Varunya Constructions, Warangal V. Asst. Commissioner of Income Tax, Circle-1, Warangal

ITA 558/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 9319 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 31-12-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 18-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S.GODARA, JUDICIAL MEMBER I.T.A. NO.558/HYD/2019 ASSESSMENT YEAR: 2015-16 VARUNYA CONSTRUCTIONS, WARANGAL [PAN: AAEFV4313R] VS ACIT, CIRCLE-1, WARANGAL (APPELLANT) (RESPONDENT) FOR ASSESSEE : SMT. S.SANDHYA, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 31-12-2020 DATE OF PRONOUNCEMENT : 05-01-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2015-16 ARISES FROM TH E CIT(A)-3, HYDERABADS ORDER DATED 15-02-2019 PASSED IN CASE NO.0146/ACIT-CIR-1/WGL/CIT(A)-3/2017-18, IN PROCEED INGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED I N THE INSTANT APPEAL CHALLENGES CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION REJECTING ITS BOOKS OF ACCOUNT THER EBY ADDING ITS ALLEGED BANK DEPOSITS OF RS.1,10,00,000/ - AS UNEXPLAINED CASH CREDITS U/S.68 OF THE ACT. THE ASSES SMENT ORDER DT.27-12-2017 CONCLUDED THAT SINCE THE ASSESSEE FAILED TO PROVE SOURCE OF THE IMPUGNED SUM, THIS ADDITION DES ERVES TO ITA NO. 558/HYD/19 :- 2 -: BE MADE IN ITS HANDS AS UN-EXPLAINED CASH CREDITS. THE CIT(A) HAS AFFIRMED THE SAME. 3. LEARNED AUTHORISED REPRESENTATIVE APPEARING AT ASSESSEES BEHEST INVITED OUR ATTENTION TO ITS DETAILED PA PER BOOK RUNNING INTO 38 PAGES COMPRISING OF ITS RETURN O F INCOME, AUDIT REPORT IN FORM-3CB, 3CD, COMPUTATION, TRADING, PR OFIT & LOSS A/C, BALANCE SHEET, PARTNERS CAPITAL ACCOUNT AND PARTNERSHIP DEED DT.01-06-2010, LETTER ADDRESSED TO M/S.ANDHRA BANK, HAVING ITS BANK ACCOUNT, LATTERS CONFIRMATION, ITS COMPLAINT LODGED BEFORE THE POLICE AU THORITIES DT.19-03-2018 CULMINATING IN FIR DT.28-04-2018, A COMP LAINT FILED BEFORE THE ADDL. JUDICIAL MAGISTRATE, FIRST CLASS , WARANGAL AND WRITTEN SUBMISSIONS FILED BEFORE THE CIT( A); RESPECTIVELY. SHE TOOK US MORE PARTICULARLY TO PG.25 O F THE PAPER BOOK THAT THE ANDHRA BANK HAS ITSELF CLARIFIED TO HAVE WRONGLY MADE THE CREDITS IN ASSESSEES BANK ACCOUNT ON VARIOUS DATES I.E., ON 27-03-2015 TO 28-03-2015, IN VOLVING VARYING SUMS. HER CASE THEREFORE IS THAT THE IMPUGNED SUM HAD BEEN WRONGLY CREDITED IN THE ASSESSEES BANK ACC OUNT BY THE BANK AUTHORITIES AND THEREFORE, THE SAME DESERVES TO BE DELETED. LEARNED COUNSEL ALSO MADE A STRONG ENDEAVOUR TO REFER TO CRIMINAL PROCEEDINGS INITIATED AGAINST BANK A UTHORITIES ALLEGING FORGERY IN ALL THESE DEPOSITS. THE REVENUE HAS CHOSEN TO STRONGLY SUPPORT THE IMPUGNED ADDITION MADE IN BOTH THE LOWER PROCEEDINGS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE ABO VE RIVAL PLEADINGS. THE SOLE DISPUTE BETWEEN THE PARTIES HEREIN IS THAT OF CORRECTNESS OF THE UNEXPLAINED CASH CREDITS ADDI TION ITA NO. 558/HYD/19 :- 3 -: MADE IN THE COURSE OF ASSESSMENT TO THE TUNE OF RS.1,10,00,000/-. THE ASSESSEES CASE AS PER ITS DETA ILED EVIDENCE IS THAT THE SUM HAD BEEN WRONGLY DEPOSITED IN ITS ACCOUNT. THE FACT, HOWEVER, REMAINS THAT IT HAS NOT FILED ITS BANK STATEMENT OF THE RELEVANT TIME SPAN INDICATING THE FINAL STATUS OF THE IMPUGNED DEPOSITS. WE DEEM IT APPROPRIATE I N THESE PECULIAR FACTS AND CIRCUMSTANCES THAT THIS ENTIRE ISSUE REQUIRES ASSESSING OFFICERS FRESH DETAILED EXAMINA TION IN THE DEPOSIT EPISODE AFTER CONSIDERING THE FINAL OUTCOME O F THE CRIMINAL PROCEEDINGS IF ANY. WE ORDER ACCORDINGLY. IT IS MADE CLEAR THAT THE ASSESSEE SHALL BE GIVEN THREE EFFECTIVE OPPORTUNITIES OF HEARING IN CONSEQUENTIAL PROCEEDINGS . 5. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR S TATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH DAY OF JANUARY, 2021 SD/- SD/- ( A. MOHAN ALANKAMONY ) ( S.S. GODAR A ) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 05-01-2021 TNMM ITA NO. 558/HYD/19 :- 4 -: COPY TO : 1.VARUNYA CONSTRUCTIONS, H.NO.1-1-1044, SIDDARTHA N AGAR, KAZIPET, WARANGAL. 2.THE ACIT, CIRCLE-1, WARANGAL. 3.CIT(APPEALS)-3, HYDERABAD. 4.PR.CIT-3, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.