Naresh Vudayagiri , Hyderabad V. Asst. Commissioner of Income Tax, Circle-7(1), Hyderabad

ITA 97/Hyd/2020

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5764 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB-A
• Assessment Year: 2017-2018
• Appeal Filed On: 26-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 153A; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘A’ BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L. P. SAHU, ACCOUNTANT MEMBER ITA No.97/Hyd/2020 (Assessment Year : 2017-18) Shri Naresh Vudayagiri, Hyderabad. PAN AIYPV 0998G .....Appellant. Vs. Asst. Commissioner of Income Tax, Circle 7(1), Hyderabad. .....Respondent. Appellant By : Shri A. Srinivas, Adv. Respondent By : Shri Sunil Gowtham, (D.R.) Date of Hearing : 16.03.2022. Date of Pronouncement : 30.03.2022. O R D E R Per Shri S.S. Godara, J.M. : This assessee’s appeal for Asst. Year 2017-19 arises from the Commissioner of Income Tax (Appeals)-3, Hyderabad’s order dt.15.11.2019 passed in case No.10429/ACIT-7(1)/CIT(A)-3/2018-19 in proceedings under Section 143(3) r.w.s. 153A of Income Tax Act, 1961 (‘the Act’ in short). 2 ITA No.97/Hyd/2020 Heard both the parties. Case file perused. 2. Coming to the assessee's sole substantive issue of correctness of 69A unexplained cash seized addition of Rs.37.35 lakhs made in the course of assessment dt.31.12.2018 and upheld in the lower appellate proceedings, we note that the CIT(A)’s detailed discussion to this effect reads as under : ----- Space left intentionally ---- 3 ITA No.97/Hyd/2020 4 ITA No.97/Hyd/2020 5 ITA No.97/Hyd/2020 6 ITA No.97/Hyd/2020 7 ITA No.97/Hyd/2020 3. Learned counsel vehemently contended during the course of hearing that it is clear from a perusal of the assessee's income tax return, computation and balance sheet that the impugned sum represents the accumulated balances as well as cash sales realized in liquor business. 4. The Revenue has chosen to place strong reliance on the CIT(A)’s foregoing discussion. 5. We have given our thoughtful consideration to rival pleadings and find no reason to accept either party’s foregoing submissions in entirety. This is for the reason that neither the assessee has been able to reconcile the liquor stock in trade with the sales / profits realized therefrom vis-à-vis the cash seized nor the department could altogether rebut the foregoing prima facie evidence to this effect. Faced with this situation, we deem it 8 ITA No.97/Hyd/2020 appropriate that a lump sum addition of Rs.25 lakhs than that in issue of sum of Rs.37.35 lakhs would be just and proper with a rider that the same shall not be treated as a precedent. The assessee gets relief of Rs.12.35 lakhs in other terms. Necessary computation shall follow as per law. 6. This assessee's appeal is partly allowed in above terms. Order pronounced in the open court on 30 th Mar., 2022. Sd/- Sd/- (L.P. SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.30.03.2022. * Reddy gp Copy to : 1. Shri Naresh Vudayagiri, Plot No.159, HUDA Sai Nagar Colony, Vanashalipuram, Hyderabad-500 070 2. ACIT, Circle 7(1), Hyderabad. 3. Pr. C I T-3, Hyderabad. 4. CIT(Appeals)-3, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File. By Order Sr. Pvt. Secretary, ITAT, Hyderabad.