Annaswamy Suresh, CHENNAI V. ITO Non Corporate Ward 3(1), CHENNAI

ITA 1154/CHNY/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 9530 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-09-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 22-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: J SREE VIDYA
• Keywords: Earning of tax free income; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1154/CHNY/2019 ( / ASSESSMENT YEAR: 2013-14) SHRI ANNASWAMY SURESH, 3A, 3 RD FLOOR, JAMAL SONU TERRACE, 42, LOGNATHAN NAGAR, 109, JAWAHARLAL NEHRU ROAD, CHENNAI 600 094. VS THE INCOME TAX OFFICER, NON-CORPORATE WARD 3(1), CHENNAI PAN: AEGPS 0494G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS. J. SREE VIDYA, ADVOCATE / RESPONDENT BY : SHRI AR.V. SREENIVASAN, JCIT /DATE OF HEARING : 04.07.2019 /DATE OF PRONOUNCEMENT : 27.09.2019 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-11, CHENNAI IN ITA NO. 55/16-17DATED 21.02.2019 FOR THE ASSESSMENT YEAR 2013-14. :-2-: ITA NO. 1154/CHNY/2019 2. WHILE MAKING THE ASSESSMENT FOR ASSESSMENT YEAR 2013-14 IN SHRI ANNASWAMY SURESH, THE ASSESSEES CASE, THE AO FOUND, INTER ALIA, THAT THE ASSESSEE HAD INVESTMENT PORTFOLIO AS ON 31.03.2012 AT RS.2 CRORE. SINCE, HE HAS NOT MADE ANY DISALLOWANCE U/S.14A R.W.R.8D, THE AO AFTER DUE CONSIDERATION MADE A DISALLOWANCE OF RS.5,85,439/-. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE LD.CIT(A) DISMISSED THE APPEAL. AGGRIEVED AGAINST THE ORDER OF THE LD.CIT(A), THE ASSESSEE FILED THIS APPEAL. 3. THE LD.AR SUBMITTED THAT THE ASSESSEE HAD LENT MONEY TO THE SISTER CONCERN OUT OF HIS OWN FUNDS AND HAND NOT INVESTED IN SHARES. SINCE, THE ASSESSEE HAS NOT EARNED ANY EXEMPT INCOME DURING THE RELEVANT ASSESSMENT YEAR, NO DISALLOWANCE IS WARRANTED. PER CONTRA, THE LD.DR SUBMITTED THAT THE AO HELD THAT RS.2 CRORE WAS AN INVESTMENT. BEFORE THE LD.CIT(A), THE ASSESSEE SUBMITTED THAT THE IMPUGNED SUM WAS AN ADVANCE AND NO SHARES WERE ALLOTTED TILL 31.03.2013. THEREFORE, IT IS CLEAR THAT THE FACTS AND CIRCUMSTANCES ASSOCIATED WITH THIS ISSUE HAS NOT BEEN BROUGHT ON RECORD CLEARLY FOR A DUE CONSIDERATION AND HENCE THE APPEAL MAY BE DECIDED ACCORDINGLY. :-3-: ITA NO. 1154/CHNY/2019 4. WE HEARD THE RIVAL SUBMISSIONS. IT IS CLEAR FROM THE ABOVE, SINCE THE FACTS AND ASSOCIATED CIRCUMSTANCES HAVE NOT BEEN ENQUIRED DULY, WE DEEM IT FIT TO SET ASIDE THE ORDER OF THE LD.CIT(A) AND REMIT THIS ISSUE BACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY ALL MATERIAL IN SUPPORT OF HIS CONTENTIONS BEFORE THE AO AND COMPLY WITH THE REQUIREMENTS OF THE AO IN ACCORDANCE WITH LAW. THE AO, AFTER AFFORDING DUE OPPORTUNITY TO THE ASSESSEE, SHALL PASS DUE ORDER IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 27 TH SEPTEMBER, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 27 TH SEPTEMBER, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. [ /GF ( ) (DUVVURU R.L REDDY) /JUDICIAL MEMBER ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER