IN INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA No.98/Hyd/2018 Assessment Year 2007-08 Dharmander Kanduri, Vs. ITO (I/c) Hyderabad. Ward-12(4), PAN: AROPK5618F Hyderabad. (Appellant) (Respondent) Assessee by Sri K.A. Sai Prasad Revenue by Sri Nilanjan Dey, DR Date of hearing 25/07/2019 Date of pronouncement: 25/09/2019 ORDER PER A. MOHAN ALANKAMONY, AM. This appeal is filed assessee against order of Ld. CIT(A)- 1, Hyderabad dated 31/08/2017 in Appeal No.0300/CIT(A)-1/2009- 10/2017-18 passed U/s. 143(3) & U/s. 250(6) of Act for assessment year 2007-08. 2. assessee has raised several grounds in its appeal however, crux of issue is that Ld. CIT (A) has erred in sustaining addition made by Ld. AO for Rs. 15 lakhs. 3. brief facts of case are that assessee is individual earning income from salary filed his return of income for AY 2007- 2 08 on 24/07/2007 admitting total income of Rs. 8,51,290/-. Thereafter, case was taken up for scrutiny and assessment was completed U/s. 143(3) of Act on 31/12/2009 wherein Ld. AO made addition of Rs. 15 lakhs being unexplained cash deposited in bank account of assessee. 4. During course of scrutiny assessment proceedings it was observed by Ld. AO that assessee has deposited cash in his bank account on several occasions. On query it was explained by assessee that amount of Rs. 15 lakhs was received from his in-laws. To justify same, assessee further furnished letter from his mother-in-law Smt. B. Sabita Rani wherein it was stated as follows:- I am B. Sabita Rani W/o. Late B. Murali Mohan writing this on behalf of my husband about amount given to our son-in-law K. Charmander. We have given money amounting Rs. 15,00,000 as gift for my daughter K. Shalini on her marriage that took place on 10th January, 2007. Some part of money we gave in engagement ceremony on 15th November, 2006. remaining money we have arranged in three months from engagement date giving some money every month till February. 5. However, Ld. AO was not satisfied because assessee had not furnished further details of his in-laws to explain their source for Rs. 15 lakhs. Therefore, Ld.AO added amount of Rs. 15 lakhs to his income invoking provisions of section 68 of Act. On appeal, Ld. CIT (A) agreed with view of Ld. AO. 6. At outset, we do not find any merit in order of Ld. Revenue Authorities. assessee had explained source for gift 3 received for Rs. 15 lakhs and also furnished letter from his in-laws. Revenue was at liberty during proceedings before them to summon assesse s in-laws or make further enquiries in order to verify explanation offered by assessee. However, without taking any such steps Ld. AO had simply proceeded to make addition in hands of assessee based on presumption that assessee s in-laws did not have such funds for gifting it to assessee and same was endorsed by Ld.CIT(A). Considering financial status of assessee and his background, it is not unusual for him to receive such sum as gift from his in-laws. Therefore, I am of view that addition made by Ld. AO on this issue which is further sustained by ld. CIT (A) is not warranted. Hence, I hereby direct Ld. AO to delete addition made for Rs. 15 lakhs in hands of assessee invoking provisions of section 68 of Act. 7. In result, appeal of assessee is allowed. Pronounced in open Court on 25 th September, 2019. Sd/- (A. MOHAN ALANKAMONY) ACCOUNTANT MEMBER Hyderabad, Dated 25th September, 2019 OKK Copy to:- 1) Dharmander Kanduri C/o. Ch. Parthasarathy & Co., 1 -1- 298/2/B/3, 1 s t Floor, Sowbhagya Avenue, St. No.1, Ash ok anger, Hyderabad 020. 4 2) ITO (I/c), Ward-12(4), Aayakar Bhavan, Basheer Bagh, Hyderabad. 3) CIT(A)-1, Hyderabad 4) Pr. CIT-1, Hyderabad 5) DR, ITAT, Hyderabad 6) Guard File Dharmander Kanduri v. ITO (I/c), Ward-12(4), Hyderabad