Jagan Mohan Reddy Thumma, Hyderabad, Hyderabad V. ITO, Ward-12(1), Hyderabad, Hyderabad

ITA 824/HYD/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6536 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-07-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 11-05-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J PAVITRAN KUMAR
• Assessee Lawyers: P MURALI MOHAN RAO
• Keywords: Gift; Business income; Peak credit; Source of fund; Additional evidence; Corroborative evidences

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B-SMC, HYDERABAD BEFORE SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.824/HYD/2017 ASSESSMENT YEAR: 2010-11 SHRI JAGAN MOHAN REDDY THUMMA, HYDERABAD. PAN ACPPT6939C VS. ITO, WARD-12(1) HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI P. MURALI MOHAN RAO REVENUE BY : SHRI J. PAVITRAN KUMAR DATE OF HEARING : 26-07-2018 DATE OF PRONOUNCEMENT : 31-07-2018 ORDER PER SHRI B. RAMAKOTAIAH, AM: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER OF CIT(A)-1, HYDERABAD DATED 01.02.2017. THE ISSUE IN THIS APPEAL IS WITH REFERENCE TO CASH DEPOSITS BROUGHT TO TAX TO AN EXTENT OF RS. 20,46,770/-. 2. BRIEFLY STATED FACTS ARE THAT ASSESSEE, AN EMPLOYEE WORKING IN SOFTWARE TECHNOLOGY COMPANY HAS DECLARED INCOME OF RS. 2,94,190/-. THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND IN THE COURSE OF ASSESSMENT PROCEEDINGS, A.O NOTICED THAT ASSESSEE HAD MADE DEPOSITS TO THE TUNE OF RS. 20,46,770/- IN ICICI BANK. ASSESSEE EXPLAINED THAT THE SOURCE OF THESE DEPOSITS ARE PERIODICAL EARNINGS, CASH IN HAND AND GIFTS RECEIVED FROM MOTHER AND MOTHER-IN-LAW, CASH DEPOSITED BY FATHER ETC. HOWEVER, SINCE 2 ITA NO. 824/HYD/2017 SHRI JAGAN MOHAN REDDY THUMMA, HYD. ONLY SELF-DECLARATIONS WERE GIVEN FROM THE RESPECTIVE PERSONS WITHOUT ANY EVIDENCE OF THEIR INCOME, THE A.O TREATED THE AMOUNTS AS UNEXPLAINED CASH DEPOSITS. EVEN THOUGH AN APPEAL WAS PREFERRED BEFORE LD. CIT(A), LD. CIT(A) DISMISSED THE APPEAL AS ASSESSEE HAS NOT APPEARED. THOUGH, NUMBER OF OPPORTUNITIES WERE GIVEN. 3. IT WAS THE SUBMISSION OF THE LD. COUNSEL FOR ASSESSEE THAT ASSESSEE HAS FILED CONFIRMATION LETTERS AND THESE WERE NOT ENQUIRED AND ALSO FILED ADDITIONAL EVIDENCE IN THE FORM OF CONFIRMATION LETTERS FROM FATHER TO SUBMIT THAT THE PEAK CREDIT BALANCE WORKED OUT TO ONLY ABOUT RS. 7,78,000/- AND ASSESSEE HAS SOURCES FOR THE ABOVE AMOUNT. IN WORKING OUT THE PEAK CREDIT, IT WAS THE SUBMISSION THAT WITHDRAWALS FROM THE BANK ACCOUNT HAS BEEN CONSIDERED. 4. LD. DR, HOWEVER, SUBMITTED THAT A.O AND CIT(A) HAS GIVEN ENOUGH OPPORTUNITY AND ASSESSEE HAS NOT RESPONDED. 5. LD. AR FAIRLY SUBMITTED THAT THE CASE WAS REPRESENTED BY ANOTHER COUNSEL AND HE WAS NOT AWARE OF THE REASONS FOR NOT APPEARING BEFORE THE CIT(A), BUT, HOWEVER, SUBMITTED THAT IF GIVEN AN OPPORTUNITY HE WOULD FURNISH SUPPORTING EVIDENCE IN SUPPORT OF THE CASH DEPOSITS AS ASSESSEE IS ONLY A SALARIED EMPLOYEE AND HAS NO BUSINESS INCOME AT ALL. IT WAS FURTHER SUBMITTED THAT OTHER PERSONS ARE ASSESSEES ON RECORD AND SOURCE OF SOURCES CANNOT BE ENQUIRED BY THE A.O. 6. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSED THE ORDERS ON RECORD. EVEN THOUGH THE ASSESSEE EXPLAINED THE SOURCES BEFORE THE A.O, THERE SEEMS TO BE NO ENQUIRY 3 ITA NO. 824/HYD/2017 SHRI JAGAN MOHAN REDDY THUMMA, HYD. AND THE EXPLANATION WAS REJECTED ON THE REASON THAT NO SUPPORTING EVIDENCE WAS FURNISHED. THE REASONS FOR NON- APPEARANCE BEFORE THE CIT(A) ARE NOT VERIFIABLE, HOWEVER, I AM OF THE VIEW THAT IN VIEW OF THE ADDITIONAL EVIDENCES FILED NOW, ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY TO EXPLAIN SOURCES OF FUNDS FOR CASH DEPOSITS INTO THE BANK ACCOUNT. THEREFORE, WITHOUT GOING INTO THE MERITS OF THE ADDITIONS OR WORKING OUT THE PEAK CREDIT GIVEN BY THE LD. COUNSEL AS AN ALTERNATE CONTENTION, I AM OF THE VIEW THAT THE ENTIRE ASSESSMENT CAN BE RESTORED TO THE FILE OF THE A.O, SO THAT HE CAN MAKE NECESSARY ENQUIRIES IN RESPECT OF THE CONFIRMATION LETTERS FILED BY ASSESSEE BY EXAMINING THE VERACITY OF THE SOURCE OF FUNDS OF ASSESSEE. FOR THIS PURPOSE, THE IMPUGNED ORDERS OF THE A.O AND CIT(A) ARE SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE A.O TO CONSIDER IT AFRESH, AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE. 5. IN THE RESULT, APPEAL FILED BY ASSESSEE IS CONSIDERED ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 31 ST JULY, 2018. SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER HYDERABAD, DATED 31 ST JULY, 2018. KRK 4 ITA NO. 824/HYD/2017 SHRI JAGAN MOHAN REDDY THUMMA, HYD. 1) JAGAN MOHAN REDDY. T C/O P. MURALI & CO. CAS, 6-3- 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 82. 2) ITO, WARD-12(1) HYDERABAD. 3) CIT(A) -1, HYDERABAD. 4) THE ADDL. CIT, RANGE-1, HYDERABAD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6) GUARD FILE