Rama Chandru Jatoth, Suryapet V. Income Tax Officer Ward-1, Suryapet

ITA 703/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5805 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 22-04-2021
• Assessment Year: 2011-2012
• Appeal Filed On: 19-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A VENKATA RAODR
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained investment
• Section: 133A; 201; 69; 148

Judgement Text

ITA NO 703 OF 2020 RAMA CHANDRU JATOTH SURYAPET PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.703/HYD/2020 ASSESSMENT YEAR: 2011-12 DR. RAM CHANDRU JATOTH SURYAPET PAN:AFQPJ2971L VS. INCOME TAX OFFICER WARD 1 SURYAPET (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI A. VENKATA RAO,DR DATE OF HEARING: 22/04/2021 DATE OF PRONOUNCEMENT: 28/04/2021 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2011-12 AGAIN ST THE ORDER OF THE CIT (A)-3, HYDERABAD, DATED 24.01. 2020. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, A GENERAL PHYSICIAN AND SURGEON BY PROFESSION, FILED HIS RETU RN OF INCOME FOR THE A.Y 2011-12 ON 19.12.2012 BY ADMITTING TOTA L INCOME OF RS.6,05,580/-. A SURVEY U/S 133A OF THE ACT WAS CO NDUCTED IN THE BUSINESS PREMISES OF THE ASSESSEE ON 12.2.2016 AND DURING THE COURSE OF SURVEY OPERATION IT WAS FOUND THAT TH E ASSESSEE HAS PURCHASED 3,10,000/- SHARES OF 37 MICRON INDIA PVT. LTD ON 23.02.2011 FOR A CONSIDERATION OF RS.31,00,000/- BU T IN THE RETURN OF INCOME, THE ASSESSEE HAS NOT DISCLOSED TH E ABOVE INVESTMENT. IT WAS ALSO OBSERVED THAT THE ASSESSEE HAD FILED AN AFFIDAVIT ON 9.4.2014 BEFORE THE ELECTION COMMISSIO N OF INDIA (ECI) FOR THE PURPOSE OF CONTESTING THE ASSEMBLY EL ECTION HELD DURING THE YEAR 2014 WHEREIN HE STATED THAT HE HAS PURCHASED ITA NO 703 OF 2020 RAMA CHANDRU JATOTH SURYAPET PAGE 2 OF 4 NON-AGRICULTURAL LAND ADMEASURING 13,500/- SQ. YARD S FOR A CONSIDERATION OF RS.40.00 LAKHS DURING THE YEAR 201 0-11, BUT THE SAME WAS ALSO NOT DISCLOSED IN THE RETURN OF INCOME . THEREFORE, BELIEVING THAT THE INCOME OF THE ASSESSEE HAS ESCAP ED THE ASSESSMENT, THE ASSESSING OFFICER ISSUED A NOTICE U /S 148 OF THE ACT. DURING THE RE-ASSESSMENT PROCEEDINGS, WHEN THE ASSESSEE WAS ASKED TO EXPLAIN THE TRANSACTION OF RS.40.00 LA KHS FOR PURCHASE OF NON-AGRICULTURAL LAND, THE ASSESSEE SUB MITTED THAT HIS ADVOCATE HAD DRAFTED THE AFFIDAVIT BY COLLECTIN G THE INFORMATION OVER PHONE AND SOME MISTAKES HAVE OCCUR RED. THEREFORE, THE ASSESSEE PROMISED TO GIVE THE ASSESS ING OFFICER THE RELEVANT INFORMATION, BUT SINCE THE ASSESSEE DID NO T FILE ANY INFORMATION BEFORE THE ASSESSING OFFICER, ON THE BA SIS OF THE AFFIDAVIT FILED BEFORE THE ECI, THE ASSESSING OFFIC ER BROUGHT TO TAX THE SUM OF RS.40.00 LAKHS AS UNEXPLAINED INVESTMENT U/S 69 OF THE I.T. ACT. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT (A) STATING THAT THE ASSESSEE HAS NOT PURCHASED ANY PROPERTY DURING THE RELEVANT FINANCIAL YEAR AND THE PROPERTI ES MENTIONED IN THE AFFIDAVIT FILED BEFORE THE ECI WERE PURCHASED I N THE FINANCIAL YEARS 2008-09 AND 2011-12 RELEVANT TO THE A.YS 2010 -11 AND 2013-14. IN ORDER TO VERIFY THE CORRECTNESS OF THIS CONTENTION OF THE ASSESSEE, THE CIT (A) CALLED FOR A REMAND REPOR T FROM THE ASSESSING OFFICER. THE ASSESSING OFFICER SUBMITTED THE REPORT THAT THE ASSESSEE HAS FAILED TO EXPLAIN THE SOURCE OF RS .40.00 LAKHS USED FOR PURCHASE OF NON-AGRICULTURAL LAND AS MENTI ONED BEFORE THE ECI. THE ASSESSEE HOWEVER, EXPLAINED THAT THE A SSESSEE HAS PURCHASED THE THREE PROPERTIES AND MENTIONED IN THE AFFIDAVIT AT VARIOUS PLACES AT AN AGGREGATED COST OF RS.38,81,00 0/- IN THE ITA NO 703 OF 2020 RAMA CHANDRU JATOTH SURYAPET PAGE 3 OF 4 FINANCIAL YEARS 2008-09 AND 2011-12 INCLUDING THE S TAMP DUTY AND REGISTRATION CHARGES, THE TOTAL COST OF ACQUISI TION WAS RS.40,93,530/- AND THEREFORE, IT WAS APPROXIMATELY MENTIONED IN THE AFFIDAVIT AS RS.40.00 LAKHS. IT WAS SUBMITTED T HAT THE TOTAL AREA ACQUIRED BY THE ASSESSEE WAS NOT 3500 SQ. YARD S AS MENTIONED IN THE AFFIDAVIT. 4. TAKING THE SAID REMAND REPORT AND THE ASSESSEES SUBMISSIONS INTO CONSIDERATION, THE CIT (A) HELD TH AT SINCE THE ASSESSEE HAS ADMITTED BEFORE THE ECI THAT HE HAS PU RCHASED NON- AGRICULTURAL LAND FOR A SUM OF RS.40.00 LAKHS, THE SAME IS TO BE BROUGHT TO TAX. ACCORDINGLY, HE HAS CONFIRMED THE A SSESSMENT ORDER. 5. I FIND THAT NEITHER THE ASSESSING OFFICER NOR TH E CIT(A) HAVE BEEN ABLE TO PROVE ON RECORD THAT THE ASSESSEE HAS ACQUIRED ANY PROPERTY MUCH LESS THAN 13,500 SQ. YARDS OF NON -AGRICULTURAL LAND FOR A SUM OF RS.40.00 LAKHS DURING THE RELEVAN T FINANCIAL YEAR. IN THE AFFIDAVIT FILED BEFORE THE ECI, THE AS SESSEE WAS REQUIRED TO STATE THE ASSETS OWNED BY HIM AND IT WA S IN SUCH AN AFFIDAVIT THAT THE ASSESSEE HAS STATED THAT HE IS O WNING NON- AGRICULTURAL LAND WORTH RS.40.00 LAKHS. I DO NOT FI ND THAT THE ASSESSEE HAS STATED TO HAVE PURCHASED THE LAND DURI NG THE RELEVANT FINANCIAL YEAR. SINCE THERE IS NO MATERIAL ON RECORD BY THE ASSESSING OFFICER OR THE CIT (A) THAT THE ASSESSEE HAS ACQUIRED ANY PROPERTY DURING THE RELEVANT FINANCIAL YEAR, ON LY ON THE BASIS OF A MENTION OF PROPERTIES IN AN AFFIDAVIT FILED BE FORE THE ECI, THE SUM OF RS.40 LAKHS CANNOT BE BROUGHT TO TAX. THEREF ORE, THE ASSESSEES APPEAL IS ALLOWED. ITA NO 703 OF 2020 RAMA CHANDRU JATOTH SURYAPET PAGE 4 OF 4 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH APRIL, 2021. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 28 TH APRIL, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 DR. RAM CHANDRU JATOTH, H.NO.1-4-250 SHIVA SAI HOSP ITAL & DIAGNOSTICS, MG ROAD, SURYAPET 508213 2 INCOME TAX OFFICER WARD-1 ROAD NO.3, KRISHNA NAGA R, OPP: HITECH BUS STAND, SURYAPET 3 CIT (A) - 3, HYDERABAD 4 PR . CIT 3, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER