M/s. Sri Balaji Constructions, Visakhapatnam V. The Income Tax Officer, Ward-3(2), Visakhapatnam

ITA 626/VIZ/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 3996 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 08-11-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: B SATYANARAYANA RAJU
• Section: 143(3); 201; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI N.K. CHOUDHRY, HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON'BLE ACCOUNTANT MEMBER I.T.A. NO. 626 /VIZ/2019 (ASST. YEAR : 201 3 - 1 4 ) M/S. SRI BALAJI CONSTRUCTIONS, D.NO. 50 - 177 - 17/7, SRINIVASA NILAYAM , HILL VIEW LAYOUT , SEETHAMMADHARA, N.E., VISAKHAPATNAM . VS. ITO, WARD - 3 ( 2 ) VISAKHAPATNAM . PAN NO. ABBFS 8267 K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.SUBRAHMANYAM , FC A DEPARTMENT BY : SHRI B.SATYANARAYANA RAJU , SR. DR DATE OF HEARING : 17 / 0 2 /2021 . DATE OF PRONOUNCEMENT : 03 / 0 3 /2021 . O R D E R PER N.K. CHOUDHRY , JUDICIAL MEMBER THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 30 /08 /2019 IMPUGNED HEREIN PASSED BY THE LD.CIT(A) - 1, VISAKHAPATNAM U/SEC. 250(6) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') FOR THE A.Y. 20 1 3 - 1 4 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING AMENDED GROUNDS OF APPEAL: - 1. THE ORDERS PASSED U/SEC. 143(3) OF THE I.T. ACT ARE AGAINST THE FACTS OF THE CASE AND PROVISIONS OF LAW. 2 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) 2. THE LEARNED COMMISSIONER OF INCOME TAX APPEALS (IN SHORT CIT(A)) HAVING ACCEPTED CASH DEPOSITS IN ASSESSEES BANK TO THE EXTENT OF RS. 5,00,000/ - OUGHT TO HAVE ACCEPTED THE REMAINING OF RS. 2,00,000/ - WHEN THE FACTS ARE SIMILAR AND ALSO IS SUPPORTED BY CREDIBLE EVIDENCE. 3. FOR THESE AND OTHER REA S ONS THAT ARE TO BE URGED AT THE TIME OF HEARING OF THE CASE THE APPELLANT PRAYS THAT THE ORDERS PASSED BY THE LD. CIT(A) ARE TO BE QUASHED IN THE INTEREST OF JUSTICE. 3 . IN THIS CASE , THE ASSESSEE IS ONLY AGGRIEVED AGAINST THE PARTL Y CONFIRMATION OF ADDITION TO THE TUNE OF RS. 2.00 LAKHS U/SEC. 68 OF THE ACT BY THE LD. CIT(A). THE AO MADE THE ADDITION OF RS.7.00 LAKHS WHICH WAS DEPOSITED BY THE ASSESSEE IN HIS BANK ACCOUNT IN TWO TRANSACTIONS ON 11/09/2012 (RS. 5.00 LAKHS) AND 12/11/2012 (RS. 2.00 LAK HS). THE AO HAS HELD THAT THE SAID AMOUNT WAS CREDITED AS A LOAN FROM A. SATYANARAYANA, HOWEVER, THE SAID PERSON COULD NOT EXPLAIN THE SOURCE FOR THE SAME . 4 . IN APPEAL BEFORE THE LD. CIT(A), THE ASSESSEE HAD DISCHARGED HIS ONUS ON ACCOUNT OF IDENTITY, CREDITWORTHINESS AND GENUINENESS OF THE CREDIT AND ALSO EXPLAINED THE SOURCE OF CREDIT FROM WHICH IT WAS OBSERVED BY THE LD. CIT(A) THAT THE ASSESSEE HAS ALSO REPAID RS.5.00 LAKHS AGAINST THE LOAN OF RS. 7.00 LAKHS . H OWEVER, THE LD.CIT(A) ULTIMAT ELY HELD THAT THE ASSESSEE FAILED TO EXPLAIN SATISFACTORY QUA TRANSACTION OF RS. 2.00 LAKHS , HENCE, ADDITION TO THE EXTENT OF RS. 2.00 LAKHS WAS CONFIRMED BY THE LD. CIT(A) AGAINST THE ADDITION OF RS. 7.00 LAKHS. 5. HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS CLAIMED THAT THE LD. CIT(A) HAVING ACCEPTED THE CASH DEPOSITS IN ASSESSEES BANK TO THE EXTENT OF 3 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) RS.5.00 LAKHS AND THEREFORE OUGHT TO HAVE ACCEPTED THE REM A INING AMOUNT OF RS. 2.00 LAKHS ON THE BASIS OF SIMI LAR FACTS AND CIRCUMSTANCES . 6 . ON THE CONTRARY, LD.DR REFUTED THE CLAIM OF THE ASSESSEE AND SUPPORTED THE ORDER OF THE LD. CIT(A). 7 . WE REALISE THAT THE LD. CIT(A) WHILE PASSING THE IMPUGNED ORDER THOROUGHLY GONE INTO THE DETAIL S OF THE AMOUNT DEPOSITED BY THE ASSESSEE IN HIS BANK ACCOUNT AND CAME TO A CONCLUSION AS IT CAN BE SEEN FROM THE RECORD THAT THE ASSESSEE HA D DISCHARGED HIS ONUS QUA IDENTI T Y, CREDITWORTHINESS AND GENUINENESS OF THE CREDIT. THE LD. CIT(A) FURTHER HELD THAT THE ASSESSEE HAS ALREADY REPAID RS. 5.00 LAKHS AGAINST THE LOAN OF RS. 7.00 LAKHS , HOWEVER, FAILED TO EXPLAIN THE TRANSACTION OF RS. 2.00 LAKHS AND THEREFORE IN THE PECULIAR FACTS AND CIRCUMSTANCES AFFIRMED THE PARTLY ADDITION OF RS.2.00 LAKHS ONLY. WE COULD NOT FIND ANY MATERIAL AND/OR CIRCUMSTANCES CONTRARY TO THE CONCLUSION/OBSERVATION OF THE LD.CIT(A), HENCE, ARE INCLINED TO DISMISS THE APPEAL OF THE ASSESSEE. CONSEQUENTLY, THE ORDER UNDER CHALLENGE IS LIABLE TO BE AFFIRMED AND ACCORDINGLY WE DO SO. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 3 R D DAY OF MARCH , 2021 . S D / - S D / - (D.S. SUNDER SINGH) ( N.K. CHOUDHRY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 3 R D MARCH , 20 2 1 . VR/ - 4 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) COPY TO: 1. THE ASSESSEE - M/S. SRI BALAJI CONSTRUCTIONS, D.NO. 50 - 177 - 17/7, SRINIVASA NILAYAM, HILL VIEW LAYOUT, SEETHAMMADHARA, N.E., VISAKHAPATNAM. 2. THE REVENUE ITO, WARD - 3(2), VISAKHAPATNAM. 3. THE PR. CIT - 1 , VISAKHAPATNAM. 4. THE CIT(A) - 1 , VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.