ITO Ward -1, Adilabad v. Sri M. Raghuveer (HUF), Adilabad

ITA 1116/HYD/2011 | 2006-2007
Pronouncement Date: 29-09-2011 | Result: Allowed

Appeal Details

RSA Number 111622514 RSA 2011
Assessee PAN AAGHM6005B
Bench Hyderabad
Appeal Number ITA 1116/HYD/2011
Duration Of Justice 3 month(s) 19 day(s)
Appellant ITO Ward -1, Adilabad
Respondent Sri M. Raghuveer (HUF), Adilabad
Appeal Type Income Tax Appeal
Pronouncement Date 29-09-2011
Appeal Filed By Department
Order Result Allowed
Bench Allotted B
Tribunal Order Date 29-09-2011
Assessment Year 2006-2007
Appeal Filed On 09-06-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH HYDERABAD BEFORE SHRI CHANDRA POOJARI AM AND SMT. ASHA VIJAYARAGHAVAN JM ITA NO. 1116/HYD/2011 ASSESSMENT YEAR 2006-07 THE ITO WARD NO. 1 MANCHERIAL-504 208 VS SRI M. RAGHUVIR (HUF) MANCHERIAL PAN: AAGHM6005B APPELLANT RESPONDENT APPELLANT BY: SMT. NIVEDITA BISWAS RESPONDENT BY: SHRI A.V. RAGHURAM DATE OF HEARING: 1 5 .9.2011 DATE OF PRONOUNCEMENT: 29.9.2011 ORDER PER ASHA VIJAYARAGHAVAN JM THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED A GAINST THE ORDER PASSED BY THE CIT(A)-VI HYDERABAD DATED 22.3.2011 AND PERTAINS TO ASSESSMENT YEAR 2006-07. 2. THE ASSESSEE IS A HUF DERIVING INCOME FROM MONEY LENDING BUSINESS AND AGRICULTURAL INCOME. THE RETU RN OF INCOME WAS FILED ON 30.3.2007 DECLARING TOTAL INCOME OF RS . 1 80 000. THE CASE WAS TAKEN UP FOR SCRUTINY. DURING THE COU RSE OF ASSESSMENT PROCEEDINGS THE ASSESSEE WAS ASKED TO SUBSTANTIATE THE RECEIPT OF GIFT OF RS. 3 LAKHS EAC H FROM SHRI K. HARISH SHRI M. RAJENDER AND SMT. K. PAVANI TOTALLI NG TO RS. 9 LAKHS. THIS AMOUNT WAS INTRODUCED IN THE CAPITAL A MOUNT OF HUF. THE SECOND ADDITION RELATED TO LIABILITY OF RS. 3 LAKHS APPEARING IN THE BALANCE SHEET OF THE ASSESSEE IN T HE NAME OF SMT. MALATHI WIFE OF MR. RAJENDER. THE THIRD ADDI TION RELATED TO ITA NO.1116/HYD/2011 SHRI M. RAGHUVEER ===================== 2 UNEXPLAINED INVESTMENT IN PURCHASE OF TWO OPEN PLOT S IN THE NAME OF THE KARTA AND IN THE NAME OF HIS WIFE ON 12 .1.2006 BY INVESTING RS. 13 14 675. WITH RESPECT TO THE FIRST ADDITION THE ASSESSING OFFICER OBSERVED THAT THE INCOME SHOWN BY THE DONORS WAS QUITE MEAGRE AND THERE SHOULD NOT HAVE BEEN ANY SAVINGS FOR THEM TO MAKE SUCH GIFTS. WITH RESPECT TO THE SECOND ADDITION RELATING TO THE LIABILITY OF RS. 3 LAKHS A PPEARING IN THE BALANCE SHEET THE AMOUNT WAS ADDED AS UNEXPLAINED C ASH CREDIT IN THE HANDS OF THE ASSESSEE BY THE ASSESSIN G OFFICER. WITH RESPECT TO INVESTMENT IN THE TWO OPEN PLOTS T HE ASSESSING OFFICER HELD THAT THE INVESTMENT IN THE OPEN PLOTS WAS ALSO UNDISCLOSED INCOME OF THE ASSESSEE HUF. AGGRIEVED THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A). 