Abdul Qadir Rahman Buhari, CHENNAI V. ACIT, CHENNAI

ITA 1383/CHNY/2014

• Counselvise Citation: 138321714 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 02-11-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 19-05-2014
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: N C PRABHAKAR
• Keywords: Reassessment proceedings
• Section: 148

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU R L REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 1 383 /MDS/201 4 / ASSESSMENT YEAR :20 07 - 08 SHRI ABDUL QADIR RAHMAN BUHARI, NO. 5, MOORES ROAD, EGMORE, CHENNAI 600 0 06 . [PAN: A A HPB0035P ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX , CO MPANY CIRCLE III ( 3 ), CHENNAI 600 034 . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI N.C. PRABHAKAR, ADVOCATE / RESPONDENT BY : SHRI P. RADHAKRISHNAN, J CIT / DATE OF HEAR ING : 0 2 . 11 .201 5 / DATE OF P RONOUNCEMENT : 27 . 1 1 .201 5 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) III , CHENNAI , DATED 3 0 . 12 . 20 1 3 RELEVANT TO THE ASSESSMENT YEAR 200 7 - 08. THE ONLY GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS WITH REGARD TO CONFIRMATION OF DISALLOWANCE ON ACCOUNT OF INTEREST OTHER THAN INTEREST ON SECURITIES UNDER SECTION 194A OF THE INCOM E TAX ACT [ ACT IN SHORT] OF . 75,02,400/ - . I.T.A. NO . 1383 /M/ 14 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS INDIVIDUAL AND MANAGING DIRECTOR OF M/S. WEST ASIA MARITIME LIMITED. HE FILED HIS RETURN OF INCOME ADMITTING TOTAL INCOME OF .5,18,89,280/ - . INITIALLY, THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE ACT. IN THE ASSESSMENT ORDER, THE ASSESSING OFFICER HAS OBSERVED THAT ON PERUSAL OF TDS CERTIFICATES (FORM 16A) FURNISHED BY THE ASSESSEE, ALONG WITH THE RETURN OF INCOME SHOWS THAT A SUM OF .75,60,000/ - [ .75,02, 400/ - + . 57,600/ - ] WAS PAID/CREDITED TO THE ASSESSEE BY THE DEDUCTOR ON 05.12.2006 ON ACCOUNT OF INTEREST OTHER THAN INTEREST ON SECURITIES UNDER SECTION 194A OF THE ACT. AFTER VERIFICATION OF TDS CREDIT, A LETTER HAS BEEN SENT TO M/S. ORACLE GLOBAL (MAR ITIMES) LTD. REQUESTING FOR CONFIRMATION OF TDS AMOUNT DEDUCTED AND AFTER VERIFICATION OF DETAILS OF THE PAYMENT MADE BY THE ASSESSEE FURNISHED BY DELOITTE HASKINS & SELLS, C.AS ON BEHALF OF THE ORACLE GLOBAL MARITIMES LTD., THE ASSESSING OFFICER HAS OBSER VED THAT THE ASSESSEE HAS NOT OFFERED THE ABOVE RECEIPT UNDER THE HEAD INCOME FROM OTHER SOURCES IN VIEW OF THE ABOVE, THE ASSESSING OFFICER WAS OF THE OPINION THAT INCOME HAS ESCAPED ASSESSMENT, NOTICE UNDER SECTION 148 OF THE ACT WAS ISSUED TO THE ASSE SSEE. LATER, NOTICE UNDER SECTION 143(2) WAS ALSO ISSUED TO THE ASSESSEE. DURING THE COURSE OF REASSESSMENT PROCEEDINGS, THE ASSESSEE COULD NOT FURNISH SUITABLE REPLY AND ACCORDINGLY THE ASSESSING OFFICER MADE ADDITION OF .75,02,400/ - AND ADDED BACK TO TH E TOTAL INCOME OF THE ASSESSEE. I.T.A. NO . 1383 /M/ 14 3 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) AND AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) HAS CONFIRMED THE ADDITION MADE BY THE ASSESSING OFFICER IN THE ABSENCE OF ANY CONCLU SIVE PROOF THAT THE SAID AMOUNT IS NOT TAXABLE AND ALSO NO CORRECTED CERTIFICATE FURNISHED BEFORE THE LD. CIT(A). 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE, BY FILING COPY OF FORM NO. 16A [31 (1)(B)] AND OTHER DOCUMENTS THROUGH COMMUNICATION FROM ORACLE, SUBMITTED THAT THE AMOUNT OF .75,02,400/ - REPRESENTS CAPITAL PAYMENT AND SINCE IT IS NOT LIABLE FOR TDS UNDER THE PROVISIONS OF THE INCOME TAX ACT, PRAYED FOR DELETING THE ADDITION MADE BY THE ASSESSING OFFICER. 5. ON THE OTHER HAND, THE LD. DR HAS SUBMITTED THAT THE ABOVE DOCUMENTS WERE NOT FURNISHED BEFORE THE AUTHORITIES BELOW AND THEREFORE, THE MATTER MAY BE REMITTED BACK TO THE ASSESSING OFFICER. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. SINCE THE ASSESSEE HAS NOT FURNISHED CONCRETE EVIDENCE CONFIRMING THE PAYMENT OF RS. 75,02,400/ - MADE BY THE ORACLE GLOBAL MARITIMES LTD. WITHOUT DEDUCTING TDS, THE ASSESSING OFFICER MADE ADDITION ON THE ABOVE PAYMENT. EVEN BEFORE THE LD. CIT(A), THE ASSESSEE HAS NOT FILED ANY CONCLUSIVE PROOF THAT THE SAID I.T.A. NO . 1383 /M/ 14 4 AMOUNT IS NOT TAXABLE AND THEREFORE, THE LD. CIT(A) UPHELD THE ADDITION MADE BY THE ASSESSING OFFICER. NOW, BEFORE US, THE LD. C OUNSEL FOR THE ASSESSEE, BY FILING COPY OF FORM NO. 16A [31(1)(B)] AND OTHER DOCUMENTS THROUGH COMMUNICATION FROM ORACLE, SUBMITTED THAT THE AMOUNT OF .75,02,400/ - REPRESENTS CAPITAL PAYMENT AND SINCE IT IS NOT LIABLE FOR TDS UNDER THE PROVISIONS OF THE I NCOME TAX ACT, HE HAS PLEADED FOR DELETING THE ADDITION MADE BY THE ASSESSING OFFICER. SINCE, THE ABOVE DOCUMENTS WERE NOT FURNISHED BEFORE THE AUTHORITIES BELOW, WE ARE OF THE OPINION THAT THE DETAILS FILED BEFORE THE TRIBUNAL REQUIRED TO BE EXAMINED BY T HE ASSESSING OFFICER. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE DETAILS AS MAY BE FILED BY THE ASSESSEE AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AFTE R GIVING SUFFICIENT OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO FILE ALL RELEVANT DOCUMENTS BEFORE THE ASSESSING OFFICER FOR VERIFICATION. 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 27 TH NOVEMBER , 2015 AT CHENNAI. SD/ - SD/ - (A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 27 . 1 1 .201 5 VM/ - I.T.A. NO . 1383 /M/ 14 5 / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.