MR. P RAGHUNATHAN, SALEM V. DCIT CIRCLE III SALEM (PRESENTLY ACIT CENTRAL CIRCLE 1), SALEM

ITA 1771/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4626 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 23-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J PAVITRAN KUMAR IRS
• Assessee Lawyers: T S LAKSHMI VENKATRAMAN
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, B BENCH : CHENNAI CAMP AT COIMBATORE ... , ! '#, $ #% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./I.T.A. NO.1771/CHNY/2018 / ASSESSMENT YEAR : 2011-2012. SHRI. P. RAGUNATHAN, NO.2, A.A ROAD (NEAR SHANTHI THEATRE) DHADUBAIKUTTAI, SALEM 636 001. VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE III, (PRESENTLY ACIT, CIRCLE-I) SALEM. [PAN AAYPR 3825L] ( &' / APPELLANT) ( ()&' /RESPONDENT) / APPELLANT BY : SHRI. T.S. LAKSHMI VENKATRAMAN, C.A. /RESPONDENT BY : SHRI. J. PAVITRAN KUMAR, IRS, JCIT. /DATE OF HEARING : 07-02-2020 /DATE OF PRONOUNCEMENT : 07-02-2020 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS), SALEM DATED 12.03.2018 AND PERTAINS TO THE ASSESSMENT YEAR 2011 -12. ITA NO. 1771/CHNY/2018 :- 2 -: 2. SHRI. T.S. LAKSHMI VENKATRAMAN, THE LD. REPRES ENTATIVE FOR THE ASSESSEE SUBMITTED THAT ASSESSEE IS A PARTNER IN M /S. S. A POULTRY FARM. THE SALE PROCEEDS OF THE PARTNERSHIP FIRM W AS DEPOSITED IN THE INDIVIDUAL ACCOUNT OF THE ASSESSEE WITH INDIAN BANK , IN SB NO. 711791958, GUGAI BRANCH, SALEM. REFERRING TO SECT ION 14 OF THE INDIAN PARTNERSHIP ACT, THE LD. REPRESENTATIVE S UBMITTED THAT ANY MONEY DEPOSITED IN THE NAME OF PARTNER BELONGS TO T HE PARTNERSHIP FIRM. THEREFORE, IT CANNOT BE TREATED AS UNACCOUN TED DEPOSIT U/S.68 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) . ON A QUERY FROM THE BENCH, WHEN THE ASSESSING OFFICER FINDS THAT TH E ASSESSEE IS NOT A PARTNER IN THE PARTNERSHIP FIRM, HOW THE DEPOSIT CO ULD BE TREATED AS THAT OF THE FIRM, THE LD. REPRESENTATIVE VERY FAI RLY SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASS ESSING OFFICER FOR RECONSIDERATION AND THE ASSESSEE IS READY AND WIL LING TO PROVE THAT THE ASSESSEE IS ALSO ONE OF THE PARTNER IN PARTNER SHIP BEFORE THE ASSESSING OFFICER. THE LD. REPRESENTATIVE FURTHER SUBMITTED THAT FOR THE ASSESSMENT YEAR 2012-2013, THE ASSESSING OFFICE R AFTER REOPENING THE ASSESSMENT FOUND THAT THE MONEY DEPOSITED IN TH E VERY SAME BANK ACCOUNT BELONGS TO THE PARTNERSHIP FIRM. 3. ON THE CONTRARY, SHRI. PAVITRAN KUMAR, LD. DEPA RTMENTAL REPRESENTATIVE SUBMITTED THAT ASSESSEE IS NOT A PAR TNER IN THE PARTNERSHIP FIRM AND THERE WAS NO TRANSACTION WITH THE PARTNERSHIP ITA NO. 1771/CHNY/2018 :- 3 -: FIRM ALSO. THE ASSESSEE ENGAGED HIMSELF IN THE BUS INESS OF TEXTILE AND HE IS NOT CONNECTED WITH THE PARTNERSHIP FIRM. THE REFORE, THE ASSESSING OFFICER RIGHTLY TREATED THE ENTIRE AMOUNT AS HIS INCOME U/S.68 OF THE ACT. 4. HAVING HEARD THE LD. REPRESENTATIVE OF THE ASSE SSEE AND LD. DEPARTMENTAL REPRESENTATIVE, THIS TRIBUNAL IS OF T HE CONSIDERED OPINION THAT THE MATTER NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFICER SINCE ASSESSEE SPECIFICALLY CLAIMED THAT H E IS A PARTNER IN M/S. S.A. POULTRY FARM AND THE ASSESSING OFFICER ALSO A CCEPTED HIS CONTENTION FOR THE ASSESSMENT YEAR 2012-2013. ACCOR DINGLY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE IS REMITTED BACK TO THE FIL E OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE-EXAMINE THE MATTER ON THE BASIS OF THE COPY OF THE PARTNERSHIP DEED THAT MAY BE FIL ED BY THE ASSESSEE, THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW AFTER GIVING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ITA NO. 1771/CHNY/2018 :- 4 -: ORDER PRONOUNCED IN THE OPEN COURT ON 7 TH FEBRUARY, 2020, AT CAMP AT COIMBATORE. SD/- SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER (... ) (N.R.S. GANESAN) ! JUDICIAL MEMBER COIMBATORE, '# / DATED: 7 TH FEBRUARY, 2020. KV #$%% &'%(' / COPY TO: % 1 . / APPELLANT 3. % )%*+ / CIT(A) 5. ',-% . / DR 2. / RESPONDENT 4. % ) / CIT 6. -/%0 / GF