Sri N V Siva Kumar, Hyderabad v. ITO., Ward-12(4),, Hyderabad

ITA 1638/HYD/2014 | 2010-2011
Pronouncement Date: 21-10-2016 | Result: Allowed

Appeal Details

RSA Number 163822514 RSA 2014
Assessee PAN AVEPS1962J
Bench Hyderabad
Appeal Number ITA 1638/HYD/2014
Duration Of Justice 1 year(s) 11 month(s) 27 day(s)
Appellant Sri N V Siva Kumar, Hyderabad
Respondent ITO., Ward-12(4),, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 21-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 21-10-2016
Date Of Final Hearing 01-09-2016
Next Hearing Date 01-09-2016
Assessment Year 2010-2011
Appeal Filed On 24-10-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B HYDERABAD BEFORE SMT. P. MADHAVI DEVI JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH ACCOUNTANT MEMBER I.T.A. NO. 1638/HYD/2014 ASSESSMENT YEAR: 2010-11 SRI N.V. SIVA KUMAR HYDERABAD [PAN: AVEPS1962J] VS INCOME TAX OFFICER WARD-12(4) HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI K.A. SAI PRASAD AR FOR REVENUE : SHRI K.J. RAO DR DATE OF HEARING : 01-09-2016 DATE OF PRONOUNCEMENT : 21-10-2016 O R D E R PER B. RAMAKOTAIAH A.M. : THIS IS AN APPEAL BY ASSESSEE AGAINST THE ORDER OF TH E COMMISSIONER OF INCOME TAX (APPEALS)-II HYDERABAD DATED 07-08-2014 FOR THE AY. 2010-11. 2. BRIEFLY STATED ASSESSEE IS A SOFTWARE EMPLOYEE AN D DECLARED INCOME OF RS.11 58 590/-. IN THE COURSE OF ASSESSMEN T PROCEEDINGS THE ASSESSING OFFICER (AO) EXAMINED THE CASH DEPOSITS IN THE BANK ACCOUNT PARTICULARLY WITH DENA BANK AND F OUND THAT ASSESSE HAD DEPOSITED AN AMOUNT OF RS.17 15 000/-. I T WAS EXPLAINED THAT AN AMOUNT OF RS. 3 10 000/- WAS RECEIVE D FROM HIS WIFE AND ANOTHER AMOUNT OF RS.3 90 000/- WAS RECEIV ED FROM HIS I.T.A. NO. 1638/HYD/2014 SRI N.V. SIVA KUMAR :- 2 -: FATHER. AN AMOUNT OF RS.4 65 000/- WAS RE-DEPOSITED F ROM THE MONEY WITHDRAWN AND ALSO EXPLAINED VARIOUS OTHER TRAN SACTIONS. IT WAS MAINLY SUBMITTED THAT ASSESSE A SOFTWARE ENGINE ER WORKED IN US FOR A LONG TIME AND HAS SUBSTANTIAL FUNDS OF HI S OWN AND HE WAS NOT CONVERSANT WITH TAX PROCEEDINGS IN INDIA AND H E HAS GIVEN FUNDS DURING THE YEARS 2008-09 2009-10 AND EARLIER YEARS NOT ONLY TO HIS FATHER BUT ALSO TO OTHERS. FURTHER IT WAS S UBMITTED THAT ASSESSE HAD AGRICULTURAL INCOMES. HE HAS FILED DETAILED EXPLANATION BEFORE THE AO. AO DID NOT ACCEPT ASSESSEE S EXPLANATION AS ASSESSEES WIFE IS RECEIVING FUNDS FO R DOMESTIC EXPENDITURE FROM ASSESSE AND HIS FATHER IS ALSO LIVI NG IN ASSESSEES HOUSE. HE THEREFORE ADDED THE ENTIRE UNEXPLAINED CASH DEPOSIT AS INCOME OF ASSESSE. IN ADDITION TO THAT HRA CLAIM U /S. 10 TO AN EXTENT OF RS. 63 732/- WAS ALSO DISALLOWED EVEN THOUG H ASSESSE STATED THAT FOR THE PURPOSE OF EMPLOYMENT HE IS LIVING IN A RENTED HOUSE AND PAYING RENT. 3. BEFORE THE LD. CIT(A) DETAILED SUBMISSIONS WERE MA DE. LD. CIT(A) HOWEVER ACCEPTED THAT AN AMOUNT OF RS. 4 65 00 0/- WAS SOURCED FROM WITHDRAWALS IN HIS DAUGHTERS ACCOUNT. T HEREFORE HE GAVE CREDIT TO THAT EXTENT. THE BALANCE AMOUNT WAS CON FIRMED. WITH REFERENCE TO CLAIM OF HRA ALSO CIT(A) CONFIRMED THE SAME STATING THAT ASSESSEE HAS NOT SUBSTANTIATE THE CLAIM WITH A NY EVIDENCE. 4. LD. COUNSEL FILING ADDITIONAL EVIDENCE SUBMITTED THA T ASSESSEE HAD AGRICULTURAL LANDS AND ALSO THERE ARE C ERTAIN TRANSACTIONS WHICH ARE GIVEN TO HIS FRIEND TO AN EXTENT O F RS. 6 LAKHS WHICH WAS RETURNED AND FILED A CONFIRMATION FRO M ONE MR. L. I.T.A. NO. 1638/HYD/2014 SRI N.V. SIVA KUMAR :- 3 -: SAI BABA FOR TRANSACTION ON 02-07-2009 AND REPAYMENT O N 04-07- 2009. 5. LD. DR HOWEVER OBJECTED TO THE ADDITIONAL EVIDENCE STATING THAT IT IS AN AFTERTHOUGHT. HE SUPPORTED THE ORDER OF AO. LD. COUNSEL REFERRED TO THE CHEQUES ISSUED AND DRAWAL ON THOSE DAYS FROM THE BANK STATEMENT TO SUBMIT THAT THIS EVIDENCE COULD NOT BE FURNISHED EARLIER BUT CERTAINLY NOT AN AFTER THOUGHT. 6. WE HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE DOCUMENTS PLACED ON RECORD INCLUDING THE ADDITIONAL E VIDENCE IN THE FORM OF CONFIRMATION OF SOURCE FOR AGRICULTURAL I NCOMES ETC. CONSIDERING THAT ASSESSE IS A SOFTWARE ENGINEER AND DO NOT HAVE ANY BUSINESS ACTIVITY OR SOURCE FOR EARNING INCOMES WE ARE PRIMA FACIE AGREE WITH THE EXPLANATION GIVEN BY ASSESSE THAT MOST OF THE FUNDS ARE FROM EARLIER SOURCES OR AGRICULTURAL INCO ME SOURCES OR MONEYS GIVEN BY ASSESSE WHICH WERE RETURNED. 6.1. BE THAT AS IT MAY SINCE THESE ADDITIONAL EVIDENCES NOT BEEN EXAMINED BY THE AO AND ASSESSEES CONTENTION WAS ALSO NOT EXAMINED PROPERLY WE ARE OF THE OPINION THAT AO CAN R E-EXAMINE THESE ISSUES AND DECIDE ON THE BASIS OF THE EVIDENCE A ND CONTENTIONS. FOR THIS PURPOSE WE SET ASIDE THE ORDER O F AO AND RESTORE THE ISSUE OF VERIFICATION OF CASH DEPOSIT OF RS . 12 50 000/- TO THE FILE OF AO. NOT ONLY THAT ASSESSE ALSO CAN SUB STANTIATE THE RENT PAYMENT SO AS TO CLAIM THE DEDUCTION OF HRA. NOTH ING WAS PLACED ON RECORD TO EXAMINE WHETHER DDO HIMSELF HAS G IVEN BENEFIT OF DEDUCTION U/S. 10 OF HRA IN FORM 16 OR IT I S THE ASSESSEES CLAIM IN THE RETURN OF INCOME. HOWEVER A O IS DIRECTED TO GIVEN AN OPPORTUNITY TO ASSESSEE TO FURNISH EVIDEN CE OF PAYMENT I.T.A. NO. 1638/HYD/2014 SRI N.V. SIVA KUMAR :- 4 -: OF RENT. IT IS NOT UN-COMMON THAT PERSONS EMPLOYED ARE REQUIRED TO STAY AWAY FROM THEIR OWN HOUSE FOR THE PURPOSE OF EM PLOYMENT AND LAW PERMITS DEDUCTION OF HRA IF RENT IS PAID. WITH THESE OBSERVATIONS THIS ISSUE IS ALSO RESTORED TO THE FILE OF AO FOR FRESH EXAMINATION. ASSESSEE SHOULD BE GIVEN DUE OPPORTUNITY IN THE COURSE OF PROCEEDINGS. 7. IN THE RESULT APPEAL OF ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST OCTOBER 2016 SD/- SD/- (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD DATED 21 ST OCTOBER 2016 TNMM COPY TO : 1. SRI N.V. SIVA KUMAR HYDERABAD. C/O. CH. PARTHASARATHY & CO. 1-1-298/2/B/3 1 ST FLOOR SOWBHAGYA AVENUE ST.NO.1 ASHOK NAGAR HYDERABAD. 2. THE INCOME TAX OFFICER WARD-12(4) HYDERABAD. 3. CIT(APPEALS)-II HYDERABAD. 4. CIT-I HYDERABAD. 5. D.R. ITAT HYDERABAD. 6. GUARD FILE.