Mahaboob Basha Mohammad, Kakinada V. The Income Tax Officer, Ward-1, , Kakinada

ITA 652/VIZ/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 2581 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 29-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B RAMA KRISHNA
• Assessee Lawyers: M GANGARAJU SHARMA
• Section: 201; 69

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM (T HROUGH WEB - BASED VIDEO CONFERENCING PLATFORM) BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER I . T . A . NO. 652 / VIZ /2019 (ASST. YEAR : 201 4 - 15 ) MAHABOOB BASHA MOHAMMAD, 70 - 17 - 28/3, KUNDLUPETA, RTO OFFICE JUNCTION, NFCL ROAD, KAKINADA. VS. IT O , WARD - 1, KAKINADA . PAN NO. BBUPM 5753 J (APP ELLANT ) (RESPONDENT) ASSESSEE BY : SHRI M.GANGARAJU SHARMA, C A . DEPARTMENT BY : SHRI B. RAMA KRISHNA , SR. DR DATE OF HEARING : 26 / 11 /2020 . DATE OF PRONOUNCEMENT : 27 / 1 1 /20 20 . O R D E R TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 2 , GUNTUR , DATED 11 /0 9 /201 9 FOR THE ASSESSMENT YEAR 201 4 - 1 5 . 2. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE HAD PURCHASED A HOUSE PROPERTY WORTH RS. 22,29,390 / - ON 28/06/2013 . THE ASSESSEE HAS EXPLAINED THE SOURCE FOR RS.19,29,390/ - . WHEN THE AO HAS DOUBTED THE SOURCE OF RS.3,00,000/ - , IT WAS SUBMITTED THAT GOLD BELONGING TO HIS WIFE AND MOTHER - IN - LAW WAS SOLD, 2 ITA NO. 652 / VIZ /2019 ( MAHABOOB BASHA MOHAMMAD ) HOWEVER, THE ASSESSEE HAS NOT PRODUCED RELEVANT EVIDENCE BEFORE THE AO , THEREFORE THE AO ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE U/SEC. 69 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . 3 . ON APPEAL, LD. CIT(A) CONFIRMED THE ORDER OF THE AO. 4 . ON APPEAL BEFORE THE BENCH , LD.AR HAS SUBMITTED THAT ASSESSEE HAS TAKEN JEWEL LOANS FROM THE SYNDICATE BANK DAIRY FARM CENTRA L BRANCH , KAKINADA AS FOLLOWS: - 1. A/C. N O . 32621280000878 10/06/2013 RS. 2,41,000/ - 2. A/C NO. 32621280000882 10/06/2013 RS. 1,20,000/ - 3. A/C NO.32621280000936 18/06/2013 RS. 81,000 / - OUT OF WHICH, RS. 3,00,000/ - WAS INVESTED IN A NEW PROPERTY. HE ALSO FILED A CONFIRMATION LETTER FROM THE SYNDICATE BANK , DATED 14/11/2019 . INSOFAR AS EXPLANATION GIVEN B EFORE THE AO IS CONCERNED, IT WAS SUBMITTED THAT THE SOURCE WAS WRONGLY EXPLAINED , HOWEVER, THE FACT REMAINS THAT THE ASSESSEE S WIFE GOLD AS WELL AS MOTHER - IN - LAW GOLD WAS SOLD TO ONE K.PERIASWAMY ON 25/07/2013 TO CLEAR THE JEWEL LOAN S OBTAINED FROM SYNDICATE BANK. 5. LD.DR STRONGLY RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 6 . I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. 3 ITA NO. 652 / VIZ /2019 ( MAHABOOB BASHA MOHAMMAD ) 7 . THE ONLY DISPUTE IN THIS APPEAL IS IN RESPECT OF RS. 3,00,000/ - THE PROPERTY WAS PURCHASED BY THE ASSESSEE ON 28/06/2013 AND THE ASSESSEE HAS OBTAINED JEWEL LOAN S OF RS. 2,41,000/ - , RS.1,20,000/ - AND RS. 81,000/ - ON 10/06/2013, 10/06/2013 AND 18/03/2013 RESPECTI V ELY . T HEREFORE , I FIND THAT ASSESSEE HAS EXPLAINED THE SOURCE FULLY , HENCE, ADDITION CANNOT BE MADE U/SEC. 69 OF THE ACT. TH US, THE ORDER PASSED BY THE LD. CIT(A) IS SE T ASIDE AND ALLOW THE APPEAL OF THE ASSESSEE. 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 2 7 T H DAY OF NOV. , 2020 . S D / - (V. DURGA RAO) JUDICIAL MEMBER DATED : 2 7 T H NOVEMBER , 20 20 . VR/ - COPY TO: 1. THE ASSESSEE - MAHABOOB BASHA MOHAMMAD, 70 - 17 - 28/3, KUNDLUPETA, RTO OFFICE JUNCTION, NFCL ROAD, KAKINADA. 2. THE REVENUE ITO, WARD - 1, KAKINADA. 3. THE PR. CIT - 2 , VISAKHAPATNAM. 4. THE CIT(A) - 2 , VISAKHAPATNAM. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.