Sri PV Siva Krishna, Partner:M/s Sri Vamsi Krishna Gen. Trs., Visakhapatnam v. The ITO, Ward-1(2), Guntur

ITA 477/VIZ/2010 | 2007-2008
Pronouncement Date: 04-07-2011 | Result: Allowed

Appeal Details

RSA Number 47725314 RSA 2010
Assessee PAN AMBPP7520P
Bench Visakhapatnam
Appeal Number ITA 477/VIZ/2010
Duration Of Justice 9 month(s) 14 day(s)
Appellant Sri PV Siva Krishna, Partner:M/s Sri Vamsi Krishna Gen. Trs., Visakhapatnam
Respondent The ITO, Ward-1(2), Guntur
Appeal Type Income Tax Appeal
Pronouncement Date 04-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 04-07-2011
Date Of Final Hearing 31-03-2011
Next Hearing Date 31-03-2011
Assessment Year 2007-2008
Appeal Filed On 20-09-2010
Judgment Text
ITA NO 477 OF 2010 PV KRISHNA GUNTUR PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE: SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER AND SHRI BR BASKARAN ACCOUNTANT MEMBER ITA NO. 4 77 /VIZAG/ 20 1 0 ASSESSMENT YEAR: 200 7 - 0 8 P.V.SIVA KRISHNA PARTNER M/S SRI VAMSI KRISHNA GEN.TRS. GUNTUR VS. ITO WARD - 1(2) GUNTUR (APPELLANT) PAN NO:AMBPP 7520 P (RESPONDENT) ASSESSEE BY: SHRI Y SURYA CHANDRA RAO CA DEPARTMENT BY: SMT. D. KOMALI KRISHNA SR.DR ORDER PER SHRI SUNIL KUMAR YADAV JUDICIAL MEMBER THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST TH E ORDER OF THE CIT (A) CONFIRMING THE ADDITION OF RS.7.0 LAKHS MADE U/S 68 OF THE ACT ON ACCOUNT OF UNEXPLAINED CREDIT BY THE ASSESSING OFFICER. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE ORDERS OF THE AUTHORITIES BELOW ON THIS ISSUE. DURING THE COU RSE OF THE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER HAS NOTED THAT T HE ASSESSEE HAS INTRODUCED A CREDIT OF RS.7.0 LAKHS IN THE NAME OF SHRI K. RAM G OPAL ON VARIOUS DATES. THIS AMOUNT WAS RECEIVED TO MAKE ADVANCES FOR PURCHASE O F A LAND ACCORDING TO THE ASSESSEE. BEFORE THE ASSESSING OFFICER THE ASSESSEE COULD NOT PLACE RELEVANT EVIDENCE TO PROVE THE GENUINENESS OF THIS LOAN AND CREDIT WORTHINESS OF THE CREDITOR. THE ASSESSING OFFICER TREATED THIS CREDIT AS UNEXPLAINED AND MADE THE ADDITION OF THE SAME U/S 68 OF THE ACT. 3. THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT (A) BUT COULD NOT PLACE RELEVANT EVIDENCE AND THE CIT (A) CONFIRMED THE ADD ITION. NOW THE ASSESSEE HAS ITA NO 477 OF 2010 PV KRISHNA GUNTUR PAGE 2 OF 3 PREFERRED AN APPEAL WITH THE SUBMISSIONS THAT IN FA CT THE ASSESSEE HAS TAKEN A LOAN OF RS.7.5 LAKHS FROM SHRI K. RAM GOPAL THROUGH BANKING CHANNELS ON VARIOUS DATES. THIS LOAN WAS TAKEN TO MAKE ADVANCES FOR PURCHASE OF LAND. 4. IN SUPPORT OF HIS CONTENTION THE LD COUNSEL FOR THE ASSESSEE HAS FILED THE BANK STATEMENT OF THE ASSESSEE IN WHICH THE CREDIT ENTRIES PROVING THE RECEIPTS OF THE AFORESAID LOAN ON VARIOUS DATES ARE AVAILABLE. IN THE BANK STATEMENT THE NAME OF SHRI K. RAM GOPAL FROM WHOM THE