Ramakrishna Kanderi, Chittoor V. Income Tax Officer, Ward-1, Chittoor

ITA 783/Hyd/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3263 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 13-11-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 16-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Unexplained investment; Gift

Judgement Text

ITA NO 783 OF 2019 RAMAKRISHNA KANDERI CHITTOOR. PAGE 5 OF 7 BROUGHT THE UNEXPLAINED INVESTMENT TO TAX DURING TH E A.Y 2010- 11 AND THEREFORE, BOTH THE ADDITIONS HAVE TO BE SUS TAINED. 7. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT BOTH THE AO AS WELL AS THE C IT (A) HAVE ACCEPTED THAT THERE ARE RECEIPTS BY THE ASSESSEE FR OM HIS RELATIVES BOTH DURING THE RELEVANT A.YS 2009-10 & 2010-11. ON CE IT IS ACCEPTED THAT THE RECEIPTS ARE DURING THE F.Y 2008- 09 RELEVANT TO THE A.Y 2009-10, THEY CANNOT BE BROUGHT TO TAX IN T HE A.Y 2010- 11. THEREFORE, I DELETE THE ADDITION OF RS.15.00 LA KHS BEING THE ADDITION TOWARDS UNEXPLAINED RECEIPTS FOR THE A.Y 2 009-10. 8. AS REGARDS THE UNEXPLAINED RECEIPTS OF RS.10.00 LAKHS FROM SMT. VINAYAKAMMA IS CONCERNED, I FIND THAT THE ASSESSEE HAS NOT BEEN ABLE TO PRODUCE ANY EVIDENCE IN SUPPOR T OF THE CREDITWORTHINESS OF THE CREDITOR AND THEREFORE, THE SAME IS CONFIRMED. 9. HOWEVER, WITH REGARD TO THE CREDIT FROM SHRI TIR UPAL NAIDU, HOLDING 12 ACRES OF AGRICULTURAL WET LAND IN WHICH PADDY, SUGARCANE AND GROUNDNUT IS CULTIVATED, THE AO HAS A CCEPTED RS.10.00 LAKHS AS INCOME AVAILABLE FOR GIFTING FOR BOTH THE A.YS PUT TOGETHER. THEREFORE, I AGREE WITH THE CONTENTIO N OF THE ASSESSEE THAT IF THE AO HAS ACCEPTED THAT THE ASSES SEES MOTHER- IN-LAW COULD HAVE GIFTED RS.10.00 LAKHS TO HER DAUG HTER SMT. VANI IN A YEAR FROM OUT OF 8 ACRES OF AGRICULTURAL LAND, THEN HE OUGHT TO HAVE ACCEPTED THAT RS.10.00 LAKHS PER YEAR COULD BE THE AGRICULTURAL INCOME AVAILABLE FROM 12 ACRES OF AGRI CULTURAL LAND TO BE ADVANCED BY HIM. THEREFORE, THE ADDITION OF UNE XPLAINED ITA NO 783 OF 2019 RAMAKRISHNA KANDERI CHITTOOR. PAGE 6 OF 7 INVESTMENT FROM SHRI TIRUPATI NAIDU OF RS.5.00 LAKH S FOR BOTH THE A.YS IS ALSO DELETED. 10. THE DECISIONS RELIED UPON BY THE LEARNED DR ARE DISTINGUISHABLE ON FACTS. IN THE CASE OF TIRATH RAM GUPTA VS. CIT (SUPRA), IT IS THE CASE OF A GIFT WHICH IS UNEXPLAI NED, WHEREAS THE ASSESSEE THOUGH INITIALLY HAS CLAIMED THE RECEIPTS AS GIFT, BUT HAS ULTIMATELY, AT THE TIME OF HEARING, HAD GIVEN UP TH E CLAIM AND HAD ONLY CLAIMED IT AS CREDIT. FURTHER, IN THIS CASE, T HE AO AND THE CIT (A) HAVE ACCEPTED PARTIALLY THE CREDITWORTHINESS OF SHRI TIRUPAL NAIDU AND THEREFORE, THE SAID DECISION CANNOT BE AP PLIED TO THE CASE IN HAND. EVEN IN THE CASE OF E. UMMER BAVA VS, CIT (SUPRA), THE HON'BLE SUPREME COURT WAS CONSIDERING THE CASE OF A GIFT OF RS.35.00 LAKHS FROM THE ASSESSEES BROTHER AND NRI AND THE HON'BLE SUPREME COURT HELD THAT WHERE THE ASSESSEE FAILED TO ESTABLISH THE CREDITWORTHINESS OF THE DONOR AND GEN UINENESS OF THE TRANSACTIONS, THE ADDITIONS DESERVED TO BE UPHE LD. IN THE CASE OF THE ASSESSEE BEFORE US, THE GENUINENESS OF THE T RANSACTIONS AS WELL AS THE CREDITWORTHINESS OF THE CREDITORS HAS B EEN PROVED. THEREFORE, THIS DECISION IS ALSO NOT APPLICABLE TO THE CASE IN HAND. 11. IN THE RESULT, ASSESSEES APPEAL IS PARTLY ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH NOVEMBER, 2019. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 15 TH NOVEMBER, 2019. VINODAN/SPS