Jagadish Kumar Gobburu, Secunderabad, Hyderabad V. ITO, Ward-6(3), Hyd, Hyderabad

ITA 593/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6028 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 06-12-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 26-04-2016
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Keywords: Source of fund

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B (SMC), HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER I.T.A. NO. 593/HYD/2016 ASSESSMENT YEAR: 2009-10 JAGADISH KUMAR GOBBURU, SECUNDERABAD [PAN: AEQPG2224J] VS INCOME TAX OFFICER, WARD-6(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.C. DEVDAS, AR FOR REVENUE : SHRI K.J. RAO, DR DATE OF HEARING : 21-03-2017 DATE OF PRONOUNCEMENT : 31-03-2017 O R D E R THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-9, HYDERABAD D ATED 28-01-2016 AGAINST CONFIRMATION OF ADDITIONS MADE BY THE ASSESSING OFFICER (AO) EX-PARTE. 2. BRIEFLY STATED, ASSESSEE FILED HIS RETURN OF INCOM E DECLARING TOTAL INCOME OF RS. 5,20,290/-. IN THE COURSE OF SCRUTI NY PROCEEDINGS, ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF CREDIT CARD PAYMENTS AS WELL AS PROOF OF OWNING AGRICULTURA L LANDS. SINCE THERE IS NO RESPONSE FROM ASSESSEE BEFORE THE DUE DAT E FOR FINALISING THE ASSESSMENT, AO VIDE HIS ORDER DT. 23-12 -2011 I.T.A. NO. 593/HYD/2016 JAGADISH KUMAR GOBBURU :- 2 - : COMPLETED THE ASSESSMENT EX-PARTE BY MAKING ADDITION OF RS. 17,52,960/- TOWARDS UNEXPLAINED SOURCES FOR CREDIT C ARD PAYMENTS AND ALSO ADDED AN AMOUNT OF RS. 2 LAKHS BEING 50% OF THE AGRICULTURAL INCOME DECLARED, AS INCOME FROM OTHER S OURCES. EVEN THOUGH ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A), H E DID NOT RESPOND TO THE NOTICES. THEREFORE, LD.CIT(A) CONFIRM ED THE ADDITIONS MADE BY THE AO. 3. ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1. THE HON'BLE CIT(A) ERRED IN DISMISSING THE APPE AL EX-PARTE WITHOUT ALLOWING PROPER AND ADEQUATE OPPORTUNITY TO THE APP ELLANT. 2. THE HON'BLE CIT(A) OUGHT TO HAVE OBSERVED THAT A LL CREDIT CARD PAYMENTS WERE GENUINE AND DETAILS SHOWING THE GENUINENESS WE RE FILED ON 27-12- 2011. 3. THE HON'BLE CIT(A) OUGHT TO HAVE OBSERVED THAT T HE ASSESSEE MADE SUBSTANTIAL DRAWING OF RS. 37,18,450/- FROM THE FIR M M/S. SITA LOGISTICS IN WHICH THE ASSESSEE WAS PARTNER AND THUS THE CREDIT CARD PAYMENTS WERE TRACEABLE TO THE DRAWINGS. 4. THE HON'BLE CIT(A) ERRED IN CONFIRMING THE ADDIT ION OF RS. 2,00,000 BEING AGRICULTURAL INCOME TREATED AS INCOME FROM OT HER SOURCES WITHOUT ANY BASIS AND THEREFORE THE SAME IS LIABLE TO BE DE LETED. 5. ANY OTHER GROUND OR GROUNDS THAT MAY ARISE AT TH E TIME OF HEARING. 4. IT WAS THE SUBMISSION OF LD. COUNSEL THAT ASSESSEE D ID IN FACT FURNISH THE DETAILS BEFORE THE AO, BUT THEY WERE FILED ON 27-12-2011, WHEREAS THE ASSESSMENT ORDER WAS DATED 23 -12-2011. SIMILARLY BEFORE THE CIT(A) ALSO, DETAILS WERE FILED. EVEN THOUGH THE DETAILS WERE FURNISHED, LD.CIT(A) DID NOT ACCEPT THE C ONTENTIONS BECAUSE ASSESSEE DID NOT APPEAR FOR THE HEARING. IT W AS SUBMITTED THAT ASSESSEE HAS WITHDRAWN FUNDS FROM THE PARTNERSHIP FIRM I.T.A. NO. 593/HYD/2016 JAGADISH KUMAR GOBBURU :- 3 - : WHICH WAS THE SOURCE OF CREDIT CARD PAYMENTS AND ALSO HAD AGRICULTURAL INCOME, THEREFORE, THE ADDITIONS MADE BY THE AO ARE NOT WARRANTED. IT WAS SUBMITTED THAT ASSESSEE IS PREPARED TO SUBMIT THE COMPLETE DETAILS BEFORE THE AO, IF AN OPPOR TUNITY IS GIVEN. 5. LD.DR, HOWEVER, RELIED ON THE ORDERS OF THE AO AND CIT(A) TO SUBMIT THAT ASSESSEE DID NOT APPEAR BEFORE THE AO AND DI D NOT FURNISH ANY EVIDENCE. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE PAPER BOOK PLACED ON RECORD CONTAINING 233 PAGES. I T WAS CERTIFIED THAT ALL THE DOCUMENTS HAVE BEEN PLACED BEFORE THE LOWER AUTHORITIES. HOWEVER, NEITHER THE AO NOR THE CIT(A) BR OUGHT THESE DOCUMENTS ON RECORD AND THEY HAVE CONSIDERED THE INFOR MATION RECEIVED THROUGH AIR FOR MAKING THE ADDITION. IT IS T HE CONTENTION THAT ASSESSEE IS A PARTNER IN THE FIRM M/S. SITA LOGISTIC S AND MOST OF THE PAYMENTS WERE PROPERLY SOURCED. IN THE INTEREST OF JUSTICE, I AM OF THE OPINION THAT ASSESSEE SHOULD BE GIVEN AN OPP ORTUNITY TO EXPLAIN THE SOURCE OF FUNDS AND ALSO THE EARNING OF A GRICULTURAL INCOME TO THE SATISFACTION OF THE AO. AO ALSO CLEARLY STATED IN THE ORDER THAT HE WAS FORCED TO COMPLETE ASSESSMENT EX-PARTE IN VIEW OF THE APPROACHING TIME BARRING DATE. KEEPING THAT IN MIN D, I HEREBY SET ASIDE THE ORDERS OF THE AO AND CIT(A) AND RESTORE THE ASSESSMENT TO THE FILE OF THE AO FOR VERIFICATION OF SO URCE FOR CREDIT CARD PAYMENTS AND ALSO EARNING OF AGRICULTURAL INCOM E. ASSESSEE SHOULD CO-OPERATE WITH THE AO AND SHOULD NOT DEFAULT EITHER IN APPEARING BEFORE THE AO OR IN FURNISHING THE REQUIRE D DATA. AO IS DIRECTED TO COMPLETE THE ASSESSMENT AFTER DUE VERIFICATI ON. WITH I.T.A. NO. 593/HYD/2016 JAGADISH KUMAR GOBBURU :- 4 - : THESE OBSERVATIONS, THE GROUNDS ARE CONSIDERED ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MARCH, 2017 SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 31 ST MARCH, 2017 TNMM COPY TO : 1. JAGADISH KUMAR GOBBURU, SECUNDERABAD. C/O. B. NARSING RAO CO., CHARTERED ACCOUNTANTS, PLOT NO. 554, ROAD NO. 92, JUBILEE HILLS, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-6(3), HYDERABAD. 3. COMMISSIONER OF INCOME TAX(APPEALS)-9, HYDERABAD . 4. THE PR. COMMISSIONER OF INCOME TAX-6, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.