ITO, Ward-14(5), , Hyderabad V. Ayesha Abid Ali, , Hyderabad

MA 8/Hyd/2020

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 4362 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 3 month(s) 3 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 28-05-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 19-03-2021
• Assessment Year: 2006-2007
• Appeal Filed On: 24-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MOHAMMED SIDDIQ ALI
• Keywords: Unexplained cash credit; Unexplained investment; Salary income; Tax effect
• Section: 254(2)

Judgement Text

MA NO 8 OF 2020 AYESHA ABID ALI HYDERABAD PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD (THROUGH VIDEO CONFERENCING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER M.A. NO.8/HYD/2020 (ARISING OUT OF ITA NO.931/HYD/2015) ASSESSMENT YEAR: 2006-07 INCOME TAX OFFICER WARD 14(2) HYDERABAD VS. SMT.AYESHA ABID ALI HYDERABAD PAN:AJDPA3580F (APPELLANT) (RESPONDENT) REVENUE BY: SRI ROHIT MUJUMDAR, DR ASSESSEE BY : SRI MOHAMMED SIDDIQ ALI DATE OF HEARING: 09/04/2021 DATE OF PRONOUNCEMENT: 28/05/2021 ORDER PER SMT. P. MADHAVI DEVI, J.M. THIS M.A.IS FILED BY THE REVENUE U/S 254(2) OF THE I.T. ACT SEEKING RECALL OF THE ORDER OF THE TRIBUNAL DAT ED 23.8.2019 DISMISSING THE REVENUES APPEAL ON ACCOUNT OF LOW TA X EFFECT. THE REVENUE HAS STATED AS UNDER: APPEAL FILED BY THE DEPARTMENT BEFORE THE HON'BLE ITAT, B- BENCH, HYDERABAD VIDE ITA NOS. 931/HYD/2015 DATED 2 3- 08-2019 FOR THE AY 200607 WAS ADJUDICATED BY THE HO N'BLE ITAT, HYDERABAD, WHEREIN AS PER THE CBDT CIRCULARS NO.03/2018 DATED 11.01.2018 AND CIRCULAR NO.17 OF 2 019 DATED 09.08.2019, THE TAX LIMIT FOR FILING OF APPEA L BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN FIXED AT RS.50 LAKHS. SINCE THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS .50 LAKHS, THE APPEAL WAS DISMISSED ON ACCOUNT OF LOW TAX EFFE CT WITH THE LIBERTY TO THE REVENUE TO SEEK RECALL OF THE OR DER. IN THIS CONNECTION, KIND ATTENTION IS TO BE DRAWN O F THE HON'BLE ITAT, B- BENCH, HYDERABAD AND BRINGING THE FOLLOWING FACTS: MA NO 8 OF 2020 AYESHA ABID ALI HYDERABAD PAGE 2 OF 4 1. THE ASSESSEE HAS NOT FILED HER RETURN OF INCOME FOR THE A.Y .2006-07. ASSESSMENT ORDER U/S.144 WAS PASSED ON 27.03.2013 DETERMINING THE TAXABLE INCOME OF THE AS SESSEE AT RS.1,09,13,600/- BY MAKING THE FOLLOWING ADDITIO NS: A. UNEXPLAINED CREDITS IN BANK ACCOUNT RS.58,72,24 4/- B. UNEXPLAINED INVESTMENT IN HOUSE RS.10,00,00 0/- C. LTCG ON SALE OF HOUSE RS.3 9,41,156/- D. ESTIMATED INTEREST INCOME IN HSBC A/C. RS.1,00,0 00/- (FOREIGN ACCOUNT) 2. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE T HE CIT(A)- 4, HYDERABAD. THE CIT(A) SUSTAINED THE ADDITION OF RS.15,52,244/- MADE ON ACCOUNT OF UNEXPLAINED CREDI TS IN BANK ACCOUNT AND HAD GIVEN COMBINED RELIEF OF RS.93,61,356/- . 3. AGGRIEVED THE DEPARTMENT FILED APPEAL BEFORE THE ITAT AND THE ITAT VIDE COMBINED ORDER DATED 23.08.2019 DISMI SSED THE APPEAL OF REVENUE ON ACCOUNT OF LOW TAX EFFECT (RS.27,08.767/-) WITH LIBERTY TO THE REVENUE TO SEE K RECALL OF THE ORDER, IF THE APPEAL FALLS WITHIN THE EXCEPTION S MENTIONED IN THE CBDT CIRCULAR NO.03/2018 DATED 11.07.2018 AN D CIRCULAR NO.17 /2019 DATED 08.08.2019. 4. THE TAX EFFECT IS RS.27,08,767/- WHICH IS LESS T HAN THE PRESCRIBED MONETARY LIMIT OF RS.50,00,000/-. HOWEVE R, THE CASE FALLS UNDER EXCEPTION(D) MENTIONED IN PARA NO. 10 OF THE CIRCULAR NO.3/2018 DATED 11. 