P. Srinivas Goud, R.R. Dist, Hyderabad V. ITO, Ward- 11(4), Hyderabad

ITA 920/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66576 (ITAT-HYDERABAD)
• Duration Of Justice: 5 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 08-06-2012
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Opportunity of being heard; Corroborative evidences

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER ITA NO .920/HYD/12 ASST. YEAR 2007-08 SRI P. SRINIVAS GOUD, R.R. DISTRICT. PAN:AJLPP 3987F V/S. ITO, WARD-11(4), HYDERABAD. (APPELLANT) (RESPONDENT) APPELLANT BY : SRI S.RAMA RAO RESPONDENT BY : SMT. VIDISHA KALRA (DEPARTMENTAL REPRESENTATIVE) DATE OF HEARING 06-12-2012 DATE OF PRONOUNCEMENT 06-12-2012 O R D E R PER SAKTIJIT DEY, JUDICIAL MEMBER: THE ASSESSEE HAS FILED THIS APPEAL BEING AGGRIEVED BY THE ORDER PASSED BY THE CIT (A)-VI, HYDERABAD PASSED IN ITA NO.509 /2009- 10/CIT(A)-VI PERTAINING TO THE ASSESSMENT YEAR 2007-08 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING TWO EFFECTIVE GRO UNDS:- 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ACT ION OF THE ASSESSING OFFICER IN TREATING THE CASH DEPOSITS OF RS.55,32,2 22/- AS THE INCOME OF THE APPELLANT IN SPITE OF THE FACT TH AT THE APPELLANT PRODUCED THE NECESSARY EVIDENCE FROM THE PERSON S WHO ITA NO.920 OF 2012 SRI P. SRINIVAS GOUD, RR DI STRICT. 2 KEPT THE MONEY WITH THE APPELLANT FOR SAFE CUSTODY. T HE LEARNED CIT (A) OUGHT TO HAVE PROVIDED AN OPPORTUNITY TO TH E APPELLANT TO PRODUCE THE PERSONS OR OUGHT TO HAVE GOT THE FACTS VERI FIED. 3. THE LEARNED CIT (A) ERRED IN CONFIRMING THE ACTIO N OF THE ASSESSING OFFICER IN LEVYING INTEREST U/S 234A;234B AND 23 4C OF THE IT ACT. 3. GROUND NO.2 RELATES TO ADDITION OF RS. 55,32,222/- MADE BY THE ASSESSING OFFICER AND CONFIRMED BY THE CIT (A). BRIEFLY THE FACTS ARE, THE ASSESSEE IS AN INDIVIDUAL DERIVING INCOME FROM BUSINESS, HOUSE PROPERTY AND OTHER SOURCES. FOR THE IMPUGNED ASSESSMENT Y EAR, THE ASSESSEE FILED HIS RETURN OF INCOME DECLARING A TOTAL INCO ME OF RS.2,56,299/-. IN THE COURSE OF SCRUTINY ASSESSMENT PROCEEDI NGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE SUBSTANTIAL DEPOSITS TOTALLING TO RS.55,32,222/- IN THREE BANKS ACCOUNTS HELD IN A.P. MAHESH CO-OPERATIVE URBAN BANK LIMITED AND HDFC BANK. IN ABSENCE OF ANY EXPLANATION WITH REGARD TO THE SOURCE OF THESE DEPOSITS, THE ASSESSING OFFICER ADDED THE ENTIRE AMOUNT OF 55,32, 222/- TO THE TOTAL INCOME. THE ASSESSEE BEING AGGRIEVED OF THE AFORE SAID ADDITION FILED AN APPEAL BEFORE THE CIT (A). IN COURSE OF HEA RING BEFORE THE CIT (A), THE ASSESSEE EXPLAINING THE SOURCE OF THESE DEPOSITS SUB MITTED THAT APART FROM AVAILING SOME LOANS FROM ICICI BANK A ND CITI BANK. SRI VADALA RAJU AND SRI M. JITAIAH WHO HAD SOLD THEIR AG RICULTURAL LAND FOR A CONSIDERATION OF RS.20 LAKHS EACH HAD DEPOSITED THE SALE P ROCEEDS IN THE ASSESSEES BANK ACCOUNT AS THEY WERE NOT MAINTAINING AN Y BANK ACCOUNTS OF THEIR OWN. SIMILARLY, SMT. K. JANGAMMA STA TED TO HAVE RECEIVED RS.25 LAKHS ON FAMILY SETTLEMENT AND AS SHE WAS NOT HAVING A BANK ACCOUNT OF HER OWN, THE AMOUNT WAS DEPOSITED IN TH E ASSESSEES BANK ACCOUNT. CONFIRMATIONS IN THIS REGARD FROM THE CO NCERNED PERSONS ITA NO.920 OF 2012 SRI P. SRINIVAS GOUD, RR DI STRICT. 3 WERE SUBMITTED BEFORE THE CIT (A) AS ADDITIONAL EVIDE NCE. THE CIT (A) HOWEVER DISBELIEVING THE EXPLANATION SUBMITTED BY TH E ASSESSEE WITH REGARD TO THE SOURCE OF DEPOSITS SUSTAINED THE ADDITION M ADE BY THE ASSESSING OFFICER. 4. THE LEARNED AR SUBMITTED BEFORE US THAT THE CIT (A) WITHOUT PROPERLY CONSIDERING THE EXPLANATION WITH SUPPORTING EVIDENCE WITH REGARD TO THE SOURCE OF THE DEPOSITS IN THE BANK ACCOUNT HAS SUSTAINED THE ADDITION. THE LEARNED AR SUBMITTED THAT WHEN CO NFIRMATION LETTERS WERE FILED BEFORE THE CIT (A) FROM THE PERSONS WHO CON FIRMED OF HAVING MADE DEPOSITS IN THE BANK ACCOUNTS OF THE ASSESSEE, THE CIT (A) OUGHT TO HAVE GIVEN AN OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE CONCERNED PERSONS SO THAT FACTS COULD HAVE BEEN VERIFIED BY THE CI T (A) HIMSELF TO HIS SATISFACTION. THE LEARNED AR THEREFORE ASKED FO R GIVING AN OPPORTUNITY TO THE ASSESSEE FOR EXPLAINING THE SOURCE OF THE DEPOSITS BY PRODUCING CONCERNED PERSONS BEFORE THE CIT (A). 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE DOES NOT H AVE ANY SERIOUS OBJECTION FOR GIVING ONE MORE OPPORTUNITY TO T HE ASSESSEE TO PROVE HIS CASE. 6. WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATE RIAL ON RECORD. THE SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE CI T (A) SHOULD HAVE GIVEN PROPER OPPORTUNITY TO THE ASSESSEE FOR EXPL AINING THE SOURCE OF DEPOSITS BY PRODUCING THE PERSONS CONCERNED WHO STATED T O HAVE DEPOSITED THEIR MONEY IN THE BANK ACCOUNT OF THE ASSESSEE. CONSIDERING THE TOTALITY OF FACTS AND CIRCUMSTANCES AND T HE SUBMISSIONS OF THE LEARNED AR, WE ARE INCLINED TO GIVE ONE MORE OPPORTUNITY TO THE ASSESSEE TO EXPLAIN THE SOURCE OF THE DEPOSITS IN THE BANK ACCOUNTS BY PRODUCING THE PERSONS CONCERNED OR BY FILING ANY OTHER EVIDENCE TO ITA NO.920 OF 2012 SRI P. SRINIVAS GOUD, RR DI STRICT. 4 SUBSTANTIATE HIS CLAIM. IN THE AFORESAID VIEW OF THE MA TTER, WE SET ASIDE THE ORDER OF THE CIT (A) AND REMIT THE MATTER BACK TO HIM WHO SHALL DECIDE THE MATTER AFRESH AFTER VERIFYING THE EVI DENCES PRODUCED BEFORE HIM AND AFTER GIVING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. HENCE THIS GROUND OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 7. IN VIEW OF OUR DECISION IN GROUND NO.2 (SUPRA), GR OUND NO. 3 CHALLENGING THE LEVY OF INTEREST UNDER SECTIONS 234A,23 4B AND 234C OF THE ACT BEING CONSEQUENTIAL IN NATURE HAS BECOME INFRUCTU OUS AND HENCE THE SAME IS DISMISSED. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TRE ATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 06-12-2012. SD/-/- SD/-/- (CHANDRA POOJARI) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER DT/- 6 TH DECEMBER, 2012 COPY FORWARDED TO: 1. C/O SRI S. RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYAS ELEGANCE, H.NO.3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD. 2. 3. 4. ITO, WARD-11(4), HYDERABAD. COMMISSIONER OF INCOME-TAX (APPEALS) VI, HYDERABAD. CIT CONCERNED, HYDERABAD. 5 DEPARTMENTAL REPRESENTATIVE, ITAT, HYDERABAD. JMR * ITA NO.920 OF 2012 SRI P. SRINIVAS GOUD, RR DI STRICT. 5