M/s. Subhmangal Constructions, Pune V. Income-tax Officer, Ward - 7, Pune

ITA 1765/PUN/2018

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 2830 (ITAT-PUNE)
• Duration Of Justice: 3 year(s) 5 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-05-2022
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 18-11-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Deemed to accrue or arise in india
• Section: 131

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, PUNE SHRI R.S. SYAL, VICE PRESIDENT AND SHRI PARTHA SARATHI CHAUDHURY, JM I.T.A. No. 1765/PUN/2018 : A.Y. 2015-16 M/s. Shubhmangal Constructions, 326 Mahatma Gandhi Road, Ashok Vijay Complex, 3 rd floor, Camp, Pune-411 001. PAN: AATFS8346L : Appellant Vs. The I.T.O. Cirlcle 7, Pune. : Respondent Appellant by : Shri Suhas Bora Respondent by : Shri M.G. Jasnani Date of Hearing : 02-05-2022 Date of Pronouncement : 06-05-2022 ORDER PER PARTHA SARATHI CHAUDHURY, JM This appeal preferred by assessee emanates from order of the Commissioner of Income Tax(A)-5, dated 21-06-2018 for A.Y. 2015-16 as per the grounds of appeal on record. 2. The assessee is a partnership firm engaged in the business of promoter and builder. The assessee filed its return of income for the year under consideration on 29-09-2015 declaring total income at Rs. 64,10,460/-. The assessee has claimed payment of Rs. 21,00,000/- to Shri Anna Lalu More as a part of compensation to surrender rights over land at S. No. 118A, Parvati, Pune. The A.O issued summons u/s 131 of the Income-tax Act, 1961 (hereinafter referred to as “the Act” for short) to Shri Anna Lalu More and recorded his statement who has confirmed the receipt of Rs. 21,00,000/- but through bearer cheques. According to the A.O, there was violation of provisions of sec. 40A(3A) of the Act which provides for payment in excess of 2 ITA No. 1765/PUN/2018 Subhmangal Constructions A.Y. 2015-16 Rs. 20,000/- in a day made otherwise than account payee cheque or account payee bank draft. Not being satisfied with the explanation offered by said Shri Anna Lalu More, the A.O proceeded to make the addition of Rs. 21,00,000/- as deemed income as profits from business u/s 40A(3A) of the Act. 3. During the first appellate proceedings, the assessee re-iterated its submissions. The assessee has also taken a plea that the payment or amount was not claimed as expenditure either in F.Y. 2012-13 or in the year under consideration and therefore, sec. 40A(3A) of the Act was not applicable. The ld. CIT(A) therefore, directed the A.O to verify the contention of the assessee and take necessary action in accordance with law. 4. At the time of hearing, the ld. Counsel for the assessee submitted that till date, the A.O has not complied with the directions of the ld. CIT(A) contained in his order dated 21-06-2018. The only prayer made by the ld. Counsel for the assessee before us is that the A.O be directed to give effect to the order of the CIT(A) expeditiously. In reply, the ld. .D.R conceded to the prayer made by the ld. Counsel for the assessee. 5. Having heard the parties, we agree with the findings of the ld. CIT(A) who directed the A.O to verify the contention of the assessee and take necessary action in accordance with law. We therefore, direct the A.O to give effect to the order of the ld. CIT(A) as expeditiously as possible after complying with the principles of natural justice. 6. In the result, the appeal of the assessee is dismissed. Order pronounced in the open Court on this 06 th day of May 2022. Sd/- sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune; Dated, this ____ day of May 2022 Ankam 3 ITA No. 1765/PUN/2018 Subhmangal Constructions A.Y. 2015-16 //// TRUE COPY //// Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT (A)-12 Pune 4. The Pr. CIT Central, Nagpur 5. The D.R. ITAT „B‟ Bench, Pune. 5. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. 4 ITA No. 1765/PUN/2018 Subhmangal Constructions A.Y. 2015-16 Date 1 Draft dictated on 05-05-2022 Sr.PS 2 Draft placed before author 05-05-2022 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS 09-05-2022 Sr.PS 6 Kept for pronouncement on 09-05-2022 Sr.PS 7 Date of uploading of order 09-05-2022 Sr.PS 8 File sent to Bench Clerk Sr.PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order