A.Peddabbaiah, Guntur v. DCIT, Hyderabad

ITA 108/HYD/2010 | 2007-2008
Pronouncement Date: 25-02-2011 | Result: Dismissed

Appeal Details

RSA Number 10822514 RSA 2010
Assessee PAN ACFPA3104L
Bench Hyderabad
Appeal Number ITA 108/HYD/2010
Duration Of Justice 1 year(s) 1 month(s) 3 day(s)
Appellant A.Peddabbaiah, Guntur
Respondent DCIT, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2011
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 25-02-2011
Date Of Final Hearing 22-02-2011
Next Hearing Date 22-02-2011
Assessment Year 2007-2008
Appeal Filed On 22-01-2010
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 I.T.A. NO. 108/HYD/2010 (ASSESSMENT YEAR 2007-08) SHRI A. PADDABBAIAH GUNTUR PAN: ACFPA3104L VS. DCIT CENTRAL CIRCLE 7 HYDERABAD APPELLANT RESPONDENT APPELLANT BY: SHRI K.A. SAI PRASAD RESPONDENT BY: SHRI V. SRINIVAS O R D E R PER CHANDRA POOJARI AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF THE CIT(A)-I HYDERABAD DATED 4.11.2009 FO R THE ASSESSMENT YEAR 2007-08. 2. THE SOLITARY GROUND OF APPEAL RAISED BY THE ASSE SSEE IS AS UNDER: 1. THE LEARNED CIT(A) IS NOT JUSTIFIED IN CONFIRMIN G THE ADDITION OF RS. 6 50 000 MADE BY THE ASSESSING OFFICER WITHOUT APPRECIATING THE CORRECT FACTS PRESENTED BEFORE HIM. 3. THE FACTS OF THE CASE IN BRIEF ARE THAT THERE WAS A SEARCH AND SEIZURE OPERATION CARRIED OUT IN THE CAS E OF NUZIVEEDU SEEDS GROUP OF INDUSTRIES AND DURING THE COURSE OF THE SEARCH THE ASSESSEES PREMISES WAS ALSO COVERED U/S. 132 OF THE INCOME-TAX ACT 1961. DURING THE COURSE OF SEARCH OPERATION RS. 6 46 000 WAS FOUND IN CASH. WHEN THI S WAS CONFRONTED TO THE ASSESSEE IT WAS SUBMITTED BY THE ASSESSEE THAT HE WITHDREW PART OF THE CASH AMOUNT FROM ICICI BANK I.T.A. NO. 108/HYD/2010 SHRI A. PEDDABBAIAH ==================== 2 BANGALORE ON 5.3.2007 AND WAS BROUGHT TO GUNTUR FOR PURCHASE OF A LAND. LATER ON WHEN ON EXAMINATION IT WAS FO UND THAT THE CASH WAS WITHDRAWN FROM DIFFERENT BANK ACCOUNTS IN GUNTUR DISTRICT AND VIJAYAWADA THE ASSESSEE RETRACTED HIS STATEMENT AND SUBMITTED THAT THE CASH BELONGS TO DIFFERENT PE RSONS THUS CHANGED THE OWNERSHIP OF THE CASH. THE ASSESSING OFFICER AFTER EXAMINING THE STATEMENTS OF THE ASSESSEE FROM TIME TO TIME HELD THAT THE ASSESSEE HAS NOT PROPERLY EXPLA INED THE SOURCE OF CASH FOUND DURING THE SEARCH WITH SUFFICI ENT EVIDENCE ACCORDINGLY THE ASSESSING OFFICER TREATED THE CASH AMOUNT OF RS. 6 45 000 AS UNEXPLAINED CASH U/S. 69A OF THE IN COME-TAX ACT 1961 AND ADDED THE SAME TO THE TOTAL INCOME O F THE ASSESSEE. 4. BEFORE THE CIT(A) THE AR OF THE ASSESSEE FILED A WRITTEN SUBMISSION WHEREIN HE REITERATED THE SAME SUBMISSIO NS AS CONTENDED BEFORE THE ASSESSING OFFICER. HE FURTHER SUBMITTED THAT THE ASSESSEE WAS IN SHOCK AND CONFUSION DURING THE SEARCH OPERATION DUE TO WHICH THE ASSESSEE MADE THE STATEM ENT THAT HE HAD BROUGHT THE CASH AMOUNT FROM BANGALORE INSTE AD OF STATING THAT THE AMOUNTS WERE GIVEN BY OTHER PERSON S. 5. THE CIT(A) FOUND THAT THE ASSESSEE MADE DIFFEREN T STATEMENTS. DURING THE COURSE OF SEARCH OPERATION WHEN THE ASSESSEE WAS ASKED TO EXPLAIN THE CASH AMOUNT OF RS . 6.5 LAKHS THE ASSESSEE STATED THAT CASH WAS BROUGHT FRO M BANGALORE WHICH WAS WITHDRAWN FROM ICICI BANK A/C. NOS. SB I.T.A. NO. 108/HYD/2010 SHRI A. PEDDABBAIAH ==================== 3 025201504108 AND 02980150119. IT WAS BROUGHT TO GU NTUR TO BUY A PIECE OF LAND. WHEN THE ASSESSEE WAS INTERRO GATED BY THE AUTHORISED OFFICERS IT WAS FOUND THAT THE CASH WAS WITHDRAWN FROM DIFFERENT BANKS AT VINUKONDA AND MACHARLA IN G UNTUR DISTRICT. LATER ON THE ASSESSEE RETRACTED HIS STAT EMENT AND STATED THAT OUT OF RS. 6.5 LAKHS RS. 2 LAKHS BELON GS TO SMT. D. SWARNALATHA AND RS.4.5 LAKHS WAS GIVEN TO HIM THE D AY BEFORE SEARCH BY SHRI P. SRINIVASA AND SRI NARRA SRINIVASA RAO. THE CIT(A) OBSERVED THAT A PERSON IN SHOCK AND CONFUSIO N CANNOT IMMEDIATELY RECOLLECT THE BANK ACCOUNT NUMBERS AND THE EXACT AMOUNT WHICH WAS WITHDRAWN THAT WAS BROUGHT TO GUNT UR. THE CIT(A) FOUND THAT THE ASSESSEE WAS VERY MUCH IN HIS SENSES AS HE HAD STATED THE MODE OF TRANSPORT INCLUDING THE NAME OF TRANSPORT FROM BANGALORE AND THE NUMBERS OF BANKS ACCOUNTS. LATER THE ASSESSEE HAS CHANGED THE VERSION AND STAT ED THAT THE AMOUNT WAS GIVEN BY SOME OTHER PERSONS. THE CIT(A) DID NOT ACCEPT THESE VERSIONS AND HELD THAT THE STATEMENTS ARE AN AFTER THOUGHT SO AS TO EVADE THE TAX NET. THUS CONSIDERI NG THE CONTRADICTORY STATEMENT MADE BY THE ASSESSEE HE HE LD THAT THE ASSESSEE HAS NOT BEEN ABLE TO PROVE TO THE SATISFAC TION OF THE ASSESSING OFFICER THE SOURCE OF CASH FOUND AT HIS R ESIDENTIAL PREMISES DURING THE SEARCH. ACCORDINGLY THE CIT(A ) CONFIRMED THE ADDITION OF RS. 6.5 LAKHS U/S. 69A OF THE ACT A ND UPHELD THE ACTION OF THE ASSESSING OFFICER. I.T.A. NO. 108/HYD/2010 SHRI A. PEDDABBAIAH ==================== 4 6. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LEARNE D COUNSEL FOR THE ASSESSEE AND THE LEARNED DR AND ALS O PERUSED THE MATERIAL AVAILABLE ON RECORD. BEFORE US ALSO T HE ASSESSEE COULD NOT BRING ANY SUBSTANTIAL EVIDENCE IN SUPPORT OF THE CASH FOUND FROM HIS RESIDENCE. HE COULD NOT PROVE THE SO URCE OF THE CASH FOUND FROM HIS RESIDENCE. THE ASSESSEE MADE CONTRADICTORY STATEMENTS WHICH WERE FOUND UNTRUE BY THE LOWER AUTHORITIES. DURING THE COURSE OF SEARCH OPERATION HE MADE THE STATEMENT THAT HE HAD BROUGHT CASH TO GUNTUR BY WIT HDRAWING FROM TWO ACCOUNTS OF ICICI BANK AT BANGALORE TO PUR CHASE A PIECE OF LAND AT GUNTUR. LATER ON HE STATED THAT R S. 4.5 LAKHS WAS GIVEN BY MR. P. SRINIVASA AND MR. NARRA SRINIVA SA RAO. THE ASSESSEE ALSO STATED THAT HE HAD TO GIVE MONEY TO MR. P. RADHAKRISHNA MURTHY ON ACCOUNT OF SOME JOINT DEVELO PMENT AGREEMENT AMONG THEM. REGARDING THE OWNERSHIP OF T HE CASH THE ASSESSEE STATED THAT HE HAD ISSUED RECEIPTS FOR AN AMOUNT OF RS. 4.5 LAKHS. YET IN ANOTHER STATEMENT HE STAT ED THAT THE ENTIRE AMOUNT OF RS. 6.5 LAKHS BELONGED TO SOME OTH ER PEOPLE WHO GAVE THE AMOUNT AS ADVANCE FOR PURCHASE OF LAND . HE STATED THAT OUT OF THE AFORESAID AMOUNT RS. 2 LAKHS BELONG TO SMT. J. SWARNA KUMARI OF CHIRALA AND RS. 4.50 LAKHS TO SHRI MANNAVA HARINATHA BABU AND FILED CONFIRMATION LETTE RS FROM THEM. IT WAS FOUND BY THE ASSESSING OFFICER THAT M R. HARINATHA BABU IS AN AGRICULTURIST HAVING ONLY AN INCOME OF R S.3 LAKHS PER ANNUM FROM AGRICULTURE AND HE HAS A FAMILY OF FIVE MEMBERS. THUS HE DID NOT ACCEPT THE CREDITWORTHINESS OF MR. HARINATHA I.T.A. NO. 108/HYD/2010 SHRI A. PEDDABBAIAH ==================== 5 BABU. MR. HARINATHA BABU STATED THAT THE CASH WAS GIVEN BY SRI N. SRINIVASA RAO AND P. PRASAD RESIDENTS OF HYDERAB AD FOR DEVELOPMENTS FLATS AND THEY WERE PROMISED TO BE GIV EN ONE TWO BED ROOM FLAT EACH ON COST BASIS. FURTHER MR. HARI NATHA BABU STATED THAT THE DEVELOPMENT PLAN WAS ABORTED BECAUS E OF THE LULL IN REAL ESTATE BUSINESS. WHEN HE WAS ASKED ABOUT T HE DENOMINATION OF THE CASH HE COULD NOT EXPLAIN PROPE RLY. HE ALSO STATED THAT NO RECEIPTS WERE GIVE BY THE ASSESSEE A ND THE AMOUNT WAS ALSO NOT RETURNED BACK TO THE PERSONS FR OM IT WAS TAKEN. HE COULD NOT EXPLAIN THE SOURCE OF THE CASH AMOUNT OF RS. 6.5 LAKHS. IN VIEW OF THE CONTRADICTORY STATEM ENTS AND IN THE ABSENCE OF ANY COGENT EVIDENCE TO SUPPORT THE SOURC E OF THE CASH AMOUNT OF RS. 6.5 LAKHS THE CIT(A) UPHELD THE ACTION OF THE ASSESSING OFFICER. WE FIND THE CIT(A) HAS DISCUSS ED THE ISSUE THREADBARE AND PASSED A DETAILED AND SPEAKING ORDER ON THE ISSUE. WE DO NOT FIND ANY INFIRMITY IN THE ORDER O F THE CIT(A). ACCORDINGLY THE SAME IS CONFIRMED AND THE GROUND R AISED BY THE ASSESSEE IS DISMISSED. 7. IN THE RESULT THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH FEBRUARY 2011. SD/ - (G.C. GUPTA) VICE PRESIDENT SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD DATED 25 TH FEBRUARY 2011 TPRAO I.T.A. NO. 108/HYD/2010 SHRI A. PEDDABBAIAH ==================== 6 COPY FORWARDED TO: 1. SHRI A. PEDDABBAIAH PROP. KAKATIYA AGRO INDUSTR IES SHOP NO. 3 A.P. COTTON ASSOCIATION BUILDINGS MAIN ROAD LAKSHMIPURAM GUNTUR. 2. THE DCIT CIRCLE 7 HYDERABAD. 3. THE CIT(A)-I HYDERABAD. 4 THE CIT (CENTRAL) HYDERABAD 5. THE DR A BENCH ITAT HYDERABAD