Komma Reddy Yella Reddy, Hyd, Hyderabad V. ITO, Ward-8(2), Hyd., Hyderabad

ITA 821/HYD/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 6161 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-01-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B KURMI REDDY
• Assessee Lawyers: K A SAI PRASAD
• Keywords: Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B.RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.821/HYD/2015 : ASSESSMENT YEAR 2008-09 SHRI KOMMA REDDY YELLA REDDY, HYDERABAD (PAN AHBPR 2935 B) V/S INCOME TAX OFFICER , WARD 8(2), HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI K. A . SAI PRASAD RESPONDENT BY : SHRI B.KURMI REDDY DR DATE OF HEARING 18 .1.201 6 DATE OF PRONOUNCEMENT 22.1.2016 O R D E R PER P.MADHAVI DEVI, JUDICIAL MEMBER : THIS IS AN ASSESSEES APPEAL FOR ASSESSMENT YEAR 2008-09. IN THIS APPEAL, ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) DISMISSING THE ASSESSEES APPEAL EX-PARTE THE ASSE SSEE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AN INDIVIDUAL, ENGAGED IN THE BUSINESS OF RUNNING A CHICKEN CENTER , FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2008-09 ON 3.10.2008 DECLARING A TOTAL INCOME OF RS.1,18,970. DURING THE ASSESSMENT PROCEEDINGS UNDER S.143(3) FOR THE YEAR UNDER CONSIDERATION, THE ASSE SSING OFFICER NOTED THAT THERE WERE CASH TRANSACTIONS AND TRANSFER TRA NSACTIONS IN THE ASSESSEES BANK ACCOUNT WITH ING VYSYA BANK LTD., SANTOSHNAGAR BRANCH, BEARING ACCOUNT NO. 304210006429. IN ORDE R TO VERIFY THE NATURE AND SOURCE OF THE TRANSACTIONS, THE ASSESSEE WAS ISSUED A SHOW CAUSE NOTICE TO EXPLAIN THE ISSUE. IN RESPONSE TO THE SAME, ASSESSEE SUBMITTED THAT HE HAS RECEIVED FUNDS FROM M/S. DOCT ORS ESTATES PVT. LTD. AT THE TIME OF ENTERING INTO AN AGREEMENT BETW EEN THE ASSESSEES FAMILY AND THE SAID COMPANY. HE ALSO PRODUCED ONE PERSON BY NAME, ITA NO.821/HYD/2015 SHRI KOMMA REDDY YELLA REDDY, HYDERABAD 2 SHRI ARUTLA YADAIAH GOUD, WHO CONFIRMED THAT HE HA S WITHDRAWN THE AMOUNT. HOWEVER, HE DID NOT SIGN THE STATEMENT. ASSESSEE ALSO GAVE THE ADDRESSES OF TWO PERSONS WHO ARE BROTHER IN LAW AND FATHER IN LAW OF THE ASSESSEE STATING THAT THEY HAVE WITHDRAWN TH E AMOUNTS ON HIS BEHALF AND RETURNED THE MONEY TO HIM. HOWEVER, NON E APPEARED BEFORE THE ASSESSING OFFICER IN SPITE OF ISSUANCE O F SUMMONS. HENCE, THE ASSESSING OFFICER HELD THAT THE ASSESSEES CONT ENTIONS CANNOT BE CONSIDERED AND THAT THE ASSESSEE HAS NOT DISCHARGED THE ONUS OF PROVING THE TRANSACTIONS. THEREFORE, THE ASSESSING OFFICER TREATED THE ENTIRE AMOUNT OF DEPOSITS AS UNEXPLAINED AND MADE A DDITION ACCORDINGLY. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BE FORE THE CIT(A). EVEN AFTER RECEIPT OF NOTICES FROM THE CIT (A), NEITHER THE ASSESSEE NOR HIS REPRESENTATIVE APPEARED. SINCE THE RE WAS NO RESPONSE TO VARIOUS NOTICES ISSUED, THE CIT(A) DISP OSED OF THE ASSESSEES APPEAL EX-PARTE AND CONFIRMED THE ADDITI ON MADE BY THE ASSESSING OFFICER. FOR CONFIRMING THE ADDITION EX- PARTE, THE LEARNED CIT(A) ALSO RELIED UPON VARIOUS DECISIONS OF THE TR IBUNAL AS WELL AS THE HON'BLE HIGH COURT. AGAINST THIS EX-PARTE ORDER OF THE CIT(A), ASSESSEE IS IN APPEAL BEFORE US. 4. LEARNED COUNSEL FOR THE ASSESSEE, SHRI SAI PRA SAD, WHILE REITERATING THE SUBMISSIONS MADE BY THE ASSESSEE, SUBMITTED THAT THE ASSESSEE HAD FILED ALL THE DETAILS BEFORE THE ASSES SING OFFICER, BUT THE ASSESSING OFFICER HAS NOT CONSIDERED THE ISSUE IN P ROPER PERSPECTIVE AND HAS HELD THE ENTIRE AMOUNT OF DEPOSITS AS THE R ECEIPTS OF THE ASSESSEE. THE ASSESSEE ALSO FILED A PETITION FOR AD MISSION OF ADDITIONAL EVIDENCE STATING THAT THE SAID ADDITIONAL EVIDENCE ARE AFFIDAVITS OF ASSESSEES BROTHER IN LAW AND SHRI YADAIAH GOUD CON FIRMING THAT THEY ITA NO.821/HYD/2015 SHRI KOMMA REDDY YELLA REDDY, HYDERABAD 3 HAVE WITHDRAWN CASH ON BEHALF OF THE ASSESSEE AND H ANDED OVER THE AMOUNT TO THE ASSESSEE. HE PRAYED THAT THESE TWO D OCUMENTS BE ADMITTED AS ADDITIONAL EVIDENCE BE ADMITTED AND CON SIDERED FOR DETERMINATION OF ASSESSEES INCOME. 5. LEARNED DEPARTMENTAL REPRESENTATIVE ON THE OTH ER HAND, OPPOSED THE ADMISSION OF ADDITIONAL EVIDENCE AND PR AYED THAT THE ORDER OF THE ASSESSING OFFICER BE CONFIRMED. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ASSESSEES CONTENTIONS BEF ORE THE ASSESSING OFFICER ABOUT THE NATURE OF THE DEPOSITS AND THE SO URCES OF THE DEPOSITS HAS BEEN THAT ONE SHRI YADAIAH GOUD HAS WITHDRAWN AND GIVEN CASH TO THE ASSESSEE, WHICH IS AGAIN DEPOSITE D BY THE ASSESSEE INTO HIS BANK ACCOUNT. HE HAS ALSO RELIED UPON THE WITHDRAWALS MADE BY HIS BROTHER IN LAW SHRI MAHIPAL REDDY. THE ASSES SING OFFICER HAS REJECTED THE CLAIM ON THE GROUND THAT SHRI YADAIAH GOUD HAS NOT SINGED THE STATEMENT AND SHRI MAHIPAL REDDY HAS NOT APPEARED BEFORE HIM. WE FIND THAT THE ASSESSEE HAS FILED AFFIDAVITS OF BOTH THESE PERSONS BEFORE US. THEREFORE, AS THIS ADDITIONAL EV IDENCE GO TO THE ROOT OF THE MATTER, WE DEEM IT FIT AND PROPER TO ADMIT THE SAME AND REMAND THE ISSUE TO THE FILE OF THE ASSESSING OFFIC ER FOR VERIFICATION OF THE DETAILS FILED BY THE ASSESSEE, INCLUDING THE AD DITIONAL EVIDENCE FILED BEFORE US. THE ASSESSEE SHALL ALSO PRODUCE THE PART IES, IF SO REQUIRED BY THE ASSESSING OFFICER, AND THE ASSESSING OFFICER SHALL RECONSIDER THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS T O MENTION THAT THE ASSESSEE SHALL BE GIVEN FAIR OPPORTUNITY OF BEING H EARD. ITA NO.821/HYD/2015 SHRI KOMMA REDDY YELLA REDDY, HYDERABAD 4 7. IN THE RESULT, ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 22 ND JANUARY, 2016 SD/- SD/- ( B.RAMAKOTAIAH ) (P.MADHAVI DEVI) ACCOUNTANT MEMBER. JUDICIAL MEMBER DT/- JANUARY, 2016 COPY FORWARDED TO: 1. SHRI KOMMA REDDY YELLA REDDY, M/S CH. PARTHASARATHY & CO., 1-1-298/2/B/3, 1 ST FLOOR, SOWBHAGYA AVENUE, ST. NO.1, ASHOK NAGAR, HYDERABAD. 2. INCOME TAX OFFICER WARD 8(2), HYDERABAD 3. 4. COMMISSIONER OF INCOME-TAX(APPEALS) 2, HYDERABAD PR COMMISSIONER OF INCOME-TAX 2, HYDERABAD 5. DEPARTMENTAL REPRESENTATIVE ITAT, HYDERABAD B.V.S.