A. LAKSHMANAN, , MADURAI V. CIT-1, , MADURAI

ITA 1733/CHNY/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 5497 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 03-06-2019
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: T VASUDEVAN
• Keywords: Assessment record
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ./ I . T . A NO. 1733/CHNY/2019 ASSESSMENT YEAR: 20 1 4 - 201 5 SHRI. A. LAKSHMANAN, NO.172 - 1, MAHATMA STREET, BANK COLONY, ATHIKULAM, MADURAI 625 014 [PAN: A BVPL 0612M ] VS. COMMISSIONER OF INCOME TAX - 1 NO.2, V.P. RATHINASAMY NADAR ROAD, BIBIKULAM, MADURAI 625 001. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. T. VAS U DEVAN, ADVOCATE /RESPONDENT BY : M R. SRINIVASA RAO, CIT / DATE OF HEARING : 1 0.08 .2021 / DATE OF PRONOUNCEMENT : 17. 08. 2021 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER OF THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX, MADURAI - 1 IN C . NO . 401/7 7/PCIT/MDU - 1/2018 - 19/ DATED 21.03 . 201 9 , RELE VANT TO THE ASSESSMENT YEAR 20 14 201 5 . 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIVIDUAL CARRYING IN THE BUSINESS OF COMMISSION ON REPLEDGE OF JEWELS , FILED HIS RETURN OF INCOME I . T . A NO . 1733 /CHN Y/201 9 : - 2 - : DECLARING A TOTAL INCOME OF RS.3,68,720/ - . THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S.143(3) OF THE INCOME TAX ACT, 1961 DATED 29.11.2016 BY MAKING AN ADDITION OF RS.8,18,720/ - . 3. SUBSEQUENTLY, THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX BY EXERCISING THE POWER S CONFERRED UPON HIM U/S.263 OF THE INCOME TAX ACT, 1961 HAS NOTED THAT ON EXAMINATION OF THE ASSESSMENT RECORDS FOR THE ASSESSMENT YEAR 2014 2015, IT I REVEALED THAT DURING THE FINANCIAL YEAR 2013 2014, THE ASSESSEE HAS PAID INTEREST TO VARIOUS FINANC E AND BANKING INSTITUTIONS THROUGH THE THREE BRANCHES OF THE ASSESSEE TO THE TUNE OF RS. 82,31,494/ - BUT FAILED TO DEDUCT TAX WHILE MAKING PAYMENTS. THE ASSESSING OFFICER HAS NOT EXAMINED DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS. THEREFORE, THE ORD ER PASSED BY THE ASSESSING OFFICER IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE R EVENUE AND ASKED THE ASSESSEE TO EXPLAIN. 4 . IN RESPONSE TO THAT, THE ASSESSEE HAS SUBMITTED THAT THE ASSESSING OFFICER AFTER MAKING A COMPLETE ENQUIRY MADE THE ADDITI ON ON ACCOUNT OF THE INTEREST PAYMENT TO THE TUNE OF RS.4,50,000/ - AND THEREFORE THE ORDER PASSED BY THE ASSESSING OFFICER IS NEITHER ERRONEOUS NOR PREJUDICIAL TO THE INTEREST OF THE REVENUE. 5 . THE ASSESSEES AUTHORIZED REPRESENTATIVE , SHRI S.P. VELAYUTH AM APPEARED BEFORE THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX AND I . T . A NO . 1733 /CHN Y/201 9 : - 3 - : REQUESTED THAT, IF AT ALL ANY ENQUIRY IS REQUIRED; THE MATTER MAY BE REMITTED BACK TO THE ASSESSING OFFICER. 6 . THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX , AFTER EXAMINING THE F ACTS OF THE CASE AND ALSO BY CONSIDERING THE REQUEST MADE BY THE ASSESSEES AUTHORIZED REPRESENTATIVE , REMITTED THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND AFTER GIVING AN OPPORTUNITY TO THE AS SESSEE TO SUBSTANTIATE HIS CASE. 7 . ON BEING AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE TRIBUNAL. THE LEARNED COUNSEL FOR THE ASSESSEE HA D SUBMITTED THAT IN RESPECT OF THE INTEREST PAYMENT MADE BY THE ASSESSEE TO THE FINANCIAL INSTIT UTIONS AND BANKS EXAMINED BY THE ASSESSING OFFICER AND ADDITION WAS MADE, THEREFORE THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX HAS WRONGLY INVOKED THE JURISDICTION U/S.263 OF THE INCOME TAX ACT, 1961 AND SUBMITTED THAT THE SAME MAY BE CANCELLED. 8 . ON THE OTHER HAND, THE LEARNED DEPARTMENTAL REPRESENTATIVE HAS SUBMITTED THAT THE ASSESSEES AUTHORIZED REPRESENTATIVE HIMSELF ASKED THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX TO REMIT THE ISSUE BACK TO THE ASSESSING OFFICER. THEREFORE, THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX HAS CORRECTLY EXERCISED THE JURISDICTION U/S.263 OF THE INCOME TAX ACT, 1961 AND THE SAME IS SUBMITTED THAT IT MAY BE UPHELD. I . T . A NO . 1733 /CHN Y/201 9 : - 4 - : 9 . WE HAVE HEARD BOTH THE SIDES THROUGH VIDEO - CONFERENCING , PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . 10 . IN THIS CASE, THE ASSESSEE HAS PAID INTEREST AMOUNT TO THE FINANCIAL INSTITUTIONS AND BANKS TO THE EXTENT OF RS.82,31,494/ - AND THE ASSESS EE HAS AGREED FOR THE ADDITION OF RS.4,50,000/ - O N ACCOUNT OF THE INTEREST PAYMENT. THE ASSESSING OFFICER HAS ACCEPTED THE SAME AND THE ADDITION IS MADE WITHOUT MAKING ANY ENQUIRY. SUBSEQUENTLY, THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX BY EXERCISING THE POWERS CONFERRED UPON HIM U/S.263 OF THE INCOME TAX ACT, 1961 EXAMINED THE RECORDS AND FOUND THAT THE ASSESSING OFFICER HAS NOT EXAMINED THE ISSUE RELATING TO INTEREST PAYMENT AND IT IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE REVENUE. 11. THAT APART, THE ASSESSEES AUTHORIZED REPRESENT ATIVE HIMSELF APPEARED BEFORE THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX AND REQUESTED TO REMIT THE ISSUE BACK TO THE ASSESSING OFFICER FOR EXAMINING THE SAME. 1 2 . S O, KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE CASE AND ALSO BY CONSIDERING THE REQUEST MADE BY THE ASSESSEES AUTHORIZED REPRESENTATIVE , THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX HAD I . T . A NO . 1733 /CHN Y/201 9 : - 5 - : REMITTED BACK THE ISSUE TO THE ASSESSING OFFICER TO EXAMIN E THE ISSUE AFRESH IN ACCORDANCE WITH LAW. 1 3 . THUS, WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LEARNED PRINCIPAL COMMISSIONER OF INCOME TAX AND HENCE NO INTERFERENCE IS WARRANTED. 1 4 . IN THE RESULT, THE APPEA L FILED BY THE ASSESSEE IN I.T.A . NO. 173 3 /CHNY/201 9 IS DISMISSED . ORDER PRONOUNCED ON 17 TH AUGUST , 2021 IN CHENNAI. SD/ - ( . ) ( S. J AYARAMAN ) /ACCOUNTANT MEMBER SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 17 TH AUGUST , 2021 IA , SR. PS / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF