Sri Dhiren Kumar Sahoo, Dhenkanal V. ITO, Dhenkanal, Dhenkanal

ITA 167/CTK/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2307 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 9 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 03-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K GAUTAM
• Assessee Lawyers: DAMODAR PATI
• Keywords: Assessment record; Set aside
• Section: 40A(3)

Judgement Text

P A G E 1 | 4 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/ SHRI C HANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO . 167 /CTK/201 9 ASSESSMENT YEAR : 2014 - 15 SRI DHIREN KUMAR SAHOO, PROP. M/S. KANCHAN JEWELLERY, MEENA B AZAR, DHENKANAL , VS. PR. CIT - 2, BHUBANESWAR PAN/GIR NO. ARHPS 7887 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI DAMODAR PATI , AR REVENUE BY : SHRI M.K.GAUTAM, CIT DR DATE OF HEARING : 10 / 3 / 20 2 1 DATE OF PRONOUNCEMENT : 11 / 3 /20 2 1 O R D E R PER BENCH THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE PR. CIT - 2, BHUBANESWAR , BHUBANESWAR U/S.263 OF THE ACT FOR THE ASSESSMENT YEAR . 2014 - 15. 2. FACTS IN BRIEF ARE THAT IN THIS CASE THE ASSESSMENT U/S.143(3)/147 WAS COMPLETED ON 28.3.2016 BY THE ASSESSING OFFICER. THEREAFTER, PR. CIT - 2, BHUBANESWAR, ON PERUSAL OF ASSESSMENT RECORD, FOUND THAT THE ASSESSING ITA NO.167/CTK/2019 ASSESSMENT YEAR : 2014 - 15 P A G E 2 | 4 OFFICER HAS PASSED THE ASSESSMENT ORDER WITHOUT MAKING PROPER ENQUIRY IN RESPECT OF PAYMENT TO M/S. SWARNA SAR ITA JEWELLERY THAT THE ASSESSEE HAS MADE PAYMENT OF RS.17,29,989/ - IN CASH IN A DAY EXCEEDING RS.20,000/ - AND TO M/S. MINAKSHI JEWELLER PVT LTD., CASH PAYMENT OF RS.1,61,409/ - IN CONTRAVENTION OF PROVISIONS OF SECTION 40A(3) OF THE ACT. HOWEVER, OUT OF R S.1,61,409/ - , THE AO HAS ONLY DISALLOWED RS.41,990/ - IN THE ASSESSMENT ORDER, WHICH MAKES THE ASSESSMENT ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. THEREFORE, THE PR. CIT SET ASIDE THE ASSESSMENT ORDER AND RESTORED THE MATTER BACK TO THE F ILE OF THE AO TO REDO THE ASSESSMENT ORDER AFTER MAKING NECESSARY VERIFICATION ON THE POINTS NOTED BY LD. PR. CIT. 3. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE SUBMITTED THAT HE HAS NO OBJECTION IN SETTING ASIDE THE ORDER BY THE PR. CIT - 2, BHUBANESWA R IN DIRECTING THE AO TO REDO THE ASSESSMENT BUT HE SUBMITTED THAT THE ASSESSING OFFICER BE DIRECTED TO CONSIDER WHILE PASSING THE ASSESSMENT ORDER IN PURSUANCE TO THE DIRECTION OF THE PR. CIT THAT IF THE ASSESSEE HAS MADE PAYMENT IN MULTIPLE TRANSACTION W HICH IS EXCEEDING LIMIT OF RS.20,000/ - , THE SINGLE TRANSACTION NOT EXCEEDING THE SPECIFIED LIMIT SHOULD NOT BE ADDED BACK U/S.40A(3) OF THE ACT. 4. REPLYING TO ABOVE, LD CIT DR SUPPORTED THE ORDER U/S.263 OF THE ACT. ITA NO.167/CTK/2019 ASSESSMENT YEAR : 2014 - 15 P A G E 3 | 4 5. ON CAREFUL CONSIDERATION OF THE RI VAL SUBMISSIONS, WE FIND THAT THE LD PR. CIT BY VIRTUE OF REVISIONARY ORDER U/S.263 DIRECTED THE AO TO PASS THE FRESH ASSESSMENT ORDER ON THE GROUND THAT WHILE MAKING THE ASSESSMENT ORDER, THE AO HAS NOT CONSIDERED THE PAYMENT MADE IN A SINGLE DAY IN CONT RAVENTION OF PROVISIONS OF SECTION 40A(3) OF THE ACT. BEFORE US, THE CONTENTION OF THE LD A.R. I S THAT THE ASSESSING OFFICER WHILE PASSING THE ASSESSMENT ORDER IN PURSUANCE TO ORDER U/S.263 OF THE ACT, SHOULD CONSIDER THAT IF THE ASSESSEE HAS MADE PAYMENT IN MULTIPLE TRANSACTION WHICH IS EXCEEDING THE LIMIT OF RS.20,000/ - , THE SINGLE TRANSACTION NOT EXCEEDING THE SPECIFIED LIMIT SHOULD NOT BE DISALLOWED U/S.40A(3) OF THE ACT. THEREFORE, WE UPHOLD THE ORDER U/S.263 OF THE ACT WITH THE RIDER THAT WHILE MAKI NG THE ASSESSMENT ORDER, THE AO IS DIRECTED TO CONSIDER THE CONTENTION OF THE ASSESSEE AS NOTED ABOVE. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED AS INDICATED ABOVE. ORDER PRONOUNCED ON 11 / 3 /20 2 1 . S D/ - SD/ - ( LAXMI PRASAD SAHU ) ( CHANDRA MOHAN GARG ) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 11 / 3 /20 2 1 B.K.PARIDA, SPS (OS) ITA NO.167/CTK/2019 ASSESSMENT YEAR : 2014 - 15 P A G E 4 | 4 COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : SRI DHIREN KUMAR SAHOO, PROP. M/S. KANCHAN JEWELLERY, MEENA B AZAR, DHENKANAL , 2. THE RESPONDENT. PR. CIT - 2, BHUBANESWAR 3. THE CIT(A) - , BHUBANESWAR 4 . DR, ITAT, CUTTACK 5 . GUARD FILE. //TRUE COPY//