SRINIVAS REDDY SADDIPALLI,HYDERABAD vs. INCOME TAX OFFICER, WARD-4(3) , HYDERABAD
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Income Tax Appellate Tribunal, Hyderabad ‘SMC‘ Bench, Hyderabad
Before: Shri Manjunatha, G.
ITA No 460 of 2024 Srinivas Reddy Saddipalli
आयकर अपील�य अ�धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘SMC‘ Bench, Hyderabad Before Shri Manjunatha, G. Accountant Member आ.अपी.सं /ITA No.460/Hyd/2024 (िनधा�रण वष�/Assessment Year: 2017-18) Shri Srinivas Reddy Vs. Income Tax Officer Saddipalli Ward 4(3) Hyderabad Hyderabad PAN:CONPS1185P (Appellant) (Respondent) िनधा��रती �ारा/Assessee by: Shri K.A. Sai Prasad, CA राज� व �ारा/Revenue by:: Smt. Helen Ruby Jesindha,DR सुनवाई की तारीख/Date of hearing: 28/05/2024 घोषणा की तारीख/Pronouncement: 28/05/2024 आदेश/ORDER
This appeal filed by the assessee is directed against the order dated 03/03/2024 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2017-18.
Facts of the case, in brief, are that the assessee is an individual, filed his return of income for the A.Y 2017-18 declaring total income of Rs.5,01,320/-. The case was selected for scrutiny to verify the cash deposits into bank account during demonetization period. During the course of assessement
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ITA No 460 of 2024 Srinivas Reddy Saddipalli
proceedings, the Assessing Officer noticed that the assessee has made cash deposits of Rs.24,57,000/- into SBI Amberpet Branch. The Assessing Officer called upon the assessee to furnish necessary evidences to prove the source for cash deposits. The assessee neither appeared nor filed any details. Therefore, the Assessing Officer passed the order u/s 144 of the I.T. Act on 29/11/2019 and made addition of Rs.24,57,000/- u/s 69A r.w.s. 115BBE of the I.T. Act. 1961.
Being aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT (A). Before the learned CIT (A) the assessee has filed certain additional evidences, including relevant bank statements and also details of transactions carried out with Me-Seva (Govt. to Citizen) services towards payment of utility bills. The learned CIT (A) forwarded the additional evidences filed by the assessee to the Assessing Officer for his comments/reports. The Assessing Officer did not furnish his remand report. Therefore, the learned CIT (A) rejected the additional evidences filed by the assessee in light of Rule 46A of the I.T. Rules, 1962 and sustained the addition made towards cash deposits u/s 69 r.w.s. 115BBE of the Act.
Aggrieved by the order of the learned CIT (A), the assessee is in appeal before the Tribunal.
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ITA No 460 of 2024 Srinivas Reddy Saddipalli
The learned Counsel for the assessee referring to the petition filed for admission of additional evidences submitted that the assessee has filed certain additional evidences including the details of transactions carried through ME-SEVA (Govt.Citizen) and also submitted relevant bank statement to prove that the assessee has received cash from general public for facilitating payment of various utility bills and the same has been deposited into the bank account. Therefore, he submitted that one more opportunity may be given to the assessee to go back to the Assessing Officer to explain his case with necessary evidences.
The learned DR, on the other hand, submitted that the assessee could not adduce any reasons for not filing these evidences before the Assessing Officer. Further, the assessee failed to reconcile the cash deposits with cash received from various people for providing the services. Therefore, she submitted that there is no reason to give any opportunity to the assessee and the order of the learned CIT (A) should be upheld.
I have heard both the parties, perused the material available on record and gone through the orders of the authorities below. The assessee claims that he is a franchise owner with APT Online Ltd which is a joint venture of State Govt. and TCS. He is running e-seva centre, collects amounts payable towards water bills, electricity bills, house/property taxes etc., from various persons on behalf of different departments etc. The assessee
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ITA No 460 of 2024 Srinivas Reddy Saddipalli
claims that he received cash from general public and facilitated online payment through various agencies against the bills. Further, the cash collected from citizens has been deposited into his bank account. The assessee has filed evidences like certificate from APT Online to prove he is providing various services, details of transactions with commission earned for the relevant period and also bank statements and claimed that these evidences were not filed before the Assessing Officer. We find the Assessing Officer has passed ex-parte assessment order in absence of necessary details. The assessee has now furnished various evidences and asked for one more opportunity before the Assessing Officer. Therefore, considering the totality of the facts and the nature of activities carried out by the assessee and also the additional evidences filed during the course of appellate proceedings, I am of the considered view that the issue needs to go back to the file of the Assessing Officer for further verification. Thus, I set aside the order of the learned CIT (A) and restore the issue back to the file of the Assessing Officer to reconsider the issue ‘denovo’ after considering the relevant additional evidences filed by the assessee to prove the source for cash deposits. Needless to say, the assessee shall furnish all evidences before the Assessing Officer and explain the source for cash deposits during demonetization period.
In the result, appeal filed by the assessee is allowed for statistical purposes.
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ITA No 460 of 2024 Srinivas Reddy Saddipalli
Order pronounced in the Open Court on 28th May, 2024.
Sd/- (MANJUNATHA, G.) ACCOUNTANT MEMBER Hyderabad, dated 28th May, 2024 Vinodan/sps Copy to: S.No Addresses 1 Shri Srinivas Reddy Saddipalli, C/o Katrapati & Associates, 1-1- 298/2/B/3 Sowbhagya Avenue Apts, 1st Floor, Ashoknagar, Street No.1 Secunderabad 500020 2 Income Tax Officer Ward 4(3) IT Towers, AC Guards, Masab Tank, Hyderabad 5000r4 3 Pr. CIT - Hyderabad 4 DR, ITAT Hyderabad Benches 5 Guard File By Order
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