Shivaji Natha Gaikwad, Kolhapur V. Income-tax Officer, Ward - 2(1), Kolhapur

ITA 1441/PUN/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5839 (ITAT-PUNE)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 07-03-2019
• Assessment Year: 2011-2012
• Appeal Filed On: 12-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Keywords: Salary income; Co-operative Credit Society
• Section: 80C; 143(3)

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1441/PUN/2018 / ASSESSMENT YEAR : 2011-12 SHRI SHIVAJI NATHA GAIKWAD, PLOT NO.3, 209AS, KARANDE MALA, BEHIND SHAHU COLLEGE, KOLHAPUR. PAN : AAVPG6465G. . / APPELLANT V/S THE INCOME TAX OFFICER , WARD 2(1), KOLHAPUR. . / RESPONDENT ASSESSEE BY : SHRI PRAMOD SHINGTE (ADJOURNMENT REFUSED). REVENUE BY : SHRI M.K. VERMA. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE O RDER OF COMMISSIONER OF INCOME TAX (A) 2, KOLHAPUR DATED 01.06.20 18 FOR THE ASSESSMENT YEAR 2011-12. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL WHO IS HAVING INCOME FROM SALARY AN D OTHER SOURCES. ASSESSEE FILED HIS RETURN OF INCOME FOR A.Y. 2011-1 2 ON 01.08.2011 DECLARING TOTAL INCOME AT RS.7,92,740/-. THE CASE WAS SELE CTED FOR SCRUTINY / DATE OF HEARING : 07.03.2019 / DATE OF PRONOUNCEMENT: 18.04.2019 2 ITA NO.1441/PUN/2018 AND THEREAFTER ASSESSMENT WAS FRAMED U/S 143(3) OF THE A CT VIDE ORDER DT.03.07.2013 AND THE TOTAL INCOME WAS DETERMINED AT RS. 9,09,550/-. AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MAT TER BEFORE LD.CIT(A), WHO VIDE ORDER DT.01.06.2018 (IN APPEAL NO.KOP/343/2013- 14) GRANTED PARTIAL RELIEF TO THE ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING EFFECTIVE GROUND : ON FACTS AND IN CIRCUMSTANCES OF THE CASE THE LEAR NED CIT(A) HAS ERRED IN LAW AND ON MERIT IN CONFIRMING ADDITION OF RS.41,043/- IN ACCOUNT OF DISALLOWANCE OF REPAYMENT OF HOUSING LOAN INSTALLMENT PAID TO BS NL CO-OPERATIVE CREDIT SOCIETY WHEN SUCH CLAIM WAS ALLOWABLE U/S 80C(XVIII )(B) OF THE INCOME TAX ACT. 3. ON THE DATE OF HEARING, ADJOURNMENT APPLICATION WAS FILE D BY THE LD.A.R. SEEKING ADJOURNMENT IN THE CASE. THE ADJOURNMENT WAS REFUSED IN VIEW OF THE ISSUE INVOLVED IN THE PRESENT APPEAL. WE THERE FORE PROCEED TO DECIDE THE APPEAL EX-PARTE QUA THE ASSESSEE. 4. THE CASE FILE REVEALS THAT THERE IS DELAY OF 2 DAYS IN FILING THE APPEAL. CONSIDERING THE SMALLNESS OF DELAY, WE CONDONE THE DELAY A ND ADMIT THE APPEAL FOR HEARING. 5. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AO NOTI CED THAT ASSESSEE HAD CLAIMED RS.41,053/- AS PRINCIPAL AMOUNT PAID TO BSNL EMPLOYEES COOP CREDIT SOCIETY FOR THE LOAN TAKEN FOR CONS TRUCTION OF HOUSE. AO SOUGHT INFORMATION FROM BSNL EMPLOYEES COOP CREDIT SOC IETY WHEREIN THE SOCIETY STATED THAT IT CANNOT VOUCH THE END USE O F LOAN TAKEN BY ANY MEMBER SINCE IT HAS GIVEN LOAN AGAINST SALARY. THEREFORE, A O CONCLUDED THAT ASSESSEE HAS NOT TAKEN LOAN FROM PURCHASE OF HOUSE PR OPERTY AND HENCE, THE PRINCIPAL AMOUNT CLAIMED U/S 80C OF THE ACT WAS DISALLO WED BY HIM. 3 ITA NO.1441/PUN/2018 AGGRIEVED BY THE ORDER OF AO, ASSESSEE CARRIED THE MATT ER BEFORE LD.CIT(A), WHO UPHELD THE ORDER OF AO. AGGRIEVED BY THE ORDER OF L D.CIT(A), ASSESSEE IS NOW BEFORE US. 6. BEFORE US, LD. D.R. SUPPORTED THE ORDER OF LOWER AUTHORITIES. 7. WE HAVE HEARD THE LD.D.R. AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT CASE IS WITH RESPECT TO DISALLOWANCE OF RS.41,053/- ON ACCOUNT OF DEDUCTION U/S 80C OF THE ACT. WE FIND THAT BEFORE LD.CIT(A), IT WAS ASSESSEE SUBMISSION THAT HE HAD OBTAINED HOUSING LO AN FROM BSNL EMPLOYEES COOP CREDIT SOCIETY FOR CONSTRUCTION OF HOUSE AND FOR WHICH DURING THE YEAR THERE WAS RE-PAYMENT OF INTEREST AND PRINCIPAL AMOUNT. IT WAS FURTHER ASSESSEES SUBMISSION THAT THE CERTIFICATE ISS UED BY BSNL WAS SUBMITTED WHEREIN IT WAS STATED THAT THE LOAN WAS ADVA NCED FOR THE PURPOSE OF CONSTRUCTION OF HOUSE. IT WAS FURTHER SUBMITTED BY TH E ASSESSEE THAT THE LOAN APPLICATION BY THE ASSESSEE ALSO STATES THE PURPOSE TO BE LOAN FOR THE PURPOSE OF CONSTRUCTION OF HOUSE. ASSESSEE SUBMITTED TH AT THE SANCTION LETTER DATED 24.06.2013 ISSUED BY BSNL EMPLOYEES COOP CR EDIT SOCIETY ALSO STATES THAT THE LOAN WAS UTILIZED FOR CONSTRUCTION OF HOUS E. HOWEVER, AO MADE THE ADDITION CONSIDERING THE FACT THAT ASSESSEE HAD NOT UTILIZED THE AMOUNT FOR CONSTRUCTION OF HOUSE. WE FIND THE COPY OF LETTER OF BSNL KARMACHARI SAKAHARI PAT SANSTHA MARYADIT, KOLHAPUR DAT ED 24.06.2013 ATTACHED WITH ASSESSMENT ORDER, WHICH STATES THAT THE SOCIETY DOES NOT VOUCH THE END OF USE OF THE LOAN TAKEN BY THE MEMBER. WE FIND THAT BASE D ON THE AFORESAID LETTER, AO HAD CONCLUDED THAT THE LOAN HAS NOT BEEN USED FOR CONSTRUCTION OF HOUSE BY THE ASSESSEE. WE FIND THAT A O HAS ONLY DISALLOWED THE PRINCIPAL RE-PAYMENT BUT HAS ALLOWED THE INTEREST CO MPONENT UNDER 4 ITA NO.1441/PUN/2018 INCOME FROM HOUSE PROPERTY. BEFORE US, NO MATERIAL HAS BEEN PLACED BY REVENUE TO CONTROVERT THE SUBMISSIONS MADE BY THE ASS ESSEE ABOUT OBTAINING THE LOAN FOR CONSTRUCTION OF HOUSE WHICH IS ALSO CERTIFIED BY BSNL. CONSIDERING THE TOTALITY OF THE FACTS, WE ARE OF THE VIEW TH AT AO WAS NOT JUSTIFIED IN DENYING THE CLAIM OF DEDUCTION U/S 80C OF THE AC T ON THE PRINCIPAL REPAYMENT TOWARDS HOUSING LOAN AND THEREFORE WE DIRECT THE DEDUCTION. THUS, THE GROUND OF ASSESSEE IS ALLOWED. 8 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON 18 TH DAY OF APRIL, 2019. SD/- SD/ - ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER PUNE; DATED : 18 TH APRIL, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-2, KOLHAPUR. PR. CIT-2, KOLHAPUR. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &' , / ITAT, PUNE.