Shri V Venkateshwara Prasad, Hyderabad V. ITO, Ward 5(3), Hyderabad

ITA 817/HYD/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7614 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-08-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 22-05-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SOMASEKHAR REDDY
• Assessee Lawyers: A V RAGHURAM
• Section: 68; 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO.817/HYD/13 (ASSESSMENT YEAR 2009 - 10) SHRI V.VENKATESHWARA PRASAD, HYDERABAD (PAN - ABLPV 1851 C) V/S. DY. COMMISSIONER OF INCOME - TAX CIRCLE 6(1), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : S HRI A.V.RAGHURAM RESPONDENT BY : SHRI SOMA SEKHAR REDDY CIT DR DATE OF HEARING 21 .0 8 .2014 DATE OF PRONOUNCEMENT 21.08.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME - TAX(APPEALS) V, HYDERABAD DATED 28.2.2013 AND THE SOLITARY ISSUE ARISING OUT OF THE SAME RELATES TO THE ADDITION OF R S .28 LAKH S MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) ON ACCOUNT OF UN E XPLAIN E D CASH CREDITS UNDER S.68 OF THE ACT. 2. ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUAL, WHO DERIVE S INCOME FROM HOUSE PROPERTY AND HIRING OF TAXIES. THE RE TURN OF INCOM E FOR THE YEAR UNDER CON S IDERATION W A S FILED BY HIM ON 28.9.2009 DECLARIN G A TOTAL I NCOM E OF RS .19,69,122 . DU R IN G TH E COU R SE O F ASSESSMENT PROCEEDINGS, IT WAS NOTICED BY THE ASSESSING OFFICER FROM THE RELEVANT DOCUM E N T S FILED BY THE ASSESSEE ALOGNWITH HIS RETURN OF INCOME THAT TH E RE ARE CASH CREDITS OF R S .28 - LAKHS. ACCOR D ING TO THE ASSESSING OFFICER, NO SATISFACTORY EXPL A N A TION C OULD BE OFFERED BY THE ASSESSE E IN RESPECT OF THE SAID I TA NO. 817 /H YD/201 3 SHRI V.VENKATESHWARA PRASAD, HYDERABAD 2 CASH CREDITS, AND ACCORDINGLY TREATING THE SAID CASH CREDITS AS UNEXPLAINED, HE MADE AN ADDITION OF RS .28 LAKHS TO THE TOTAL INCOME O F THE ASSESSEE UNDER S.68 OF THE AC T. 3. THE AD DI TION MADE BY THE ASSESSING OFFICER UNDER S.68 WAS CHALLENGED BY TH E ASSESSEE IN AN APPEAL FILED BEFORE THE LEARNED CIT(A). DU R IN G TH E COU R SE OF APPELL A TE PROCEEDINGS BEFORE THE LEARNED CIT(A), THE ASSESSEE SOUGHT ADJOURNMENT OF H EA RING FIXED ON 29.1.2013 AND 14.2.2013. TH E R E AFTER, THE CA S E OF TH E A SSESSEE WAS FIXED FOR H EA RING BY THE LEARNED CIT(A) ON 27.2.2013. SIN C E NOBODY APPEARED BEFORE THE LEARNED CIT(A) ON THAT DATE, THE LEARNED CIT(A) DISPOSED OF THE APPEAL OF THE ASSESSEE ON THE BASIS OF INFORMATION AVAILABLE ON RECORD. HE HELD THAT THERE WAS FAILURE ON THE P A RT OF THE ASSESSEE TO OFFER ANY EXPLANATION T O SUBSTANTIATE THE RELEVANT CASH CREDITS AND ACCORDINGLY THE ADDITION OF RS .28 LAKH S MADE BY THE ASSESSING OFFICER ON ACCOUNT OF UN E XPLAIN E D CASH CREDITS UNDER S.68 WAS CON F I R M E D BY HIM. 4. AGGRIEVED BY THE ORDER OF THE LEARNED CIT(A), ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 5. WE HAVE HEARD THE ARGUMENTS OF BOTH SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS SUBMI T TED BY THE LEARNED COUNSEL FOR THE ASSESSEE, PROPER AND SUFFICIENT OPPORTUNITY WAS NO T GRANTED TO THE ASSESSEE EITHER BY THE ASSESSING OFFICER DURING TH E COU R SE OF ASSESSMENT PROCEEDINGS OR BY THE LEARNED CIT(A) DURING TH E COU R SE OF APPELL A TE P R OCEEDIN G S, TO EXPLAIN THE RELEVANT CASH CREDIT ENTRIES AND THIS POSITION CL E ARLY APPARENT FROM THE RECORD, IS NOT DISPU T ED EVEN BY THE LEARNED DEPARTMENTAL REPRESENTATIVE. WE , THEREFORE, CONSIDER IT FAIR AND PROPER AND IN THE IN T ER E STS OF JU S TI C E TO SET ASIDE THE IMPUGN E D OR D ER OF THE LEARNED CIT(A), CONFI RMING THE AD D ITION MADE BY THE ASSESSING I TA NO. 817 /H YD/201 3 SHRI V.VENKATESHWARA PRASAD, HYDERABAD 3 OFFICER UNDER S.68 AND RESTORE THE MAT T ER TO THE FILE O F THE ASSESSING OFFICER FOR DECIDING THE ISSUE REL A TING TO THE ADDITION UNDER S. 6 8 AFRESH, AFTER GIVING P R OPER AND SUF F IC I ENT OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE RELEVANT CASH CREDITS IN TERMS OF S. 6 8 OF THE AC T. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE BEFORE US, THE ASSESSEE SHALL RENDER ALL THE POSSIBLE COOPERATION TO THE ASSESSING OFFICER IN ORDER TO ENABLE HIM TO DECIDE THIS IS S UE AFR ESH DURING THE COURSE OF SET ASIDE PRO C EE D INGS EXPEDITIOUSLY. 6. IN THE RESULT, APPEAL FO THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CONCLUSION OF HEARING ON 21.8.2014. SD/ - SD/ - ( SAKTIJIT DEY ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 21 AUGUST, 2014 COPY FORWARDED TO: 1. SHRI V. VENKATESHWARA PRASAD, 5 - 9 - 1111/3/1, KING KOTI, HYDERABAD 2 . INCOME TAX OFFICER, WARD 56(3), HYDERABAD 3. 4. COMMISSIONER OF INCOME - TAX(APPEALS) V, HYDERABAD COMMISSIONER OF INCOME - TAX I V , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S