Kalyani Refineries Limited, Hyderabad v. Income Tax Officer, Ward-2(1), Hyderabad

ITA 196/Hyd/2019 | 2013-2014
Pronouncement Date: 21-05-2021 | Result: Allowed

Appeal Details

RSA Number 19622514 RSA 2019
Assessee PAN AAACK4429N
Bench Hyderabad
Appeal Number ITA 196/Hyd/2019
Duration Of Justice 2 year(s) 3 month(s) 8 day(s)
Appellant Kalyani Refineries Limited, Hyderabad
Respondent Income Tax Officer, Ward-2(1), Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 21-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB-A
Tribunal Order Date 21-05-2021
Date Of Final Hearing 24-02-2021
Next Hearing Date 24-02-2021
Last Hearing Date 18-06-2020
First Hearing Date 15-02-2021
Assessment Year 2013-2014
Appeal Filed On 12-02-2019
Judgment Text
1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH A HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA JUDICIAL MEMBER AND SHRI L.P. SAHU ACCOUNTANT MEMBER I.T.A. NO. 196 /HYD./201 9 ASSESSMENT YEAR : 2013 - 14 M/S KALYANI REFINERIES LTD. VS. ITO WARD 2 (1) HYDERABAD HYDERABAD [PAN: AAACK4429N ] (APPEL LANT) (RESPONDENT) FOR ASSESSEE: SHRI P. MURALI MOHAN RAO AR FOR REVENUE: SHRI SUNIL KUMAR PANDEY D.R. DATE OF HEARING : 24/02/2021 DATE OF PRONOUNCEMENT : 21 /05/2021 O R D E R PER S.S. GODARA J.M. THIS ASSESSEES APPEAL FOR AY 2013 - 14 ARISES FROM CIT(A) - 2 HYDERABADS ORDER DATED 04.12.2018 PASSED IN CASE NO. 10058 /201 6 - 17 INVOLVING PROCEEDINGS U/S 143(3) OF THE INCOME TAX ACT 1961 FOR SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE NOTICE AT THE OUTSET THAT THE ASSESSEES SOLE SUBSTANTIVE GRIEVANCE RAISED IN THE INSTANT APPEAL CHALLENGES COR RECTNESS OF BOTH LOWER AUTHORITIES ACTION TREATING UNSECURED LOAN OF RS . 6 40 000/ - AS UNEXPLAINED CASH CREDITS U/S 68 OF THE ACT. THE ASSESSING OFFICERS ASSESSMENT ORDER DATED 24.3.2016 2 HELD THAT NEITHER THE ASSESSEE COULD PRODUCE CONFIRMATION NOR COULD IT PROVE IDENTITY OF THE CREDITOR PARTIES. THE CIT(A) HAS ALSO UPHELD THE ASSESSING OFFICERS ACTION. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS. IT EMERGED DURING THE COURSE OF HEARING THAT THE IMPUGNED SUM REPRESENTS RS.4 00 0 00/ - AND RS.2 40 000/ - FROM DR. VV SUBBA RAO AND SMT VV KALYANI WHOSE RETURNS OF INCOME PANS LEDGER ACCOUNTS ALREADY FORM PART OF THE RECORDS BEFORE THE CIT(A). AND ALSO THAT THE SAID TWO CREDITOR PARTIES ARE FAMILY MEMBERS OF THE ASSESSEES /PROMOTERS FAMILY ONLY. WE CONCLUDE IN THIS VIEW OF THE FACT THAT SUCH KIND OF UNSECURED LOANS COMING FROM THE DIRECTORS OR PROMOTERS FAMILY MEMBERS INVOLVING SMALLER AMOUNTS CANNOT BE ALTOGETHER RULED OUT AND MORE SO WHEN THE ASSESSING OFFICER BEFORE US HAS SIMP LY BRUSHED ASIDE ALL THE CORRESPONDING DETAILS AFTER ALLEGING THAT ASSESSEE HA D NOT EVEN PROVED IDENTITY OF THE LOAN CREDITORS. WE THEREFORE HOLD THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN MAKING THE IMPUGNED UNEXPLAINED CASH CRED IT ADDITION OF RS.6 40 000/ - . T HE SAME IS DIRECTED TO BE DELETED. 4. THIS ASSESSEES APPEAL IS ALLOWED. PRONOUNCED IN OPEN COURT ON 21 ST MAY 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 21 ST MAY 2021. * GMV 3 COPY OF THE ORDER FORWARDED TO: 1. M/S KALYANI REFINERIES LTD. C/O P MURALI & CO. CHARTERED ACCOUNTANTS 6 - 3 - 655/2/3 SOMAJIGUDA HYDERABAD 500 082. 2. ITO WARD 2 (1) HYDERABAD. 3. ACIT RANGE 2 HYDERABAD - 4. CIT(A) - 2 HYDERABAD. 5. PR.CIT - 2 HYDERABAD 6.DR ITAT HYDERABAD. 7. GUARD FILE.