Mohammad Abdul Faheem, Hyd, Hyderabad V. ITO, Ward 9(2), Hyd, Hyderabad

ITA 719/HYD/2016

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3101 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2011-2012
• Appeal Filed On: 16-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N SRIKANTHDR
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit; Business income; Peak credit
• Section: 143(3); 201

Judgement Text

ITA NO 719 OF 2016 MOHD ABDUL FAHEEM HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.719/HYD/2016 ASSESSMENT YEAR:2011-12 SRI MOHD.ABDUL FAHEEM HYDERABAD PAN:AAHPF7060J VS. INCOME TAX OFFICER WARD 9(2) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI S. RAMA RAO REVENUE BY : SRI N. SRIKANTH,DR DATE OF HEARING: 09/06/2021 DATE OF PRONOUNCEMENT: 17/06/2021 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2011-12 AGAIN ST THE ORDER OF THE CIT (A)- 7, HYDERABAD, DATED 15.10 .2015. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IN DIVIDUAL WHO WAS RUNNING A PRINTING PRESS IN THE NAME OF M/S . NIDA TRADERS, FILED HIS RETURN OF INCOME FOR THE A.Y 201 1-12 ON 16.6.2011 ADMITTING INCOME OF RS.1,75,770/-. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE A SSESSING OFFICER OBSERVED THAT THE ASSESSEE IS MAINTAINING A BANK A/C WITH ICICI BANK AND WAS HAVING A CASH CREDIT TO THE EXTE NT OF RS.50,04,500/- IN THIS A/C. WHEN THE ASSESSEE WAS ASKED TO EXPLAIN THE SOURCES OF THE CASH CREDITS, THE ASSESS EE EXPLAINED THAT HE HAS ANOTHER ACCOUNT WITH HDFC BANK AND THAT THE CREDITS MADE THEREIN REPRESENT HIS BUSINESS RECEIPT S AND THAT THE DEPOSITS INTO ICICI BANK ARE ALSO FROM HIS BINDING/ PRINTING CONTRACTS FOR THE YEAR. HOWEVER, SINCE THE ASSESSEE COULD NOT ITA NO 719 OF 2016 MOHD ABDUL FAHEEM HYDERABAD PAGE 2 OF 3 PROVE THAT THESE DEPOSITS ARE ALSO HIS BUSINESS REC EIPTS, THE ASSESSING OFFICER PROPOSED TO TREAT THE SAME AS UNE XPLAINED DEPOSITS. THEREAFTER, THE ASSESSEE WORKED OUT THE P EAK CASH CREDIT AND HAS ARRIVED AT THE FIGURE OF RS.28,96,566/- AND THE ASSESSING OFFICER TREATED THE SAME AS INCOME FROM OTHER SOUR CES AND BROUGHT IT TO TAX. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT (A) STATING THAT THERE WAS AN OPENING BALANCE O F RS.5,33,375/- AS ON 1.4.2010 WHICH NEEDS TO BE DEDU CTED FROM THE PEAK CREDIT. THE CIT (A) HAS GRANTED RELIEF TO THAT EXTENT. THE LEARNED COUNSEL FOR THE ASSESSEE NOW SUBMITS THAT T HE ASSESSEE HAD ALSO REPORTED INCOME FROM OTHER SOURCES TO TH E EXTENT OF RS.1,29,650/- WHICH ALSO SHOULD HAVE BEEN CONSIDERE D AS THE SOURCE FOR DEPOSITS AND THE ASSESSEE SHOULD BE GIVE N RELIEF TO THAT EXTENT. 4. THE LEARNED DR, ON THE OTHER HAND, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 4. I FIND THAT IN THE RETURN OF INCOME, THE ASSESSE E HAD OFFERED BUSINESS INCOME OF RS.59,636 U/S 44A OF THE ACT AND THE INCOME FROM OTHER SOURCES AT RS.1,29,650/- AND AFTE R ALLOWING THE REDUCTION OF LIC, HE ARRIVED AT THE TAXABLE INCOME OF RS.1,75,770/. DURING THE ASSESSMENT PROCEEDINGS ALS O, THE ASSESSING OFFICER HAS ACCEPTED BOTH THE BUSINESS IN COME AS WELL AS THE INCOME FROM OTHER SOURCES DECLARED BY THE AS SESSEE AND TO SUCH INCOME, HE HAS ADDED THE UNEXPLAINED CREDITS O F RS.28,96,566/-. THEREFORE, I AGREE WITH THE CONTENT ION OF THE ASSESSEE THAT THE INCOME FROM OTHER SOURCES OF RS .1,29,650/- ITA NO 719 OF 2016 MOHD ABDUL FAHEEM HYDERABAD PAGE 3 OF 3 ALSO SHOULD HAVE BEEN CONSIDERED AS THE SOURCE AVAI LABLE FOR CASH DEPOSITS INTO THE BANK A/C. THEREFORE, THE RELIEF I S GRANTED TO THE ASSESSEE TO THE EXTENT OF RS.1,29,650/-. ASSESSEES APPEAL IS ACCORDINGLY PARTLY ALLOWED. 5. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH JUNE, 2021. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 17 TH JUNE, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 SRI MOHD. ABDUL FAHEEM H.NO.17-2-1125 REIN BAZAR, MADANNAPETA WATER TANK, YAKUBPURA, HYDERABAD 2 INCOME TAX OFFICER WARD 9(2) IT TO WERS, AC GUARDS HYDERAB AD 3 CIT (A) - 7, HYDERABAD 4 PR. CIT -7, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER