Sri Bhagwandas Gupta, Hyderabad V. Income Tax Officer, Ward 8(2), Hyderabad

ITA 82/HYD/2014

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 7733 (ITAT-HYDERABAD)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-12-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 21-01-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA B
• Assessee Lawyers: LAXMINIWAS SHAR MA
• Keywords: Unexplained investment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI P.M.JAGTAP, ACCOUNTANT MEMBER AND SMT.ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO.82/HYD/14 : ASSESSMENT YEAR 2009 - 10 SHRI BHAGWANDAS GUPTA, HYDERABAD (PAN ADWPG 6691 A) V/S. INCOME TAX OFFICER WARD 8(2), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI LAXMINIWAS SHARMA RESPONDENT BY : S HRI RAMAKRISHNA B., DR DATE OF HEARING 8.12.2014 DATE OF PRONOUNCEMENT 10.12.2014 O R D E R PER P.M.JAGTAP, ACCOUNTANT MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A) III, HYDERABAD DATED 14 TH NOVEMB E R, 2013 AND THE SOLITARY ISSUE ARISING OUT O F THE SAME RE LATES TO THE ADDITION OF R S .5,10,846 MADE BY TH E ASSESSING OFFICER AND CONFIRMED BY THE LEARNED CIT(A) ON AC C OUN T O F INVESTMENT ALLEGEDLY MADE BY THE ASSESSEE IN SHARES. 2. THE ASSESSEE IN THE PRESENT CA S E IS AN INDIVIDUAL WHO IS ENGAGED IN THE BU S IN E SS OF SHARE BROKING. THE RE T UR N OF IN C OM E FOR THE YEAR UN D ER CONSIDERATION WAS FILED BY HIM ON 24.9.2009 D ECLARING TOTAL IN C OM E OF R S .3,580. AS PER THE INFORMATION RECEIVED BY THE ASSESSING OFFICER, THE ASSESSEE HAS MADE IN VE STMENT OF R S .5,10,846 IN SHARES DURING THE YEAR UNDER CONSIDERATION AND IN ORDER TO VERIFY THE SAID INVESTMENT, HE SELECTED THE CA S E OF THE ASSESSEE FO R SCRUTINY UNDER CASS. DURING TH E COUR S E OF I TA NO. 82/H YD/20 14 SHRI BHAGWANDAS GUPTA, HYDERABAD 2 ASSESSMENT PROCEEDINGS, THE ASSESSEE WAS CALLED UPON BY THE ASSESSING OFFICER TO EXPLAIN THE SOU R CES OF INVESTMENT OF R S .5,10,846 MADE IN SHARES. IN REPLY, A LETTER DATED 19.10.2011 WAS FILED BY TH E ASSESSEE REQUESTING THE ASSESSING OFFICER TO GIVE THE DETAILS O F TH E IN V ESTMENT OF R S .5,10,846 FOUND TO BE MADE BY HIM IN SHARES SO AS TO ENABLE HI M TO EXPLAIN THE SOU R CE THEREOF. KEEPING IN VIEW THIS REPLY O F THE ASSESSEE , THE ASSESSING OFFICER PRE SUM ED THA T THE ASSESSEE HAS NO EXPLANATION TO OFFER WITH REGARD TO THE INVESTMENT MADE IN SHARES, AND AC C O RD INGLY AN ADDITION OF RS .5,10,846 WAS MADE BY HIM TO THE TOTAL INCOME O F TH E ASSESSEE ON ACCOUNT OF UN E XP L AIN E D INVESTMENT IN SHARES, IN THE ASSESSMENT COMPLETED UNDER S.143(3) VIDE O R DER DATED 23.12.2011. 3. AGAIN S T THE O R DER PASSED BY THE ASSESSING OFFICER UN D ER S.143(3), AN APPEAL W AS PREFERRED BY THE ASSESSEE BEFORE THE LEARNED CIT(A) AND IT WAS SUBMI T TED BY THE ASSESSEE BEFORE THE LEARNED CIT(A) THAT IN TH E ABSENCE OF THE DETAILS FURNISHED BY THE ASSESSING OFFICER REGARDING THE INVE S TMENT IN QUESTION ALLEGEDLY MADE DURING THE YEAR UNDER CON S I D E RATION, HE WAS UNABLE TO EXPLAIN THE SOU R CES THEREOF. THI S STAND OF THE ASSESSEE WAS NO T FOUND ACCEPTABLE BY THE LEARNED CIT(A) AND DRAWING THE SAME PRESUMPTION AS DONE BY THE ASSESSING OFFICER, H E CONFIRMED THE ADDITION MADE BY TH E ASSESSING OFFICER ON ACCOUNT OF UN E XPLAIN E D INVESTMENT ALLEGEDLY MADE BY THE ASSESSEE IN SHARES DURING THE YEAR UNDER CONSIDERATION. AGGRIEVED BY THE ORDER O F THE LEARNED CIT(A), ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4 . WE HAVE HEARD THE ARGUMENTS OF BOT H THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL ON RECORD. AS SUBMITTED BY THE LEARNED COUNSEL FOR THE ASSESSEE , INVESTMENT OF R S .17,20,409 WAS MADE BY THE ASSESSEE IN SHARES OF DIFFERENT COMPANIES AND THE I TA NO. 82/H YD/20 14 SHRI BHAGWANDAS GUPTA, HYDERABAD 3 SAME WERE DULY DISCLOSED . HE HAS SUBMITTED T HAT THE ASSESSING OFFICER HOWEVER , D ID NO T FURNISH DETAILS O F SPECIFIC INVESTMENT OF RS.5,10,846 ALLEGEDLY MADE BY THE ASSESSEE IN SHARES, SO AS TO ENABLE THE ASSESSEE TO EXPLAIN TH E SOU R CE THEREOF AND THIS POSITION CLE A RLY EVIDENT FROM THE ORDER O F THE ASSESSING OFFICER AS WELL AS THE LETTER DATED 4.11.2011 ADDRESSED BY THE ASSESSING OFFICER TO THE ASSESSEE DURING THE COU R SE OF ASSESSMENT PROCE E DIN G S IS NO T DISPUTED EVEN BY THE LEARNED DEPARTMENTAL REPRESENTATIVE. 5. IT IS WELL SETTLED POSITIO N OF LAW T H A T IF ANY ADDITION IS TO B E MADE ON AC C OUNT OF UN E XPLAIN E D INVESTMENT MADE BY THE ASSESSEE, THE ONUS IS ON THE REVENUE TO ESTABLISH TH E FACT THAT SUCH INVESTMENT IS INDEED MADE BY THE ASSESSEE DURING THE YEAR UNDER CONSIDERATION AND IN THE ABSEN CE OF ANY INFORMATION GIVING THE DETAILS OF SPECIFIC INVESTMENT, IN RESPECT OF WHICH EXPLANATION OF THE ASSESSEE AS TO ITS SOURCE WAS CALLED FOR, IT CANNOT BE SAID THAT TH IS ONUS WAS PROPERLY DISCHARGED BY THE DEPARTMENT. AS RIGHTLY CONTENDED BY THE LEARN ED COUNSEL FOR THE ASSESSEE , IN THE ABSENCE OF SUCH SPECIFIC DETAILS MADE AVAILABLE BY THE ASSESSING OFFICER, THE ASSESSEE COULD NOT BE EXPECTED TO EXPLAIN THE SOU R CE THEREOF, AS REQUI R ED BY THE ASSESSING OFFICER. I N TH E SE C IR C UMSTANCES, I T CANNOT B E PR ESUM E D THAT THE ASSESSEE HAS NO EXPLANATION TO OFFER ABOUT THE INVESTMENTS AND SUCH PRESUMPTION WRONGLY DRAWN BY THE AUTHO R ITI E S BELOW, IN OUR OPINION, CANNOT BE THE B A SIS FOR M A K ING THE ADDITION ON ACCOUNT OF UNEXPLAINED INVESTMENT UNDER S.69, THE P R OV I S ION S OF WHICH ARE VERY SP E CIFIC IN THIS REGARD. WE THEREFORE, DELETE THE ADDITION MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT(A) ON ACCOUNT OF UNEXPLAINED INVESTMENT IN SHARES, ALLOWING THE GROUNDS OF THE ASSESSEE IN THIS APPEAL. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED I TA NO. 82/H YD/20 14 SHRI BHAGWANDAS GUPTA, HYDERABAD 4 ORDER PRONOUNCED IN THE COURT ON 10 TH DECEMBER, 2014 SD/ - SD/ - ( ASHA VIJAYARAGHAVAN ) ( P.M.JAGTAP ) JUDICIAL MEMBER ACCOUNTANT MEMBER DT/ - 10 TH DECEMBER, 2014 COPY FORWARDED TO: 1. SHRI BHAGWANDAS GUPTA, C/O. M/S. LAXMINIWAS & JAIN, CHARTERED ACCOUNTANTS, 5 - 4 - 726, STATION ROAD, NAMPALLY, HYDERABAD 2 . INCOME TAX OFFICER WARD 8(2), HYDERABAD 3. COMMISSIONER OF INCOME - TAX(APPEALS) I II HYDERABAD 4. COMMISSIONER OF INCOME - TAX II , HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. B.V.S