Itta/596/2012 Of Commissioner Of Income Tax-Ii v. M/S. Kanumuri Holdings Pvt. Ltd

THE HONOURABLE SRI JUSTICE GODA RAGHURAMANDTHE HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAO ITTA No. 596 of 2012 Dated: 13-02-2013 Between: Commissioner of Income Tax-IIHyderabad. And M/s Kunumuri Holdings Pvt.LtdHyderabad.. …Appellant …Respondent. THE HONOURABLE SRI JUSTICE GODA RAGHURAMANDTHE HONOURABLE SRI JUSTICE M.S.RAMACHANDRA RAOITTA No. 596 of 2012 Judgment:(Per Hon’ble Sri Justice Goda Raghuram) Concurrent findings of fact by the Appellate Commissioner ofIncome Tax and the Income Tax Appellate Tribunal, Hyderabad ‘B’Bench are assailed by the Revenue in this appeal under Section 260-A of the Income Tax Act,1961. The Tribunal, by the order impugned dated 8-8-2008 in ITA No.632/Hyd/2001 confirmed the Order of the Appellate Commissioner ofIncome Tax dated 29-5-2001 reversing the Order of Assessment dated30-3-2000 passed by the Deputy Commissioner of Income Tax,Central Circle-I, Hyderabad. The Assessment Order had made an addition of Rs.29,71,100/-towards unsecured loans not proved and interest thereon ofRs.5,05,047/-, for the Assessment Year 1997-98 of the respondent-assessee, an Investment Company carrying on Investment business. The Appellate Commissioner analyzed the Assessment Orderappealed against and observed that the Assessing Authority hadplaced much reliance on non-production of evidence by the assesseeto substantiate the source of income of persons who had givenconfirmatory letters corroborating the claim of the assessee as to thesource of its investments. The Appellate Commissioner found that theAssessing Authority had no material on record to dispute theconfirmatory letters other than the enquiries made in respect of 18persons. In the absence of asking the appellant to produce the saidparties for his examination and examining persons who had given confirmatory letters, no case was made out for rejecting the assessee’sclaim corroborated by the confirmatory letters. The Tribunal concurred. We find no perversity or error in the concurrent findings on fact,let alone a substantial question of law arising for consideration in thisappeal by the Revenue. The appeal is dismissed at the stage of admission. _________________________ GODA RAGHURAM, J 13[th] February, 2013 GRR _______________________________ M.S.RAMACHANDRA RAO, J