Vegi Venkata Kiran Kumar, Hyd, Hyderabad V. ITO, Ward-12(4), Hyd, Hyderabad

ITA 549/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6276 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-01-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 26-10-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 21-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SITARAMA RAO
• Assessee Lawyers: A V RAGHURAM
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 549/HYD/2016 ASSESSMENT YEAR: 2010-11 VEGI VENKATA KIRAN KUMAR, HYDERABAD. PAN ARAPK 4578 N VS. SRI B. SURENDRA CHOUDARY, HYDERABAD. PAN AEDPB 1557 L (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI A.V. RAGHU RAM REVENUE BY : SHRI A. SITARAMA RAO DATE OF HEARING : 03-01-2017 DATE OF PRONOUNCEMENT : 13-01-2017 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF CIT(A)- 1, HYDERABAD, DATED 20/01/2016 FOR AY 20 10-11. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT THE ASSES SEE AN INDIVIDUAL FILED HIS RETURN OF INCOME FOR THE AY 2010-11 ON 06 /07/2010 DECLARING A TOTAL INCOME OF RS. 2,71,527/-. THE CASE WAS SELE CTED FOR SCRUTINY UNDER CASS AND NOTICE U/S 143(2) WAS ISSUED. THE AS SESSMENT WAS COMPLETED BY THE AO U/S 143(3) OF THE ACT, ON 31/03 /2013 DETERMINING TOTAL INCOME OF RS. 22,01,500/-. 3. THE ONLY ISSUE IN THIS CASE IS REGARDING CASH DE POSITS IN THE BANK. THE AO ON THE BASIS OF AIR INFORMATION ADDED RS. 17,21,647/- AS CASH DEPOSITS IN THE BANK. 4. ON APPEAL, THE CIT(A) OBSERVED THAT OUT OF RS. 1 7,21,647, 15,07,400/- IS THE CASH DEPOSIT IN SAVINGS ACCOUNT AND CREDIT CARD PAYMENT OF RS. 2,14,247/-. THE ASSESSEE HAD SUBMITT ED THAT THE 2 ITA NO. 549/H/2016 VEGI VENKATA KIRAN KUMAR ASSESSEES FATHER WHO IS RETIRED LIEUTENANT COLONEL HAD MADE THE DEPOSITS IN CASH TO THE ASSESSEES ACCOUNT AFTER WI THDRAWAL FROM HIS OWN ACCOUNT. SUBMISSIONS WERE MADE REGARDING HIS FA THERS BANK ACCOUNT AND DEPOSITS. THEREFORE, THE CIT(A) HELD TH AT THE AMOUNT OF RS. 11,13,900/- RECEIVED FROM ASSESSEES FATHER HAD BEEN FOUND GENUINE. 4.1 OUT OF THE BALANCE AMOUNT OF RS. 3,93,500/-, TH E ASSESSEE SUBMITTED THAT THIS AMOUNT WAS FROM HIS OWN SALARY SAVINGS. SINCE NO EVIDENCE WAS SUBMITTED, THE CIT(A) DID NOT ACCEPT T HE CONTENTION OF THE ASSESSEE. 4.2 AS REGARDS THE BALANCE AMOUNT OF RS. 2,14,247/- TOWARDS HSBC CREDIT CARD PAYMENT WAS FROM HIS AXIS BANK ACCOUNT, FOR WHICH DOCUMENTARY EVIDENCE WAS SUBMITTED AND HENCE, THE C IT(A) ACCEPTED THE SAME. 4.3 THEREFORE, OUT OF THE TOTAL DISALLOWANCE OF RS. 17,21,647/-, THE CIT(A) SUSTAINED THE DISALLOWANCE TO THE TUNE OF RS . 3,93,500/-. 5. AGGRIEVED BY THE ORDER OF THE CIT(A), THE ASSESS EE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ALL OWING THE APPEAL ONLY IN PART IS ERRONEOUS, ILLEGAL AND UNSUS TAINABLE IN LAW. THE COMMISSIONER (APPEALS) OUGHT TO HAVE ALLOWED TH E APPEAL IN ENTIRETY. 2. THE COMMISSIONER (APPEALS) ERRED IN SUSTAINING T HE ADDITION OF RS.3,93,500 TOWARDS UNEXPLAINED DEPOSIT IN BANK ACCOUNT. THE COMMISSIONER (APPEALS) OUGHT TO HAVE APPRECIATED TH AT THE. SAID AMOUNT WAS DEPOSITED FROM OUT OF SAVINGS OF EARLIER PERIODS. 3. THE FINDING OF THE COMMISSIONER (APPEALS) THAT T HE APPELLANT DID NOT PRODUCE EVIDENCE IN THIS REGARD IS FACTUALL Y INCORRECT. 6. LD. AR SUBMITTED THAT THE ASSESSEE IS SOFTWARE E NGINEER AND HAVING YEARLY INCOME OF RS. 5.82 LAKHS AND OUT OF H IS PERSONAL 3 ITA NO. 549/H/2016 VEGI VENKATA KIRAN KUMAR SAVINGS, HE MADE THE DEPOSITS. HE FURTHER SUBMITTED THAT CIT(A) WAS WRONG BY NOT CONSIDERING THE PERSONAL SAVINGS. 7. LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITI ES. 8. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL FACTS ON RECORD. CIT(A) HAS CONSIDERED THE SUBMISSIONS OF THE ASSESSEE CAREFULLY AND GIVEN RELIEF TO THE EXTENT THE ASSESS EE HAS SUBSTANTIATED BY MATERIAL EVIDENCE. FOR THE BALANCE AMOUNT OF RS. 3,93,500/-, THE ASSESSEE COULD NOT SUBMIT ANY PROOF BUT SUBMITTED T HAT IT IS OUT OF PERSONAL SAVINGS OF EARLIER PERIOD. LD. AR SUBMITTE D THE SAME BEFORE US ALSO AND PRAYED FOR JUSTICE. AFTER CONSIDERING T HE SUBMISSION, WE ARE OF THE OPINION THAT IT CANNOT BE RULED OUT THAT THERE MAY BE SOME PERSONAL SAVINGS. FOR THE SAKE OF JUSTICE, WE ARE I NCLINED TO ALLOW ABOUT RS. 2 LAKHS AS DEPOSITS OUT OF PERSONAL SAVIN GS. HENCE, AO IS DIRECTED TO ALLOW RS. 2 LAKHS AS PERSONAL SAVINGS A ND BALANCE IS SUSTAINED AS UNDISCLOSED INCOME. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. SD/- SD/- (P. MADHAVI DEVI) (S. RIFAUR RAH MAN) JUDICIAL MEMBER A CCOUNTANT MEMBER HYDERABAD, DATED: 13 TH JANUARY 2017 KV COPY TO:- 1) SHRI VEGI VENKATA KIRAN KUMAR, C/O K. VASANTKUMA R, AV RAGHU RAM, ADVOCATES, 610, BABUKHAN ESTAE, BASHEERBAGH, HYDERABAD 1. 2) ITO, WARD 12(4), AAYAKAR BHAVAN, BASHEERBAGH, HYDERABAD-1. 3) CIT(A) - 1, HYDERABAD 4 PR. CIT 1, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE