Tamilnadu Industrial Development Corpn Ltd., CHENNAI V. ACIT, CHENNAI

CO 64/CHNY/2014

• Counselvise Citation: [2015] 123 COUNSELVISE.COM (IT) 0512 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 08-04-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 10-07-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: R VIJAYARAGHAVAN
• Assessee Lawyers: P RADHAKRISHNAN

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER I.T.A. NOS. 1372 & 1373/MDS/2014 ASSESSMENT YEARS :2005-06 & 2006-07 I.T.A. NO. 1192/MDS/2009 ASSESSMENT YEAR :2004-05 & C.O. NO.64/MDS/2014 (IN I.T.A. NO.1372/MDS/2014) C.O. NO.148/MDS/2009 (IN I.T.A. NO.1192/MDS/2009) THE ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE III(1), CHENNAI - 600 034. V. M/S TAMIL NADU INDUSTRIAL DEVELOPMENT CORPORATION LTD., NO.19A, RUKMINI LAKSHMIPATHY SALAI, EGMORE, CHENNAI - 600 008. PAN : AAACT 3409 P ( APPELLANT) ( RESPONDENT & CROSS-OBJECTOR) '( ) * / APPELLANT BY : SH. P. RADHAKRISHNAN, JCIT ,-'( ) * / RESPONDENT BY : SH. R. VIJAYARAGHAVAN, ADVOCATE . ) /$ / DATE OF HEARING : 08.04.2015 0!1 ) /$ / DATE OF PRONOUNCEMENT : 17.04.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: ALL THE APPEALS OF THE REVENUE AND THE CROSS-OBJE CTIONS OF THE ASSESSEE ARE DIRECTED AGAINST THE RESPECTIVE OR DERS OF THE 2 I.T.A. NOS.1372 & 1373/MDS/14 I.T.A. NO.1192/MDS/09 C.O. NO.64/MDS/14 & C.O. NO.148/MDS/09 COMMISSIONER OF INCOME TAX (APPEALS)-III, CHENNAI. SINCE COMMON ISSUE ARISES FOR CONSIDERATION IN ALL THE AP PEALS, WE HEARD ALL THE APPEALS AND CROSS-OBJECTIONS TOGETHER AND D ISPOSE OF BY THIS COMMON ORDER. 2. SHRI P. RADHAKRISHNAN, LD. DEPARTMENTAL REPRESEN TATIVE, SUBMITTED THAT THE ONLY ISSUE ARISES FOR CONSIDERAT ION IS WITH REGARD TO LOSS FROM VENTURE CAPITAL FUND. REFERRING TO SE CTION 115U OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'), THE LD. D.R. SUBMITTED THAT FOR THE PURPOSE OF CLAIMING DEDUCTION OF LOSS FROM VENTURE CAPITAL FUND, THE PERSON RESPONSIBLE FOR MAKING THE PAYMENT OF INCOME ON BEHALF OF A VENTURE CAPITAL COMPANY OR A VENTURE CA PITAL FUND, SHALL FURNISH A STATEMENT AS REQUIRED IN FORM 64 TO THE C HIEF COMMISSIONER. IN THIS CASE, ACCORDING TO THE LD. D .R., SUCH STATEMENT IN FORM 64 WAS NOT FILED BY THE VENTURE C APITAL COMPANY OR A VENTURE CAPITAL FUND. THEREFORE, ACCORDING TO THE LD. D.R., IN THE ABSENCE OF FORM 64, THE ASSESSING OFFICER HAS R IGHTLY DISALLOWED THE LOSS CLAIMED BY THE ASSESSEE IN RESP ECT OF VENTURE CAPITAL COMPANY / VENTURE CAPITAL FUND. 3. ON THE CONTRARY, SHRI R. VIJAYARAGHAVAN, THE LD. COUNSEL FOR THE ASSESSEE, SUBMITTED THAT A STATEMENT IN FORM 64 HAS TO BE FILED 3 I.T.A. NOS.1372 & 1373/MDS/14 I.T.A. NO.1192/MDS/09 C.O. NO.64/MDS/14 & C.O. NO.148/MDS/09 BY THE VENTURE CAPITAL COMPANY AND NOT BY THE ASSES SEE. REFERRING TO SECTION 115U OF THE ACT, THE LD. COUNSEL SUBMITT ED THAT VENTURE CAPITAL COMPANY OR A VENTURE CAPITAL FUND SHALL FUR NISH TO THE CHIEF COMMISSIONER A STATEMENT IN FORM 64. REFERRING TO RULE 12C OF THE INCOME-TAX RULES, 1962, THE LD. COUNSEL SUBMITT ED THAT A STATEMENT OF INCOME / DISTRIBUTED SALARY HAS TO BE FURNISHED BY THE VENTURE CAPITAL COMPANY OR A VENTURE CAPITAL FUND T O THE CHIEF COMMISSIONER BY 30 TH NOVEMBER OF FINANCIAL YEAR IN FORM 64. THEREFORE, WHEN A VENTURE CAPITAL COMPANY OR A VENT URE CAPITAL FUND FAILED TO FURNISH SUCH STATEMENT WITH REGARD T O INCOME DISTRIBUTED, THE ASSESSEE CANNOT BE HELD RESPONSIBL E FOR THE DEFAULT COMMITTED BY THE VENTURE CAPITAL COMPANY OR A VENTU RE CAPITAL FUND. AS FAR AS THE ASSESSEE IS CONCERNED, ACCORDING TO T HE LD. COUNSEL, IT RECEIVED A COPY OF THE STATEMENT IN FORM 64 AND THE SAME WAS FILED BEFORE THE ASSESSING OFFICER. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. WE HAVE C AREFULLY GONE THROUGH THE PROVISIONS OF SECTION 115U OF THE ACT A ND RULE 12C OF THE INCOME-TAX RULES, 1962. A VENTURE CAPITAL COMP ANY OR A VENTURE CAPITAL FUND SHALL FURNISH THE DETAILS OF I NCOME DISTRIBUTED, 4 I.T.A. NOS.1372 & 1373/MDS/14 I.T.A. NO.1192/MDS/09 C.O. NO.64/MDS/14 & C.O. NO.148/MDS/09 BY 30 TH NOVEMBER OF THE FINANCIAL YEAR BY FILING FORM 64 T O THE CHIEF COMMISSIONER OR THE COMMISSIONER WITHIN WHOSE JURIS DICTION THE VENTURE CAPITAL COMPANY OR A VENTURE CAPITAL FUND I S SITUATED. THE RESPONSIBILITY OF FILING THE DISTRIBUTED INCOME IN FORM 64 IS THAT OF THE VENTURE CAPITAL COMPANY OR A VENTURE CAPITAL FUND. THE ASSESSEE, BEING A RECIPIENT OF THE INCOME FROM THE VENTURE CA PITAL COMPANY OR VENTURE CAPITAL FUND, MAY AT THE BEST, FILE COPY OF THE FORM 64 BEFORE THE ASSESSING OFFICER. THEREFORE, THIS TRIB UNAL IS OF THE CONSIDERED OPINION THAT FAILURE OF THE VENTURE CAPI TAL COMPANY OR A VENTURE CAPITAL FUND FOR NOT COMPLYING WITH PROVISI ONS OF SECTION 115U OF THE ACT READ WITH RULE 12C, CANNOT BE A REA SON TO DISALLOW THE CLAIM OF LOSS BY THE ASSESSEE. IN OTHER WORDS, THE NEGLIGENCE OF THIRD PARTY CANNOT BE MADE RESPONSIBLE TO THE ASSES SEE TO SUFFER. IT IS NOT IN DISPUTE THAT THE COPY OF THE FORM 64 SAID TO BE RECEIVED BY THE ASSESSEE WAS FILED ALONG WITH RETURN OF INCOME. IN THOSE CIRCUMSTANCES, THIS TRIBUNAL IS OF THE CONSIDERED O PINION THAT THERE IS NO INFIRMITY IN THE ORDER OF THE CIT(APPEALS). ACCORDINGLY, THE ORDER OF THE LOWER AUTHORITY IS CONFIRMED. 5 I.T.A. NOS.1372 & 1373/MDS/14 I.T.A. NO.1192/MDS/09 C.O. NO.64/MDS/14 & C.O. NO.148/MDS/09 5. THE CROSS-OBJECTIONS OF THE ASSESSEE ARE ONLY TO SUPPORT THE ORDERS OF THE CIT(APPEALS). THEREFORE, THE CROSS-O BJECTIONS ARE NOT MAINTAINABLE. 6. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AS WELL AS THE CROSS-OBJECTIONS OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED ON 17 TH OF APRIL, 2015 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) (. !' ) ( . . . ) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 3 /DATED, THE 17 TH APRIL, 2015. KRI. ) ,/45 651/ /COPY TO: 1. '( /APPELLANT 2. ,-'( /RESPONDENT 3. . 7/ () /CIT(A)-III, CHENNAI-34 4. . 7/ /CIT, CHENNAI-III, CHENNAI-34 5. 58 ,/ /DR 6. 9: ; /GF.