Sri G Saibaba, Hyderabad V. ITO, Ward 9(3), Hyderabad

ITA 810/HYD/2013

• Counselvise Citation: 81022514 RSA 2013
• Duration Of Justice: 1 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2005-2006
• Appeal Filed On: 21-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADAGIRI
• Assessee Lawyers: S RAMA RAO
• Keywords: Unexplained cash credit; Source of fund; Cost of acquisition
• Section: 45(2); 54F; 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA.NO.808, 809 & 810/HYD/2013 ASSESSMENT YEAR 2003-04, 2004-05 & 2005-06 MR. G. SAIBABA HYDERABAD. PAN ACWPG-50520 VS. INCOME TAX OFFICER WARD 9(3) HYDERABAD (APPELLANT) (RESPONDENT) ITA.NO.811/HYD/2013 ASSESSMENT YEARS 2005-06 MS. G. SHASHI REKHA HYDERABAD PAN ACWPG-5051-F VS. INCOME TAX OFFICER WARD 11(1) HYDERABAD. (APPELLANT) (RESPONDENT) FOR ASSESSEE MR. S. RAMA RAO FOR REVENUE MR. B. YADAGIRI DATE OF HEARING 06.05.2014 DATE OF PRONOUNCEMENT 27.06.2014 ORDER PER B. RAMAKOTAIAH, A.M. THESE ARE APPEALS BY ASSESSEES AGAINST THE ORDERS OF CIT(A)-XVIII, MUMBAI CAMP AT HYDERABAD DATED 07.03.2013. SINCE COMMON ISSUES ARE INVOLVED, THESE ARE HEARD TOGETHER AND DECIDED BY THE COMMON ORDER. 2. WE HAVE HEARD LD. COUNSEL AND LEARNED D.R. IN DETAIL AND PERUSED THE PAPER BOOK PLACED ON RECORD CONTAINING 34 PAGES. 2 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD 3. BRIEFLY STATED, ASSESSEES ARE INDIVIDUALS AND A RE CARRYING ON REAL ESTATE BUSINESS. A SEARCH OPERATIO N WAS CONDUCTED IN THE BUSINESS PREMISES ON 21.03.2006. A SSESSEE HAVE FILED RETURNS OF INCOME ADMITTING BUSINESS INC OMES. ON NOTICING THAT ASSESSEE HAS CONVERTED HIS OWN PROPER TY INTO STOCK-IN-TRADE IN THE EARLIER YEAR, A.O. BROUGHT TO TAX THE LONG TERM CAPITAL GAIN ON CONVERSION OF LAND SOLD DURING THE YEAR ALONG WITH APARTMENTS AND ASSESSED THE BUSINESS REC EIPTS ESTIMATING THE INCOME AT 8%, AFTER EXCLUDING THE VA LUE OF UNDIVIDED SHARE OF LAND. IN DOING SO, HE HAS MADE V ARIOUS ADDITIONS AND RAISED DEMANDS IN THE IMPUGNED A.YS. ASSESSEES CONTESTED THE ISSUES BEFORE THE LD. CIT(A ) WHO PASSED ORDERS IN ALL THE YEARS WHICH WAS SUBJECT MA TTER OF PRESENT APPEALS. MR. G SAIBABA. ITA.NO.808/HYD/2013 : 4. THIS APPEAL IS FOR A.Y. 2003-04 IN WHICH ASSESS EE HAS RAISED 7 GROUNDS. GROUND NOS. 1, 6 AND 7 ARE GE NERAL IN NATURE AND GROUND NO.3 PERTAIN TO ESTIMATING THE NE T INCOME FROM BUSINESS AT RS.1,45,039/- WAS NOT PRESSED AND THEREFORE, GROUND NO.3 IS DISMISSED AS NOT PRESSED. GROUND NOS . 2, 4 AND 5 ARE MATERIAL FOR CONSIDERATION. GROUND NO.2 I S AS UNDER : 2. THE LD. CIT(A) ERRED IN CONFIRMING THE ACTION O F THE A.O. IN DETERMINING THE LONG TERM CAPITAL GAIN AT RS.4,28,352/- WITHOUT PROPERLY CONSIDERING THE EXPLANATIONS AND THE EVIDENCES SUBMITTED. 4.1. ASSESSEE IS OWNER OF 240 SQ. YARDS OF LAND AN D HAS CONVERTED THE SAME INTO STOCK-IN-TRADE IN THE FY 20 02-03 AND CONSTRUCTED 11 RESIDENTIAL FLATS ON THE SAME LAND. A.O. ACCEPTS 3 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD THAT ASSESSEE HAS SOLD 5 FLATS DURING THE YEAR WITH UNDIVIDED SHARE OF LAND AT 102 SQ. YARD. A.O. WAS OF THE OPIN ION THAT PROVISIONS OF SECTION 45(2) APPLIES AND ON GIVING S HOW CAUSE NOTICE TO THE ASSESSEE, DETERMINED THE LONG TERM CA PITAL GAIN AS UNDER : LONG TERM CAPITAL GAINS : DEEMED CONSIDERATION : 240 SQ. YDS X 2500 = 6,00,000 LESS: COST OF ACQUISITION : 240 X. 200 X. 447/125 = 1,71,648 LONG TERM CAPITAL GAINS : 4,28,35 2 4.2. IT WAS THE CONTENTION THAT ONLY PROPORTIONATE CAPITAL GAINS OUT OF 102 SQ. YARDS SOLD DURING THE YEAR CAN BE CONSIDERED IN THE YEAR AS AGAINST 240 SQ. YARDS CON SIDERED BY THE A.O. ON APPEAL, THIS CONTENTION WAS NOT ADJUDICATED/DECIDED BY THE LD. CIT(A) PROPERLY. ON CONSIDERING RIVAL CONTENTIONS AND EXAMINING THE PROVISIONS OF S EC.45(2), WE AGREE WITH THE ASSESSEES CONTENTIONS THAT ONLY 102 SQ. YARDS OF STOCK-IN-TRADE SOLD DURING THE YEAR CAN ONLY BE BROUGHT TO TAX UNDER THE HEAD CAPITAL GAINS. THEREFORE, A.O. IS DIRECTED TO CALCULATE THE PROPORTIONATE CAPITAL GAINS IN THI S YEAR AND THE BALANCE IN THE NEXT YEAR AS THE ASSESSEE HAS SOLD S OME MORE FLATS IN THE LATER YEAR. ENTIRE AMOUNT CANNOT BE BR OUGHT TO TAX IN THIS YEAR. THEREFORE, GROUND NO.2 OF THE ASSESSE E IS ALLOWED. A.O. IS DIRECTED TO RE-WORKOUT THE LONG TERM CAPITA L GAINS ACCORDINGLY. NEEDLESS TO SAY, A.O. SHOULD ALSO EXAM INE THE CLAIM OF DEDUCTION UNDER SECTION 54F WHICH WAS DIRE CTED BY LD. CIT(A) TO VERIFY AND ALLOW AS PER PROVISIONS OF LAW VIDE HIS ORDER. 5. GROUND NOS. 4 AND 5 PERTAIN TO ADDITION OF RS.6,50,000/- BEING DEPOSIT MADE WITH ANDHRA BANK. A.O. 4 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD NOTICED THAT ASSESSEE MAINTAINED A JOINT ACCOUNT WI TH HIS WIFE WITH ANDHRA BANK AND MADE CASH DEPOSITS BETWEEN 07.05.2002 TO 29.05.2002 TO AN EXTENT OF RS.6,50,00 0/-. AS THERE WAS NO RESPONSE TO THE SHOW CAUSE NOTICE ISSU ED DATED 02.11.2006, A.O. WAS OF THE VIEW THAT THE ABOVE AMO UNTS WERE UNEXPLAINED CASH CREDITS AND BROUGHT TO TAX ACCORDI NGLY. IT WAS SUBMITTED BEFORE THE LD. CIT(A) THAT ASSESSEE H AS FILED COPIES OF THE BANK ACCOUNTS MAINTAINED WITH ANDHRA BANK AND BANK OF BARODA IN SUPPORT OF WITHDRAWALS FROM BANK OF BARODA. IT WAS FURTHER SUBMITTED THAT ASSESSEE HAS MAINTAINED CASH BOOK AND THESE WITHDRAWALS AND DEPOSITS ARE MA DE THROUGH CASH BOOK. EVEN THOUGH SUFFICIENT EXPLANATI ON WAS GIVEN TO THE A.O. THESE ARE NOT CONSIDERED PROPERLY . HOWEVER, LD. CIT(A) CALLED FOR A REMAND REPORT FROM THE A.O. WHO SUBMITTED HIS REPORT. ON CONSIDERING THE SAME, LD. CIT(A) REJECTED THE ASSESSEES CONTENTION BY STATING AS UN DER : FROM THE PERUSAL OF REMAND REPORT SUBMITTED BY THE A.O. HAS SUBMITTED THAT AS PER THE STATEMENT OF BANK OF BARODA THE ASSESSEE HAS WITHDRAWN ONLY RS.25,000/- DURING THE PERIOD 3.5.2002 TO 14.05.2002. FURTHER AS PER THE C ASH BOOK SUBMITTED BY THE ASSESSEE HE HAS RECEIVED RS.2,60,1 40/- FROM SALE OF FLATS FOR WHICH NO EVIDENCE WAS SUBMIT TED. THUS THE SUBMISSIONS OF THE APPELLANT WERE NOT ACCEPTED BECAUSE IT HAS FAILED TO PROVE THE NEXUS BETWEEN THE WITHDR AWAL FROM BANK AND SALE PROCEEDS OF FLATS WITH THE CASH DEPOSITS IN ANDHRA BANK A/C. THE COPY OF THIS REMAND REPORT IS ALSO GIVEN TO THE AR OF THE APPELLANT, BUT HE COULD NOT REVERT THE FINDING OF THE A.O. BY SUBMITTING ANY FURTHER EVIDE NCE. AS PER THE PROVISIONS OF SEC.68 OF THE IT ACT THE ONUS IS ALWAYS ON THE ASSESSEE TO PROVE THE IDENTITY CREDITWORTHIN ESS AND GENUINENESS OF THE TRANSACTION. BUT IN THE PRESENT CASE THE ASSESSEE HAS FAILED TO CREATE NEXUS BETWEEN THE WITHDRAWALS FROM BANK OF BARODA AND SALE PROCEEDS O F FLATS WITH THE CASH DEPOSITS IN ANDHRA BANK A/C. THUS IT IS HELD THAT THE ASSESSEE HAS FAILED TO PROVE THE SOURCE OF CASH DEPOSITS IN HIS BANK A/C. THEREFORE, IN VIEW OF TH E DECISION 5 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD OF HONBLE SC IN CASE OF CIT VS. BIJU PATNAIK 160 I TR 674 AND IN CASE OF ROSHAN D. HITI VS. CIT 126 63, THE A SSESSEE HAS FAILED TO PROVE THE SOURCE OF CASH CREDIT IN HI S BANK A/C. THEREFORE, THE ADDITION MADE BY THE A.O. IS UPHELD AND GROUND OF APPEAL IS DISMISSED. 6. CONTESTING THE ABOVE, LD. COUNSEL REFERRED TO T HE CASH BOOK AS WELL AS THE MISTAKE IN THE LD. CIT(A) ORDER AND SUBMITTED THAT THE ENTIRE DEPOSITS WERE FROM PROCE EDS OF THE FLATS AS WELL AS OWN FUNDS AND WITHDRAWALS FROM THE OTHER BANK ACCOUNT. SINCE THESE ARE ASSESSEES OWN FUNDS ROUTED THROUGH CASH BOOK, THESE CANNOT BE TREATED AS UNEXP LAINED CASH CREDIT. 7. WE HAVE PERUSED THE ORDER OF THE A.O. AND LD. CIT(A) AND THE CASH BOOK COPY PLACED IN THE PAPER B OOK. THERE IS NO DISPUTE WITH REFERENCE TO THE FACT THAT THESE TRANSACTIONS ARE REFLECTED IN ASSESSEES CASH BOOK. THE LD. CIT( A) HAS MENTIONED THAT HE HAS WITHDRAWN ONLY RS.25,000/- DU RING THE PERIOD FROM 03.05.2002 TO 14.05.2002, WHEREAS, THE ACTUAL AMOUNT DRAWN WAS TO THE TUNE OF RS.2,25,000/-. FURT HER, ASSESSEE HAS RAISED RS.2,66,140/- FROM SALE OF FLAT S. MOREOVER, ASSESSEE HAS ALSO SUFFICIENT CASH BALANCE AS SEEN F ROM THE CASH BOOK. SINCE THESE TRANSACTIONS WERE ALREADY RE FLECTED IN THE CASH BOOK MAINTAINED BY THE ASSESSEE AND ASSESS EE HAS SUFFICIENT SOURCE OF FUNDS, WE ARE OF THE OPINION T HAT PROVISIONS OF SECTION 68 CANNOT BE INVOKED IN THIS CASE. A.O. IS DIRECTED TO DELETE THE SAME. ACCORDINGLY, GROUND NOS. 4 AND 5 A RE ALLOWED. 8. IN THE RESULT, ITA.NO.808/HYD/2013 IS ALLOWED F OR STATISTICAL PURPOSES. 6 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD ITA.NO.809/HYD/2013 : 9. IN THIS APPEAL ASSESSEE HAS RAISED 5 GROUNDS OU T OF WHICH, GROUND NOS. 1, 4 AND 5 ARE GENERAL IN NAT URE. GROUND NO.2 PERTAIN TO ESTIMATION OF INCOME FROM BU SINESS ON SALE OF FLATS AT 8% OF THE GROSS RECEIPTS AS REDUCE D BY VALUE OF UNDIVIDED SHARE OF LAND. THIS GROUND IS NOT PRESSED AS IN EARLIER YEAR, THEREFORE, GROUND NO.2 IS REJECTED AS NOT PRESSED. 10. THE ONLY GROUND FOR ADJUDICATION IN THIS APPEA L IS GROUND NO.3 PERTAINING TO CLAIM OF DEDUCTION UNDER SECTION 54F. EVEN THOUGH, LD. CIT(A) DIRECTED THE A.O. TO V ERIFY THE CLAIM OF ASSESSEE AND ALLOW DEDUCTION UNDER SECTION 54F, SINCE HE HAS NOT ADJUDICATED THE ISSUE OF CAPITAL GAINS I N THIS YEAR ON SALE OF PROPORTIONATE UNDIVIDED SHARE OF LAND, I T WAS ASSESSEES CONTENTION THAT LD. CIT(A) OUGHT TO HAVE SEEN THAT ASSESSEE DERIVED CAPITAL GAIN AND CLAIMED DEDUCTION UNDER SECTION 54F. THIS ISSUE IS LINKED TO GROUND NO.2 IN EARLIER APPEAL. CONSEQUENT TO THE DIRECTIONS THEREIN, PART OF THE CAPITAL GAINS ON SALE OF PROPORTIONATE UNDIVIDED LA ND OF 118 SQ. YARDS SOLD DURING THE YEAR HAS TO BE ASSESSED UNDER THE HEAD LONG TERM CAPITAL GAINS IN THIS YEAR AND THEREFOR E, A.O. IS DIRECTED TO WORK OUT THE CAPITAL GAINS DURING THE Y EAR AND ALSO CONSIDER ALLOWANCE UNDER SECTION 54F, AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. GROUND NO.3 OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 11. IN THE RESULT, ITA.NO.809/HYD/2013 OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 7 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD ITA.NO.810/HYD/2013 : 12. GROUND NOS. 1, 4 AND 5 ARE GENERAL IN NATURE A ND THEREFORE, IT NEED NOT BE ADJUDICATED. 13. GROUND NO.2 IS ON COMPUTATION OF CAPITAL GAINS . A.O. HAS BROUGHT TO TAX CAPITAL GAINS OF RS.59,097/ - ON A PIECE OF LAND JOINTLY OWNED WITH ASSESSEE SPOUSE WHICH WA S CONVERTED INTO STOCK-IN-TRADE. WHILE ADMITTING THAT PROVISIONS OF SECTION 45(2) APPLIES A.O. HOWEVER, CALCULATED T HE LONG TERM CAPITAL GAINS OF RS.59,097/- ON THE ENTIRE PLOT OF LAND. IT WAS THE CONTENTION THAT ASSESSEE HAS ONLY STARTED CONST RUCTION OF RESIDENTIAL FLATS AND HAS NOT SOLD ENTIRELY DURING THE YEAR. THEREFORE, CAPITAL GAINS CAN NOT BE WORKED OUT ON T HE TOTAL LAND. THE SAME CONTENTION WAS MADE BEFORE THE LD. C IT(A) WHICH WAS NOT PROPERLY APPRECIATED. IT WAS THE CONT ENTION THAT ENTIRE LONG TERM CAPITAL GAINS CANNOT BE BROUGHT TO TAX DURING THE YEAR. 13.1. DURING THE YEAR, ASSESSEE HAS RECEIPTS FROM SALE OF FLATS AT RS.36,17,461/- AND PROFIT AT RS.8,86,71 1/- AS SHOWN IN THE P & L ACCOUNT. ASSESSEE ACCEPTS COMPUTATION OF CAPITAL GAINS BUT THE CONTENTION IS THAT ONLY PROPORTIONATE CAPITAL GAIN CAN BE BROUGHT TO TAX. DETAILS OF SALE OF FLATS AND THE AREA SOLD DURING THE YEAR ARE NOT AVAILABLE ON RECORD. THEREF ORE, A.O. IS DIRECTED TO EXAMINE WHETHER ASSESSEE HAS SOLD THE E NTIRE PLOT OF LAND CONVERTED INTO STOCK-IN-TRADE DURING THE YE AR OR ONLY PART OF THE AREA. IF THE ASSESSEE HAS SOLD THE ENTI RE AREA DURING THE YEAR THEN CAPITAL GAINS WORKING STANDS CONFIRME D. OTHERWISE, A.O. IS DIRECTED TO WORK-OUT ONLY PROPOR TIONATE CAPITAL GAINS UNDER SECTION45(2) ON LAND SOLD DURIN G THE YEAR. 8 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD GROUND NO.2 RAISED BY THE ASSESSEE IS CONSIDERED AS ALLOWED FOR STATISTICAL PURPOSES. 14. GROUND NO.3 PERTAIN TO ADDITION OF RS.2,54,000 /- ON THE GROUND THAT CAPITAL INTRODUCED IN THE FIRM W AS NOT PROPERLY EXPLAINED. A.O. NOTICED THAT ASSESSEE MADE CAPITAL CONTRIBUTION OF RS.2,50,000/- DURING THE F.Y. 2004- 05. ASSESSEE CLAIMED THAT THE PAST SAVINGS ARE THE SOUR CE FOR THE CAPITAL INTRODUCTION IN THE FIRM. A.O. WAS OF THE O PINION THAT ASSESSEE DO NOT HAVE ANY BALANCE FOR UTILIZATION. A .O. ALSO ANALYSED THAT THERE ARE NO PAST SAVINGS IN F.Y. 200 2-03 AND TOTAL OUTFLOW DURING THE ASSESSMENT YEAR 2003-04 WA S TO THE TUNE OF RS.7,96,282/- WHEREAS, ASSESSEES INCOME WA S ONLY AT RS.3,62,840/-. SINCE THERE IS A DEFICIT CASH BALANC E TO AN EXTENT OF RS.4,33,442/-, THE INVESTMENT OF RS.2,50, 000/- IN THE FIRM WAS HELD NOT EXPLAINABLE. HE TREATED THE SAME AS UNEXPLAINED INCOME OF THE ASSESSEE. 14.1. BEFORE THE LD. CIT(A) IT WAS SUBMITTED THAT THERE WAS OPENING BALANCE OF RS.82,702/- AT THE BEGINNING OF THE YEAR AND THERE ARE RECEIPTS ON SALE OF CONSTRUCTED AREA. PART OF THE RECEIPTS/AMOUNTS WERE UTILIZED FOR INVESTING IN THE SAID FIRM AND THESE TRANSACTIONS ARE DULY REFLECTED NOT ONLY IN THE CASH BOOK MAINTAINED BUT ALSO IN THE BALANCE SHEET. LD. CIT(A) HOWEVER, DID NOT ACCEPT EVEN THOUGH THE MATTER WAS REMANDED TO A.O. 14.2. AFTER CONSIDERING THE RIVAL CONTENTIONS AND EXAMINING THE CASH BOOK, P & L A/C. AND BALANCE SHE ET PLACED ON RECORD, WE ARE OF THE OPINION THAT ASSESSEES CO NTENTIONS ARE TO BE ACCEPTED. THESE TRANSACTIONS HAVE BEEN ROUTED THROUGH THE CASH BOOK AND ASSESSEE HAS SUFFICIENT CASH BALA NCE NOT 9 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD ONLY TO MAKE VARIOUS DEPOSITS BUT ALSO TO