Smt. Ch. Aruna Devi, Hyderabad, Hyderabad v. The ACIT, Central Circle-3, Hyderabad

ITA 1006/HYD/2011 | 2007-2008
Pronouncement Date: 08-07-2011 | Result: Allowed

Appeal Details

RSA Number 100622514 RSA 2011
Assessee PAN AEZPC8604H
Bench Hyderabad
Appeal Number ITA 1006/HYD/2011
Duration Of Justice 1 month(s) 14 day(s)
Appellant Smt. Ch. Aruna Devi, Hyderabad, Hyderabad
Respondent The ACIT, Central Circle-3, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 08-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 08-07-2011
Date Of Final Hearing 28-06-2011
Next Hearing Date 28-06-2011
Assessment Year 2007-2008
Appeal Filed On 25-05-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER ITA NO.1006/HYD/2011 : ASSESSMENT YEAR 2007-08 SMT. CH. ARUNA DEVI HYDERABAD (PAN AEZPC 8604 H) VS ASSTT. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 3 HYDERABAD (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI A.V.RAGHURAM RESPONDENT BY : SHRI T.DIWAKAR PRASAD O R D E R PER G.C.GUPTA VICE PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YE AR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE COMMIS SIONER OF INCOME- TAX(APPEALS). 2. GROUNDS OF APPEAL OF THE ASSESSEE ARE AS UNDER- (1) ON THE FACTS AND THE CIRCUMSTANCES OF THE CASE THE ORDER OF THE LEARNED CIT-(A) IS ERRONEOUS BOTH ON F ACTS AND IN LAW. (2) THE LEARNED CIT(A) FAILED TO APPRECIATE THE FA CT THAT ADVANCING BY THE FATHER OF THE APPELLANT IS DIFFERE NT FROM ADVANCING TO OTHERS AND THEREBY ERRED IN CONFIRMING THE ADDITION ON THE GROUND THAT FATHER O F THE APPELLANT SRI M.GOPAL REDDY HAS NOT GIVEN ANY LOAN OF RS. 3 00 000/- TO ANY ONE DURING LAST SIX YEARS. (3) THE LEARNED CIT(A) ERRED IN NOT CONSIDERING THE STATEMENT GIVEN BY THE FATHER OF THE APPELLANT SRI M.GOPAL REDDY THAT HE HAS GIVEN HAND LOAN TO THE APPELLANT OUT OF HIS AGRICULTURAL INCOME AND THEREB Y ERRED IN MAKING STATEMENT THAT THERE IS NO SUBSTANT IAL EVIDENCE TO PROVE THE TRANSACTION WHEN NOTHING MORE COULD BE AVAILABLE TO PROVE THE SAM E. ITA NO.1006/H/2011 SMT. CH.ARUNA DEVI HYDERABAD 2 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS RECEIVED A SUM OF RS.3 LAKHS AS LOAN F ROM HER FATHER SHRI M.GOPAL REDDY WHO IS AN AGRICULTURALIST AND WAS HAVING AGRICULTURAL INCOME OF RS.1 LAKH TO RS.1 20 000 PER ANNUM. HE SUBMITTED THAT THE FATHER OF THE ASSESSEE WAS CALLE D BY THE ASSESSING OFFICER AND HIS STATEMENT WAS RECORDED ON OATH BY H IM WHEREIN THE DEPONENT SHRI M.GOPAL REDDY ADMITTED THAT HE HAD G IVEN LOAN OF RS. 3 LAKHS TO HIS DAUGHTER I.E. THE ASSESSEE. THE AS SESSEE HAS CLAIMED THAT THE AMOUNT OF LOAN WAS RETURNED BACK TO HER FA THER. HE SUBMITTED THAT THE STATEMENT ON OATH OF THE FATHER OF THE ASSESSEE WAS NOT ACCEPTED BY THE REVENUE AUTHORITIES FOR NO VALID REASON. 4. LEARNED DEPARTMENTAL REPRESENTATIVE HAS OPPOS ED THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSE E. HE SUBMITTED THAT THE ASSESSEES FATHER WAS A SMALL FARMER HAVIN G AGRICULTURAL INCOME OF ABOUT RS.1 LAKH PER ANNUM ONLY AND THEREF ORE HE WAS NOT IN A POSITION TO ADVANCE THE CASH LOAN OF RS. 3 LAK HS TO HIS DAUGHTER. HE SUBMITTED THAT APART FROM THE STATEMENT OF THE F ATHER OF THE ASSESSEE ASSESSEE COULD NOT ADDUCE ANY EVIDENCE WH ATSOEVER IN SUPPORT OF HER CASE. THE FATHER OF THE ASSESSEE HA S DENIED HAVING ADVANCED ANY OTHER LOANS DURING THE PAST SIX YEARS. HE SUBMITTED THAT IF THE ENTIRE FACTS OF THE CASE ARE CONSIDERE D IT LEADS TO THE ONLY CONCLUSION THAT THE ASSESSEE COULD NOT PROVE THE SO URCE OF RS. 3 LAKHS DEPOSITED IN HER BANK ACCOUNT AND THE STATEMENT OF HER FATHER WAS MERELY TO HELP THE ASSESSEE. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND HA VE PERUSED THE ORDERS OF THE ASSESSING OFFICER AND THE CIT(A). WE FIND THAT THERE WAS A DEPOSIT ENTRY OF RS.3 LAKHS ON 13. 4.2006 IN THE BANK ITA NO.1006/H/2011 SMT. CH.ARUNA DEVI HYDERABAD 3 ACCOUNT OF THE ASSESSEE. ASSESSEE EXPLAINED THAT TH E AMOUNT OF RS 3- LAKHS WAS RECEIVED BY HER FROM HER FATHER SHRI M.G OPAL REDDY AND THE SAME AMOUNT WAS DEPOSITED IN HER BANK ACCOUNT. THE ASSESSING OFFICER CALLED FOR THE APPEARANCE OF SHRI M.GOPAL R EDDY AND SHRI M.GOPAL REDDY COMPLIED WITH THE SAME AND IN HIS STA TEMENT RECORDED BY THE ASSESSING OFFICER ON OATH HE AFFIRMED THAT HE HAS GIVEN A LOAN OF RS. 3 LAKHS TO HIS DAUGHTER SMT.ARUNA DEVI. T HE DEPONENT FURTHER EXPLAINED THE SOURCE OF THE ADVANCE OF LOAN AMOUNT BY STATING THAT HIS ONLY SOURCE OF INCOME IS BY WAY OF AGRICULTURAL INCOME FROM HIS AGRICULTURAL LAND AND THE ANNUAL AGRICULTU RAL INCOME RANGES FROM RS. 1 LAKH TO RS. 1.20 000 PER ANNUM. SHRI M.G OPAL REDDY FURTHER STATED IN HIS STATEMENT THAT HE HAS NOT GIV EN LOANS TO ANY ONE ELSE DURING THE PAST SIX YEARS. WE FIND THAT TH IS AVERMENT OF SHRI M.GOPAL REDDY THAT HE DID NOT GIVE ANY LOAN TO ANY ONE ELSE DURING THE PAST SIX YEARS HAD BEEN CONSIDERED AGAINST THE ASSESSEE. IN FACT IN VIEW OF THE FACT THAT SHRI M.GOPAL REDDY HAD NOT ADVANCED ANY LOAN TO ANY ONE ELSE FOR THE LAST SIX YEARS IT C OULD BE INFERRED IN FAVOUR OF THE ASSESSEE SINCE HIS SAVINGS FROM THE AGRICULTURAL INCOME FOR THE LAST SIX YEARS MIGHT HAVE BEEN UTILISED BY HIM FOR ADVANCING THE SAID AMOUNT TO HIS DAUGHTER. THE RELATION OF T HE PAYEE OF THE LOAN AMOUNT VIZ. THE ASSESSEE WITH THE LENDER IS THAT OF FATHER AND DAUGHTER AND THERE IS NOTHING UNNATURAL IN THE CLAI M OF THE ASSESSEE OF HAVING RECEIVED THE LOAN AMOUNT FROM HER FATHER . NO EVIDENCE HAS BEEN BROUGHT ON RECORD ON BEHALF OF THE REVENUE TO DISCREDIT THE STATEMENT ON OATH GIVEN BY THE FATHER OF THE ASSESS EE BEFORE THE ASSESSING OFFICER. IN THESE FACTS WE ARE OF THE C ONSIDERED VIEW THAT IN THE ABSENCE OF ANY MATERIAL TO DISBELIEVE THE S TATEMENT OF THE FATHER OF THE ASSESSEE RECORDED ON OATH BY THE DEPA RTMENT NO CASE FOR ADDITION ON THIS ISSUE COULD BE MADE OUT BY THE DEPARTMENT AND ITA NO.1006/H/2011 SMT. CH.ARUNA DEVI HYDERABAD 4 ACCORDINGLY THE ADDITION OF RS. 3 LAKHS MADE BY TH E ASSESSING OFFICER IS DELETED AND THE GROUNDS OF APPEAL OF THE ASSESSE E ARE ALLOWED. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE COURT ON 8.7.2011 SD/- SD/- (CHANDRA POOJARI) ( G.C. G UPTA) ACCOUNTANT MEMBER VICE PRESIDENT DATED THE 8.7.2011 COPY FORWARDED TO: 1. SMT. ARUNA DEVI C/O. SHRI K.VASANT KUMAR SHRI A.V .RAGHURAM SHRI P.VINOD & SHRI B.PEDDIRAJULU ADVOCATES FLAT NO.610 6 TH FLOOR BABUKHAN ESTATE BASHEER BAGH HYDERABAD 500 001. 2. ASST. COMMISSIONER OF INCOME - TAX CENTRAL CIRCLE 3 HYDERABAD 3. CIT (A) - V II HYDERABAD. 4. COMMISSIONER OF INCOME-TAX CENTRAL HYDERABAD 5. THE D.R. ITAT HYDERABAD. B.V.S