Nandita Chatterjee, Kolkata V. ITO, Ward-21(3), Kolkata, Kolkata

ITA 1515/KOL/2014

• Counselvise Citation: 151523514 RSA 2014
• Duration Of Justice: 4 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2006-2007
• Appeal Filed On: 11-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Source of fund

Judgement Text

I.T.A. NO . 1 5 15 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 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 5 15 / KOL / 20 1 4 ASSESSMENT YEAR : 200 6 - 20 0 7 NANDITA CHATTERJEE,....... ................. ........... . ............. .. .APP ELL ANT C/O. D.J. SHAH & CO., KALYAN BHAVAN, 2, ELGIN ROAD, KOLKATA - 700 020 [PAN : A CKPC 4802 G ] - VS. - INCOME TAX OFFICER, .. ............................................ . RESPONDENT WARD - 21 ( 3 ), KOLKATA BAMBOO VILLA, 169, A.J.C. BOSE ROAD, KOLKATA - 700 014 A PPEARANCES BY: SHRI MIRAJ D. SHAH, ADVOCATE . , FOR THE ASSESSEE S MT. RANU BISWAS , J CIT, SR. D.R., FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : NOVEMBER 2 7 , 2 01 4 DATE OF PRONOUNCING THE ORDER : NOVEMBER 2 7 , 201 4 O R D E R PER GEORGE MATHAN : T HIS IS AN APPEAL FILED BY THE ASSESSE E AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS) - XXI V , KOLKATA IN APPEAL NO. 1 597 / CIT(A) - XXI V /W - 21( 3 ) / 13 - 14 DATED 04 . 03 .20 14 FOR THE ASSESSMENT YEAR 200 6 - 0 7 . 2. SHRI MIRAJ D. SHAH, AD VOCATE , REPRESENTED ON BEHALF OF THE ASSESSEE AND SMT. RANU BISWAS, JCIT, SR. D.R. REPRESENTED ON BEHALF OF THE REVENUE. 3. AT THE TIME OF HEARING, IT WAS SUBMITTED BY THE LD. A.R. THAT THE ASSESSEE IS AN INDIVIDUAL, WHO IS A STATE GOVERNMENT EMPLOYEE. IT WAS THE SUBMISSION THAT THE ASSESSEE HAD INVESTED AN AMOUNT OF RS.5,00,000/ - IN GOVERNMENT OF INDIA BONDS. IT WAS THE SUBMISSION THAT THE ASSESSEE FOLLOWING CASH SYSTEM OF ACCOUNTING IN RESPECT OF HER SOURCES OF INCOME I.T.A. NO . 1 5 15 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 2 OF 3 FROM HOUSE PROPERTY AND OTHER SOURCES. IT WAS THE SUBMI SSION THAT THE ASSESSING OFFICER IN THE COURSE OF ASSESSMENT HAD BROUGHT TO TAX THE ACCRUED INTEREST IN RESPECT OF 8% SAVINGS TAXABLE BONDS OF THE GOVERNMENT OF INDIA, WHICH THE ASSESSEE HAD INVESTED. IT WAS THE SUBMISSION THAT THE ENTIRE INTEREST HAD BEEN OFFERED TO TAX IN THE ASSESSMENT YEAR 2012 - 13 AND TDS ON THE SAID INTEREST HAD ALSO BEEN DEDUCTED BY THE GOVERNMENT OF INDIA DURING THE ASSESSMENT YEAR 2012 - 13. IT WAS THE SUBMISSION THAT AS THE ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING AND AS THE ASSESSEE HAS ALSO OFFERED THE INTEREST TO TAX WHEN THE BONDS MATURED , THE ADDITION WAS LIABLE TO BE DELETED. 4 . IN REPLY, LD. SR. D.R. VEHEMENTLY SUPPORTED THE ORDER OF THE LD. CIT(APPEALS) AND ASSESSING OFFICER. 5 . I HAVE CONSIDERED THE SUBMISSIONS. A P ERUSAL OF THE ORDER OF THE LD. CIT(APPEALS) CLEARLY SHOWS THAT THE ASSESSEE HAS SPECIFICALLY SUBMITTED BEFORE HIM THAT THE BONDS MATURED ON 08.06.2011 AND THE ASSESSEE HAS OFFERED THE CUMULATIVE INTEREST AT THE TIME OF MATURITY DURING THE ASSESSMENT YEAR 2 012 - 13 AND TDS HAD ALSO BEEN DEDUCTED ON THE SAID CUMULATIVE INTEREST PAID AT THE TIME OF MATURITY. IN THESE CIRCUMSTANCES, I AM OF THE VIEW THAT NO ADDITION ON ACCOUNT OF ACCRUED INTEREST CAN BE MADE IN THE HANDS OF THE ASSESSEE FOR THE RELEVANT ASSESSMEN T YEAR. CONSEQUENTLY THE ADDITION MADE ON THIS COUNT BY THE ASSESSING OFFICER AND AS CONFIRMED BY THE LD. CIT(APPEALS) STANDS DELETED. 6 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 7 TH NOV EMBER , 201 4. SD/ - GEORGE MATHAN ( JUDICIAL MEMBER) KOLKATA, THE 2 7 TH D AY OF NOVE MBER , 201 4 I.T.A. NO . 1 5 15 / KOL ./201 4 ASSESSMENT YEAR: 200 6 - 20 0 7 PAGE 3 OF 3 COPIES TO : (1) SMT. NANDITA CHATTERJEE, C/O. D.J. SHAH & CO., KALYAN BHAVAN, 2, ELGIN ROAD, KOLKATA - 700 020 (2) INCOME TAX OFFICER, WARD - 21(3), KOLKATA BAMBOO VILLA, 169, A.J.C. BOSE ROAD, KOLKATA - 700 014 (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 BENCHES, KOLKATA LAHA/SR. P.S .