3. THE CIT(A) DIRECTED THE ASSESSING OFFICER TO DELETE THE ADDITION OF RS. 12 LAKHS BEING THE GIFTS/LOAN RECEI VED FROM SHRI RAJENDER K. HARISH K. PAVANI AND SMT. MALATHI. W ITH RESPECT TO THE AMOUNT OF RS. 13 14 695 INVESTED IN THE TWO PLOTS BY SHRI RAGHUVEER KARTA OF THE HUF THE CIT(A) DIRECTED TH E ASSESSING OFFICER TO DELETE THE ADDITION OF RS. 3 40 000 BEIN G THE AMOUNT GIVEN BY SMT. VEERAMANI DEVI WIFE OF SHRI RAGHUVEER . INSOFAR AS THE BALANCE AMOUNT OF RS. 9 74 675 IS CONCERNED THE CIT(A) HELD AS FOLLOWS: ' ... IT IS STATED THAT IT CONSISTED OF INTERNAL AC CRUAL AND RS. 9 05 000 BEING THE AMOUNT RECEIVED FROM ABOUT 15 PEOPLE AS REPAYMENT OF DEBTS. IT IS ALSO SUBMITTED THAT APPELLANT'S FAMILY CONSISTING OF HIMSELF HIS WIFE FATHER BROTHER BROTHER'S WIFE MATERNAL UNCLE AND HIS WIFE WAS NOT HAVING A SHELTE R AND WITH A VIEW TO HAVE A HOUSE HAVE POOLED UP FUNDS AND INVESTED WHICH IS SHOWN AS LIABILITY SINC E THEY HAVE NOT BEEN GIVEN SHARE IN THE TITLE OF THE PROPERTY. IT IS SEEN FROM THE ASSESSMENT ORDER THA T THE ASSESSING OFFICER HAS NOT CONSIDERED THE ABOVE MATERIAL. AS FAR AS THE CONFIRMATION LETTERS TO TH E EXTENT OF RS. 9 74 675 ARE CONCERNED AS THE SAME ITA NO.1116/HYD/2011 SHRI M. RAGHUVEER ===================== 3 WERE AVAILABLE WITH THE ASSESSING OFFICER AT THE TI ME OF ASSESSMENT ALSO AND WERE NOT CONSIDERED AS GENUINE THE POINT OF ADMITTING THE SAME AT THE APPELLATE STAGE DOES NOT ARISE.' 4. AGGRIEVED THE REVENUE IS IN APPEAL BEFORE US RAISI NG THE FOLLOWING GROUNDS OF APPEAL: 1. THE CIT(A) HAS FAILED IN APPLYING THE PRINCIPLE OF NATURAL JUSTICE TO THE ASSESSING OFFICER BEFORE COMPLETING THE APPEAL PROCEEDINGS. 2. THE CIT(A) FAILED IN FOLLOWING THE PROVISIONS LAID DOWN IN RULE 46A OF I.T. RULES 1962 IN ALLOWING ADDITIONAL EVIDENCE OF THE ASSESSEE. 5. WE HAVE HEARD BOTH THE PARTIES. THE CIT(A) HIMSELF AT PARA 10 HAS HELD THAT IN THE PRESENT CASE THE ASSES SING OFFICER DID NOT DOUBT THE IDENTITY OR GENUINENESS AND THE A SSESSING OFFICER ONLY DOUBTED THE CREDITWORTHINESS OF THE DO NORS/ CREDITORS. THE CIT(A) FURTHER HELD THAT AT THE MOS T IF THE ASSESSING OFFICER IS NOT SATISFIED WITH THE SOURCES OF THE DONORS/ CREDITORS THEN THE ASSESSING OFFICER COULD ONLY CON SIDER ACTION ON THE DONORS/CREDITORS BUT NOT ON THE ASSESSEE. G OING THROUGH THE FACTS OF THE CASE AND THE CIRCUMSTANCES AND THE FACT THAT THE ASSESSING OFFICER WAS NOT SATISFIED A BOUT THE CREDITWORTHINESS OF THE DONORS THE CIT(A) SHOULD H AVE CALLED FOR A REMAND REPORT FROM THE ASSESSING OFFICER UNDER RU LE 46A WITH RESPECT TO THIS ASPECT BEFORE DELETING THE ADDITION . 6. IN THESE CIRCUMSTANCES IN THE INTEREST OF JUSTICE WE SET ASIDE THE ORDER OF THE CIT(A) AND REMAND THE ENTIRE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER THEREBY GIVIN G ANOTHER OPPORTUNITY TO THE ASSESSING OFFICER TO DIRECT THE PRODUCTION OF ANY DOCUMENTS OR THE EXAMINATION OF ANY WITNESSES E NABLING HIM TO DISPOSE OF THE APPEAL IN ACCORDANCE WITH LAW . ITA NO.1116/HYD/2011 SHRI M. RAGHUVEER ===================== 4 7. IN THE RESULT APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT 29 TH SEPTEMBER 2011 SD/ - (CHANDRA POOJARI) SD/ - (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD DATED THE 29 TH SEPTEMBER 2011 COPY FORWARDED TO: 1. THE INCOME-TAX OFFICER WARD-1 MOUNIKA LODGE CO MPLEX BELLAMPALLY X ROAD MANCHERIAL-504 208 ADILABAD DI ST. A.P. 2. SHRI M. RAGHUVEER (HUF) H. NO. 7-126 I.B. ROAD MANCHERIAL- 504 208 DIST. ADILABAD A.P. 6. THE CIT(A)-VI HYDERABAD 7. THE CIT-V HYDERABAD 8. THE DR A BENCH ITAT HYDERABAD TPRAO