Appeal details
Counselvise Citation
[2014] 140 COUNSELVISE.COM (IT) 78492 (ITAT-LUCKNOW)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
1 month(s) 29 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
24-04-2014
Appeal Filed By
Assessee
Order Result
Allowed
Bench Allotted
A
Assessment Year
2006-2007
Appeal Filed On
25-02-2014
Judgement Text
IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 107/LKW/2014 ASSESSMENT YEAR: 2006 - 07 WEALTH MANTRA LTD. LUCKNOW V. DY. CIT RANGE 6 L UCKNOW PAN: AAFCS5076E (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. YOGESH AGARWAL, ADVOCATE RESPONDENT BY: SHRI. ALOK MITRA, D.R. DATE OF HEARING: 22.04.2014 DATE OF PRONOUNCEMENT: 24 .04.2014 O R D E R PER SUNIL KUMAR YADAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) ON VARIOUS GROUNDS, BUT THEY ALL RELATE TO THE DISALLOWANCE OF CREDIT OF SECURITY TRANSACTION TAX (STT) PAID BY THE ASSESSEE, WHILE PASSING A CONSEQUENTIAL ORDER BY THE ASSESSING OFFICER PURSUAN T TO THE DIRECTION OF THE LD. CIT(A). 2 . THE FACTS IN BRIEF BORNE OUT FROM THE RECORD ARE THAT WHILE ADJUDICATING GROUND NO.XIII OF THE APPEAL IN FIRST ROUND , THE LD. CIT(A) HAS GIVEN A CATEGORICAL DIRECTION TO THE ASSESSING OFFICER TO ALLOW CREDIT OF PREPAID TAX AFTER VERIFYING THE SAME AS T HE DETAILS REGARDING THE SAME HAVE ALREADY BEEN FILED BY THE APPELLANT AND THUS CREDIT OF TDS AND OTHER PREPAID TAXES ARE TO BE GIVEN TO THE APPELLANT. PURSUANT TO THE DIRECTIONS OF THE LD. CIT(A), THE ASSESSING OFFICER P ASSED A CONSEQUENTIAL ORDER UNDER SECTION 251/143(3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER CALLED IN SHORT PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : THE ACT') VIDE HIS ORDER DATED 26.8.2009 BUT DID NOT ALLOW THE CREDIT OF PREPAID TAXES I.E. STT. THE ASSESSEE MOVED AN APPLICATION UNDER SECTION 154 OF THE ACT, BUT THE SAME WAS DISMISSED BY THE ASSESSING OFFICER ON THE GROUND THAT THE ASSESSEE HAS NOT FILED FORM NO.10DB ALONG WITH THE RETURN OF INCOME. 3 . AGAINST THE SAID ORDER AN APPEAL WAS FILED BEFORE THE LD. CIT(A), BUT THE ASSESSEE DID NOT FIN D FAVOUR WITH HIM. 4 . NOW THE ASSESSEE IS BEFORE THE TRIBUNAL WITH THE SUBMISSION THAT THE LD. CIT(A) HAS GIVEN A CATEGORICAL DIRECTION TO THE ASSESSING OFFICER TO ALLOW CREDIT OF THE PREPAID TAXES VIDE HIS ORDER DATED 18.6.2009, BUT DESPITE CLEAR DIRECTION , THE ASSESSING OFFICER HAS NOT ALLOWED CREDIT OF THE PREPAID TAXES. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT THE ASSESSEE HAS FILED RETURN OF INCOME BY WAY OF E - FILING, THEREFORE, EVIDENCE OF PREPAID TAXES COULD NOT BE FILED ALONG WITH T HE RETURN OF INCOME. BUT THEY WERE FURNISHED BEFORE THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT PROCEEDINGS. IT WAS FURTHER CONTENDED THAT EVEN BEFORE THE LD. CIT(A) EVIDENCE OF PREPAID TAXES WAS FILED BUT INSTEAD OF VERIFYING THE SAME HE DISMI SSED THE APPEAL OF THE ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT THE LD. CIT(A) HAS GIVEN A CATEGORICAL DIRECTION T O THE ASSESSING OFFICER THAT WHILE GIVING CREDIT OF THE PREPAID TAXES ALLOW THE APPELLANT AN OPPORTUNITY TO PROV E THE TAXES PAID, MEANING THEREBY THE ASSESSING OFFICER WAS REQUIRED TO VERIFY THE PAYMENT OF PREPAID TAXES AND TO ALLOW THE CREDIT THEREOF, BUT HE HAS NOT MADE THE COMPLIANCE OF THE DIRECTIONS OF THE LD. CIT(A) IN ITS LETTER AND SPIRIT. SINCE THE DIRECTI ON OF THE LD. CIT(A) HAS NOT BEEN CHALLENGED BY THE DEPARTMENT, IT ATTAINED FINALITY AND THE SUBORDINATE AUTHORITIES ARE REQUIRED TO FOLLOW THE SAME. 5 . THE LD. D.R., ON THE OTHER HAND, HAS SUBMITTED THAT THE REQUIREMENT FOR GRANT OF CREDIT IS TO FILE FORM NO .10DB ALONG WITH THE RETURN OF INCOME. SINCE IT WAS NEITHER FILED ALONG WITH THE RETURN OF INCOME