JITENDRA UMARSHI GANATRA, 2201, TRIDEV TOWERS, BHAKTI MARG, MULUND WEST V. COMMISSIONER OF INCOME TAX (APPEALS), NATIONAL FACELESS APPEAL CENTRE

ITA 1666/MUM/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1795 (ITAT-MUMBAI)
• Duration Of Justice: 7 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2018-2019
• Appeal Filed On: 21-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 68; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH MUMBAI Before Shri Sanjay Garg, Judicial Member & Shri Om Prakash Kant, Accountant Member I.T.A. No.1666/Mum/2021 Assessment Year: 2018-19 Jitendra Umarshi Ganatra.............................................................Appellant 2201, Tridev Towers, Bhakti Marg, Mulund West-400080. [PAN:AACPG8936D] vs. Commissioner of Income Tax(Appeals), NFAC, Delhi.........................Respondent Appearances by: Shri Prakash Iyer, appeared on behalf of the appellant. Shri SN Kabra, appeared on behalf of the Respondent. Date of concluding the hearing : May 19, 2022 Date of pronouncing the order : May 19, 2022 ORDER Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order dated 18.08.2021 of the National Faceless Appeal Centre (NFAC) [hereinafter referred to as ‘CIT(A)’] passed u/s 250 of the Income Tax Act (hereinafter referred to as the ‘Act’). The assessee in this appeal has taken the following grounds of appeal: “1. Learned CIT(Appeals) has contended in his order that Survey Operations was made in firm Bhakti Enterprises, Whereas the Survey Operations was conducted in La Lavado Fabricka another firm. 2. Learned A.O./CIT (Appeals) has erred in computing tax at the rate prescribed u/s 115BBE on regular normal Commission income of Rs.25,00,000/- from Bhakti Enterprises. 3. Learned A.O./CIT (Appeals) has erred in treating normal current income offered in return of income as income liable at higher rate of tax. 4. Learned A.O/CIT (Appeals) has failed to appreciate that this is a regular income received from partnership firm & not the undisclosed income as held by him. 5. Looking at above facts we request your honour to kindly accept the return of income filed and assessed at the normal rate of tax. I.T.A. No.1666/Mum/2021 Assessment Year: 2018-19 Jitendra Umarshi Ganatra 2 6. Your Appellant craves the leave to add/alter or amend the grounds of appeal from time to time.” 2. The sole issue involved in this appeal is relating to the action of the lower authorities in taxing the commission income of the assessee at a higher rate invoking section 115BBE of the Act. At the outset, the ld. Counsel for the assessee has invited our attention to the impugned assessment order to submit that no income of the assessee has been assessed by the Assessing Officer u/s 68 of the Act. The source of the commission received by the assessee has been duly explained as the same was received from one Bhakti Enterprises, a partnership firm from Pune, who has also deducted TDS on the said income. The source of the income, therefore was proved. Since, the source of the income was explained, hence, it cannot be said the unexplained income of the assessee. Even the Assessing Officer has not given any finding that the aforesaid commission income of the assessee was unexplained income. In view of this, the action of the lower authorities in taxing the income at a higher rate by invoking provision to section 115BBE cannot be held to be justified. The said action of the lower authorities is set aside and it is directed that the commission income to be taxed at normal rate. 3. In the result, the appeal of the assessee stands allowed. Mumbai, the 19 th May, 2022. Sd/- Sd/- [Om Prakash Kant] [Sanjay Garg] Accountant Member Judicial Member Dated: 19.05.2022. RS Copy of the order forwarded to: 1. Jitendra Umarshi Ganatra 2. Commissioner of Income Tax(Appeals), NFAC, Delhi 3. CIT(A)- 4. CIT- , 5. CIT(DR), I.T.A. No.1666/Mum/2021 Assessment Year: 2018-19 Jitendra Umarshi Ganatra 3 //True copy// By order Assistant Registrar, Mumbai Benches