9911796707
TMI Blog2018 (6) TMI 411X X X X Extracts X X X X X X X X Extracts X X X X ..... u/s. 37(1). In spite of repeatedly stating in the order by the CIT(A), the grounds raised are again u/s. 69C. This clearly indicates that the Senior Officers or the AOs are not applying their mind to the issues involved and the statutory provisions which are to be invoked. Expenditure incurred in the books and the expenditure incurred outside the books and invokes wrong provisions so as to raise unnecessary demands. They should be trained properly, instead the same mistake is committed by Senior Officer also, which reflects very badly on the Revenue. Without any further comments, we express our anguish and dismiss the grounds as there is no merit in the grounds at all. - I.T.A. No. 463/HYD/2014 - - - Dated:- 6-6-2018 - SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER For The Revenue : Shri B. Suresh Babu, DR For The Assessee : Shri A. Srinivas, AR ORDER PER B. RAMAKOTAIAH, A.M. : This is an appeal by Revenue against the order of the Commissioner of Income Tax (Appeals)-V, Hyderabad, dated 06-11-2013. 2. Briefly stated, assessee an individual, filed her return of income declaring total income of ₹ 43,58,580/-. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... equent bouncing of the same', which is amply proved by the necessary entries in the bank account statements and ledger copies of the parties in the appellant books of accounts. It is the procedure of the bank as and when a cheque is deposited gives a suspense credit in the statement and when the cheque which was deposited bounced, the bank debits the account. The above entries which the AO has added are reflected both in the debit and credit side as contra when deposited and bounced. As the cheques have bounced, the above amounts were not received by the appellant and hence, the same cannot be treated as unexplained credits and hence the further onus to prove the identity of the creditors, genuineness of the credits and creditworthiness of the creditors does not arise. Therefore, I hold that the AO was not justified in adding the amount of ₹ 29,50,000/- as unexplained credits u/s 68 of the Act and hence, delete the addition of ₹ 29,50,000/- . ii. On the issue of addition of ₹ 38,26,873/- being expenditure and car hire charges: 6.3 I have carefully considered the submissions of the appellant along with details of payments made to persons on accou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted the same to the Govt. Account. 7.4 Further Section 69C mainly deals with the unexplained expenditure incurred by an assessee against whom no explanation with respect to the source is offered or such explanation offered is not satisfactory, then only the said expenditure can be added. In the instant case, the source of the expenditure was not doubted by the AO but only raised doubts about the genuineness of the expenditure and hence, the conditions of Section 69C are not applicable to the case of the appellant. Therefore, both by facts and in law, I am satisfied with the explanation of the appellant and the evidences filed and hence, delete the addition of ₹ 27,91,627/- . iv. On the addition of ₹ 11,68,383/- being expenditure and car hire charges: 8.3 I have carefully considered the submissions of the appellant and find force in the contention and agree with the explanation of the appellant along with TDS Certificates. The appellant paid the amount of ₹ 11,68,383 to the six parties towards car hire charges vide account payee cheques. The AO opined that the details of cheques were not furnished. When the books and bank statements were availab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... apart from assessee's failure to prove the correctness of the claim. 5. Any other ground that may be urged at the time of hearing . 5. In the course of present appellate proceedings, DR was directed to furnish the authorization given by the CIT with reference to the grounds raised before us. The grounds originally filed by the ACIT, Circle-4(1) were revised and revised grounds of appeal filed by the JCIT (OSD) in charge are more or less similar which are as under: 1. That on the facts and in the circumstances of case, the learned CIT(A) erred in deleting the addition made of ₹ 29,50,000/- u/s. 68 of the Income Tax Act, 1961. 2. That on the facts and in the circumstances of the case, the learned CIT(A) erred in deleting the addition made of ₹ 38,26,873/- u/s. 69C of Income Tax Act, 1961. 3. That on the facts and in the circumstances of the case, the learned CIT(A) erred in deleting the addition made of ₹ 27,91,627/- u/s. 69C of Income Tax Act, 1961. 4. That on the facts and in the circumstances of the case, the learned CIT(A) erred in deleting the addition made of ₹ 11,68,383/- u/s. 69C of Income Tax Act, 1961 . 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hould have been considered u/s. 37(1). In spite of repeatedly stating in the order by the CIT(A), the grounds raised are again u/s. 69C. As already pointed out above, this clearly indicates that the Senior Officers or the AOs are not applying their mind to the issues involved and the statutory provisions which are to be invoked. 6.2. It s disturbing to know that an important issue of assessment is left to the hands of the officers who cannot distinguish between the expenditure incurred in the books and the expenditure incurred outside the books and invokes wrong provisions so as to raise unnecessary demands. They should be trained properly, instead the same mistake is committed by Senior Officer also, which reflects very badly on the Revenue. Without any further comments, we express our anguish and dismiss the grounds as there is no merit in the grounds at all. 6.3. We are not levying any cost on any officer even though it deserves. We only wish that the officers would realize the futility of making illogical additions and preferring second appeal on issues such as this. 7. In the result, the appeal of Revenue is dismissed. Order pronounced in the open court on 6th Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
