Akhilesh Kotia, Kolkata V. ITO, WD-1(4), KOLKATA, Kolkata

ITA 1369/KOL/2014

• Counselvise Citation: 136923514 RSA 2014
• Duration Of Justice: 5 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 16-06-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RANU BISWAS
• Assessee Lawyers: K M ROY F

Judgement Text

I.T.A. NO . 1369 / KOL ./201 4 ASSESSMENT YEAR: 200 5 - 20 0 6 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI GEORGE MATHAN , JUDICIAL MEMBER I.T.A. NO. 1 369 / KOL / 20 1 4 ASSESSMENT YEAR : 200 5 - 20 0 6 AKHILESH KOTIA,.................................................... ., .. .. .APP ELL ANT 17, MAYFAIR ROAD, KOLKATA - 700 019 [PAN : A FOPK 4300 A ] - VS. - INCOME TAX OFFICER,............................. , ....... ... . RESPONDENT WARD - 1(4), KOLKATA, P - 7, CHOWRINGHEE SQUARE, KOLKATA - 700 069 APPEARANCES BY: SHRI K.M. ROY, F.C.A. , FOR THE AS SESSEE SMT. RANU BISWAS , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 2 6 , 2 01 4 DATE OF PRONOUNCING THE ORDER : NOVEMBER 26 , 201 4 O R D E R PER GEORGE MATHAN : THIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORD ER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - XIV , KOLKATA IN APPEAL NO. 208 / CIT(A) - XIV / KOL/11 - 12 DATED 03 . 0 3 .201 4 FOR THE ASSESSMENT YEAR 200 5 - 0 6 . 2 . SHRI K.M. ROY, F.C.A., REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. RANU BISWAS, JCIT, SR. D.R. REPRE SENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LD. A .R. THAT TWO ISSUES WERE INVOLVED IN THE ASSESSEE S APPEAL. THE FIRST BEING THE DISALLOWANCE OF INTEREST WHICH HAD BEEN CLAIMED BY THE ASSESSEE FOR SET OFF AGAINST THE INTEREST PAID AND THE SECOND ISSUE IN NOT ALLOWING THE DEDUCTION UNDER SECTION 10(32) OF THE ACT IN RESPECT OF THE MINOR S INCOME, WHICH HAD BEEN CLUBBED IN THE I.T.A. NO . 1369 / KOL ./201 4 ASSESSMENT YEAR: 200 5 - 20 0 6 PAGE 2 OF 3 HANDS OF THE ASSESSEE. IT WAS SUBMITTED BY THE LD. A.R. THAT THE ASSESSEE HAD SET OFF INTEREST BEING INTEREST FROM B ANK, INTEREST FROM PROVIDENT FUND AND NSS INTEREST. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD PAID INTEREST TO AN EXTENT OF RS.1,01,455/ - . IT WAS THE SUBMISSION THAT THE ASSESSEE HAD CLAIMED SET OFF OF THE INTEREST PAID AGAINST THE INTEREST RECEIVED. IT WAS THE SUBMISSION THAT THE ASSESSING OFFICER HAD DISALLOWED THE SAID INTEREST ON THE GROUND THAT THERE WAS NO NEXUS BETWEEN THE INTEREST PAID AND THE INTEREST EARNED. IT WAS THE SUBMISSION THAT THE INTEREST PAID WAS ON ACCOUNT OF VARIOUS INVESTMENTS IN SH ARES MADE BY THE ASSESSEE. IT WAS THE SUBMISSION THAT THE SET OFF OF INTEREST WAS LIABLE TO BE ALLOWED. 4. IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE ASSESSING OFFICER AND LD. CIT(APPEALS). 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. TH E ASSESSEE HAS NOT BEEN ABLE TO SHOW ANY NEXUS BETWEEN THE INTEREST PAID AND THE INTEREST EARNED. IN FACT, A PERUSAL OF THE PROFIT & LOSS ACCOUNT OF THE ASSESSEE SHOWS THAT THE INTEREST EARNED IS ONLY RS.37,480/ - , WHEREAS THE INTEREST PAID IS RS.1,01,455/ - . THE ASSESSEE HAS NOT BEEN ABLE TO SHOW AS TO HOW THE INTEREST WHICH HAS BEEN PAID WAS IN ANY WAY CONNECTED TO THE BUSINESS OF THE ASSESSEE, IN SO FAR AS THE ASSESSEE S INCOME IS MAINLY FROM SALARY, HOUSE PROPERTY AND INTEREST INCOME. THE SHARES, WHICH HA VE BEEN HELD BY THE ASSESSEE, ARE ALSO SHOWN AS ASSE TS IN THE HANDS OF THE ASSESSEE. IN THESE CIRCUMSTANCES, I AM OF THE VIEW THAT THE ADDITION AS MADE BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) IS ON RIGHT FOOTING AND DOES NOT CALL FOR ANY INTERFERENCE. 6. IN RESPECT OF THE SECOND ISSUE BEING THE DEDUCTION UNDER SECTION 10(32) OF THE ACT, IT WAS SUBMITTED BY THE LD. A.R. THAT THE ASSESSING OFFICER HAD CLUBBED THE MINOR S INCOME IN THE HANDS OF THE ASSESSEE BUT HAD NOT GRANTED THE D EDUCTION UNDER SECTION 10(32) OF THE ACT. I.T.A. NO . 1369 / KOL ./201 4 ASSESSMENT YEAR: 200 5 - 20 0 6 PAGE 3 OF 3 7. IN REPLY, LD. SR. D.R. SUBMITTED THAT THIS ISSUE WAS NOT RAISED BEFORE THE LD. CIT(APPEALS). 8. HAVING CONSIDERED THE SUBMISSIONS, I AM OF THE VIEW THAT THIS ISSUE IS LIABLE TO BE RESTORED TO THE FILE OF THE AS SESSING OFFICER FOR RE - ADJUDICATION. THE ASSESSING OFFICER SHALL EXAMINE THE ASSESSEE S CLAIM FOR EXEMPTION UNDER SECTION 10(32) OF THE ACT. IF THE ASSESSEE FULFILS HIS CLAIM OF EXEMPTION UNDER SECTION 10(32) OF THE ACT, THE ASSESSING OFFICER SHALL GRANT T HE SAME TO THE ASSESSEE. 9 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 26 TH NOV EMBER , 2014. SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 26 TH D AY OF NOVE MBER , 201 4 COPIES TO : (1) AKHILESH KOTIA, 17, MAYFAIR ROAD, KOLKATA - 700 019 (2) INCOME TAX OFFICER, WARD - 1(4), KOLKATA, P - 7, CHOWRINGHEE SQUARE, KOLKATA - 700 069 (3) COMMISSIONER OF INCOME - TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX ( 5 ) THE DEPARTMENTAL REPRESENTATIVE ( 6 ) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BEN CHES, KOLKATA LAHA/SR. P.S .