Income Tax Officer, Ward-17(1), Hyderabad V. Dharani Sheltors Private Limited , Hyderabad

ITA 507/Hyd/2020

• Counselvise Citation: [2021] 104 COUNSELVISE.COM (IT) 8596 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-11-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 17-09-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B. KAVITHA RANI
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH, HYDERABAD. BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER (THROUGH VIDEO CONFERENCE) ITA No.507/Hyd/2020 (Assessment Year : 2014-15) Income Tax Officer, Ward 17(1), Hyderabad. .....Appellant. Vs. M/s. Dharani Sheltors Pvt. Ltd., Hyderabad. PAN AACCD 8402E ....Respondent. Appellant By : Ms. B. Kavitha Rani (D.R.) Respondent By : Shri P. Murali Mohan Rao. Date of Hearing : 28.09.2021. Date of Pronouncement : 15.11.2021. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2014-15 arises from the Commissioner of Income Tax (Appeals)-5, Hyderabad’s order dt.13.07.2020 passed in case No.10456/2016-17/CIT(A)-5 in proceedings under Section 143(3) of Income Tax Act, 1961 (‘the Act’). 2 ITA No.507/Hyd/2020 Heard both the parties. Case file perused. 2. Coming to the Revenue’s sole substantive grievance that the CIT(A) has erred in law and on facts in deleting unexplained cash credit addition of Rs.6,54,86,580; we note that lower appellate discussion to this effect read as under: 3 ITA No.507/Hyd/2020 4 ITA No.507/Hyd/2020 3. Learned DR vehemently contended during the course of hearing that the CIT(A) foregoing detailed discussion deleting the impugned unexplained cash credit addition is not sustainable in law as well as on facts. We find no substance in the Revenue’s sole substantive grievance since the CIT(A) appears to have gone by the Assessing Officer’s remand report dt.14.06.2019 verifying the entire advances of Rs.7,78,47,098 as under : 5 ITA No.507/Hyd/2020 “ 3. Verification of advances of received during the F.Y. 2013-14. During the course of assessment proceedings, the assessee company has produced Cheque Nos and address details of pertains to customer advances aggregating to Rs.1,23,60,518/- involving 37 purchasers out of Rs.7,78,47,098/- increased during the F.Y. 2013-14. The remaining advance of Rs.6,54,86,580/- was brought to tax and summons/notices u/s.133(6) were issued to prospective buyers and submissions made were verified and furnished as Annexure-1. 4. During the course of appeal proceedings certain additional grounds of appeal were filed by the ;appellant on which comments were sought. The grounds from Sl.No.10 to Sl.No.15 pertains to : “Limited scrutiny : but Assessing Officer completed as complete scrutiny... Assessee Objecting” .... Finding : In this case, case was selected under the Scope, ‘Limited’ and the parameters are : 1) Large amount of Sundry Creditors. 2) 2) Large Increase in sundry creditors with respect to turnover as compared to preceding year. 3) Mis match in expenditure of personal nature reported in Audit Report and ITR. On perusal of the final accounts, it is found that the assessee company shown advances received from prospective plot purchasers as “Sundry Creditors” and the same parameters were examined by the Assessing Officer and the additions were related to them only. Thus, the then assessing authority examined the prescribed parameters of limited 6 ITA No.507/Hyd/2020 scrutiny and completed the proceedings well with in the scope the scrutiny purview. Therefore, it is concluded that, the additional grounds raised by the assessee company in this regard are factually incorrect and misleading. 4. It is relevant to note that the assessee company which is engaged in the development of residential plots on several sites which are located in Hyderabad, Vijayawada and Visakhapatnam effected sales on outright as well as instalment basis and as such reflecting customer advances in the balance sheets filed for the A.Y. 2012-13, 2013-14 & 2014-15. The PANs of the customers were verified on ASSESSMENT and found to be correct. In view of the foregoing the advances claimed to have been received from the prospective purchasers pertaining to 85 customers either by way of cash or cheque were verified with the bank account of the assessee company and found that and amount of Rs.5,75,78,942/- was received by way of cheques / RTGS out of Rs.6,54,86,580/- and the balance amount of Rs.79,07,638/- was received other than by way of banking channels. Further, with regard to the capacity of the customers to invest, it is found that supporting documents to establish capacity to invest were received from the customers invested to an extent of Rs.1,06,16,720/- only out of total amount of Rs.6,54,86,580/-. In view of the above, it is requested that the Ld. CIT(A) may be pleased to decide the issue on merits. Submitted along with Assessment Record in 1 volume and Miscellaneous Records in one volume.” 7 ITA No.507/Hyd/2020 4. Coupled with this is the clinching fact that the assessee has filed a detailed compilation before the Assessing Officer during remand proceedings/report in Annexure I regarding its customers’ PAN, name, amount received including that by cheque/RTGS or any other mode with capacity verifiable and otherwise; as the case may be, which has been duly mentioned in remand report. We hold in this factual position the Revenue could hardly be treated as an aggrieved party once the Assessing Officer factual verification has not found any adverse material in above terms. We thus quote case law Smt. B. Jayalakshmi Vs. ACIT (2018) 96 taxman.com 486 (Mad) and CIT Vs. D M Purnesh (2020) 426 ITR 169 (Kar) and decline Revenue’s instant sole substantive grievance. 5. This Revenue’s appeal is dismissed in above terms. Order pronounced in the open court on 15 th Nov., 2021. Sd/- Sd/- (A.MOHAN ALANKAMONY) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.15.11.2021. * Reddy gp 8 ITA No.507/Hyd/2020 Copy to : 1. M/s. Dharani Sheltors Pvt. Ltd., 8-1-2-6/A, RaghavendraHills, Mylaredevpally, Near Kattedan Rajendra Nagar MDL, Hyderabad-500 005 2. ITO, Ward 17(1), Hyderabad. 3. Pr. C I T-5, Hyderabad. 4. CIT(Appeals)-5, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.