESSEES APPEAL FOR AY.2017-18 ARISES FROM TH E CIT(A)-HYDERABADS ORDER DATED 07-07-2020 PASSED IN CASE NO.CIT(A), HYDERABAD-10/10116/2019-20, IN PROCEEDIN GS U/S.250 OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT ]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE PLEADED IN THE INSTANT APPEAL SEEKS TO REVERSE BOTH THE LOWER AUTHORITIE S ACTION TREATING THE CASH DEPOSITS OF RS.20,40,000/- (IN VOLVING VARYING SUMS OF DEPOSITS ON 22 ND , 23 RD AND 24-11-2016) AS ITA NO. 499/HYD/2020 :- 2 -: UNEXPLAINED DURING THE COURSE OF ASSESSMENT AND UPH ELD IN THE LOWER APPELLATE PROCEEDINGS. 3. LEARNED AUTHORISED REPRESENTATIVE SOUGHT TO INVITE OU R ATTENTION TO THE ASSESSEES DETAILED PAPER BOOK COMPRISI NG OF THE CORRESPONDING NRE AND NRO ACCOUNTS BANK STATEMEN TS IN ASSESSEES/SINGLE HOLDERS NAME AND OTHER SIMILAR EV IDENCE. HIS CASE; IN TUNE WITH ASSESSEES PLEADINGS BEFORE THE LOWER AUTHORITIES IS THAT HE HAD DEPOSITED RS.5,16,900/-, 4, 43,300/- & 13,66,500/- IN FYS.2014-15, 2015-16 & 2016-17; RESPECTIVELY; WERE WITHDRAWN BY HIS FAMILY MEMBERS (MORE PARTICULARLY HIS MOTHER) AND KEPT FOR HER PERSONAL MED ICAL TREATMENT PURPOSES DURING ALL THE INTERVENING PERIOD. LEARNED COUNSEL ACCORDINGLY CONTENDS THAT ONCE THE ASSESSEES N RE ACCOUNT MAINTAINED WITH THE VERY ICICI BANKS WITHDRAWAL S HAD FOLLOWED THE RE-DEPOSIT(S) THEREOF FORMING SUBJEC T MATTER OF THE IMPUGNED ADDITION, HE DESERVES FULL RELIEF SINCE HAVING EXPLAINED SOURCE OF THE ENTIRE SUM OF RS.20.40 LAKHS. LEARNED COUNSEL ALSO TOOK PAINS TO BUTTRESS THE POINT THA T ASSESSEES MOTHER AS WELL AS HIS SISTER HAD BEEN HAV ING THEIR INDEPENDENT SOURCE(S) OF INCOME AS WELL WHICH GIVES RISE TO AN ASSUMPTION THAT THE AMOUNT HAD BEEN KEPT UNUTILISED ALL ALONG. MR.VIJAY KUMAR HAS STRONGLY CONTENDED BOTH THE LOWER AUTHORITIES ACTION MAKING THE IMPUGNED ADDITION ON THE SE LINES. LEARNED DEPARTMENTAL REPRESENTATIVE HAS CHOSEN TO SUPPORT THE IMPUGNED ADDITION. ITA NO. 499/HYD/2020 :- 3 -: 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED ADDITI ON. THERE IS NO DISPUTE ABOUT THE ASSESSEES WITHDRAWALS IN NRE ACCOUNT IN THE ABOVE STATED THREE FINANCIAL YEARS FOLLOW ED BY THE CASH DEPOSITS OF RS.20.40 LAKHS. HIS ENTIRE CASE I S THAT THE EARLIER WITHDRAWALS FORMED THE SOURCE OF THE RE-DEPOS ITED AMOUNT IN DISPUTE. WE SEE NO REASON TO ACCEPT THE ASSE SSEES FOREGOING EXPLANATION IN ENTIRETY. 4.1. WE OBSERVE IN THE GIVEN FACTS AND CIRCUMSTANCES O F THE CASE THAT ALTHOUGH THE ASSESSEE HAD WITHDRAWN THE VARYIN G SUMS IN FYS.2014-15 AND 2015-16, THE ONUS WAS VERY M UCH ON HIM TO SUFFICIENTLY PROVE NON-UTILISATION THEREOF; A LL ALONG BEFORE THE SAME WERE REDEPOSITED. HE HAS FAILED TO DI SCHARGE THAT ONUS BY COGENT SUPPORTIVE EVIDENCE. THE FACT ALSO R EMAINS THAT HE HAS HIMSELF STAYED OVERSEAS AS WELL. THIS LEAD S US TO THE CONCLUSION THAT THE IMPUGNED ADDITION OF RS.20.40 LA KHS DESERVED TO BE PARTLY SUSTAINED ONLY TO THE EXTENT OF THE WITHDRAWALS IN FYS.2014-15 AND 2015-16 ONLY SINCE TH E ASSESSEES AMOUNT RS.13.66 LAKHS IN FY.2016-17 CAN BE VERY WELL PRESUMED TO HAVE REMAINED UN-UTILISED. WE THEREF ORE GRANT PART RELIEF TO THE ASSESSEE AND TREAT THE IMPUGNED DEPOSITS OF RS.20.40 LAKHS AS UNEXPLAINED TO THE EX TENT OF RS.13.66 LAKHS ONLY. THE ASSESSING OFFICER IS DIREC TED TO FRAME CONSEQUENTIAL COMPUTATION AS PER LAW. BEFORE PARTING, WE MAKE IT CLEAR THAT ALTHOUGH THE ASSESSEES LEARNED COUNSEL HAD REFERRED TO CASE LAW AS WELL REGARDING CASH DEPOSITS, WE FIND NO REASON TO AGREE TO THE SAME IN ENTIRETY SINCE THE ISSUE BEFORE US IS PURELY A FACTUAL ITA NO. 499/HYD/2020 :- 4 -: ONE BASED ON HIS EXPLANATION SUBMITTED BEFORE THE LOWE R AUTHORITIES AND THE CORRESPONDING EVIDENCE. 5. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JANUARY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 11-01-2021 TNMM ITA NO. 499/HYD/2020 :- 5 -: COPY TO : 1.SHRI IRFAN SULTAN, 9-4-131/1/B/8, OPP:AL AMEN SCH OOL, NADEEM COLONY, GOLCONDA, HYDERABAD. 2.THE INCOME TAX OFFICER, INTERNATIONAL TAXATION-2, HYDERABAD. 3.CIT(APPEALS)-10, HYDERABAD. 4.CIT(IT &TP)-HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.