Gulan Singh, Hyderabad V. Income Tax Officer, Ward-7(2), Hyderabad

MA 42/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 3111 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 17-06-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Next Hearing Date: 11-06-2021
• Assessment Year: 2005-2006
• Appeal Filed On: 18-09-2020
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: N SRIKANTH
• Keywords: Income from undisclosed sources
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B - SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER M.A. NO. 42/HYD/2020 (IN ITA NO.722/HYD/2018 ) ASSESSMENT YEAR:2005 - 06 GULAB SINGH, HYDERABAD. AUCPS 7305 N VS. INCOME TAX OFFICER, WARD - 7(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI MOHD. AFZAL REVENUE BY: SRI N. SRIKANTH , DR DATE OF HEARING: 11/06/2021 DATE OF PRONOUNCEMENT: 17 /06/2021 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS MISCELLANEOUS APPLICATION IS FILED BY THE ASSESSEE U/S. 254(2) OF THE INCOME TAX ACT, 1961 SEEKING RECTIFICATION OF THE TRIBUNAL ORDER DATED 08/07/2020 PASSED IN ITA NO.722/HYD/2018 (A.Y. 2005 - 06), DATED 08/07/2020. 2. AT THE OUTSET, THE LD. AR OF THE ASSESSEE DREW MY ATTENTION TO THE MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE WHEREIN IT WAS SUBMITTED AS FOLLOWS: 3. HOWEVER, THE LEARNED COMMISSIONER CONFIRMED THE ADDITION INSPITE OF A FAVOURABLE REPORT FROM THE ASSESSING OFFICER. AGGRIEVED BY THE ORDER OF THE APPELLATE COMMISSIONER AN APPEAL WAS FILED BEFORE THE HONBLE ITAT. THE HONBLE B BENCH SMC IN THEIR ORDER IN ITA NO. 2 722/HYD/2018, DATED 08/07/2020, HELD THAT THE CASH DEPOSITS IN THE BANK ACCOUNT OF THE ASSESSEE CAN BE SAFELY PRESUMED TO BE FROM THE SALE PROCEEDS OF THE FIRM. THIS PRESUMPTION OF THE HONBLE BENCH IS IN AGREEMENT WITH THE OBSERVATION OF THE LEARNED ASSESSING OFFICER IN HIS REMAND REPORT, HOWEVER, THE HONBLE BENCH HELD THAT THE ADDITION OF 17% ON THE UNDISCLOSED TURNOVER OF THE FIRM OF RS. 12,83,408/ - CAN BE TREATED AS UNACCOUNTED INCOME EARNED BY THE ASSESSEE TO MEET THE ENDS OF JUSTICE. 4. IT IS RESPECTFULLY SUBMITTED THAT THE HONBLE BENCH OBSERVED TWO CONTRADICTORY ASSUMPTIONS FROM THE FACTS AN D CIRCUMSTANCES OF THE CASE, AT ONCE PLACE IT IS ASSUMED THAT THE CASH DEPOSITS ARE FROM THE SALE PROCEEDS OF THE FIRM, HOWEVER, IT IS CONCLUDED THAT 17% OF THE AMOUNT OF RS. 12,83,408/ - IS TO BE TREATED AS UNACCOUNTED INCOME EARNED BY THE ASSESSEE. THERE FORE, THERE IS A MISTAKE IN THE ORDER OF THE HONBLE BENCH THAT ONCE THE SALE PROCEEDS ARE CONSIDERED AS THAT OF THE FIRM NO ADDITION CAN BE MADE IN THE HANDS OF ASSESSEE WHO IS A PARTNER. IT APPEARS THE OBSERVATION OF THE LD. A.O. IN THE REPORT (PAGE 16 OF THE PAPER BOOK) IS INADVERTENTLY NOT CONSIDERED BY THE HONBLE BENCH. THEREFORE, IT IS PLEADED TO RECTIFY THE ORDER U/S. 254(2) OF THE IT ACT. 3. EXPLAINING THE ABOVE FACTS, THE LD. AR PLEADED THAT THE IMPUGNED TRIBUNAL ORDER DATED 08/07/2020 MAY BE RECTIFIED AND APPROPRIATE ORDERS MAY BE PASSED AS THE TRIBUNAL DEEMS FIT. ON THE OTHER HAND, LD. DR OBJECTED TO THE SUBMISSIONS OF THE LD. AR. 4. ON READING THE ORDER OF THE TRIBUNAL AND ON EXAMINING THE FACTS OF THE CASE , I FIND NO MISTAKE IN THE ORDER O F THE TRIBUNAL BECAUSE SINCE THE FIRMS PARTIAL TURNOVER IS DEPOSITED IN THE ASSESSEE S BANK ACCOUNT AND THE SAME IS NOT ACCOUNTED IN THE BOOKS OF THE FIRM THE PROFIT DERIVED FROM THOSE SALES ARE ESTIMATED AND TREATED AS INCOME IN THE HANDS OF THE ASSESSEE. THEREFORE, I DO NOT FIND ANY MISTAKE IN THE ORDER OF THE TRIBUNAL. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, MA FILED BY THE ASSESSEE IS DISMISSED. 3 PRONOUNCED IN THE OPEN COURT ON THE 17 TH JUNE, 2021. S D/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 17 TH JUNE , 202 1 . OKK COPY TO: - 1) GULAB SINGH C/O. MOHD. AFZAL, ADVOCATGE, 11 - 5 - 465, SHERSONS RESIDENCY, FLAT NO.402, CRIMINAL COURT ROAD, RED HILLS, HYDERABAD. 2) THE INCOME TAX OFFICER, WARD - 7(2),SIGNATURE TOWERS, KONDAPUR, HYDERABAD. 3) THE COMMISSIONER OF INCOME TAX (APPEALS) - 10, HYDERABAD. 4) THE PRINCIPAL COMMISSIONER OF INCOME TAX - 3, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE