VENKATRAMAN JAMBUNATHAN, NAVI MUMBAI V. ITO 26(2)(3), MUMBAI

ITA 161/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2231 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-07-2016
• Appeal Filed By: Assessee
• Bench Allotted: F
• Assessment Year: 2010-2011
• Appeal Filed On: 08-01-2015
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Section: 234B

Judgement Text

IN THE INC OME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE SHRI R.C . SHARMA, A M AND SHRI SANDEEP GOSAIN, JM ./ I.T.A. NO. 161 /MUM/2015 ( / ASSESSMENT YEAR: 2010 - 11 ) VENKATRAMAN JAMBUNATHAN 1902, GURUMAHIMA, SECTOR - 14, P LOT NO.12, SANPADA, NAVI M UMBAI - 400 705 . / VS. INCOME TAX OFFICER - 26(2) - 3, DR. K.G. MITTAL AYURVEDIC HOSPITAL, 6 TH FLOOR, CHARNI ROAD, MUMBAI . ./ ./ PAN/GIR NO. AACPJ 1296P ( / APPELLANT ) : ( / RESPO NDENT ) / APPELLANT BY : NONE / RESPONDENT BY : SHRI NEIL PHILIP / DATE OF HEARING : 19 /07 /2016 / DATE OF PRONOUNCEMENT : 27/07/2016 / O R D E R PER R.C. SHARMA , A. M.: THIS IS AN A PPE AL BY THE ASSESSEE DIRECTED AGAINST THE ORDER BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 28 , MU MB AI (CIT(A) FOR SHORT) DATED 01.10 . 2014 FOR THE ASSESSMENT YEAR (A.Y.) 2010 - 11. 2. IN THIS APPEAL ASSESSEE IS AGGRIEVED FOR CHARGING OF INTEREST U/S 234B AND 234C OF THE ACT. 2 ITA NO. 161 / M UM/2015 (A.Y. 2010 - 11 ) VENKATRAMAN JAMBUNATHAN VS. ITO 3. NOTICE WAS ISSUED TO THE ASSESSEE FIXING THE APPEAL ON 19 TH JULY, 2016 THE NOTICE WAS SERVED AND ACKNOWLE DGE BUT NOBODY ATTENDED ON BEHALF OF ASSESSEE THEREFORE BENCH DECIDED TO DISPOSE THE APPEAL AFTER CONSIDERING THE DOCUMENTS PLAC ED ON RECORD. 4. WE HAVE GONE THROUGH ORDERS OF AUTHORITIES BELOW AND FOUND THAT ASSESSEE IS A SALARIED EMPLOYEE WHO HAS FILED HIS RETURN OF INCOME CLAIMING EXEMPTION ON ACCOUNT OF HRA RECEIPT . DURING THE COURSE OF SCRUTINY THE AO FOUND THAT ASSESSEE HAS N OT SUBMITTED ANY DOCUMEN TARY EVIDENCE TO SUBSTANTIATE HI S CLAIM OF HRA . ACCORDINGLY EXEMPTIONS SO CLAIMED WAS DECLINE BY AO. EVEN BEFORE CIT(A) THE ASSESSEE HAS NOT PRODUCED ANY EVIDENCE TO SUPPORT ACTUA L PAYMENT OF RENT SO AS TO ENTITLE HIM FOR EXEMPTION ON ACCOUNT OF HRA RECEIVED FROM EMPLOYER. AS A RESULT OF THE DISALLOWANCE SO MADE AO LEVIED INTEREST U/S 234B AND 234C . I T WAS CONTENTION OF ASSESSEE THAT SINCE SALARY WAS LIABLE TO DEDUCTION OF TAX AT SOURCE BY THE EMPLOYER NO INTEREST U/S 234B AND 234C S HOULD BE CHARGED. WE FOUND THAT THE INTEREST HAS BEEN CHARGED ON THE SHORTFALL OF TAX NOT BECAUSE OF EMPLOYERS FAILURE DEDUCT CORRECT TAX AT SOURCE BUT BECAUSE OF ASSESSEE S FAIL URE TO SUBSTANTIATE ITS CLAIM OF EXEMPTION SO CONFIRMED BY CIT(A). A SSESSEE H A S NOT RAISED ANY GROUND IN THE APPEAL SO FILE D BEFORE US WITH REGARD TO DECLINE OF EXEMPTION OF HRA, AND H AS ONLY CLAIM ED THAT NO INTEREST U/S 234B AND 234C SHOULD BE CHARGED. WE DO NOT FIND ANY MERIT IN AS S ESSEES GROUND IN SO FAR AS INTEREST HAS BEEN CH ARGED BECAUSE 3 ITA NO. 161 / M UM/2015 (A.Y. 2010 - 11 ) VENKATRAMAN JAMBUNATHAN VS. ITO OF FAILURE OF ASSESSEE TO SUBSTANTIATE ITS CLAIM, AND IT IS NOT ATTRIBUTABLE EMPLOYERS FAILURE TO DEDUCT CORRECT TAX AT SOURCE . THE CASE LAW S CITED IN THE GROUNDS OF APPEAL ARE NOT APPLICABLE TO THE FACTS OF THE CASE OF THE ASSESSEE. ACCORD INGLY WE CONFIRM THE ACTION OF AO FOR CHARGING INTEREST 234B AND 234C WHICH IS AS PER LAW. 5. IN THE RESULT , APPEAL OF THE ASSESSEE IS DISMISSED. ORDER PRONOU NCED IN THE OPEN COURT ON 27 JULY , 201 6 SD/ - SD/ - ( SANDEEP GOSAIN ) ( R.C. SHARMA) / JUD I C I AL MEMBER / ACCOUNTANT MEMBER MUMBAI ; DATED : 27 . 0 7 .201 6 PS. ASHWINI / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBA I.