Mothr India City Shelters Private Ltd., Coimbatore V. DCIT, Coimbatore

ITA 1398/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6374 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 31-05-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RU GEORGE
• Assessee Lawyers: S RAMACHANDRAN
• Keywords: Audit objection
• Section: 40A(3); 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . !' , $ % BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1398/MDS/2017 ' (' / ASSESSMENT YEAR : 2012-13 M/S MOTHER INDIA CITY SHELTERS PVT. LTD., C/O SHRI S. RAMACHANDRAN, FCA, CHARTERED ACCOUNTANT, SETHURAM, NO.15, SUNDARESA IYER LAYOUT, TRICHY ROAD, COIMBATORE 641 018. PAN : AAKCS 6946 A V. THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, COIMBATORE. (*+/ APPELLANT) (,-*+/ RESPONDENT) *+ . / / APPELLANT BY : SHRI S. RAMACHANDRAN, FCA ,-*+ . / / RESPONDENT BY : SMT. RUBY GEORGE, CIT 0 . 1$ / DATE OF HEARING : 03.08.2017 2!( . 1$ / DATE OF PRONOUNCEMENT : 23.08.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-1, COIMBAT ORE, DATED 31.03.2017 AND PERTAINS TO ASSESSMENT YEAR 2012-13. 2 I.T.A. NO.1398/MDS/17 2. SHRI S. RAMACHANDRAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSING OFFICER COMP LETED THE ASSESSMENT AFTER CONSIDERING THE MATERIAL AVAILABLE ON RECORD. SUBSEQUENTLY, BASED UPON THE AUDIT OBJECTION, THE P RINCIPAL COMMISSIONER REVISED THE ORDER OF THE ASSESSING OFF ICER UNDER SECTION 263 OF THE INCOME-TAX ACT, 1961 (IN SHORT ' THE ACT'). ACCORDING TO THE LD. REPRESENTATIVE, SINCE THE JURI SDICTION UNDER SECTION 263 OF THE ACT WAS EXERCISED ON THE BASIS O F AUDIT OBJECTION, THE SAME HAS TO BE QUASHED. ACCORDING TO THE LD. R EPRESENTATIVE, THE ASSESSING OFFICER MADE PROPER ENQUIRY AND THERE AFTER PASSED THE ORDER, HENCE, THE PRINCIPAL COMMISSIONER IS NOT JUSTIFIED IN REVISING THE ORDER OF THE ASSESSING OFFICER. ON A QUERY FROM THE BENCH, WHETHER THE ASSESSING OFFICER CONSIDERED THE PROVISIONS OF SECTION 40A(3) OF THE ACT, THE LD. REPRESENTATIVE S UBMITTED THAT THE ASSESSING OFFICER HAS NOT DISCUSSED IN THE ASSESSME NT ORDER ABOUT THE PROVISIONS OF SECTION 40A(3) OF THE ACT. 3. WE HAVE HEARD SMT. RUBY GEORGE, THE LD. DEPARTME NTAL REPRESENTATIVE ALSO. THE PRINCIPAL COMMISSIONER FO UND THAT IN RESPECT OF CASH PAYMENT MADE FOR PURCHASE OF LAND A T COIMBATORE MAHARAJA TOWN, THE ASSESSING OFFICER FAILED TO CONS IDER THE 3 I.T.A. NO.1398/MDS/17 PROVISIONS OF SECTION 40A(3) OF THE ACT. THEREFORE , THE PRINCIPAL COMMISSIONER FOUND THAT THERE WAS ERROR IN THE ORDE R OF THE ASSESSING OFFICER. NOW THE ASSESSEE CONTENDS THAT THERE WAS AUDIT OBJECTION. ACCORDING TO THE LD. D.R., THE AUDIT PA RTY CAN ALWAYS BRING TO THE NOTICE OF THE ASSESSING OFFICER AND TH E PRINCIPAL COMMISSIONER THE FACTS OF THE CASE. WHEN THE ASSES SING OFFICER HAS NOT CONSIDERED THE PROVISIONS OF SECTION 40A(3) OF THE ACT, IT WOULD NOT PREVENT THE PRINCIPAL COMMISSIONER TO EXE RCISE HIS POWER UNDER SECTION 263 OF THE ACT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. FROM THE MATERIAL AVAILABLE ON RECORD IT APPEARS THAT THE AS SESSEE HAS MADE PAYMENT BY CASH AND CHEQUE ALSO. IN RESPECT OF PAY MENT MADE BY CASH, THE ASSESSING OFFICER HAS NOT CONSIDERED THE PROVISIONS OF SECTION 40A(3) OF THE ACT. THE NON-CONSIDERATION O F STATUTORY PROVISION AMOUNTS TO AN ERROR WITHIN THE MEANING OF SECTION 263 OF THE ACT. NATURALLY, THERE IS LOSS OF REVENUE. HEN CE, THE PRINCIPAL COMMISSIONER HAS RIGHTLY EXERCISED HIS JURISDICTION UNDER SECTION 263 OF THE ACT. THEREFORE, THIS TRIBUNAL DO NOT FI ND ANY REASON TO 4 I.T.A. NO.1398/MDS/17 INTERFERE WITH THE ORDER OF THE LOWER AUTHORITY AND ACCORDINGLY THE SAME IS CONFIRMED. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED ON 23 RD AUGUST, 2017 AT CHENNAI. SD/- SD/- (. !' ) ( . . . ) (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 23 RD AUGUST, 2017. KRI. . ,156 76(1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. PRINCIPAL CIT-1, COIMBATORE. 4. 68 ,1 /DR 5. 9' : /GF.