07.2018, THE DETAILS O F WHICH ARE AS FOLLOWS: BASED ON THE INFORMATION RECEIVED FROM THE ADDL. DI T(INV), HYDERABAD, AND IN THE ABSENCE OF RELEVANT DETAILS L IKE BANK ACCOUNT STATEMENT, THE AO MADE AN ADDITION OF RS.1,00,000/- BEING ESTIMATED INTEREST INCOME ON TH E HSBC ACCOUNT. AS THE ADDITION RELATES TO UNDISCLOSED FOR EIGN BANK ACCOUNT, THE CASE FALLS UNDER EXCEPTION(D) MENTIONE D IN PARA 10 OF THE CIRCULAR NO.3/2018 DATED 11.07.2018. KEEPING IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCE S, IT IS VERY CLEAR EVEN THOUGH THE TAX EFFECT IS LESS THAN THE PRESCRIBED MONETARY LIMIT OF RS.50,00,000/-, THE CA SE FALLS UNDER EXCEPTION (D) MENTIONED IN PARA 10 OF THE CIR CULAR NO.3/2018. HENCE, THE HON'BLE ITAT IS REQUESTED TO KINDLY CONSIDER THE MISCELLANEOUS APPLICATION, AND ADJUDIC ATE THE APPEAL FILED BY THE REVENUE IN ITA NO.931/HYD/2015 DATED 23.08.2019 ON THE FACTS AND MERITS OF THE CASE IN A CCORDANCE WITH LAW. 2. AT THE TIME OF HEARING, THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE CLAUSE IN THE CIRCULAR WHICH IS BEING MA NO 8 OF 2020 AYESHA ABID ALI HYDERABAD PAGE 3 OF 4 INVOKED BY THE DEPARTMENT IS NOT APPLICABLE TO THE ASSESSEES CASE. IN SUPPORT OF THE SAID CONTENTION, THE ASSESS EE FILED SUBMISSIONS STATING THAT THE ASSESSEES HUSBAND HAD AN A/C WITH HSBC BANK WHICH WAS OPENED BY HIS EMPLOYER FOR THE PURPOSE OF SALARY DEPOSIT AND IT WAS IN HIS ASSESSMENT ORDER T HAT IT WAS FOUND THAT HIS WIFE, THE ASSESSEE BEFORE US WAS THE JOINT ACCOUNT HOLDER AND HAD ACCORDINGLY EARNED INTEREST INCOME T HEREFROM. 3. THE LEARNED COUNSEL FOR THE ASSESSEE FURTHER SUBMITTED THAT THE CIT (A) HAS GRANTED RELIEF TO TH E ASSESSEE ON THE GROUND THAT THE ASSESSEE IS ONLY A HOUSEWIFE AN D DID NOT HAVE ANY INDEPENDENT SOURCE OF INCOME AND THAT THE ESTIM ATED INTEREST INCOME FROM HSBC A/C NEEDS TO BE CONSIDERED IN THE HANDS OF THE ASSESSEES HUSBAND AND AS HE HAD ADMITTED THAT THE A/C WAS OPENED BY HIS EMPLOYER TO CREDIT HIS SALARY INCOME. SHE ALSO DREW OUR ATTENTION TO THE ASSESSMENT ORDER IN THE CASE O F ASSESSEES HUSBAND WHEREIN THE ASSESSING OFFICER, AFTER VERIFI CATION OF THE INFORMATION, HAS ACCEPTED THE RETURN FILED BY THE A SSESSEES HUSBAND. THEREFORE, ACCORDING TO THE LEARNED COUNS EL FOR THE ASSESSEE THIS M.A IS NOT MAINTAINABLE AS THE CLAUSE (D) OF PARA 10 OF THE CIRCULAR NO.3 OF 2018 DATED 11.7.2018 IS NOT ATTRACTED TO THE CASE BEFORE US. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, WE FIND THAT THE ASSESSING OFFICER HAS M ADE THE ADDITION IN THE HANDS OF THE ASSESSEE OF INTEREST I NCOME FROM AN A/C WITH HSBC HELD BY THE ASSESSEE JOINTLY WITH HER HUSBAND WHICH WAS OPENED BY HIS EMPLOYER TO DEPOSIT HIS SAL ARY INCOME. THEREFORE, IT IS NOT AN UNDISCLOSED FOREIGN A/C OF THE ASSESSEE AND MA NO 8 OF 2020 AYESHA ABID ALI HYDERABAD PAGE 4 OF 4 THEREFORE, THE EXCEPTION (D) TO THE CIRCULAR WILL N OT APPLY. THEREFORE, THIS M.A IS DISMISSED. 5. IN THE RESULT, M.A. FILED BY THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH MAY, 2021. SD/- SD/- (LAXMI PRASAD SAHU) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 28 TH MAY, 2021. VINODAN/SPS COPY TO: S.NO ADDRESSES 1 INCOME TAX OFFICE R WARD 14(2) 6 TH FLOO R, C BLOCK, IT TOWERS, MASAB TANK, HYDERABAD 2 SMT. AYESHA ABID ALI, 8 - 2 - 703/5 ROAD NO.12, BANJARA HILLS, HYDERABAD 3 CIT (A)-4, HYDERABAD 4 CIT 6, HYDERABAD 5 DR, ITAT HYDERABAD BENCHES 6 GUARD FILE BY ORDER