Hanumanth Rao Chinna Etukuri, Guntur V. The Income Tax Officer, Ward-1(3), Guntur

ITA 51/VIZ/2019

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 2868 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2015-2016
• Appeal Filed On: 07-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: Set aside
• Section: 143(3); 201; 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 51 / VIZ /201 9 (ASST. YEAR : 20 15 - 16 ) HANUMANTHA RAO CHINNA ETUKURI, C/O I. KAMASASTRY, CA, D.NO. 9 - 16 - 29/1, SRI SAI COMPOUND, RAMA TALKIES JUNCTION, VISAKHAPATNAM. V S . IT O , WARD - 1( 3 ), GUNTUR . PAN NO. AASPE 0641 B (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI I. KAMASASTRY FC A. DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 12 / 0 6 /201 9 . DATE OF PRONOUNCEMENT : 14 / 0 6 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 2 8 / 12 /201 8 FOR THE ASSESSMENT YEAR 20 15 - 16 . 2. FACTS OF THE CASE, IN BRIEF, ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND PROPRIETOR OF AKSHAYA AGENCIES DERIVING INCOME FROM BUSINESS/PROFESSION AND OTHER SOURCE, FILED HIS RETURN OF INCOME DECLARING TOTAL INCOME OF RS. 2,52,880/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED AND SELECTED FOR SCRUTINY UNDER CASS . THE ASSESSING OFFICER AFTER FOLLOWING DUE PROCEDURE, CALLED 2 ITA NO. 51/VIZ/2019 ( HANUMANTHA RAO CHINNA ETUKURI ) THE ASSESSEE TO EXPLAIN THE PARTICULARS REGARDING BANK ACCOUNT STATEMENT AND BOOKS OF ACCOUNT , THERE IS NO RESPONSE FROM THE ASSESSEE. THOUGH, S EVERAL OPPORTUNITIES WERE GIVEN, THE ASSESSEE HAS NOT COMPLIED WITH THE NOTICES ISSUED BY THE ASSESSING OFFICER, TH E REFO R E THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 144 OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER FOUND FROM THE BANK ACCOUNT STATEMENT RECEIVED FROM A IR/CIB DATA THAT THERE WAS DIFFERENCE OF RS. 21,50,539/ - WITH REFERENCE TO THE TOTAL DEPOSITS MADE INTO BANK ACCOUNT AT RS. 91,00,439/ - AND TOTAL PAYMENT MADE TO IDEAL CELLULAR AT RS. 69,49,900/ - . HENCE, THE DIFFERENCE AMOUNT WAS ADDED TO THE TOTAL INCOME OF THE ASSESSEE AND ASSESSMENT WAS COMPLETED. 3 . ON APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAS EXPLAINED THAT THE DIFFERENCE OF RS. 13,84,114/ - WAS DEPOSITED ON ACCOUNT OF MONEY RECEIVED THROUGH RTGS FROM CERTAIN PERSONS AND ALSO INCLUDES INVESTMENT OF THE ASSESSEE. THE DIFFERENCE OF RS.45,605/ - IN ANOTHER BANK WAS EXPLAINED AS DRAWN FOR PERSONAL USE. THE LD.CIT(A) HAS CONSIDERED THE EXPLANATION OF THE ASSESSEE AND OBSERVED THAT THE ASSESSEE HAS NOT MADE USE THE OPPORTUNITIES PROVIDED BY THE ASSESSING OFFICER AT THE TIME OF ASSESSMENT AND ALSO OBSERVED THAT THE SUBMISSIONS MADE BY THE ASSESSEE HAVE NO 3 ITA NO. 51/VIZ/2019 ( HANUMANTHA RAO CHINNA ETUKURI ) SUPPORT WITH ANY DOCUMENTARY EVIDENCE, HENCE, DISMISSED THE ASSESSEES APPEAL. 4 . WHEN THIS APPEAL IS TAKEN UP FOR HEARING, LD. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE BY POINTING OUT FROM THE AFFIDAVIT PLACED IN PAPER BOOK SUBMITTED THAT ASSESSEE HAS LEFT PIDUGURALLA AND JOINED WITH ANOTHER COMPANY AT NELLORE IN THE MONTH OF MAY, 2016 AND THE NOTICES RECEIVED BY HIS OLD PARENTS AND WAS NOT AWARE ABOUT THE ASSESSMENT ORDER. ONCE, HE CAME TO HIS NATIVE PLACE FROM NELLORE, HE HAS SEEN ASSESSMENT ORDER AS WELL AS NOTICES , AND IMMEDIATELY FILED THE APPEAL AND SUBMITTED THAT ASSESSEE MAY BE GIVEN OPPORTUNITY TO SUBSTANTIATE HIS CASE BEFORE THE ASSESSING OFFICER. 5. ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY OPPOSED THAT THE ASSESSING OFFICER HAS GIVEN AS MANY AS OPPORTUNITIES THEREFORE, NO FURTHER OPPORTUNITY SHOULD BE GIVEN. 6 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS OF THE AUTHORITIES BELOW. 7 . IN THIS CASE, THE ASSESSING OFFICER HAS FOUND CERTAIN DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE AND THE ASSESSING OFFICER HAS ISSUED NOTICES TO THE ASSESSEE TO APPEAR BEFORE HIM, T HE ASSESSEE NOT AT ALL APPEARED. ON APPEAL BEFORE THE LD. CIT(A), HE HAS EXPLAINED THE SOURCE OF BANK DEPOSITS. THE LD. CIT(A) HAS SIMPLY 4 ITA NO. 51/VIZ/2019 ( HANUMANTHA RAO CHINNA ETUKURI ) REJECTED THE EXPLANATION OF THE ASSESSEE ON THE GROUND THAT THE ASSESSEE FAILED TO APPEAR BEFORE THE ASSESSING OFFIC ER AND THERE IS NO DOCUMENTARY EVIDENCE TO SUBSTANTIATE HIS CASE. THE CASE OF THE ASSESSEE IS T H A T WHEN THE ASSESSING OFFICER HAS ISSUED A SCRUTINY NOTICE, THE ASSESSEE HAS ALREADY LEFT PIDUGURALLA AND JOINED IN A SOFTWARE COMPANY AT NELLORE, THEREFORE, T HE ASSESSEE IS NOT ABLE TO APPEAR BEFORE THE ASSESSING OFFICER. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE OPINION THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBSTANTIATE HIS CASE. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND SEND THE MATTER BACK TO THE ASSESSING OFFICER TO PASS ORDERS IN DENOVO. THE ASSESSEE IS ALSO DIRECTED TO APPEAR BEFORE THE ASSESSING OFFICER ON THE GIVEN DATE, WITHOUT FAIL. THUS, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON TH IS 1 4 T H DAY OF JUNE , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 1 4 T H JUNE , 201 9 . 5 ITA NO. 51/VIZ/2019 ( HANUMANTHA RAO CHINNA ETUKURI ) VR/ - COPY TO: 1. THE ASSESSEE - HANUMANTHA RAO CHINNA ETUKURI, C/O I. KAMASASTRY, CA, D.NO. 9 - 16 - 29/1, SRI SAI COMPOUND, RAMA TALKIES JUNCTION, VISAKHAPATNAM. 2. THE REVENUE ITO, WARD - 1(3), GUNTUR. 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.