SYED KIWAN KHAJA MOHIUDDIN,HYDERABAD V. ITO., WARD-12(3), HYDERABAD

ITA 80/HYD/2025

AI Insights

The case involves Syed Kiwan Khaja Mohiuddin, an individual employed as a pilot, who appealed against the order of the CIT (A)-NFAC Delhi concerning the assessment year 2017-18. The primary issues in the appeal were the additions made by the Assessing Officer regarding unexplained cash deposits of Rs. 15,83,000 and unexplained investment in property registration charges of Rs. 3,15,100 under section 68 of the Income Tax Act, 1961. The assessee contended that due to the nature of his employment, he could not produce relevant supporting evidence at earlier stages but later submitted additional evidence to explain the sources of these funds. The Departmental Representative opposed the admission of this additional evidence, arguing it did not prove the assessee's case. The Tribunal decided to set aside the matter for re-examination of the additional evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 473229 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SM-B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: JAGANNATH
• Keywords: Set aside; Additional evidence; Corroborative evidences; Unexplained investment; Salary income; Gift; Source of fund

Judgement Text

" ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 1 of 6 आयकर अपीलȣय अͬधकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ SM- B ‘ Bench, Hyderabad Before Shri Vijay Pal Rao, Vice-President A N D Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.80/Hyd/2025 (िनधाŊरण वषŊ/Assessment Year: 2017-18) Shri Syed Kiwan Khaja Mohiuddin Hyderabad PAN:BQOPS0246K Vs. Income Tax Officer Ward-12(3) Hyderabad (Appellant) (Respondent) िनधाŊįरती Ȫारा/Assessee by: CA Jagannath राज̾ व Ȫारा/Revenue by:: Shri Ashish Kumar Shukla, DR सुनवाई की तारीख/Date of hearing: 20/03/2025 घोषणा की तारीख/Pronouncement: 21/03/2025 आदेश/ORDER Per Vijay Pal Rao, Vice President This appeal by the assessee is directed against the order dated, 26/11/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2017-18. 2. The assessee has raised the following grounds of appeal: ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 2 of 6 3. The assessee is an individual and derives income from salary. The assessee filed his return of income for the year under consideration on 3/8/2017 declaring total income of Rs.27,57,060/-. The case of the assessee was selected for scrutiny through CASS. The Assessing Officer made inter alia addition on account of unexplained cash deposits of Rs.15,83,000/- u/s 68 of the I.T. Act, 1961 as well as unexplained investment in property ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 3 of 6 being the registration charges of Rs.3,15,100/- which are the subject matter of this appeal. 4. The assessee challenged the action of the Assessing Officer before the learned CIT (A) but could not succeed. 5. At the time of hearing, the learned AR of the assessee has submitted that due to the nature of the assessee’s employment being a Pilot in an Airline, the assessee could not produce the relevant supporting evidence and details before the authorities below in support of the source of deposits made in the bank account as well as the registration charges for purchase of house property. The learned AR has submitted that the assessee has now filed an application for admission of additional evidence in support of the source of deposit in the bank account as well as the expenditure on account of registration charges of the house property. Thus, the learned AR has submitted that the additional evidence filed by the assessee may be admitted in support of the claim of the assessee to explain the source of fund with the assessee. He has referred to the additional evidence sought to be filed by the assessee in the paper book from Page No.1 to 17 comprising of gift deed executed by the Father of the assessee who is a retired govt. servant having sufficient funds and proof of withdrawal of the same as per the bank account statement along with other loan taken by the assessee as well as the fund from the mother. Thus, the learned AR has submitted that, if the additional evidence filed by the assessee is taken into consideration, it would explain the source of the fund deposits in ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 4 of 6 the bank account as well as the use for registration charges of house property. 6. On the other hand, the learned DR has submitted that despite various opportunities, the assessee did not file any supporting evidence either before the Assessing Officer or before the learned CIT (A). The additional evidence sought to be filed by the assessee also does not prove the case of the assessee in the absence of the creditworthiness of the donors and loan creditors. Thus, the learned DR has opposed to the admission of the additional evidence. 7. We have considered the rival submission as well as relevant material available on record. The case of the assessee was selected for limited scrutiny under CASS to examine the following issues: i) Income from salary ii) Cash Deposits made during the year & iii) Transactions in respect of properties 8. The Assessing Officer has made addition on account of cash deposits in the bank account of Rs.15,83,000/- in the absence of any evidence showing the past savings and claim of gift received from the parents used for the purpose of purchasing the house property (new Flat). Similarly, the Assessing Officer has made an addition of Rs.3,15,100/- as unexplained investment towards registration charges of the house property when the assessee has not produced any documentary evidence in support ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 5 of 6 of the source of the fund. The addition made by the Assessing Officer was confirmed by the learned CIT (A) when the assessee could not furnish supporting evidence. Now the assessee has filed an application for admission of additional evidence and also sought to produce the following additional evidence: a) Gift deed & fathers pan card along with service book b) Fathers bank statement with corresponding entries c) Promissory note for loan taken d) Handwritten note of appellant’s mother e) Self-declared letter of appellant’s sister along with PAN f) Income-tax return for the preceding financial year. g) Copy of loan receipt acknowledgement for property expenses. 9. Thus, it is clear that some of these evidences being the service book of the Father of the assessee and bank account of his Father are independent record, the genuineness of which cannot be doubted. The Assessing Officer has made the addition by recording the reasons that the assessee has failed to produce any record of the past savings or gift deed by the parent as claimed by the assessee. To meet out such an objection, the assessee has now produced these evidences. Therefore, in our considered view, the additional evidences filed by the assessee in support of the source of fund for depositing in the Bank Account and utilized for the purpose of acquiring the residential property including the registration charges needs to be verified and examined at the level of the Assessing Officer. Hence, in the facts and circumstances of the case, as well as in the interest of justice, we set aside the ITA No 80 of 2025 Syed Kiwan Khaja Mohiuddin Page 6 of 6 matter to the record of the Assessing Officer for re-adjudication after verification and examination of the additional evidence filed by the assessee. Needless to say, before passing the fresh order, the assessee be given an appropriate opportunity of hearing. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 21st March, 2025. Sd/- Sd/- (MANJUNATHA, G) ACCOUNTANT MEMBER (VIJAY PAL RAO) VICE-PRESIDENT Hyderabad, dated 21st March, 2025 Vinodan/sps Copy to: S.No Addresses 1 Shri Syed Kiwan Khaja Mohiuddin, H.No.10-5-3/1/2, 2nd Floor, 2B SS Residency, Masab Tank, Asif Nagar, Humayun Nagar, Hyderabad -28 2 Income Tax Officer Ward 12(3) Aayakar Bhavan, Opp: LB Stadium, Basheerbagh, Hyderabad 500004 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order "