RAZIYA BEGUM MOHAMMAD,SANGAREDDY vs. INCOME TAX OFFICE, WARD-1, SANGAREDDY

Succinctly stated, the assessee had filed her return of income for AY 2017-18 on 08/10/2017, declaring an income of Rs.5,66,950/-. Subsequently, the case of the assessee was selected for scrutiny assessment under Computed Aided Scrutiny Selection (CASS).

During the course of the assessment proceedings, the AO observed that there were cash deposits/credits aggregating to Rs.5,91,090/- in the assessee’s bank account No.1817501333 held with Andhra Pradesh Grameena Vikas Bank, Sangarddy Branch during the demonetization period, i.e., 09/11/2016 to 31/12/2016, viz., (i) cash

Aggrieved, the assessee carried the matter in appeal before the CIT(A).

The CIT(A) after considering the explanation of the assessee though vacated the addition of Rs.5,00,000/-, but sustained the addition of the unexplained credit entries of Rs.91,090/- and partly allowed the appeal.

The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us.

We have heard the Learned Authorized Representatives of both parties, perused the orders of the lower authorities and the material available on record.

Mrs. Sandhya, Advocate, the Learned Authorized Representative (for short, “Ld. AR”) for the assessee, at the threshold of hearing of the appeal submitted that the CIT(A) had grossly erred in sustaining the addition of Rs.91,090/-, which pertain to the rental income that was 4 Representative (for short, “Ld. Sr. DR”) relied upon the orders of the authorities below.

We have given thoughtful consideration to the contentions of the Ld. AR in the backdrop of the orders of the lower authorities. Ostensibly, a perusal of the Savings Bank Account No.1817501333 held by the assessee with Andhra Pradesh Grameena Vikas Bank, Sangareddy Branch, reveals the credit entries aggregating to Rs.91,090/- spread over the period 09/11/2016 to 31/12/2016, Page No.33 of APB. However, on a careful perusal of the subject credit entries, we find that the same are the rental receipts of the assessee that have duly been disclosed by her in the return of income for the subject year. For the sake of clarity, we cull out the credit entries along with an explanation of the same as can be gathered from the record before us. Sl No Date Amount (Rs.) Particulars 1 30/11/2016 19,350 Rent received from Andhra Pradesh Grameena Vikas Bank 2. 30/11/2016 26,195 Rent received from M/s. Sri Ram Transport Finance Company Limited 3. 13/12/2016 26,195 Rent received from M/s. Sri Ram Transport Finance Company Limited 4. 31/12/2016 19,350 2017-18 vide acknowledgement No.235232250081017 on 08/10/2017, declaring an income of Rs.5,66,950/-, wherein the aforesaid rental income received from the aforementioned parties, viz., (i) M/s. Sri Ram Transport Finance Company Limited; and (ii) Andhra Pradesh Grameena Vikas Bank had duly been disclosed along with the claim for credit of the tax deducted at source by the said respective parties, Page No. 6-7 of APB.

We, thus, considering the fact that the credit entries of Rs. 91,090/-, had duly been disclosed by the assessee as a part of her rental receipts in her return of income for the subject year, therefore, there is no justification for the AO to have made an addition of the same much the less under section 69A of the Act. Accordingly, the addition of Rs.91,090/- sustained by the CIT(A) is vacated.

As we have vacated the impugned addition made by the AO, therefore, we refrain from adverting to the other grounds based on which the applicability of the post-amended provisions of section 115BBE of the Act to the impugned addition has been assailed before us.

Resultantly, the appeal filed by the assessee is allowed in terms of our aforementioned observations.

Ǔनधा[ǐरती/The Assessee : Razia Begum Mohammad, 3-2-160, Netaji Nagar, Sangareddy, Telangana-502001. 2. राजèव/ The Revenue : Income Tax Officer, Ward-1, O/o. ITO, Ward-1, Sangareddy, Sangareddy, Telangana. 3. The Principal Commissioner of Income Tax, Hyderabad. 4. ͪवभागीयĤǓतǓनͬध, आयकरअपीलȣयअͬधकरण /DR,ITAT, Hyderabad. 5. The Commissioner of Income Tax 6. गाड[फ़ाईल / Guard file