AMOUNT WAS RECEIVED IS ALSO MENTIONED. OUT OF THIS LOAN THE ASSESSEE HAS RETURN ED RS.4 LAKHS TO SHRI K. RAM GOPAL THROUGH BANKING CHANNELS. THE LD COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT SINCE THE AMOUNT WAS RECEIVED THROUG H BANKING CHANNELS ITS GENUINENESS SHOULD NOT BE DOUBTED WITHOUT BRINGING ANYTHING CONTRARY ON RECORD. IN SUPPORT OF HIS CONTENTIONS HE HAS PLACE D RELIANCE UPON THE JUDGMENT IN THE CASE OF CIT VS. ORISSA CORPORATION PVT. LTD. 159 ITR 78. 5. THE LD DEPARTMENTAL REPRESENTATIVE ON THE OTHER HAND HAS CONTENDED THAT THE ASSESSEE HAS NOT DISCLOSED THE RECEIPT OF THE AFORESAID LOAN IN ITS BOOKS OF ACCOUNT. IT WAS NOTICED DURING THE COURSE OF SUR VEY PROCEEDINGS. MOREOVER THE ASSESSEE COULD NOT PRODUCE THE RELEVANT EVIDENC E TO PROVE THE GENUINENESS OF THE LOAN IDENTITY AND CREDIT WORTHINESS OF THE CREDITORS. THEREFORE THE REVENUE HAS RIGHTLY TREATED THE AFORESAID LOAN AS U NEXPLAINED CREDIT U/S 68 OF THE ACT. 6. HAVING CAREFULLY GONE THROUGH THE ORDER OF THE L OWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS WE FIND THAT THE AS SESSEE HAS PLACED BANK STATEMENT SHOWING THE RECEIPT OF AFORESAID LOAN AMO UNT FROM SHRI K. RAM GOPAL. PRIMA FACIE THE TRANSACTIONS APPEARS TO BE GENUINE BUT WITH REGARD TO OTHER RELEVANT EVIDENCE IN SUPPORT OF CREDIT WORTHINESS A ND IDENTITY OF THE CREDITORS IT WAS INFORMED BY THE LD COUNSEL FOR THE ASSESSEE BEF ORE US THAT ON ACCOUNT OF HIS STRAINED RELATIONS HE COULD NOT FILE THE CONFIRMATI ON LETTER. BUT IDENTITY AND CREDIT WORTHINESS CAN BE VERIFIED BY THE ASSESSING OFFICER BY SUMMONING THE CREDITORS. FROM A PERUSAL OF THE BANK STATEMENT WE FIND SOME FORCE IN THE CONTENTION OF ITA NO 477 OF 2010 PV KRISHNA GUNTUR PAGE 3 OF 3 THE ASSESSEE WITH REGARD TO THE GENUINENESS AND THE CREDIT WORTHINESS BUT IN THE ABSENCE OF COMPLETE RELEVANT EVIDENCE WE CANNOT AD MIT THE CLAIM OF THE ASSESSEE AT THIS STAGE. WE ARE THEREFORE OF THE VI EW THAT THIS ISSUE REQUIRES PROPER VERIFICATION BY THE ASSESSING OFFICER. WE AC CORDINGLY SET ASIDE THE ORDER OF THE CIT (A) AND REMAND THE MATTER BACK TO THE AS SESSING OFFICER WITH THE DIRECTION TO ADJUDICATE THE ISSUE AFRESH. IF NEED B E THE CREDITORS MAY BE SUMMONED IN ORDER TO EXAMINE THE IDENTITY AND THE C REDIT WORTHINESS. A PROPER OPPORTUNITY SHALL ALSO BE AFFORDED TO THE ASSESSEE WHILE ADJUDICATING THE IMPUGNED ISSUE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 4.7.2011. SD/- SD/- (BR BASKARAN) (SUNIL K UMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER PVV/SPS VISAKHAPATNAM DATE: 4 TH JULY 2011. COPY TO 1 SHRI P.V.SIVA KRISHNA C/O SHRI Y. SURYA CHANDRA RAO CA 49 - 27 - 4/1 2 ND FLOOR MADHURA NAGAR VISAKHAPATNAM 530 016 2 THE ITO WARD - 1(2) GUNTUR 3 4. THE CIT GUNTUR THE CIT(A) GUNTUR 5 THE DR ITAT VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM