Mohammed Hassan, Hyderabad v. Income Tax Officer, Ward-8(2), Hyderabad

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH HYDERABAD. BEFORE SHRI S.S. GODARA JUDICIAL MEMBER (THROUGH VIRTUAL HEARING) ITA NO.1572/HYD/2019 (ASSESSMENT YEAR : 2009-10) SHRI MOHAMMED HASSAN H.NO.21-3-783 NEAR DEEVAN HOTEL CHELAPURA HYDERABAD. PAN AQCPM 4719L VS. INCOME TAX OFFICER WARD 8(2) HYDERABAD. APPELLANT RESPONDENT APPELLANT BY : SHASHANK DUNDU (A.R) RESPONDENT BY : SMT. N. SWAPNA (D.R.) DATE OF HEARING : 25.02.2021. DATE OF PRONOUNCEMENT : 04.03.2021. O R D E R PER SHRI S.S. GODARA J.M. : THIS ASSESSEES APPEAL FOR THE ASST. YEAR 2009-10 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS)-12 HYDERABADS ORDER DT.30.07.2019 PASSED IN THE CASE NO. 10326/2018-19 INVOLVING PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT 1961 (THE ACT). HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2 ITA 1572/HYD/2019 2. COMING TO THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGING CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION ADDING AN AMOUNT OF RS.8 LAKHS AS UNEXPLAINED CASH CREDITED/DEPOSITED IN THE BANK I NOTICE WITH THE ABLE ASSISTANCE OF BOTH THE PARTIES THAT NEITHER SIDES SUBMISSIONS AGAINST AND IN SUPPORT THEREOF DESERVE TO BE ACCEPTED IN ENTIRETY. THIS IS FOR THE REASON THAT IT IS NOT IN DISPUTE ABOUT THE CLINCHING FACT THAT THE ASSESSEE IS A TRADER AND ALREADY DERIVING INCOME FROM SALE / PURCHASE OF MOBILE PHONES AS WELL AS RECHARGE COUPONS. THIS PRIMA FACIE INDICATES THAT THE IMPUGNED CASH DEPOSITS; PRIMA FACIE COULD BE PRESUMED AS PART OF HIS TURNOVER OF RS.31 58 570 (PAGE 5 OF THE CIT(A) ORDER). LEARNED AUTHORIZED REPRESENTATIVE ALSO FAILS TO REBUT THE CLINCHING FACT THAT THE ASSESSEE HAS NOT BEEN ABLE TO FILE RECONCILIATION OF HIS IMPUGNED TURNOVER VIS--VIS CASH DEPOSITED IN THE SAVINGS BANK ACCOUNT IN ISSUE. NOR IT IS THE REVENUES CASE THAT BOTH THE LOWER AUTHORITIES HAVE EITHER CONSIDERED PEAK CREDIT IN THE LIGHT OF ASSESSEES TURNOVER AS SOURCE OF THESE CASH DEPOSITS. I THEREFORE DEEM IT APPROPRIATE IN THESE PECULIAR CIRCUMSTANCES THAT A LUMP SUM ADDITION OF RS.2 LAKHS WOULD BE JUST AND PROPER WITH A RIDER THAT THE SAME SHALL NOT BE TAKEN AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. NECESSARY COMPUTATION TO FOLLOW AS PER LAW. 3 ITA 1572/HYD/2019 3. THIS ASSESSEE'S APPEAL IS PARTLY ALLOWED IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 04.03.2021. SD/- (S.S. GODARA) JUDICIAL MEMBER COPY TO : 1. SHRI MOHAMMED HASSAN H.NO.21-3-783 NEAR DEEVAN HOTEL CHELAPURA HYDERABAD. 2. ITO WARD 8(2) HYDERABAD. 3. C I T HYDERABAD. 4. CIT(APPEALS)-12 HYDERABAD. 5. DR ITAT HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY ITAT HYDERABAD.