SMT. MADHU VIJAY, KOTA V. DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, KOTA

ITA 1255/JPR/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 6169 (ITAT-JAIPUR)
• Duration Of Justice: 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2011-2012
• Appeal Filed On: 05-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ABHISHEK SHARMA CIT DHK
• Assessee Lawyers: B V MAHESHWARI
• Keywords: Validity of assessment
• Section: 139(1); 68

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCH SMC, JAIPUR JH FOT; IKY JKWO] U;KF;D LNL; DS LE{K BEFORE: SHRI SHRI VIJAY PAL RAO, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 1255, 1256 & 1257/JP/2018 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2011-12, 12-13 & 13-14. SMT. MADHU VIJAY, C/O B. VISHAL & CO., CA RAGHUKUL, 15, UIT PLOTS, NR. GUMANPURA POLICE STATION, JHALAWAR ROAD, KOTA. CUKE VS. THE DCIT CENTRAL CIRCLE, KOTA. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. ABFPV 6232 K VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI B. V. MAHESHWARI (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI ABHISHEK SHARMA (ADDL.CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 30.09.2019. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 04/10/2019. VKNS'K@ ORDER PER VIJAY PAL RAO, JM : THESE THREE APPEALS BY THE ASSESSEE ARE DIRECTED A GAINST THREE SEPARATE ORDERS OF LD. CIT (APPEALS)-2, UDAIPUR ALL DATED 20 .08.2018 FOR THE ASSESSMENT YEARS 2011-12, 12-13 & 13-14 RESPECTIVELY. FOR THE ASSES SMENT YEAR 2011-12 THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. THAT THE LD. A.O. GROSSLY ERRED ON LAW TO ASSE SS THE INCOME U/S 153C IN CASE OF APPELLANT AND CARRIED THE ASSESSMEN T U/S 153C/143(3) OF THE INCOME TAX ACT. THAT THE LD.CIT (A) ALSO ERRED IN SUSTAINING THE SAID ORDER. 2. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS I N MAKING THE ADDITION OF FDR INTEREST INCOME RS. 64,844/-. THAT THE LD. CIT (A) ALSO ERRED IN SUSTAINING THE SAID ORDER. 2 ITA NOS. 1255, 1256 & 1257/JP/2018. SMT. MADHU VIJAY, KOTA 3. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS I N MAKING ADDITION OF POST OFFICE INTEREST RS. 14,400/- & SB A/C IN TRUST RS. 1200/- & THE LD. CIT (A) ALSO ERRED IN SUSTAINI NG THE SAID ORDER. 4. THE ASSESSEE CRAVES TO LEAVE, ADD, ALTER AMEND T HE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUND NO. 1 IS REGARDING VALIDITY OF ASSESSMENT FR AMED UNDER SECTION 153C READ WITH SECTION 143(3). 2. AT THE TIME OF HEARING, THE LD. A/R OF THE ASSES SEE HAS STATED THAT THE ASSESSEE DOES NOT PRESS GROUND NO. 1 OF THE APPEAL AND THE SAME MAY BE DISMISSED AS NOT PRESSED. THE LD. D/R HAS RAISED NO OBJECTIO N IF THE GROUND NO. 1 OF THE ASSESSEES APPEAL IS DISMISSED AS NOT PRESSED. ACC ORDINGLY, GROUND NO. 1 OF THE ASSESSEES APPEAL IS DISMISSED BEING NOT PRESSED. GROUND NO. 2 IS REGARDING ADDITION ON FDR INTEREST. 3. I HAVE HEARD THE LD. A/R AS WELL AS THE LD. D/R AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THE AO HAS MADE THE ADDITION O N ACCOUNT OF INTEREST ON FDR OF RS. 64,844/- WHICH WAS NOT DECLARED BY THE ASSESSEE IN THE RETURN OF INCOME FILED UNDER SECTION 139(1) OF THE IT ACT. THUS IN THE PR OCEEDINGS UNDER SECTION 153C, THE AO ON EXAMINATION OF THE FDR STATEMENT PRODUCED BY THE ASSESSEE NOTED THAT THE ASSESSEE HAS NOT INCLUDED THE INTEREST ON THE FDR I N THE RETURN OF INCOME FILED. THERE IS NO INCRIMINATING MATERIAL FOUND WHICH BELO NG TO THE ASSESSEE DISCLOSING THE INCOME ON ACCOUNT OF INTEREST ON FDR. THEREFORE, W HEN NO REFERENCE IS MADE BY THE AO OF ANY DOCUMENT FOUND DURING THE COURSE OF S EARCH AND SEIZURE ACTION CARRIED OUT IN THE CASE OF KOTA DAL MILL UNDER WHIC H THE HUSBAND OF THE ASSESSEE WAS COVERED, THE ADDITION MADE BY THE AO WHILE FRAMING THE ASSESSMENT UNDER SECTION 3 ITA NOS. 1255, 1256 & 1257/JP/2018. SMT. MADHU VIJAY, KOTA 153C IS NOT JUSTIFIED. ACCORDINGLY THE SAID ADDITI ON IS DELETED. EVEN OTHERWISE, THE INTEREST ON FDR IN CASE OF INDIVIDUAL MAY BE CONSID ERED EITHER ON RECEIPT BASIS OR ON ACCRUAL BASIS, IF ASSESSEE IS FOLLOWING A PRACTICE OF RECOGNIZING THE INCOME ON RECEIPT BASIS THEN NO ADDITION CAN BE MADE ON THIS ACCOUNT AND THAT TOO IN THE PROCEEDINGS UNDER SECTION 153C OF THE ACT. GROUND NO. 3 IS REGARDING INTEREST ON POST OFFICE A ND SAVINGS BANK ACCOUNT. 4. I HAVE HEARD THE LD. A/R AS WELL AS THE LD. D/R AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. THIS ADDITION HAS BEEN MADE BY THE AO IN THE PROCEEDINGS UNDER SECTION 153C WITHOUT MAKING ANY REFERENCE TO ANY MATERIAL FOUND OR SEIZED DURING THE COURSE OF SEARCH BELONGING TO THE ASSESS EE AND DISCLOSING SUCH INCOME. HENCE IN THE ABSENCE OF ANY MATERIAL, THE ADDITION MADE BY THE AO IS NOT SUSTAINABLE. FOR THE ASSESSMENT YEARS 2012-13, THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS IN ISSUING THE NOTICE U/S 153C IN CASE OF APPELLANT AND CARRIED TH E ASSESSMENT U/S 153C/143(3) OF THE INCOME TAX ACT. THAT THE LD . CIT(A) ALSO ERRED IN SUSTAINING THE SAID ORDER. 2. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS I N CHARGING TAX ON FDR INTEREST RS. 52,208/-. THAT THE LD. CIT (A) ALSO ERRED IN SUSTAINING THE SAID ORDER. 3. THE ASSESSEE CRAVES TO LEAVE, ADD, ALTER AMEND T HE GROUNDS OF APPEAL AT THE TIME OF HEARING. 4 ITA NOS. 1255, 1256 & 1257/JP/2018. SMT. MADHU VIJAY, KOTA 5. AT THE TIME OF HEARING, THE LD. A/R OF THE ASSES SEE HAS STATED THAT THE ASSESSEE DOES NOT PRESS GROUND NO. 1 OF THE APPEAL AND THE MAY BE DISMISSED AS NOT PRESSED. THE LD. D/R HAS RAISED NO OBJECTION I F THE GROUND NO. 1 OF THE ASSESSEES APPEAL IS DISMISSED AS NOT PRESSED. ACC ORDINGLY, GROUND NO. 1 OF THE ASSESSEES APPEAL IS DISMISSED BEING NOT PRESSED. GROUND NO. 2 IS REGARDING INTEREST ON FDR. 6. THE ISSUE RAISED IN GROUND NO. 2 IS COMMON TO IS SUE RAISED IN GROUND NO. 2 FOR THE ASSESSMENT YEAR 2011-12. IN VIEW OF THE FI NDINGS OF THE TRIBUNAL FOR THE ASSESSMENT YEAR 2011-12, THE ADDITION MADE BY THE A O IS DELETED. FOR THE ASSESSMENT YEARS 2013-14 , THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS :- 1. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS IN ISSUING THE NOTICE U/S 153C IN CASE OF APPELLANT AND CARRIED TH E ASSESSMENT U/S 153C/143(3) OF THE INCOME TAX ACT AND THE LD. C IT(A) ALSO ERRED IN SUSTAINING THE FINDINGS OF LD. AO. 2. THAT THE LD. AO GROSSLY ERRED ON LAW AND FACTS I N MAKING THE ADDITION OF FDR INTEREST INCOME RS. 47,746/-. THAT THE LD. CIT (A) ALSO ERRED IN SUSTAINING THE SAID ADDITION MADE LD. AO. 3. THAT THE LD. AO GROSSLY IN STATING THE TUITION I NCOME AS UNEXPLAINED U/S 68 AND LEVIED TAX U/S 115BBE. THIS IS WRONG, THERE SHOULD BE THE REGULAR TAX ONLY ON THE INCOME DECLARED EARLIER AND WHICH NOT A PART OF SEARCH. 4. THE ASSESSEE CRAVES TO LEAVE, ADD, ALTER AMEND T HE GROUNDS OF APPEAL AT THE TIME OF HEARING. GROUND NOS. 1 & 3 NOT PRESSED. 5 ITA NOS. 1255, 1256 & 1257/JP/2018. SMT. MADHU VIJAY, KOTA GROUND NO. 2 IS AGAINST INTEREST ON FDR 7. THE ISSUE RAISED IN GROUND NO. 2 IS COMMON TO IS SUE RAISED IN GROUND NO. 2 FOR THE ASSESSMENT YEAR 2011-12. IN VIEW OF THE FI NDINGS OF THE TRIBUNAL FOR THE ASSESSMENT YEAR 2011-12, THE ADDITION MADE BY THE A O IS DELETED. 8. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE A RE PARTLY ALLOWED. ORDER IS PRONOUNCED IN THE OPEN COURT ON 04/10/2 019. SD/- ( FOT; IKY JKWO (VIJAY PAL RAO) U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 04/10/2019. DAS/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- SMT MADHU VIJAY, KOTA. 2. THE RESPONDENT THE DCIT CENTRAL CIRCLE, KOTA. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 1255, 1256 & 1257/JP/2018) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 6 ITA NOS. 1255, 1256 & 1257/JP/2018. SMT. MADHU VIJAY, KOTA