Income Tax Officer, Ward-6(3), Hyderabad V. Sri Syed Burhanuddin, Hyderabad

ITA 649/HYD/2014

• Counselvise Citation: 64922514 RSA 2014
• Duration Of Justice: 1 year(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2015
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 07-04-2015
• Assessment Year: 2009-2010
• Appeal Filed On: 09-04-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: P VINOD
• Keywords: Business income; Peak credit

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.649/HYD/2014 : ASSESSMENT YEAR 2009 - 10 INCOME TAX OFFICER WARD 6(3), HYDERABAD V/S. SHRI SYED BURHANUDDIN, HYDERABAD (PAN BDYPS 4653 P ) (APPELLANT) (RESPONDENT) APP ELLANT BY : S HRI RAMAKRISHNA BANDI DR RESPONDENT BY : SHRI P.VINOD, AR DATE OF HEARING 7.4.2015 DATE OF PRONOUNCEMENT 10.4.2015 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE O R DER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) IV, HYDERABAD D A TED 10.1.2014, WHEREBY SHE DELETED THE ADDITION OF RS.19,41,880 MADE BY THE ASSESSING OFFICER ON ACCOUN T OF UN E XPL A IN E D DEPO S I T S FOUND TO B E MADE IN THE BANK AC C OUN TS OF THE ASSESSEE. 2. ASSESSEE IN THE PRESENT CA S E IS AN IN D I V I D U A L, WHO FIL E D HI S RETURN OF IN C OM E FOR THE YEAR UN D E R CONSIDERATION ON 1.9.2009 DECL A RING TOTAL INCOME O F R S .3,25,090. A S P E R TH E AAR INFORMATION R ECEIVED BY TH E ASSESSING OFFICER , THE ASSESSEE HA D DEPOS I TED CASH AMOUNTING TO R S .26,42,400 IN ICICI BANK LTD., BANJARA HILL S BRANCH, HYDERABAD AND RS.10,01,000 IN SBH GUN FOUN D RY B RA N CH, HYDERABAD. DU R IN G THE COU R SE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE THER E FORE, WAS REQUIRED BY TH E ASSESSING OFFICER TO EXPLAIN TH E SOU R CES OF THESE CASH DEPOSITS FOUND TO B E MA D E IN HIS BANK I TA NO . 649 /H YD/20 14 SHRI SYED BURHANUDDIN , HYDERABAD 2 AC C OUN T . THE ASSESSEE HO WE VER, DID NO T COMPLY WITH THIS REQUIREMENT OF THE ASSESSING OFFICER IN SPI T E OF SUFFICIENT OPPORTUNITIES AF F ORDED IN THI S RE G A R D. THE ASSESSING OFFICER THER E FORE, WAS LEFT WITH NO OPTION BUT TO COMPL E TE THE ASSESSMENT EX - P ARTE T O THE BEST OF HIS JUDGMENT UNDER S.1 44 OF THE ACT. I N THE ASSESSMENT SO COMP LE TED VIDE ORDER DATED 20.12.2011, HE WORKED OUT THE PEAK CASH CREDIT OF BOTH THE BANK AC C OUN T S OF THE ASSESSEE AT RS.18,70,880 AND ALSO FOUND C E RTAIN TRANSFER CREDITS APPEARING IN THE SAID BANK ACCOUNTS TOTALING TO RS.71,000. ACCO RD INGLY, THE TOTAL CR E DIT AMOUNT OF RS.19,41,880 APP E ARING IN TH E B ANK AC C OUN T S OF THE ASSESSEE W AS TREA T ED BY THE ASSESSING OFFICER AS UN E XPL A IN E D AND ADDITION TO TH A T EXTENT WAS MADE BY HIM TO THE T OTAL INCOME OF THE ASSESSEE. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICER UN D ER S.144, AN APP E AL W A S P R EFERRED BY THE ASSESSEE BEFORE THE LEARNED CIT(A). DU R IN G THE COURSE OF APP E LL A TE PROCE E DIN GS BEFORE THE LEARNED CIT(A), IT WAS SUBMITTED T HAT THE ASSESSEE, IS AN IN D I VI DUAL ENGA G ED IN UN D ERTAKING CIVIL CONTR A CTS AND IN TH E RETURN OF INCOME FILED FOR THE YE A R UN D E R CONSIDERATION , TOTAL INCOME OF R S .3,25,000 WAS DECLARED BY HIM ON A TURNOVER OF RS.26,70,850 IT WAS EXPLAIN E D THAT T HE DEPOSIT S FOUND TO BE MADE IN TH E BANK ACCOU NTS OF THE ASSESSEE WERE F ROM THE R E CEIPTS OF HIS BU S IN E SS, BU T THE ASSESSING OFFICER FAIL E D TO APPRECIATE TH E SAME. THI S EXPLANATION OF THE ASSESSEE WAS FOUND LOGICAL AND REASONABLE BY THE LEARNED CIT(A). ACCO RD ING TO HER, TOTAL TURNOVER OF THE ASSESSEE O F R S .26,70,830 WAS ALSO CON SI DERABLY MORE THAN THE PEAK OF THE DEPOSI T ARRIVED AT BY THE ASSESSING OFFICER AT R S .19,41,880 SHE HELD THAT THE PEAK CREDITS IN THE BANK AC C O U N T S OF TH E ASSESSEE THUS W ERE DULY EXPLAINED AND DIRECTED THE ASSESSING OFFICER TO DEL E TE THE ADDITION MADE ON THIS I S SUE. AGGRI E VE D BY THE O R D E R OF THE I TA NO . 649 /H YD/20 14 SHRI SYED BURHANUDDIN , HYDERABAD 3 LEARNED CIT(A) , REVENUE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL ON THE FOLLOWIN G GROUND S - 1. THE LEARNED CIT(A) ERRED IN LAW AND ON FACTS OF THE CASE. 2. THE HON'BLE CIT(A) O UGHT TO HAVE SUSTAINED THE ADDITION OF PEAK CREDIT IN THE BANKS AS THE ASSESSEE FAILED TO PRODUCE ANY EVIDENCE IN SUPPORT OF HIS CLAIM THAT THESE WERE BUSINESS RECEIPTS. 3 THE HON'BLE CIT(A) OUGHT TO HAVE APPRECIATED THE FACT THAT THE TOTAL CASH DEPOSITS WHICH WERE CLAIMED AS BUSINESS RECEIPTS WERE EXCEEDING THE TOTAL TURNOVER. 4. ANY OTHER GROUND(S)THAT MAY BE URGED AT THE TIME OF HEARING. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS RIGHTLY S UBMI T TED BY THE LEARNED DEPARTMENTAL REPRESENTATIVE , THE EX PL ANATION OF THE ASSESSEE OF HAVING MADE THE CASH DEPO S I T S IN HIS BANK AC C OUN T O UT OF BUSINESS RECEIPTS IS ACCEPTED BY TH E LEARNED CIT(A), WITHOUT VERIFYING THE REL E VANT DOCUM E N T ARY EVIDENCE AND WITHOU T GIVING ANY OPPORTUNITY TO TH E ASSESSING OFFICER TO VERIFY THE SAME. AS FUR T H E R SUBMI T TED BY TH E LEARNED DEPARTMENTAL REPRESENTATIVE , THE TURNOVER OF THE CIVIL CONTR A CTING BU S IN E SS O F THE ASSESSEE WAS ONLY R S .26,30,850, WH E R E AS THE DEPO S ITS FOUND T O B E MADE IN CASH IN HIS BANK ACCOUNT WERE TO THE TUNE OF RS.36,43,400. KEEPING IN VIEW ALL TH E SE RELEVANT ASPECTS OF THE MAT T ER , AS POI N TED OUT BY THE LEARNED DEPARTMENTAL REPRESENTATIVE , AND ALSO THE FACT THAT THE ASSESSMENT IN TH E CA S E OF TH E ASSESSE E W AS COMPLETED BY THE ASSESSING OFFICER EX - PARTE UN D ER S.144 DUE TO NON - COMPLIANCE OF TH E ASSESSEE, WE ARE O F TH E VIEW THAT THE LEARNED CIT(A) OUGHT TO H A VE GIVEN AN OP P ORT U NITY TO TH E ASSESSING OFFICER TO VERIFY THE EXPLANATION OF THE ASSESSEE THAT THE D EPO S ITS FOUND TO BE MADE IN I TA NO . 649 /H YD/20 14 SHRI SYED BURHANUDDIN , HYDERABAD 4 HI S BANK ACCOUN T WERE OUT OF THE RECEIPTS OF TH E ASSESSEE FROM CIVIL CONTR A CTING BUSINESS , B E FORE ACCEPTING THE SAME. IN TH A T VIEW OF THE MATTER, WE SET ASI D E THE IMPU G N ED ORDER O F THE LEARNED CIT(A) ON THIS ISSU E AND RESTORE THE MATTER TO THE FIL E OF THE ASSESSING OFFICER FOR DECIDING THE SAME AFRESH, AFTER VERIFYING THE E XPLANATION OF TH E ASSESSEE THAT T HE DEPO S I T S FOUND TO BE MADE IN H IS BANK AC C OUN T S WERE OUT OF TH E REC E IP T S F R OM CIVIL CONTR A CTING BUSINESS. THE ASSESSING OFFICER SHALL AFFO R D SUFFI CI EN T OPPOR T U N ITY OF B E IN G HEARD TO THE ASSESSEE AND THE ASSESSEE SHALL EXTEND ALL THE POSSIBLE COOPERATION T O THE ASSESSING OFFICER TO DECI D E THIS ISSUE IN THE SET ASI D E PROCE E DIN G S EXPEDITIOUSLY. 5. IN THE RESULT, APPEAL O F TH E R E VENUE IS TREATED AS ALLOW E D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 10 TH APRIL, 201 5 SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 10 TH APRIL , 201 5 COPY FORWARDED TO: 1. SHRI SYED BURHANUDDIN, 8 - 2 - 686/C/E/5, BURHAN MANZIL, MINISTER COLONY, ROAD NO.12, BANJARA HILL, HYDERABAD 2 . INCOME TAX OFFICER WARD 6(3), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) I V , HYDERABAD COMMISSIONER OF INCOME - TAX III , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S