ITO, CHENNAI V. R.Senthil Maran, CHENNAI

ITA 1272/CHNY/2013

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 68739 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-09-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 07-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T N BETGERI IRS
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER ITA NO.1272(MDS)/2013 ASSESSMENT YEAR : 2009-10 THE INCOME-TAX OFFICER, WARD VII(2), CHENNAI. VS SHRI R.SENTHIL MARAN, NO.55, I FLOOR SINGANNA CHETTY ST., CHINTADRIPET, CHENNAI-2. PAN BCHPS1981K. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.N.BETGERI, IRS , JCIT RESPONDENT BY : NONE DATE OF HEARING : 25 TH SEPTEMBER, 2013 DATE OF PRONOUNCEMENT : 25 TH SEPTEMBER, 2013 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT THIS IS AN APPEAL FILED BY THE REVENUE. THE RELE VANT ASSESSMENT YEAR IS 2009-10. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-IX AT CHENNAI, DATED 27-2-2013. THE APPEAL ARISES OUT OF THE - - ITA 1272 OF 2013 2 ASSESSMENT COMPLETED UNDER SECTION 143(3) OF THE IN COME-TAX ACT, 1961. 2. THE GROUND RAISED BY THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN AL LOWING THE ASSESSEES APPEAL WHEN THE ASSESSEE HAS NOT MAINTAI NED PROPER BOOKS OF ACCOUNTS AS REQUIRED UNDER SECTION 44AA(2) OF THE INCOME-TAX ACT, 1961. IT IS THE CASE OF THE RE VENUE THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) OUGHT TO HAVE APPRECIATED THE FACT THAT IN THE ABSENCE OF BOOKS O F ACCOUNTS, IT WAS NOT POSSIBLE TO VERIFY THE GENUINENESS OF SOURC E FOR CASH AND CHEQUE DEPOSITS. 3. AT THE TIME OF HEARING, NOBODY WAS PRESENT FOR THE RESPONDENT-ASSESSEE, INSPITE OF SERVICE OF NOTICE. WE HEARD SHRI T.N.BETGERI, THE LEARNED JOINT COMMISSIONER OF INCOME-TAX APPEARING FOR THE REVENUE. 4. THE ASSESSEE IS CARRYING ON THE BUSINESS OF TRA VEL AGENCY/CONSULTANT AS WELL AS MANPOWER RECRUITMENT. IN THAT - - ITA 1272 OF 2013 3 PROCESS, HE IS COLLECTING MONEY FROM HIS CLIENTS FO R VARIOUS SERVICES LIKE APPLYING FOR VISA, PURCHASE OF AIR TI CKET, ETC. THESE AMOUNTS ARE COLLECTED IN ADVANCE. THE ADVANCE COLL ECTED FROM CUSTOMERS IS SETTLED AGAINST THE FINAL BILL ISSUED BY THE ASSESSEE. THEREFORE, ALL THE CREDITS REFLECTED IN THE BANK AC COUNT OF THE ASSESSEE CANNOT BE TREATED AS THE INCOME OF THE ASS ESSEE. THEY ARE ALL CREDITS APPEARING IN THE ACCOUNT OF TH E ASSESSEE RECEIVED FROM VARIOUS CLIENTS MEANT FOR DIFFERENT S ERVICES. THE ASSESSING OFFICER HAS MADE AN ADDITION OF ` 1,52,72,433/- BY TREATING THE SUMMATION OF THOSE CREDITS AS THE INCO ME IN THE HANDS OF THE ASSESSEE. 5. THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS EXAMINED THE CASE IN THE RIGHT PERSPECTIVE AND HE F OUND THAT WHAT HAS BEEN SUMMED UP BY THE ASSESSING AUTHORITY AS THE INCOME OF THE ASSESSEE IS OTHER PEOPLES MONEY AND NOT THE INCOME OF THE ASSESSEE. THEREFORE, WE FIND THAT TH E COMMISSIONER OF INCOME-TAX(APPEALS) HAS RIGHTLY DEL ETED THE ADDITION MADE BY THE ASSESSING OFFICER. - - ITA 1272 OF 2013 4 6. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME O F HEARING ON WEDNESDAY, THE 25 TH OF SEPTEMBER, 2013 AT CHENNAI. SD/- SD/- (VIKAS AWASTHY) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED, THE 25 TH SEPTEMBER, 2013. V.A.P. COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR 6. GF.