ADVANCE T O THE FIRM IN WHICH HE IS A PARTNER. SINCE, THESE TRANSACTIONS ARE REFLECTED IN THE CASH BOOK AND ASSESSEE HAS NECESSARY CASH BA LANCE IN THE BOOKS OF ACCOUNTS, THERE IS PROPER EXPLANATION FOR THE SOURCE OF INVESTMENT. THE A.O. INSTEAD OF TAKING TH E AMOUNT FROM THE CASH BOOK OR FROM THE BALANCE SHEET, HE TR IED TO WORK OUT THE CASH FLOW SEPARATELY FOR F.Y. 2002-03 TO AR RIVE AT A CONCLUSION THAT ASSESSEE HAS NO CARRIED FORWARD BAL ANCE. THOSE ASSESSMENTS ARE ALSO COMPLETED BY THE SAME A. O. AND RECEIPTS IN THOSE YEARS ARE ALSO AVAILABLE WITH HIM . NOT ONLY THAT ASSESSEE IS IN THE REAL ESTATE BUSINESS AND WA S RECEIVING SALE PROCEEDS WHICH ARE ALSO SHOWN IN THE CASH BOOK . THESE ARE NOT TAKEN INTO CONSIDERATION. THEREFORE, WE ARE OF THE OPINION THAT ACTION OF THE A.O. CANNOT BE JUSTIFIED . A.O. IS DIRECTED TO DELETE THE ABOVE AMOUNT. ACCORDINGLY, G ROUND NO.3 OF THE ASSESSEE IS ALLOWED. 15. IN THE RESULT, ITA.NO.810/HYD/2013 OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. MRS. G. SASHI REKHA. ITA.NO.811/HYD/2013 : 16. THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A)-18, MUMBAI, CAMP AT HYDERABAD DATED 08.0 3.2013 FOR THE A.Y. 2005-2006. ASSESSEE HAS RAISED 6 GROUN DS IN THIS APPEAL. GROUND NOS. 1, 2, 5 AND 6 ARE GENERAL IN NA TURE AND THEREFORE, IT NEED NOT BE ADJUDICATED. 16.1. BRIEFLY STATED, ASSESSEE VIZ., MRS. G. SHASH I REKHA HAS EQUAL SHARE IN THE REAL ESTATE BUSINESS WITH MR . G. SAIBABA ON THE LAND JOINTLY OWNED BY THEM. ISSUES A RE 10 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD COMMON IN THIS APPEAL WITH REFERENCE TO COMPUTATION OF CAPITAL GAIN OF RS.59,097/- AS IN THE APPEAL OF SRI G SAIBA BA. 50% OF THE TOTAL LONG TERM CAPITAL GAIN ON CONVERSION OF 3 10 SQ. YARDS OF PLOT JOINTLY OWNED BY ASSESSEE AND HER HUSBAND W AS BROUGHT IN ASSESSEE HAND. AS DIRECTED BY US IN THE ABOVE CASE FOR A.Y. 2005-06, A.O. IS DIRECTED TO EXAMINE WHETH ER ASSESSEE HAS SOLD THE ENTIRE PLOT DURING THE YEAR AFTER CONS TRUCTION OF RESIDENTIAL FLATS, OTHERWISE, ONLY PROPORTIONATE LO NG TERM CAPITAL GAINS ARE TO BE BROUGHT TO TAX. A.O. IS DIR ECTED TO WORK- OUT ACCORDINGLY. GROUND NO.3 OF THE ASSESSEE IS CON SIDERED AS ALLOWED FOR STATISTICAL PURPOSES. 17. GROUND NO.4 PERTAINS TO ACTION OF A.O. IN TREA TING AMOUNT OF RS.4,50,000/- INVESTED IN THE FIRM AS INC OME OF THE ASSESSEE. ASSESSEE HAD DEPOSITED AN AMOUNT OF RS.4, 50,000/- ON 27.04.2004 AND 29.04.2004 IN THE ACCOUNT MAINTAI NED WITH THE BANK OF BARODA AND THE AMOUNT WAS TRANSFERRED T O M/S. SAIS WHITE HOUSE BAR & RESTAURANT. IT WAS CLAIMED THAT ASSESSEE HAS OWN FUNDS DURING THE EARLIER YEAR AND ALSO AGRICULTURAL INCOME. IT WAS SUBMITTED THAT THESE AR E ASSESSEES OWN FUNDS ROUTED THROUGH THE CASH BOOKS AND BALANCE SHEETS. THE EXPLANATION WAS NOT ACCEPTED AND THE AMOUNT WA S TO TAX AS UNEXPLAINED INCOME OF THE ASSESSEE. LD. CIT(A) A LSO DID NOT ACCEPT THE EXPLANATION. 18. BEFORE US, IT WAS SUBMITTED THAT ASSESSEE HAS OPENING CASH BALANCE OF RS.4,50,801/- AND SHOULD BE GIVEN CREDIT FROM THE RECEIPTS RECEIVED DURING THE YEAR. AS SEEN FROM THE CASH FLOW STATEMENT FILED ON RECORD, ASSESSEES OPENING BALANCE AS ON 01.04.2003 WAS ONLY RS.2449/-. ASSESS EE CLAIMS CREDIT FOR REPAYMENT OF LIC AMOUNT OF RS.70, 576/-, RENT 11 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD RECEIPT OF RS.1,20,000/-, INCOME FROM AGRICULTURE O F RS.60,000/- AND LOAN TAKEN FROM MR. G. SAIBABA (HUS BAND OF THE ASSESSEE) OF RS.2,00,000/- TOTALING TO RS.4,53, 025/-. SINCE THESE AMOUNTS WERE INVESTED IN THE MONTH OF APRIL, 2005 ITSELF IN THE BANK, NECESSARILY THE RECEIPTS PRIOR TO THAT CAN ONLY BE EXAMINED. WE ARE UNABLE TO GIVE ANY FINDING ON THE AVAILABILITY OF CASH BALANCE WITH ASSESSEE AS ON 01.04.2005 AS T HE STATEMENTS OF MR. G.SAIBABA WERE NOT PLACED IN PAPE R BOOK AS THERE IS NO ADDITIONS OTHER THAN CAPITAL GAINS IN E ARLIER YEAR. WHETHER ASSESSEE HAS RECEIPTS AS CLAIMED IN THE CAS H FLOW REQUIRE EXAMINATION. MATTER IS RESTORED TO THE FIL E OF A.O. TO EXAMINE THE SOURCE OF LOAN, AGRICULTURAL INCOME AND LOAN OF MR. G. SAIBABA WHETHER THE SAME WAS REFLECTED IN MR . G. SAIBABA STATEMENT OF ACCOUNT IN EARLIER YEAR, WHICH MAY BE ON RECORD WITH A.O. SINCE THESE REQUIRE EXAMINATION AN D EVIDENCE ON RECORD, THE MATTER IS RESTORED TO THE FILE OF A. O. TO EXAMINE THE SOURCE OF THE ABOVE AMOUNTS AND DECIDE ACCORDIN GLY, AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. GROUND NO.4 IS ACCORDINGLY ALLOWED FOR STATISTICAL PURPOSES. 19. IN THE RESULT, ITA.NO.811/HYD/2013 OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 20. TO SUM-UP, ITA.NO.808, 809 AND 810/HYD/2013 AND ITA.NO.811/HYD/2013 OF THE ASSESSEES ARE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27.06.2014. SD/- SD/- (SAKTIJIT DEY) (B.RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED 27 TH JUNE, 2014 VBP/- 12 ITA.NO.808, 809, 810 & 811/HYD/2013 MR. G. SAIBABA & MS. G. SHASHI REKHA, HYDERABAD COPY TO 1. MR. G. SAIBABA, 11-2-473/4, NAMALAGUNDU, SITHAPHALMANDI, SECUNDERABAD. C/O. SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, 3-6-6 43, STREET NO.9, HIMAYAT NAGAR, HYDERABAD 500 029. 2. ITO, WARD 9(3), HYDERABAD. 3. CIT(A)-18, MUMBAI CAMP AT HYDERABAD HAVING CONCU RRENT JURISDICTION OF CIT(A)-VI, HYDERABAD 2 COPIES . 4. CCIT-1, HYDERABAD 5. CIT-VI, HYDERABAD 6. CIT-1, HYDERABAD 7. D.R. A BENCH, ITAT, HYDERABAD.