NOR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE LOWER AUTHORITIES HAVE RIGHTLY DISALLOWED THE CREDIT OF STT. THE LD. D.R. HAS ALSO PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 6 . HAVING GIVEN A THOUGHTFUL CONSIDERATION TO THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS GIVEN A CATEGORICAL DIRECTION TO THE ASSESSING OFFICER TO VERIFY THE P REPAID TAXES. THE LD. CIT(A) HAS ALSO OBSERVED IN HIS ORDER THAT THE DETAILS REGARDING PREPAID TAXES HAVE BEEN FILED BY THE APPELLANT IN THE RETURN OF INCOME AND CREDIT FOR TDS AND PREPAID TAXES ARE TO BE GIVEN TO THE ASSESSEE. THE LD. CIT(A) HAS ALSO GI VEN A DIRECTION TO THE ASSESSING OFFICER TO ALLOW THE ASSESSEE AN OPPORTUNITY TO FILE PROOF OF TAXES, IF NEED BE. FOR REFERENCE, THE DIRECTION S OF THE LD. CIT(A) IN THIS REGARD ARE EXTRACTED HEREUNDER: - 9. THE ONLY EFFECTIVE GROUND RELATES TO DISALLOWAN CE OF CREDIT FOR PREPAID TAXES. THE SAME HAS BEEN RAISED VIDE GROUND NO.XIII OF THE GROUNDS OF APPEAL. I DIRECT THE ASSESSING OFFICER TO ALLOW THE CREDIT FOR PREPAID TAXES AFTER VERIFYING THE SAME. THE DETAILS REGARDING THE SAME HAVE ALREADY BEEN FILED BY THE APPELLANT IN ITS RETURN OF INCOME AND THUS THE CREDIT FOR TDS AND OTHER PREPAID TAXES ARE TO BE GIVEN TO THE APPELLANT. THE ASSESSING OFFICER SHALL WHILE GIVING THE CREDIT ALLOW THE APPELLANT AN OPPORTUNITY TO FILE PROOF OF TAXES PAID. 7 . ADMITTEDLY , THE DIRECTION S OF THE LD. CIT(A) HAVE NOT BEEN CHALLENGED BY THE DEPARTMENT BEFORE THE TRIBUNAL. THEREFORE, IT ATTAINED FINALITY. THE ASSESSING OFFICER HAS PASSED A CONSEQUENTIAL ORDER BUT HE HAS NOT ALLOWED ANY OPPORTUNITY TO THE ASSESSEE TO PRODUCE A NY PROOF OF THE PREPAID TAXES. HE HAS SIMPLY PASSED A CONSEQUENTIAL ORDER AND DID NOT ALLOW CREDIT OF THE PREPAID TAXES TO THE ASSESSEE UNDER THE GARB THAT FORM NO.10DB WAS NOT FILED ALONG WITH THE RETURN OF INCOME. WHEN THE LD. CIT(A) HAS GIVEN A CATEGO RICAL DIRECTION TO THE ASSESSING OFFICER TO MAKE NECESSARY VERIFICATION AND ALLOW AN OPPORTUNITY TO THE ASSESSEE TO PRODUCE EVIDENCE FOR PREPAID TAXES, THE ASSESSING OFFICER OUGHT TO HAVE ALLOWED AN PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 4 - : OPPORTUNITY TO THE ASSESSEE TO PRODUCE EVIDENCE OF PAYMEN T OF PREPAID TAXES I.E. STT, BUT THE ASSESSING OFFICER NEITHER ALLOWED ANY OPPORTUNITY TO THE ASSESSEE TO PRODUCE THE EVIDENCE, IF ANY, NOR HIMSELF HAS VERIFIED THE PAYMENT OF TAXES FROM HIS OWN RECORD. THEREFORE, WE ARE OF THE VIEW THAT THE ASSESSING OFF ICER HAS NOT COMPLIED WITH THE DIRECTIONS OF THE LD. CIT(A) IN ITS LETTER AND SPIRIT AND HAS ARBITRARILY DISALLOWED THE CLAIM OF THE ASSESSEE. WE HAVE ALSO CAREFULLY EXAMINED THE ORDER OF THE LD. CIT(A) AND WE FIND THAT THE ASSESSEE FILED EVIDENCE OF PAYM ENT OF THE PREPAID TAXES OF STT BEFORE THE LD. CIT(A) ALSO BUT THE LD. CIT(A) INSTEAD OF LOOKING INTO IT HAS CONFIRMED THE ORDER OF THE ASSESSING OFFICER. THE ACTION OF THE LD. CIT(A) CANNOT BE APPRECIATED IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE. WE, THEREFORE, SET ASIDE THE ORDER OF THE LD. CIT(A) AND DIRECT THE ASSESSING OFFICER TO ALLOW CREDIT OF PREPAID TAXES I.E. STT AFTER MAKING NECESSARY VERIFICATION ABOUT THE PAYMENT OF PREPAID TAXES I.E. STT. IF EVIDENCE IN THIS REGARD IS NOT AVAILABLE IN HIS RECORD, HE SHALL ASK THE ASSESSEE TO PRODUCE EVIDENCE OF PAYMENT OF STT BEFORE HIM. ACCORDINGLY THE ORDER OF THE LD. CIT(A) IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION OF THE ISSUE AFRESH IN TER M S INDICATED ABOVE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 24.4.2014. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 24 TH APRIL, 201 4 JJ: 2204 PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 5 - : COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )
