M/s. Sri Balaji Constructions, Visakhapatnam v. The Income Tax Officer, Ward-3(2), Visakhapatnam

ITA 626/VIZ/2019 | 2013-2014
Pronouncement Date: 03-03-2021 | Result: Dismissed

Appeal Details

RSA Number 62625314 RSA 2019
Assessee PAN ABBFS8267K
Bench Visakhapatnam
Appeal Number ITA 626/VIZ/2019
Duration Of Justice 1 year(s) 3 month(s) 25 day(s)
Appellant M/s. Sri Balaji Constructions, Visakhapatnam
Respondent The Income Tax Officer, Ward-3(2), Visakhapatnam
Appeal Type Income Tax Appeal
Pronouncement Date 03-03-2021
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted SMC
Tribunal Order Date 03-03-2021
Last Hearing Date 20-12-2019
First Hearing Date 20-12-2019
Assessment Year 2013-2014
Appeal Filed On 08-11-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH VISAKHAPATNAM BEFORE SHRI N.K. CHOUDHRY HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH HON'BLE ACCOUNTANT MEMBER I.T.A. NO. 626 /VIZ/2019 (ASST. YEAR : 201 3 - 1 4 ) M/S. SRI BALAJI CONSTRUCTIONS D.NO. 50 - 177 - 17/7 SRINIVASA NILAYAM HILL VIEW LAYOUT SEETHAMMADHARA N.E. VISAKHAPATNAM . VS. ITO WARD - 3 ( 2 ) VISAKHAPATNAM . PAN NO. ABBFS 8267 K (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI C.SUBRAHMANYAM FC A DEPARTMENT BY : SHRI B.SATYANARAYANA RAJU SR. DR DATE OF HEARING : 17 / 0 2 /2021 . DATE OF PRONOUNCEMENT : 03 / 0 3 /2021 . O R D E R PER N.K. CHOUDHRY JUDICIAL MEMBER THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST THE ORDER DATED 30 /08 /2019 IMPUGNED HEREIN PASSED BY THE LD.CIT(A) - 1 VISAKHAPATNAM U/SEC. 250(6) OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERRED TO AS 'ACT') FOR THE A.Y. 20 1 3 - 1 4 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING AMENDED GROUNDS OF APPEAL: - 1. THE ORDERS PASSED U/SEC. 143(3) OF THE I.T. ACT ARE AGAINST THE FACTS OF THE CASE AND PROVISIONS OF LAW. 2 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) 2. THE LEARNED COMMISSIONER OF INCOME TAX APPEALS (IN SHORT CIT(A)) HAVING ACCEPTED CASH DEPOSITS IN ASSESSEES BANK TO THE EXTENT OF RS. 5 00 000/ - OUGHT TO HAVE ACCEPTED THE REMAINING OF RS. 2 00 000/ - WHEN THE FACTS ARE SIMILAR AND ALSO IS SUPPORTED BY CREDIBLE EVIDENCE. 3. FOR THESE AND OTHER REA S ONS THAT ARE TO BE URGED AT THE TIME OF HEARING OF THE CASE THE APPELLANT PRAYS THAT THE ORDERS PASSED BY THE LD. CIT(A) ARE TO BE QUASHED IN THE INTEREST OF JUSTICE. 3 . IN THIS CASE THE ASSESSEE IS ONLY AGGRIEVED AGAINST THE PARTL Y CONFIRMATION OF ADDITION TO THE TUNE OF RS. 2.00 LAKHS U/SEC. 68 OF THE ACT BY THE LD. CIT(A). THE AO MADE THE ADDITION OF RS.7.00 LAKHS WHICH WAS DEPOSITED BY THE ASSESSEE IN HIS BANK ACCOUNT IN TWO TRANSACTIONS ON 11/09/2012 (RS. 5.00 LAKHS) AND 12/11/2012 (RS. 2.00 LAK HS). THE AO HAS HELD THAT THE SAID AMOUNT WAS CREDITED AS A LOAN FROM A. SATYANARAYANA HOWEVER THE SAID PERSON COULD NOT EXPLAIN THE SOURCE FOR THE SAME . 4 . IN APPEAL BEFORE THE LD. CIT(A) THE ASSESSEE HAD DISCHARGED HIS ONUS ON ACCOUNT OF IDENTITY CREDITWORTHINESS AND GENUINENESS OF THE CREDIT AND ALSO EXPLAINED THE SOURCE OF CREDIT FROM WHICH IT WAS OBSERVED BY THE LD. CIT(A) THAT THE ASSESSEE HAS ALSO REPAID RS.5.00 LAKHS AGAINST THE LOAN OF RS. 7.00 LAKHS . H OWEVER THE LD.CIT(A) ULTIMAT ELY HELD THAT THE ASSESSEE FAILED TO EXPLAIN SATISFACTORY QUA TRANSACTION OF RS. 2.00 LAKHS HENCE ADDITION TO THE EXTENT OF RS. 2.00 LAKHS WAS CONFIRMED BY THE LD. CIT(A) AGAINST THE ADDITION OF RS. 7.00 LAKHS. 5. HEARD THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSEE HAS CLAIMED THAT THE LD. CIT(A) HAVING ACCEPTED THE CASH DEPOSITS IN ASSESSEES BANK TO THE EXTENT OF 3 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) RS.5.00 LAKHS AND THEREFORE OUGHT TO HAVE ACCEPTED THE REM A INING AMOUNT OF RS. 2.00 LAKHS ON THE BASIS OF SIMI LAR FACTS AND CIRCUMSTANCES . 6 . ON THE CONTRARY LD.DR REFUTED THE CLAIM OF THE ASSESSEE AND SUPPORTED THE ORDER OF THE LD. CIT(A). 7 . WE REALISE THAT THE LD. CIT(A) WHILE PASSING THE IMPUGNED ORDER THOROUGHLY GONE INTO THE DETAIL S OF THE AMOUNT DEPOSITED BY THE ASSESSEE IN HIS BANK ACCOUNT AND CAME TO A CONCLUSION AS IT CAN BE SEEN FROM THE RECORD THAT THE ASSESSEE HA D DISCHARGED HIS ONUS QUA IDENTI T Y CREDITWORTHINESS AND GENUINENESS OF THE CREDIT. THE LD. CIT(A) FURTHER HELD THAT THE ASSESSEE HAS ALREADY REPAID RS. 5.00 LAKHS AGAINST THE LOAN OF RS. 7.00 LAKHS HOWEVER FAILED TO EXPLAIN THE TRANSACTION OF RS. 2.00 LAKHS AND THEREFORE IN THE PECULIAR FACTS AND CIRCUMSTANCES AFFIRMED THE PARTLY ADDITION OF RS.2.00 LAKHS ONLY. WE COULD NOT FIND ANY MATERIAL AND/OR CIRCUMSTANCES CONTRARY TO THE CONCLUSION/OBSERVATION OF THE LD.CIT(A) HENCE ARE INCLINED TO DISMISS THE APPEAL OF THE ASSESSEE. CONSEQUENTLY THE ORDER UNDER CHALLENGE IS LIABLE TO BE AFFIRMED AND ACCORDINGLY WE DO SO. 8 . IN THE RESULT APPEAL FILED BY THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 3 R D DAY OF MARCH 2021 . S D / - S D / - (D.S. SUNDER SINGH) ( N.K. CHOUDHRY ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 3 R D MARCH 20 2 1 . VR/ - 4 ITA NO. 626 / VIZ /2019 ( M/S. SRI BALAJI CONSTRUCTIONS ) COPY TO: 1. THE ASSESSEE - M/S. SRI BALAJI CONSTRUCTIONS D.NO. 50 - 177 - 17/7 SRINIVASA NILAYAM HILL VIEW LAYOUT SEETHAMMADHARA N.E. VISAKHAPATNAM. 2. THE REVENUE ITO WARD - 3(2) VISAKHAPATNAM. 3. THE PR. CIT - 1 VISAKHAPATNAM. 4. THE CIT(A) - 1 VISAKHAPATNAM. 5. THE D.R . VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY ITAT VISAKHAPATNAM.