Gangavalli Lakshmi Narasimha Rao, Vissannapeta Mandal V. The Income Tax Officer, Ward-3(5 ), Vijayawada

ITA 61/VIZ/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5464 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 05-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 147; 148; 143(3); 142(1); 143(2)

Judgement Text

आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री ऱलऱत क ु मार, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI LALIET KUMAR, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.61/Viz/2020 (ननधाारण वषा / Assessment Year :2010-11) Gangavalli Lakshmi Narasimha Rao, Vissannapeta Mandal, Krishna District. PAN: AMJPG 3298 H Vs. Income Tax Officer, Ward-3(5), Vijayawada. (अऩीऱाथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱाथी की ओर से/ Appellant by : Sri G.V.N. Hari प्रत्याथी की ओर से / Respondent by : Sri SPG Mudaliar, Sr. AR स ु नवाई की तारीख / Date of Hearing : 31/03/2022 घोषणा की तारीख/Date of Pronouncement : 31/03/2022 O R D E R PER S. BALAKRISHNAN, Accountant Member : This appeal filed by the assessee is against the order of the Ld. CIT (A)- Vijayawada in appeal No. 54/CIT(A)/VJA/2016-17, dated 13/11/2019 passed U/s. 143(3) r.w.s 147 and U/s. 250(6) of the Act for the AY 2010-11. 2 2. The assessee has raised the following grounds of appeal: “1. The order of the Ld. CIT (A) is contrary to the facts and also the law applicable to the facts of the case. 2. The Ld. CIT(A) ought to have quashed the notice U/s. 148 of the Act in as much as the notice was issued without sanction of JCIT as required U/s. 151 of the Act and consequently the reassessment proceedings ought to have been quashed as void ab initio. 3. Without prejudice to the above, the Ld. CIT (A) is not justif ied in partly sustaining a sum of Rs. 7,33,639/- out of the total addition of Rs. 24,33,639/- made by the AO towards alleged unexplained cash deposits in bank account. 4. Any other grounds may be urged at the time of hearing.” 3. Brief facts of the case are that the assessee is an individual made deposits to the extent of Rs. 24,33,639/- in his savings bank account bearing No.33562200000194, Syndicate Bank, Telladevarapalli, Krishna District during the AY 2010-11 and a notice U/s. 148 was issued 29/09/2014 and served on assessee on 04/10/2014. In response to the notice, the asessee filed his return of income on 10/11/2014 declaring a total income of Rs. 1,20,000/- besides agricultural income of Rs. 17,00,000/- for the AY 2010-11. Subsequently, notices u/s. 143(2) and 142(1) were issued to the assessee calling for certain information ie., sources for cash deposits in the assessee’s savings account (supra), 3 evidence for agricultural income and books of account for the AY 2010-11 for verification. The Ld. AO after examining the replies furnished by the assessee, disallowed the cash deposits of Rs. 24,33,639/- as unexplained income and added to the income returned. Aggrieved by the order of the Ld. Assessing Officer, the assessee filed an appeal before the Ld. CIT (A), Vijayawada. 4. Before the Ld. CIT(A), the assessee filed written submissions and additional evidences. Thereafter, the Ld. CIT (A) remanded the additional evidences to the file of the Ld. AO and in response the Ld. AO furnished the remand report on 12/07/2019. The remand report was provided to the assessee to furnish the rejoinder and accordingly, the assessee furnished his rejoinder vide letter dated 11/11/2019. Based on the rejoinder submitted by the assesse, the Ld. CIT (A) upheld the addition made towards unexplained cash deposits to the extent of Rs. 7,33,639/- and directed the Ld. AO to delete the balance addition of Rs.17,00,000/-. Aggrieved by the order of the Ld. CIT(A), the assessee is in appeal before us. 5. The Ld. AR argued that the Ld. CIT(A) is not justified in partly disallowing the addition to the extent of 7,33,639/-. The 4 Ld. AR also argued that the assessment is subsisting and hence notice issued U/s. 148 is not valid. He also argued that there cannot be two assessments for the same assessment year. 6. Per contra, the Ld. DR argued in support of the orders of the Ld. Revenue Authorities. 7. We have heard the rival contentions and perused the material available on record and the of the Authorities below. Based on the rejoinder furnished by the assessee in response to the remand report of the Ld. AO, we find that the assessee has made withdrawals during the year to the extent of Rs. 8,64,300/- which is more than the amount redeposited of Rs. 7,33,639/-. We also find force in the arguments of the Ld. DR that these cash deposits were not made out of the earlier deposits. At this point of time, considering the peculiarities of the case, the Ld. AR agreed to offer Rs. 3,50,000/- as unexplained income of the assessee where no objection was raised by the Ld. DR. In view of the above, we direct the Ld. AO to delete the addition to the extent of Rs.3,83,639/- [Rs. 7,33,689 – Rs. 3,50,000] and sustain the addition of Rs.3,50,000/-. Hence, the Ground No.3 raised by the assessee is partly allowed. 5 8. Ld. AR did not press the Ground No.2 and hence it is dismissed. Ground No.1 and 4 are general in nature and therefore they do not need any adjudication. 9. In the result, appeal of the assessee is partly allowed. Pronounced in the open Court on the 31 st March, 2022. Sd/- Sd/- (ऱलऱत क ु मार) (एस बाऱाक ृ ष्णन) (LALIET KUMAR) (S.BALAKRISHNAN) न्याययकसदस्य/JUDICIAL MEMBER ऱेखा सदस्य/ACCOUNTANT MEMBER Dated : 31.03.2022 OKK - SPS आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधााररती/ The Assessee– Gangavalli Lakshmi Narasimha Rao, D.No.1- 44, Telladevarapalli Post, Visannapet Mandal, Krishna District. 2. राजस्व/The Revenue – Income Tax Officer, Ward-3(5), CR Building, MG Road, Vijayawada. 3. The Principal Commissioner of Income Tax, Vijayawada. 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals), Vijayawada. 5. ववभागीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशाखाऩटणम/ DR, ITAT, Visakhapatnam 6 .गार्ा फ़ाईऱ / Guard file आदेशान ु सार / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam