Itta/564/2014 Of Shanta Sriram Constructions Private Limited v. Commissioner Of Income Tax (Central)

HIGH COURT OF JUDICATURE AT HYDERABADFOR THE STATE OF TELANGANA AND THE STATE OF ANDHRAPRADESH THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 564 of 2014 Date: 08.08.2014 Between: Shanta Sriram Constructions Pvt., Limited,Hyderabad. … Appellant And Commissioner of Income Tax (Central),Hyderabad … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTAANDTHE HON’BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. No. 564 of 2014 JUDGMENT:(Per the Hon’ble Sri Justice Sanjay Kumar) This appeal is filed by the assessee against the order dated07.03.2014 passed by the Income Tax Appellate Tribunal, HyderabadBench-A, Hyderabad, in ITA.No.330/Hyd/2013 in relation to assessment year 2009-10 on the following suggested questions of law. “A. Whether on the facts and in the circumstances of the case, theappellate Tribunal erred in confirming the addition of Rs.91,26,000/-towards alleged unexplained payment by placing reliance on an invalidadvance receipt issued by the recipients without signatures of thewitnesses in preference to the sworn depositions of both theparties to the transaction denying the transaction? B. Whether on the facts and in the circumstances of the case, theincome tax department can be said to have discharged the burden ofproof within the meaning of the Income Tax Act, 1961 when they have notchosen to make further enquires subsequent to denial of thetransaction by both the parties to the transaction?C. Whether on the facts and in the circumstances of the case, theappellate Tribunal is justified in applying the principle of‘preponderance of probability’ against the appellant ignoring the factthat it was not profitable to the appellant to hide a transaction ofpayment that would be otherwise allowable as an expenditure for computing the total income and reduce the tax incidence of the appellant? Perusal of the order under appeal reflects that the issue raised related to an unexplained cash receipt. The finding recorded by the authoritiesbelow as well as the Tribunal was that this cash receipt was not adequatelyexplained by the assessee, whereby it could be overlooked and theirdepositions to the contrary could have been acted upon. No question of law,much less a substantial question of law, arises in this appeal as the basis ofthe order under appeal was a pure finding of fact. The appeal is accordingly dismissed. No order as to costs. ___________________ K.J. SENGUPTA, CJ Date: 08.08.2014ES ___________________SANJAY KUMAR, J