Tripti Kharia, Indore V. ITO 3(3) , Indore

ITA 124/Ind/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5621 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-08-2021
• Assessment Year: 2017-2018
• Appeal Filed On: 26-02-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained investment; Opportunity of being heard; TDS; FORM 26AS
• Section: 143(3); 143(1); 201; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HONBLE RAJPAL YADAV, VICE PRESIDENT AND SHRI MANISH BORAD, ACCOUNTANT MEMBER VIRTUAL HEARING ITA NO.123/IND/2020 ASSESSMENT YEAR: 2017-18 SHRI ANIL KHARIA INDORE PAN:ADQPK3936L : APPELLANT V/S ITO-3(3) INDORE : RESPONDENT ITA NO.124/IND/2020 ASSESSMENT YEAR: 2017-18 MS. TRIPTI KHARIA INDORE PAN:ADXPK3415H : APPELLANT V/S ITO-3(3) INDORE : RESPONDENT APPELLANT BY SHRI SUBHASH JAIN, CA REVENUE BY SHRI HARSHIT BARI, SR. DR DATE OF HEARING 06.08.2021 DATE OF PRONOUNCEMENT 13.09.2021 ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 2 O R D E R PER MANISH BORAD, A.M THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE O F THE ASSESSEE FOR ASSESSMENT YEAR 2017-18 ARE DIRECTED A GAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX(APPEALS) (I N SHORT LD. CIT]-II, INDORE DATED 03.06.2019 WHICH IS ARISING OUT OF THE ORDER U/S 143(3) OF THE INCOME TAX ACT 1961(IN SHORT THE ACT) DATED 22.05.2018 FRAMED BY ACIT (CPC), BANGALORE. THE ASSESSEE NAMELY ANIL KHARIA HAS RAISED FOLLOWI NG GROUNDS OF APPEAL IN ITANO.123 /IND/2017: 1. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT (APPEAL) (I), INDORE HAS ERRED IN NOT ALLOWING CREDIT OF CLAIMED TDS OF RS. 2,52,431/- ON BANK INTEREST WHICH WAS AL READY OFFERED DURING DECLARATION IN IDS 2016 BUT CREDIT OF TDS AM OUNT WAS NOT ALLOWED. HENCE CLAIMED IN REGULAR RETURN, HOWEVER C REDIT OF TDS WAS ALSO DISALLOWED AFTER IGNORING TO THE EXPLANATION R EGARDING RELEVANT ASSESSEE NOT CLAIMED IN THEIR INDIVIDUAL RETURN. 2. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CITCA) HAS ERRED IN NOT ALLOWING CREDIT OF TDS IN N AME OF RELATIVES WHOSE INVESTMENT AND INCOME WAS DISCLOSED BY APPELL ANT IN OWN NAME IN IDS 2016 AFTER IGNORING TO THE EXPLANATION, AS NO BENEFIT WAS CLAIMED IN THEIR RESPECTIVE RETURN OF INCOME OF SUCH TDS. 3. YOUR APPELLANT RESERVES ITS RIGHT TO ADD TO AMEND T O ALTER OR TO MODIFY ANY OF ABOVE GROUNDS AND TO PURSUE ANY OTHER OR FURTHER GROUNDS AS MAY BE REQUIRED. THE ASSESSEE NAMELY TRIPTI KHARIA HAS RAISED FOLLOW ING GROUNDS OF APPEAL IN ITANO. 124/IND/2017: ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 3 1. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CIT (APPEAL) (I), INDORE HAS ERRED IN NOT ALLOWING CREDIT OF CLAIMED TDS OF RS. 1,79,702/- ON BANK INTEREST WHICH WAS AL READY OFFERED DURING DECLARATION IN IDS 2016 BUT CREDIT OF TDS AM OUNT WAS NOT ALLOWED. HENCE CLAIMED IN REGULAR RETURN, HOWEVER C REDIT OF TDS WAS ALSO DISALLOWED AFTER IGNORING TO THE EXPLANATION R EGARDING RELEVANT ASSESSEE NOT CLAIMED IN THEIR INDIVIDUAL RETURN. 3. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE THE LEARNED CITCA) HAS ERRED IN NOT ALLOWING CREDIT OF TDS IN N AME OF RELATIVES WHOSE INVESTMENT AND INCOME WAS DISCLOSED BY APPELL ANT IN OWN NAME IN IDS 2016 AFTER IGNORING TO THE EXPLANATION, AS NO BENEFIT WAS CLAIMED IN THEIR RESPECTIVE RETURN OF INCOME OF SUCH TDS. 4. YOUR APPELLANT RESERVES ITS RIGHT TO ADD TO AMEND T O ALTER OR TO MODIFY ANY OF ABOVE GROUNDS AND TO PURSUE ANY OTHER OR FURTHER GROUNDS AS MAY BE REQUIRED. 2. AS THE ISSUES RAISED IN THESE APPEALS ARE COMMON AND RELATE TO SAME GROUP OF ASSESSEES, AT THE REQUEST O F ALL THE PARTIES THESE APPEALS WERE HEARD TOGETHER AND ARE B EING DISPOSED OF BY THIS COMMON ORDER FOR SAKE OF CONVEN IENCE AND BREVITY. 3. AS THE FACTS OF BOTH THE APPEALS ARE SAME AND SO IS THE ISSUE RAISED BEFORE US WILL ADJUDICATE THE COMMON I SSUE RAISED IN THE INSTANT TWO APPEALS ON THE BASIS OF F ACTS IN THE CASE OF ANIL KHARIA IN ITANO.123/IND/2020 AND O UR DECISION IN THIS APPEAL SHALL BE APPLY MUTATIS MUTANDIS ON THE APPEAL OF THE ASSESSEE NAMELY TRIPTI KHARIA IN ITANO.124/IND/2020. 4. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE R ECORDS ARE ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 4 THAT THE ASSESSEE IS AN INDIVIDUAL. THERE WERE SOME UNACCOUNTED INVESTMENTS IN FIXED DEPOSIT HELD WITH BANK IN THE NAME OF SELF AND CHILDREN NAMELY SATYANSHU KHARIA. A SCHEME WAS DECLARED BY THE CENTRAL GOVERNMENT IN THE NAME OF INCOME DECLARATION SCHEME 2016( IN SHORT IDS 2016). ASSESSEE OPTED TO APPLY UNDER THIS SCHEME NOTIFIED BY THE CENTRAL GOVERNMENT EFFE CTIVE FROM 01.06.2016. FORM NO.1 FILED ON 30 TH SEPTEMBER 2016 U/S 183 OF THE ACT DECLARING AN AMOUNT OF RS.76,89, 304/- . THEREAFTER ASSESSEE FILED THE RETURN FOR A.Y. 201 7-18 DECLARING INCOME OF RS.55,00,270/- WHICH ALSO INCLU DED THE INTEREST INCOME ON INVESTMENT DECLARED UNDER ID S 2016. TOTAL TDS CLAIMED WAS RS.4,22,140/-, BUT IN T HE INTIMATION U/S 143(1) OF THE ACT DATED 13.06.2018 C REDIT FOR TDS OF ONLY RS.1,29,132/- WAS GIVEN. 5. ASSESSEE FILED AN APPEAL BEFORE LD. CIT(A) CLAIM ING THAT THE TDS OF RS.2,52,431/- WHICH WAS DEDUCTED ON THE INTEREST ACCRUED/PAID ON THE INVESTMENTS DECLARED U NDER IDS 2016 HAS NOT BEEN GIVEN TO THE ASSESSEE, AS IT WAS NOT APPEARING IN FORM 26AS AVAILABLE ON THE PORTAL OF I NCOME TAX DEPARTMENT. IT WAS ALSO CONTENDED THAT SINCE TH E ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 5 INVESTMENTS WERE UNACCOUNTED, PAN NO. WAS NOT GIVEN TO BANK AUTHORITIES DUE TO WHICH TAX WAS DEDUCTED AT H IGHER RATE AND THE AMOUNT OF TAX DEDUCTED COULD NOT APPEA R IN NO.26AS STATEMENT ON THE PORTAL OF INCOME TAX DEPARTMENT. THIS REQUEST OF THE ASSESSEE WAS NOT ACCEPTED BY LD. CIT(A). 6. AGGRIEVED ASSESSEE IS NOW IN APPEAL BEFORE THE T RIBUNAL. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT SUM OF RS.76,89,304/- WAS DECLARED UNDER IDS 2016 WHICH INCLUDED THE INCOME DISCLOSED IN SELF-NAME AT RS. 48,06,488/- AND THE INCOME DISCLOSED IN THE NAME OF SON SATYANSHU KHARIA AT RS.28,82,816/-. TDS CREDIT FOR THE TAX DEDUCTION ON THE INVESTMENTS DECLARED UNDER IDS 2016 WAS NOT ALLOWED. ASSESSEE REFERRED TO THE PAPE R BOOK DATED 18.06.2012 AND 4.08.2021 AND ALSO TOOK US THR OUGH THE AFFIDAVIT FILED ON PAGE NO.1 TO 4, COPY OF THE CIRCULAR NO. 25 & 27 DATED 20 TH JUNE 2016 AND 14 TH JULY, 2016 PLACED AT PAGES 5 TO 13 OF THE PAPER BOOK AND OTHER RELEVANT DETAILS. PRAYER WAS MADE FOR GIVING DIRECT ION TO ALLOW THE CREDIT OF TDS OF RS.2,52,431/-. 7. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE (DR) ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 6 VEHEMENTLY ARGUED SUPPORTING THE ORDER OF LD. CIT(A ). 8. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE RECORDS PLACED BEFORE US. SOLE GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN NOT ALLOWING CREDIT OF TDS CLAIMED AT RS.2,52,431/- DEDUCTED ON THE INTEREST INCOME WHICH ACCRUED THE INVESTMENTS OFFERED TO TAX UNDER THE INCOME DE CLARATION SCHEME 2016. 9. WE OBSERVE THAT IN PURSUANCE TO THE INCOME DECLA RATION SCHEME 2016 NOTIFIED BY THE CENTRAL GOVERNMENT W.E .F. 01.06.2016 ASSESSEE FILED DECLARATION IN FORM NO.1 DATED 30.09.2016 AND OFFERED INCOME OF RS.62,41,474/- AND RS.14,47,830/- FOR A.Y. 2016-17 & 2017-18. TOTAL IN COME WAS DECLARED AT RS.76,89,304/- AND TAX AND PENALTY OF R S. 28,82,816/- WAS PAYABLE. ASSESSEE CLAIMED TDS OF RS .2,93,008/- DEDUCTED ON SUCH UNACCOUNTED INVESTMENTS. THE ASSES SEE WAS NOT ALLOWED THE CLAIM OF RS. 2,52,431/- FOR A.Y. 20 17-18. 10. WE FURTHER OBSERVE THAT AS PER CIRCULAR NO.25 O F 2016 DATED 30 TH JUNE 2016 CERTAIN CLARIFICATION WAS GIVEN REGARDIN G THE INCOME DECLARATION SCHEME 2016. IN THIS CIRCULAR QU ESTION NO.4 ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 7 READS THAT WHETHER CREDIT FOR TAX DEDUCTED, IF ANY, IN RESPECT OF INCOME DECLARED SHALL BE ALLOWED? TO THIS QUESTION THE ANSWER GIVEN IN THIS CIRCULAR READS THAT YES, CREDIT FOR TAX DEDUCTED SHALL BE ALLOWED ONLY IN THOSE CASES WHERE THE RELATED IN COME IS DECLARED UNDER THE SCHEME AND THE CREDIT FOR THE TA X HAS NOT ALREADY BEEN CLAIMED IN THE RETURN OF INCOME FILED FOR ANY ASSESSMENT YEAR. 11. WE FURTHER OBSERVE THAT THE ASSESSE HAS STATED IN THE AFFIDAVIT THAT THE ALLEGED SUM OF TDS OF RS. 2,52,431/- HAS N OT BEEN CLAIMED IN ANY OF THE RETURN. THE AMOUNT DECLARED U NDER IDS 2016 BY THE ASSESSEE IS RS.76,89,304/- WHICH COMPRI SES OF TWO PARTS, SUM OF RS.48,06,488/- PERTAINING TO ASSESSEE AND THE REMAINING AMOUNT OF RS.28,82,816/- RELATES TO ASSES SEES SON SATYANSHU KHARIA. THE AMOUNT BEING DECLARED UNDER I DS IS NOT IN DISPUTE. CREDIT FOR TDS HAS NOT BEEN ALLOWED ONL Y FOR THE REASON THAT PAN NO. OF THE PAYEE IS NOT MENTIONED I N THE CERTIFICATE DUE TO WHICH TAX CREDIT IS NOT APPEARIN G IN THE INCOME TAX PORTAL. IT IS AN EVIDENT FACT THAT SINCE THE IN VESTMENTS WAS UNACCOUNTED, ASSESSEE HAD NOT GIVEN THE PAN TO THE BANK WHERE SUCH INVESTMENTS WERE MADE. HOWEVER, SINCE THE ASSE SSEE HAS ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 8 DECLARED THE INCOME UNDER IDS 2016, NOW THE ASSESSE E IS ELIGIBLE TO GET CREDIT FOR TDS OF RS.2,52,431/- AS PROVIDED IN THE CLARIFICATION ON THE IDS 2016 VIDE CIRCULAR NO.25/2 016 DATED 30 TH JUNE 2016. 12. WE, THEREFORE, UNDER THE GIVEN FACTS AND CIRCUM STANCES OF THE CASE ARE OF THE CONSIDERED VIEW THAT NECESSARY VERI FICATION SHOULD BE MADE AT THE LEVEL OF THE LD. AO, BEFORE WHOM ASS ESSEE SHALL PROVIDE ALL THE DETAILS OF IDS 2016, CERTIFICATE OF TAX DEDUCTED IN THE NAME OF SELF AND CHILDREN AND ALSO PROVIDE COMP LETE DETAILS OF TDS RS.2,52,431/-. IF AFTER THE NECESSARY VERIFICAT ION IT IS PROVED THAT THE ALLEGED IDS OF RS.2,52,431/- WAS DEDUCTED ON THE INCOME/INVESTMENT DECLARED UNDER IDS 2016 COMPRISIN G OF THE PRINCIPLE AMOUNT OF THE INVESTMENTS AND INTEREST EA RNED THEREON, THEN THE ASSESSEE SHOULD BE ALLOWED THE BENEFIT OF TAX DEDUCTED AT SOURCE OF RS.2,52,431/-. NEEDLESS TO MENTION THA T PROPER OPPORTUNITY OF BEING HEARD TO BE PROVIDED TO THE AS SESSEE. ACCORDINGLY, GROUND NO.1 & 2 RAISED BY THE ASSESSEE IN ITANO.123/IND/2020 ARE ALLOWED FOR STATISTICAL PURP OSES. GROUND NO.3 IS GENERAL IN NATURE WHICH NEEDS NO ADJUDICATI ON. ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 9 13. NOW WE TAKE UP THE APPEAL IN THE CASE OF TRIPT I KHARIA, ITANO.124/IND/2020. WE FIND THAT THE FACTS IN THIS CASE AND THE ISSUES RAISED ARE IDENTICAL TO THE CASE OF ANIL KHA RIA IN ITANO.123/IND/2020 WHICH WE HAVE ADJUDICATED IN THE PRECEDING PARAS. WE, THEREFORE, APPLY OUR FINDING IN THE CASE OF ANIL KHARIA MUTATIS MUTANDIS ON THE ISSUE RAISED IN THE CASE OF TRIPTI KHARIA. 12. WE, THEREFORE, UNDER THE GIVEN FACTS AND CIRCUM STANCES OF THE CASE ARE OF THE CONSIDERED VIEW THAT NECESSARY VERI FICATION SHOULD BE MADE AT THE LEVEL OF THE LD. AO, BEFORE WHOM ASS ESSEE SHALL PROVIDE ALL THE DETAILS OF IDS 2016, CERTIFICATE OF TAX DEDUCTED IN THE NAME OF SELF AND CHILDREN AND ALSO PROVIDE COMP LETE DETAILS OF TDS RS.1,79,702/-. IF AFTER THE NECESSARY VERIFICAT ION IT IS PROVED THAT THE ALLEGED TDS OF RS.1,79,702/- WAS DEDUCTED ON THE INCOME/INVESTMENT DECLARED UNDER IDS 2016 COMPRIS ING OF THE PRINCIPLE AMOUNT OF THE INVESTMENTS AND INTEREST EA RNED THEREON, THEN THE ASSESSEE SHOULD BE ALLOWED THE BENEFIT OF TAX DEDUCTED AT SOURCE OF RS.1,79,702/-. NEEDLESS TO MENTION THA T PROPER OPPORTUNITY OF BEING HEARD TO BE PROVIDED TO THE AS SESSEE. ACCORDINGLY, GROUND NO.1 & 2 RAISED BY THE ASSESSEE IN ANIL & TRIPTI KHARIA ITA NO.123 & 124/IND/2020 10 ITANO.124/IND/2020 ARE ALLOWED FOR STATISTICAL PURP OSES. GROUND NO.3 IS GENERAL IN NATURE WHICH NEEDS NO ADJUDICATI ON. 14. IN THE RESULT, ASSESSEES APPEALS IN ITANO.123 & 124/IND/2020 ARE ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED AS PER RULE 34 OF ITAT RULES, 1963 ON 13.09.2021. SD/- SD/- (RAJPAL YADAV) (MANISH BORAD) VICE PRESIDENT ACCOUNTANT ME MBER / DATED : 13.09. 2021 PATEL/PS COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE