Unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “B”: HYDERABAD
(THROUGH VIRTUAL CONFERENCE)
BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER
AND
SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER
ITA No. 313/H/2017
Assessment Year: 2008-09

Dy. Commissioner of Income Tax, Circle-3(2), Hyderabad.

Vs

Kunireddi Srinivas, Hyderabad.
PAN – AMAPK 0271H

Revenue by:
Shri Y.V.S.T. Sai
Assessee by: Shri P. Murali Mohana Rao
Date of hearing: 12/08/2021
Date of pronouncement:15/09/2021

O R D E R

Briefly the facts of the case are that the appellant was an independent director in M/s. SPR Publications Pvt.Ltd. He derived salary income from M/s.SPR Publications Pvt Ltd. He did not file his return of income for A.Y.2008-09. There was a survey in the business premises of group company, M/s. SPR Infrastructure India Ltd on 20.7.2011.

2. M/s. SPR Publications Pvt Ltd and SPR Infrastructure India Ltd were group companies promoted by Sri Suryaprakash Rao. Smt N. Padmaja is the wife of Sri Suryapraksh Rao. She is also managing director in M/s. SPR Publications Pvt Ltd. During the relevant previous year M/s.SPR Publications Pvt Ltd wanted to set up a daily Telegu newspaper namely "SURYA" for which it acquired lands at different places in the combined state of Andhra Pradesh.

3. The appellant had bank account with Kotak Mahindra Bank A/c No.737010061383. The deposits/credits appearing in the said bank accounts during F.Y. 2007-08 were Rs, 18,39,93,689/- received through cheques and the details of which were extracted by the CIT(A) in a tabular form at page 3 & 4 of his order. Part of the amounts received were used for the purpose of land at different places, the details of which were extracted by the CIT(A) at pages 4 & 5 of his order. As per the cash flow statement extracted by the CIT(A) at pages 5 & 6 of his order, the total unutilized funds were Rs. 8,39,93,689/-.

4.In the result, appeal of the revenue is dismissed in above terms.
Pronounced in the open court on 15th September, 2021.

Please find attached the enclosed file for the full judgement