A. Bikshapathi alias A.M. Raja, Hyd, Hyderabad V. ITO, Ward-4(1), Hyderabad, Hyderabad

ITA 924/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5872 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 17-06-2016
• Court: TRIBUNAL
• Department Lawyers: U MINICHANDRAN
• Assessee Lawyers: B SHANTHI KUMAR
• Keywords: Unexplained cash credit
• Section: 68

Judgement Text

THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SMT P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 924/HYD/2016 ASSESSMENT YEAR: 2011-12 M/S BIKSHAPATHI ALIAS A.M. RAJA, HYDERABAD. PAN ACYPA3177E VS. ITO, WARD- 4(1) HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI B. SHANTHI KUMAR REVENUE BY : SHRI U. MINI CHANDRAN DATE OF HEARING : 22-12-2016 DATE OF PRONOUNCEMENT : 30-12-2016 ORDER PER P. MADHAVI DEVI, J.M.: THIS IS THE ASSESSEES APPEAL FOR THE A.Y. 2011-12 , AGAINST THE ORDER OF THE CIT(A)-1, DATED 24-03-2016 . IN THIS APPEAL, THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE CIT(A) IN CONFIRMING THE ADDITIONS OF RS. 30 LACS M ADE BY THE A.O. AS UNPROVED LOAN. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND PROPRIETOR OF M/S. SRI SAI WINES HAV ING LIQUOR LICENSE FOR THE PERIOD 01-07-2008 TO 30-06-2 010. THE ASSESSEE HAS FILED HIS RETURN OF INCOME FOR THE A.Y. 2011-12 ON 20-02-2012, DECLARING AN INCOME OF RS. 5,30,442/-. DURING THE ASSESSMENT PROCEEDINGS U/S 1 43(3), THE A.O. NOTICED THAT THE ASSESSEE HAS CERTAIN LOAN CREDITORS, AND THE ASSESSEE WAS ASKED TO FURNISH TH E 2 ITA NO. 924/HYD/2016 M/S BIKSHAPATHI ALIAS A.M. RAJA , HYDERABAD. DETAILS OF LOAN CREDITORS AND ACCORDINGLY THE ASSES SEE HAS FILED CONFIRMATION LETTERS FROM THE LOAN CREDITORS ALONGWITH THEIR LEDGER ACCOUNT. ON PERUSAL OF SAID DETAILS, THE A.O. NOTICED THAT THE ASSESSEE HAS RECEIVED SUM OF RS. 3 0 LACS, FROM MRS. M BHARATHI ON 30-03-2011. THE ASSESSEE FURNISHED THE CONFIRMATION LETTERS GIVEN BY THE SAI D PARTY. BUT, THE A.O. OBSERVED THAT THE SAID LETTER DID NOT CONTAIN CORRECT AND LATEST POSTAL ADDRESS OF THE CREDITOR, INCOME TAX PARTICULARS OF THE CREDITOR AND THE PROOF OF TH E IDENTITY OF THE CREDITOR, AND THEREFORE, HE DID NOT ACCEPT T HE ASSESSEES CLAIM AND TREATED THE SAID CASH CREDIT A S INCOME U/S 68 OF THE ACT. 3. AGGRIEVED, THE ASSESSEE PREFERRED AN APPEAL BEFO RE THE CIT(A), WHO CONFIRMED THE ORDER HOLDING THAT THE TH REE DAYS BEFORE THE ISSUE OF CHEQUES TO THE ASSESSEE, THREE AMOUNTS OF RS 10 LACS, EACH WERE DEPOSITED INTO MRS. M. BHA RATHIS ALLAHABAD BANK ACCOUNT AND THAT NO SOURCE OF INCOME HAS BEEN STATED NOR HAVE ANY INCOME OR REGULAR DEPOSITS SEEN IN THIS ACCOUNT. SHE, THEREFORE, CONFIRMED THE ADD ITIONS MADE BY THE A.O. AGGRIEVED THE ASSESSEE IS AN APP EAL BEFORE US. 4. THE LD. COUNSEL FOR THE ASSESSEE HAS DRAWN OUR ATTENTION TO THE BANK STATEMENT OF SMT. MRS. M. BHA RATHI , WHICH IS PLACED AT PAGE NO. 17 TO 20 OF THE PAPER B OOK, WHICH WAS ALSO FILED BEFORE THE CIT(A). IN THE SAI D STATEMENT, THE ADDRESS OF SMT. M. BHARATHI IS GIVEN AT PAGE NO. 20 AND IT IS ALSO SEEN THAT THERE ARE THREE DEP OSITS OF RS. 10 LACS EACH ON 26-03-2011 BY WAY OF CHEQUES. 3 ITA NO. 924/HYD/2016 M/S BIKSHAPATHI ALIAS A.M. RAJA , HYDERABAD. THEREFORE, ACCORDING TO HIM, THE ASSESSEE HAS SATIS FIED THE THREE CONDITIONS, VIZ., IDENTITY, CREDIT WORTHINES S AND THE GENUINENESS OF THE TRANSACTION BEFORE THE CIT(A), B UT, THE CIT(A) HAS SUMMARILY REJECTED THE SAME. 5. LD DR, HOWEVER, SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. 6. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE MATERIAL ON RECORD, WE FIND THAT THE ONLY LOAN WHIC H HAS BEEN ADDED BY THE A.O. AS UNEXPLAINED CASH CREDIT I S FROM MRS. BHARATHI, AND THE LOAN IS OF RS. 30 LACS WHICH HAS BEEN ADVANCED BY WAY OF A CHEQUE. FURTHER, AS SEEN FROM THE BANK ACCOUNT, THE DEPOSITS MENTIONED BY THE CIT (A) ARE BY WAY OF CHEQUE CLEARANCE AND CHEQUE NUMBERS ARE A LSO GIVEN IN THE SAID STATEMENT. THEREFORE, THE GENUIN ENESS AND CREDIT WORTHINESS OF TRANSACTION IS VERY MUCH P ROVED AND THE IDENTITY OF CREDITORS IS ALSO PROVED. IN VIEW OF THE SAME, WE DO NOT SEE ANY MERIT IN THE ORDER OF THE C IT(A). ACCORDINGLY, WE SET ASIDE THE ORDERS OF THE AUTHORI TIES BELOW AND THE ASSESSEES APPEAL IS ALLOWED. 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 30 TH DECEMBER, 2016. SD/- SD/- (S. RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 30 TH DECEMBER, 2016 KRK 4 ITA NO. 924/HYD/2016 M/S BIKSHAPATHI ALIAS A.M. RAJA , HYDERABAD. 1)M/S A BIKSHAPATHI,C/O BSHANTHI KUMAR, ADVOCTE, 111, TARAMANDAL COMPLEX, 5-9-13, SAIFABAD, HYD -04. 2) ITO, WARD - 4(1), HYDERABAD. 3) CIT -1, HYDERABAD 4) PCIT-1, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., H YDERABAD. 6) GUARD FILE