Venkatappachetty Chinnappan Kothialaganar, Hyderabad, Hyderabad V. ITO, Ward-8(2), Hyderabad, Hyderabad

ITA 541/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8049 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 12-08-2021
• Assessment Year: 2009-2010
• Appeal Filed On: 23-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: P BALAKRISHNA
• Section: 69C; 143(3); 234B; 68

Judgement Text

ITA NO 541 OF 2017 VENKATAPPACHETTY CHINNAPPAN KOT HIALAGANAR HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.541/HYD/2017 ASSESSMENT YEAR: 2009-10 KOTHIALAGANAR VENKATAPPACHETTY CHINNAPAN, HYDERABAD PAN:ALJPK3450G VS. INCOME TAX OFFICER WARD 8(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI P. BALAKRISHNA, ADVOCATE REVENUE BY : SRI A. SITARAMA RAO, DR DATE OF HEARING: 12/08/2021 DATE OF PRONOUNCEMENT: 31/08/2021 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2009-10 AGAIN ST THE ORDER OF THE CIT (A)-2, HYDERABAD, DATED 15/03/ 2016. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL FILED HIS RETURN OF INCOME FOR THE A.Y 2009-10 ON 2 5.6.2009 BY ADMITTING A TOTAL INCOME OF RS.2,01,520/-. DURING T HE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT PURSUANT TO SELEC TIN OF THE RETURN OF INCOME FOR SCRUTINY UNDER CASS, THE ASSES SEE WAS REQUIRED TO FURNISH VARIOUS DETAILS. WHEN SUCH DETA ILS WERE FURNISHED, THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS NOT MADE ANY WITHDRAWAL FOR HIS PERSONAL EXPENSES D URING THE YEAR AND THAT THE ASSESSEE HAS CLAIMED TO HAVE PAID AN AMOUNT OF RS.1,83,000/- TOWARDS LIC AND RENT. THEREFORE, HE P ROPOSED TO BRING TO TAX A SUM OF RS.3,03,000/- I.E. RS.1,83,00 0/- + RS.1,20,000/- (FOR DOMESTIC EXPENSES) U/S 69C OF TH E ACT. ITA NO 541 OF 2017 VENKATAPPACHETTY CHINNAPPAN KOT HIALAGANAR HYDERABAD PAGE 2 OF 4 FURTHER, HE ALSO OBSERVED THAT THE ASSESSEE HAS SHO WN SUNDRY CREDITORS OF RS.3.00 LAKHS AND THEREFORE, THE ASSES SEE WAS ASKED TO FURNISH THE CREDITWORTHINESS AND ALSO IDENTITY O F THE PERSON AND GENUINENESS OF THE TRANSACTION. IN RESPONSE THE REOF, THE ASSESSEE FILED HIS REPLY EXPLAINING THAT THE ASSESS EE BELONGS TO A JOINT HINDU FAMILY HAVING CONSIDERABLE AGRICULTURAL INCOME WHICH WAS RECEIVED ON PARTITION AFFECTED ON 2.2.2021. IT WAS SUBMITTED THAT THE AGRICULTURAL INCOME AND INCOME FROM OTHER SOURCES WAS UTILIZED FOR DOMESTIC EXPENDITURE AND THAT THE LIC AND RENT HAVE BEEN DEBITED AND SHOWN AS DEBTORS AS ON 31.3.2009. AS REGARDS THE SUM OF RS.3.00 LAKHS RECEIVED FROM HIS WIFE SMT . INDRANI, IT WAS SUBMITTED THAT SHE IS ASSESSED TO INCOME TAX AS SHE IS CARRYING ON THE BUSINESS OF RETAIL SAREE SALES AND THAT DURING THE YEAR, THE ASSESSEES WIFE HAD TO LEAVE FOR CHENNAI FOR PERSONAL REASONS AND HENCE SHE HAD SURRENDERED THE STOCKS TO THE ASSESSEE WHICH WAS QUANTIFIED @ RS.3.00 LAKHS WHICH INCLUDES PROFIT OF RS.30,000 WHICH WAS OFFERED FOR TAXATION. THE ASSESSING OFFICER, HOWEVER, DID NOT ACCEPT THE ASSESSEES CON TENTIONS AND BROUGHT SUM OF RS.3,03,000/- AMONGST OTHER ADDITION S TO TAX. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) WHO CONFIRMED THE ABOVE ADDITIONS MADE BY THE ASSESSING OFFICER AND THE ASSESSEE IS IN SECOND APPEAL BEFORE THE TRIBUNA L BY RAISING THE FOLLOWING GROUNDS OF APPEAL: YOUR APPELLANT AN INDIVIDUAL, CARRIED ON BUSINESS OF TEXTILES OF SURAT PURCHASING THE SAME ON CREDIT AND SELLING THE SAME ON WHOLESALE BASIS GIVING CREDIT T O THE DEBTORS, AND OFFERED NET INCOME OFRS.201520/- THE A O WHILE ACCEPTING THE INCOME RETURNED BY THE APPELLAN T MADE FOLLOWING ADDITIONS INVOKING PROVISIONS OF SEC TION 68 AND 69COFTHE I.T.ACT. ADDITIONS U/S 69C RS.303000/- AND U/S 68 RS.(995600+ 300000)= 1295600 TOTALING TO RS.1598600/- ITA NO 541 OF 2017 VENKATAPPACHETTY CHINNAPPAN KOT HIALAGANAR HYDERABAD PAGE 3 OF 4 AND RAISED A HUGE DEMAND OF RS668829/-INCLUDING INTEREST U/S 234B AMOUNTING TO RS.164406/- AGGRIEVE D BY THE ARBITRARINESS OF THE ASSESSMENT, YOUR APPELL ANT SUBMITTING THE APPEAL. YOUR APPELLANT SUBMITS BOTH HON'BLE CIT AND LEARNED AO FAILED TO APPRECIATE THE FACT THAT YOUR APPELLANT C OULD EARN INCOME BY PURCHASING ON CREDIT AND SELLING THE SAME ON CREDIT ONLY. THEREFORE THE ADDITION BY AO A ND CONFIRMED BY THE CIT(A) IS NOT IN ACCORDANCE WITH T HE PRINCIPLE OF NATURAL LAW AND JUSTICE AND THEREFORE LIABLE TO BE DELETED. YOUR APPELLANT THEREFORE PRAYS FOR RELIEF AS PRAYED FOR TO MEET THE ENDS OF JUSTICE. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAS SUBMITTED ALL THE DETAILS BEFORE THE ASSESSING OFFICER AND THE CIT (A) BUT, THEY HAVE NOT CONSIDER ED THE SAME, HE HAS NOW FILED THE SAID EVIDENCE BEFORE THE TRIBUNAL IN THE FORM OF A PAPER BOOK. HE THEREFORE, SOUGHT RECONSIDERATION OF THE SAME BY THE ASSESSING OFFICER FOR VERIFICATION. 4. THE LEARNED DR WAS ALSO HEARD. 5. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT THE ASSESSEE HAS FILED ALL T HE RELEVANT EVIDENCE FILED BEFORE THE AUTHORITIES BELOW AND NOW BEFORE THE TRIBUNAL. THE DOCUMENTS AT PAGES 18 TO 34 ARE CERTI FIED AS FILED BEFORE THE ASSESSING OFFICER AND THE CIT (A) AND TH E LEARNED DR HAS NOT OBJECTED TO THE SAME. THEREFORE, I AM OF TH E OPINION THAT THE ASSESSEE HAS DISCHARGED HIS ONUS OF PROVIDING T HE NECESSARY INFORMATION AND THE ASSESSING OFFICER HAS FAILED TO REBUT THE SAME. THEREFORE, I DEEM IT FIT AND PROPER TO DELETE THE ADDITIONS. 6. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS A LLOWED FOR STATISTICAL PURPOSES. ITA NO 541 OF 2017 VENKATAPPACHETTY CHINNAPPAN KOT HIALAGANAR HYDERABAD PAGE 4 OF 4 ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST AUGUST, 2021. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 31 ST AUGUST, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 KOTHIALAGANAR VENKATAPPACHETTY CHINNAPAN C/O P. BALAKRISHNA, ADVOCATE ROOM NO.216/ASSESSEE 2 ND FLOOR, LEFT WING, NBKESTATE, GOLKONDA X ROAD, HYDERABAD 500020 2 INCOME TAX OFFICER WARD 8(2) HYDERABAD 3 CIT (A) - 2, HYDERABAD 4 PR. CIT -2, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER