Income Tax Officer, Ward-4(3), Hyderabad V. Venugopal Reddy Chinta Reddy, Hyderabad

ITA 713/Hyd/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5385 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2021
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB-B
• Assessment Year: 2014-2015
• Appeal Filed On: 18-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ROHIT MAJUMDAR
• Assessee Lawyers: K K GUPTA
• Keywords: Income from undisclosed sources
• Section: 143(3); 201; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD. BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER (T HROUGH V IDEO CONFERENCE ) ITA NO. 713 /HYD/2018 (ASSESSMENT YEAR : 201 4 - 15 ) INCOME TAX OFFICER, WARD 4(3), HYDERABAD. VS. SHRI CHINTA REDDY VENUGOPAL REDDY, 2 - 2 - 15, B - 9, FLAT 405, BINDU PRESTIGE, D D COLONY, HYDERABAD. PAN ADMPC5044P APPELLANT RESPONDENT APPELLANT BY : SHRI ROHIT MAJUMDAR (D.R) RESPONDENT BY : SHRI K.K. GUPTA. DATE OF HEARING : 10.03. 2021. DATE OF PRONOUNCEMENT : 06 .05 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS REVENUE S APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 1, HYDERABAD S ORDER DT. 20.12. 201 7 PASSED IN CASE NO. 0210/CIT(A) - 1/HYD/2016 - 17/2017 - 18 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSED. 2 ITA NO. 713/HYD/2018 2. WE NOTICE FROM A PERUSAL OF REVENUES PLEADINGS AT THE OUTSET THAT THE SOLE SUBSTANTIVE GRIEVANCE SEEKS TO REVIVE THE ASSESSING OFFICER 'S ACTION TREATING THE ALLEGED CASH DEPOSIT IN ASSESSEE'S SAVINGS ACC OUNT MAINTAINED WITH M/S. VIJAYA BANK AND STATE BA NK OF HYDERABAD TO THE TUNE OF RS.97,70,700 AND RS.93,86,720; TOTALING RESPECTIVELY TO RS.1,91,57,420 AS UNEXPLAINED. THE CIT(APPEALS) LOWER APPELLATE ORDER HAS DELETED THE IMPUGNED ADDITION AS UNDER : 3 ITA NO. 713/HYD/2018 4 ITA NO. 713/HYD/2018 5 ITA NO. 713/HYD/2018 6 ITA NO. 713/HYD/2018 7 ITA NO. 713/HYD/2018 8 ITA NO. 713/HYD/2018 9 ITA NO. 713/HYD/2018 10 ITA NO. 713/HYD/2018 11 ITA NO. 713/HYD/2018 12 ITA NO. 713/HYD/2018 13 ITA NO. 713/HYD/2018 14 ITA NO. 713/HYD/2018 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS AGAINST AND IN SUPPORT OF CIT(APPEALS) ABOVE EXTRACTED FINDINGS. L EARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY REITERATED THE REVENUES PLEADINGS THAT THE ASSESSING OFFICER HAS RIGHTLY M ADE THE IMPUGNED ADDITION IN ASSESSEE'S HANDS. HE TOOK US TO THE DETAILED DISCUSSION IN ASSESSMENT ORDER DT.29.12.2016 TO THIS EFFECT MAKING IT CLEAR THAT THE ASSESSEE HAD CLAIMED THE SOURCE OF THE CASH AND TIME DEPOSITS OUT OF ADVANCES RECEIVED FOR SALE OF THE AGRICULTURAL LANDS IN THE RELEVANT PREVIOUS YEAR. HE HAS PRODUCED THE SO CALLED AGREEMENT (S) OF SALE ON A PLAIN PAPER INVOLVING 6 FARMERS / VENDORS FROM EE ET URU VILLAGE, THIRUMALAGIRI MANDAL, N ALGONDA DISTRICT . IT IS NOT IN DISPUTE AS PER THE ASSESSMENT ORDER IT SELF 15 ITA NO. 713/HYD/2018 THAT TWO FARMERS THAT SRI M OOLA PRASAD AND CHILLA RA CHANDRAMOULI ONLY GOT RECORDED THEIR STATEMENTS ON 8.12.2015 AND THEREAFTER , THE ASSESSEE ALSO SUBMITTED A FFIDAVIT (S) WITH A ADHAR C ARD (S) AND CONFIRMATIONS. THE ASSESSING OFFICER OBSERVED IN THE LIG HT OF EACH AND EVERY PARTY, AGRICULTURAL LAND HOLDING, ANNUAL INCOME AND AMOUNT OF ADVANCE CLAIMED THAT THE SAME LACK ED GENUINENESS / CREDIT WORTHINESS AND THEREFORE HE PROCEED ED TO MAKE 68 ADDITION WHICH STANDS DELETED IN THE CIT(APPEALS) ORDER. 4. L EARNED AUTHORISED REPRESENTATIVE CONTENDED IN THE LIGHT OF CIT(APPEALS) DETAILED DISCUSSION THAT CASH TRANSACTION OF SALE / PURCHASES OF AGRICULTURE LAND ALREADY STAND CONFIRMED BY WAY OF A FFIDAVIT (S) AND STATEMENT (S) RECORDED BEFORE THE ASSESSING OFFICER. ON A QUERRY TO THE LEARNED AUTHORISED REPRESENTATIVE TO KNOW AS TO WHETHER THE ASSESSEE HAS TRANSFERRED THE LANDS IN QUESTION TO THE SAID VENDEES OR NOT , T HE REPLY RECEIVED IS IN NEGATIVE ONLY. ME ANING THEREBY THAT THE SAID 6 VENDEES HAD LAND HOLDINGS M EASURING NIL, 4 ACRES, 8 ACRES, 1 ACRE(WIFE), 4.2 ACRES AND 5.39 ACRES AS AGAINST THE ADVANCES OF RS.29.50 LAKHS; 16 ITA NO. 713/HYD/2018 RS.35 LAKHS; RS.39 LAKHS; RS.25 LAKHS; RS.32 LAKHS AND RS.42 LAKHS RESPECTIVELY . ALL TH IS DETAILED EXERCISE CARRIED OUT BY THE ASSESSING OFF ICER SUFFICIENTLY INDICATES THAT THE ASSESSEE HAS FAILED TO DISCHARGE HIS ONUS OF GENUINENESS / CREDIT WORTHINESS OF THE EXPLANATION RENDERED BEFORE THE LOWER AUTHORITIES. THIS IS FOR THE REASON THAT EVEN HIS OWN TWO VENDEES WHO HAD APPEARED BEFORE THE A SSESSING OFFICER HAS MADE IT CLEAR THAT THEIR ANNUAL INCOME WAS AROUND RS.5 LAKHS EACH ONLY AS AGAINST ALLEGED ADVANCE OF RS.32 LAKHS AND RS.4 2 LAKHS; RESPECTIVELY. HON'BLE APEX COURT LAND MARK DECISION IN SUMATI DAYAL VS. CIT ( 1995 ) 214 ITR 801 (SC) AND CIT VS. DURGA PRASAD MORE (1971) 82 ITR 540 (SC) HELD LONG BACK THAT ANY EXPLANATION UNDER THE PROV I SIONS OF THE ACT HAS TO BE APPRECIATED IN LIGHT OF HUMAN PROBABILITY AFTER REMOVING ALL BLINKERS. WHEN WE APPLY THE SAME TO HIS FACTS AND CIRCUMSTANCES O F THE INSTANT CASE, IT IS VERY MUCH APPARENT THAT EVEN A SINGLE PENNY HAS NOT COME VIA BANKING CHANNEL FOLLOWED BY THE GROSSLY DISPROPORTIONATE SOURCE (S) OF THE SO CALLED VENDEES WHO HAVE NOT EV EN BOTHER ED TO GET SIX CORRESPONDING SALE DEEDS REGISTERED EVEN AFTER A TIME 17 ITA NO. 713/HYD/2018 PERIOD OF ALMOST A DECADE. WE THEREFORE ARE OF THE OPINION IN VIEW OF ALL THE FACTS AND CIRCUMSTANCES NARRATED IN THE PRECEDING PARAGRAPHS THAT THE CIT(APPEALS) HAD ERRED IN LAW & ON FACTS IN DELETING THE IMPUGNED ADDITION OF RS.1,81,57,4 40 INCOME FROM UNDISCLOSED SOURCES. THE SAME STANDS RESTORED THEREFORE. 5. NO OTHER ARGUMENT HAS BEEN RAISED BEFORE US. 6 . THIS REVENUES APPEAL IS ALLOWED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 6TH MAY , 2021. SD/ - SD/ - (A .MOHAN ALANKAMONY ) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 06 .05 .2021. * REDDY GP COPY TO : 1. SHRI CHINTA REDDY VENUGOPAL REDDY, 2 - 2 - 15, B - 9, FLAT 405, BINDU PRESTIGE, D D COLONY, HYDERABAD. 2. INCOME TAX OFFICER, WARD 4(3), HYDERABAD. 3. PR. C I T - 1 , HYDERABAD. 4. CIT(APPEALS) - 1, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.