Valliammai Valliappan, CHENNAI V. DCIT, CHENNAI

ITA 1413/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6386 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 01-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN IRS
• Assessee Lawyers: A S SRIRAMAN
• Section: 80C

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B (SMC) BENCH : CHENNAI . , [BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT M EMBER ] ./I.T.A. NO. 1413/MDS/2017 / ASSESSMENT YEAR : 2011-2012. MRS. VALLIAMMAI VALLIAPPAN, 19/2, STRINGER STREET, CHENNAI 600 108. [PAN AADPV 9271F] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 12(1) CHENNAI. ( !' / APPELLANT) ( # $!' /RESPONDENT) / APPELLANT BY : SHRI. A.S. SRIRAMAN, ADVOCATE /RESPONDENT BY : SHRI. B. SAGADEVAN, IRS, JCIT. /DATE OF HEARING : 10-08-2017 !' /DATE OF PRONOUNCEMENT : 17-08-2017 % / O R D E R GROUNDS RAISED BY THE ASSESSEE IN THIS APPEAL ARE REPRODUCED HEREUNDER:- 1) TO GRANT DEDUCTION U/S.80C AND CHAPTER VI A FOR LIF E INSURANCE PREMIUM PAID TO THE EXTENT OF 1,00,000/- DUE TO DOMESTIC PREOCCUPATION AND CONSTRAINTS, THE APPELLANT COULD NOT PRODUCE THE LIC PREMIUM RECEIPT S ITA NO.1413/MDS/2017. :- 2 -: EITHER BEFORE THE LEARNED ASSESSING OFFICER DURING THE ASSESSMENT PROCEEDINGS OR BEFORE THE HONOURABLE COMMISSIONER OF INCOME TAX APPEAL. HOWEVER THE APPELLANT DID PRODUCE THE LIFE INSURANCE LEDGER COP Y WITH FULL NARRATIVE EXPLANATION OF THE CHEQUE NUMBE R THROUGH WHICH THE SAME WAS PAID. HOWEVER, POST CIT-A'S ORDER, THE APPELLANT REQUESTE D TO THE INSURER FOR ISSUE OF CERTIFICATE FOR PAYMENT OF LIFE INSURANCE PREMIUM. AND THE INSURER OBLIGED BY ISSUING 3 CERTIFICATES A S PROOF OF PAYMENT OF LIFE INSURANCE PREMIUM FOR A TO TAL SUM OF RS.1 ,28,081/-. APPELLANT ENCLOSES THE COPIES OF THESE CERTIFICATES. THE HON'BLE CIT'S OBSERVATION THAT THIS PREMIUM WAS NOT DEBITED TO THE PARTNER'S ACCOUNT WAS ABSOLUTELY BASELESS. FOR, APPELLANT IS AN INDIVIDUAL ASSESSEE AND NOT A FIRM. THE APPELLANT HAD RIGHTLY REFLECTED HER LIFE INSURANCE PAYMENT UNDER THE CLASSIFICATION DEPOSITS AND ADVANCES ON THE ASSET SIDE OF HER BALANCE SHEET . THE APPELLANT PLEADS THAT THE DEDUCTION UNDER CHAPT ER VI A BE DIRECTED TO BE GRANTED. 2) TO DIRECT DELETION OF ADDITION IN THE SUM OF RS.16. 387/- BEING OUTSTANDING SERVICE TAX PAYABLE: THIS SUM COMPRISES OF OPENING BALANCE .14183.77 AND BALANCE .2203.33 COLLECTED DURING THE FINANCIAL YEAR 2010-11. THIS SUM IS A LIABILITY TO BE PAID. HON'BLE ITAT MAY BE PLEASED TO DIRECT THE REVERSION OF THIS WRONGFUL CONVERSION OF A LIABILITY TO INCOME. 2. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT ASSESSE E COULD NOT PRODUCE LIC PREMIUM PAID RECEIPTS BEFORE THE L OWER AUTHORITIES ITA NO.1413/MDS/2017. :- 3 -: DUE TO REASONS BEYOND HER CONTROL BUT SHE WAS ENTIT LED FOR DEDUCTION U/S. 80C OF THE INCOME TAX ACT, 1961 (IN SHORT TH E ACT). ACCORDING TO HIM SUCH RECEIPTS WERE READILY AVAILABLE NOW. 3. VIZ-A-VIZ ADDITION MADE FOR SERVICE TAX, LD. AUTHOR ISED REPRESENTATIVE SUBMITTED THAT SERVICE TAX BEING A STATUTORY DUE COULD NEVER BE CONSIDERED AS INCOME OF THE ASSESSEE. 4. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE SUBMI TTED THAT ASSESSEES CLAIM FOR LIC PREMIUM PAYMENTS SHOULD NO T BE ACCEPTED SINCE SUCH PAYMENTS WERE PAID BY A FIRM IN WHICH A SSESSEE WAS A PARTNER AND NOT BY THE ASSESSEE HERSELF. 5. I HAVE CONSIDERED THE RIVAL CONTENTIONS AND PERUSE D THE ORDERS OF THE AUTHORITIES BELOW. ASSESSEE WAS A WH OLESALE PAPER DEALER AND SHE HAD FILED HER RETURN OF INCOME FOR T HE IMPUGNED ASSESSMENT YEAR DISCLOSING INCOME OF B20,07,220/-. AS PER THE ASSESSEE HER CLAIM FOR DEDUCTION OF B1,00,000/- U/S . 80C OF THE ACT WAS NOT ALLOWED FOR NON PRODUCTION OF LIC PREMIUM RECEIPTS. SERVICE TAX COLLECTED BUT NOT REMITTED TO GOVERNMENT WAS AL SO SUBJECTED TO AN ADDITION BY THE LD. ASSESSING OFFICER. NOW, THE CON TENTION OF THE ASSESSEE BEFORE ME IS THAT LIC PREMIUM PAID RECEIP TS ARE AVAILABLE AND IF GIVEN AN OPPORTUNITY ASSESSEE WILL PRODUCE SUCH RECEIPTS. AS ITA NO.1413/MDS/2017. :- 4 -: PER THE LD. AUTHORISED REPRESENTATIVE THE FOLLOWING PREMIUM PAYMENTS WERE MADE:- 13.04.2010 1,11,199.00 23.08.2010 6,882.00 03.01.2011 10,000.00 03.03.2011 6,882.00 ---------------- 1,34,963.00 ----------------- I AM OF THE OPINION THAT THIS ISSUE CAN BE LOOKED A FRESH BY THE LD. ASSESSING OFFICER. IF THE PREMIUMS WERE PAID IN TH E NAME OF THE ASSESSEE, ASSESSEE WILL BE ENTITLED FOR DEDUCTION U/S. 80C OF THE ACT. HENCE, THIS ISSUE IS REMITTED BACK TO THE LD. ASSES SING OFFICER FOR CONSIDERATION AFRESH. 6. VIZ-A-VIZ, ADDITION MADE FOR SERVICE TAX, IT HAS BE EN CLEARLY MENTIONED BY THE LD. ASSESSING OFFICER IN THE AS SESSMENT ORDER THAT THE AMOUNT WAS SERVICE TAX COLLECTED BUT NOT REMITT ED TO GOVERNMENT. SERVICE TAX WILL REMAIN A STATUTORY DUE , IRRESPECTIVE ON THE DATE OF PAYMENT TO GOVERNMENT, AND CANNOT BE C ONSIDERED AS INCOME OF THE ASSESSEE. SUCH ADDITION THEREFORE STA NDS DELETED. ITA NO.1413/MDS/2017. :- 5 -: 7. GROUND NO.1 OF THE ASSESSEE IS ALLOWED FOR STATISTI CAL PURPOSE WHEREAS HER GROUND NO.2 STANDS ALLOWED. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED PR O-TANTO. ORDER PRONOUNCED ON THURSDAY, THE 17TH DAY OF AUGUST, 2017, AT CHENNAI. SD/- ( . ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED:17TH AUGUST, 2017 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,- / CIT(A) 5. )./ 0 / DR 2. / RESPONDENT 4. + / CIT 6. /12 / GF