M/S SUGANCHAND RATANLAL GOTEWALA, AJMER V. INCOME TAX OFFICER, WARD-1-1, AJMER

ITA 1187/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8686 (ITAT-JAIPUR)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2012-2013
• Appeal Filed On: 11-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: JAI SINGH
• Keywords: Principle of natural justice
• Section: 154

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S,B JAIPUR JH FOT; IKY JKO] U;KF;D LNL; ,OA JH FOE FLAG ;KNO] YS[KK LNL; DS LE{K BEFORE: SHRI VIJAY PAL RAO, JM & SHRI VIKRAM SINGH YADAV, AM VK;DJ VIHY LA- @ ITA NO. 1187/JP/2018 FU/KZKJ.K O'K Z @ ASSESSMENT YEAR : 2012-13 M/S SUGANCHAND RATANLAL GOTEWALA KARRAKA CHOWK, AJMER. CUKE VS. THE ITO, WARD -1(1), AJMER. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAIFS 1784 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPO NDENT FU/KZKFJRH DH VKSJ L S@ ASSESSEE BY : NONE (DATE WAS NOTED) JKTLO DH VKSJ LS @ REVENUE BY : SHRI JAI SINGH (JCIT) LQUOKBZ DH RKJH[ K@ DATE OF HEARING : 02/04/2019 MN?KKS'K.KK DH RKJH[ K@ DATE OF PRONOUNCEMENT: 04/04/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 09.07.2018 OF LD. CIT (A), AJMER FOR THE ASSESSMENT YEAR 2012-13. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND:- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LD. A.O. HAS ERRED IN MAKING ADDITION OF RS. 1,20,016/- BY DISAL LOWING INTEREST ON CAPITAL PAID PARTNER SH. SUNIL RANKA AMOUNTING T O RS. 1,20,016/- PREJUDICIALLY ON VAGUE BASIS WITHOUT ANY LEGAL GROUND AND THE ADDITION IS REQUIRED TO BE DELETED AS THE S AME IS AGAINST LAW, NATURAL JUSTICE AND ENQUIRY. ITA NO. 1187/JP/2018 M/S SUGANCHAND RATANLAL GOTEWALA VS. ITO 2 2. THE APPELLANT CARVES LEAVE TO ADD, AMEND, ALTER, VARY AND OR WITHDRAW ANY OR ALL THE ABOVE GROUNDS OF APPEAL WIT H THE PRIOR PERMISSION OF THE CHAIR. 2. NONE HAS APPEARED ON BEHALF OF THE ASSESSEE WHEN THIS APPEAL WAS CALLED FOR HEARING. IT TRANSPIRES FROM THE RECO RD THAT ON THE LAST DATE OF HEARING I.E. ON 28.01.2019 THE ASSESSEE FIL ED AN APPLICATION FOR ADJOURNMENT AND CONSEQUENTLY HEARING OF APPEAL WAS ADJOURNED FOR TODAY I.E. ON 02.04.2019 WHICH WAS DULY NOTED BY TH E AUTHORIZED REPRESENTATIVE OF THE ASSESSEE. DESPITE THE DATE OF HEARING DULY NOTED DOWN BY THE LD. AR OF THE ASSESSEE, NONE HAS APPEAR ED TO ARGUE THE APPEAL. ACCORDINGLY, WE PROPOSE TO HEAR AND DISPOSE OFF THE APPEAL EX- PARTE. 3. WE HAVE HEARD THE LD. DR AS WELL AS PERUSED THE RELEVANT MATERIAL ON RECORD. THE LD. DR HAS SUBMITTED THAT T HE ASSESSING OFFICER HAS MADE DISALLOWANCE OF INTEREST PAID ON CAPITAL O F THE PARTNER BY CONSIDERING THE OTHER DRAWINGS MADE BY THE PARTNER DURING THE YEAR UNDER CONSIDERATION. THUS, HE HAS POINTED OUT THAT THE ASSESSEE HAS CLAIMED INTEREST PAYMENT @ 12% ON THE OPENING BALAN CE OF THE CAPITAL ACCOUNT OF THE PARTNER WHEREAS THE AO HAS RESTRICTE D THE CLAIM BY CONSIDERING THE DRAWINGS MADE BY THE PARTNER DURING THE YEAR UNDER CONSIDERATION TO THE EXTENT OF RS. 10,00,129/-. THU S, THE LD. DR HAS ITA NO. 1187/JP/2018 M/S SUGANCHAND RATANLAL GOTEWALA VS. ITO 3 SUBMITTED THAT THE LD. CIT(A) HAS GRANTED ONE MORE OPPORTUNITY TO THE ASSESSEE WHILE CALLING FOR REMAND REPORT FROM THE A SSESSING OFFICER. 4. HAVING CONSIDERED THE SUBMISSIONS OF LD. DR AND PERUSAL OF THE IMPUGNED ORDER OF THE LD. CIT(A), WE FIND THAT THE LIMITED DISPUTE IS REGARDING THE CLAIM OF INTEREST ON PARTNERS CAPITA L WHETHER ON THE OPENING BALANCE OR AFTER CONSIDERING THE WITHDRAWAL S/DRAWINGS MADE BY THE PARTNER DURING THE YEAR UNDER CONSIDERATION. TH E ASSESSEE HAS NOT DISPUTED THE DRAWINGS/WITHDRAWALS MADE BY THE PARTN ER TO THE EXTENT OF RS. 10,00,129/-. THE LD. CIT(A) AFTER CONSIDERING T HE REMAND REPORT HAS HELD IN PARA 4.3 AS UNDER:- 4.3 I HAVE GONE THROUGH THE ASSESSMENT ORDER, STAT EMENT OF FACTS, GROUNDS OF APPEAL, WRITTEN SUBMISSIONS, REMA ND REPORT AND REJOINDER CAREFULLY. IT IS SEEN THAT THE APPELLANT HAS CLAIMED DEDUCTION IN RESPECT OF INTEREST CALCULATED ON THE OPENING BALANCE IN THE CAPITAL ACCOUNT OF SHRI SUNIL KUMAR RANKA, T HE PARTNER OF THE ASSESSEE FIRM. I AM IN AGREEMENT WITH THE VIEW OF THE AO THAT INTEREST HAS TO BE CALCULATED AFTER CONSIDERIN G THE VARIOUS WITHDRAWALS AND DEPOSITS MADE BY THE PARTNER DURING THE WHOLE YEAR. THEREFORE, THE DISALLOWANCE OF INTEREST OF RS . 1,20,016/- MADE BY THE AO BY MAKING ORDER DATED 12.12.2017 U/S 154 IS HEREBY CONFIRMED. ACCORDINGLY, IN THE ABSENCE OF ANY CONTRARY MATERIA L OR FACT BROUGHT ON RECORD BY THE ASSESSEE, WE DO NOT FIND ANY ERROR OR ILLEGALITY IN THE IMPUGNED ORDER OF THE LD. CIT(A). ITA NO. 1187/JP/2018 M/S SUGANCHAND RATANLAL GOTEWALA VS. ITO 4 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMI SSED. ORDER PRONOUNCED IN THE OPEN COURT ON 04/04/2019. SD/- SD/- FOE FLAG ;KNO FOT; IKY JKO (VIKRAM SINGH YADAV) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 04/04/2019. * SANTOSH. VKNS'K DH IZFRFYFI VXZSFKR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S SUGANCHAND RATANLAL GOTEWALA, AJMER. 2. IZR;FKHZ@ THE RESPONDENT- ITO, WARD- 1(1), AJMER. 3. VK;DJ VK;QDR@ CIT 4. VK;DJ VK;QDR@ CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR. 6. XKMZ QKBZY@ GUARD FILE {ITA NO. 1187/JP/2018} VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASST. REGISTRAR