The Assistant Commissioner of Income Tax, Circle 2(1), Panaji., Panaji V. Dr. Raghuvir Kalyan Salkar., Goa

ITA 179/PAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 1200 (ITAT-PANAJI)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2016
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 23-11-2016
• Assessment Year: 2012-2013
• Appeal Filed On: 07-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAVIRAJ Y V

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER & SHRI RAMIT KOCHAR HONBLE ACCOUNTANT MEMBER ITA NO. 1 79 /P A N/201 6 (ASST. YEAR : 20 12 - 1 3 ) ACIT, CIRCLE - 2(1), PANAJI GOA. VS. DR. RAGHUVIR KALYAN SALKAR, H.NO. 1158, B.B. BORKAR ROAD, PORVORIM, BARDEZ GOA. PAN NO. AHEPS 4729 F (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI SANDIP BHANDARE C A DEPARTMENT BY : SHRI RAVIRAJ Y.V. - DR DATE OF HEARING : 2 3 / 11 /201 6 . DATE OF PRONOUNCEMENT : 23 / 11 /201 6 . O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) , PANAJI - 1 , IN APPEAL NO. 119/CIT(A) PNJ - 1/15 - 16, DATED 2 3 /0 6 /201 6 FOR THE ASSESSMENT YEAR 2012 - 13 . 2. SHRI RAVIRAJ Y.V., DEPARTMENTAL REPRESENTATIVE REPRESENTED ON BEHALF OF THE REVENUE AND SHRI SANDIP BHANDARE, C A REPRESENTED ON BEHALF OF THE ASSESSEE. 3 . IT WAS SUBMITTED BY THE DEPARTMENTAL REPRESENTATIVE THAT IT WAS NOTICED THAT THERE WAS DIFFERENCE BETWEEN THE T URNOVER AND THE TDS DISCLOSED IN THE FORM NO. 26AS AND THE RETURN OF INCOME FILED . IT WAS 2 ITA NO. 179/PAN/2016 THE SUBMISSION THAT THE FORM NO. 26AS SHOWED THE GROSS RECEIPTS OF 5,00,20,840/ - AND TDS OF 48,48,306/ - . IT WAS THE SUBMISSION THAT , HOWEVER, THE RETURN OF INCOM E OF THE ASSESSEE SHOWED THE GROSS RECEIPTS ONLY OF 2,18,58,845/ - . IT WAS THE SUBMISSION THAT CONSEQUENTLY THE ASSESSING OFFICER HAD REOPENED THE ASSESSMENT AND HAD BROUGHT TO TAX THE BALANCE OF 2,81,61,995/ - AS A N INCOME OF THE ASSESSEE. IT WAS THE SUBMISSION THAT ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT THE ASSESSEE WAS FOLLOWING CASH SYSTEM OF ACCOUNTING AND THAT THE ASSESSEE WAS ALSO ELIGIBLE FOR APPORTIONMENT OF HIS INCOME BY APPLYING THE PROV ISIONS OF SECTION 5A OF THE ACT. IT WAS THE SUBMISSION THAT CONSEQUENTLY THE COMMISSIONER OF INCOME TAX (APPEALS) HAD DELETED THE ADDITIONS. IT WAS THE SUBMISSION THAT WHILE DELETING THE ADDITION, THE COMMISSIONER OF INCOME TAX (APPEALS) HAD QUANTIFIED T HE VARIOUS FIGURES ON ACCOUNT OF THE APPLICABILITY OF SECTION 5A AND HAD ARRIVED AT BALANCE DIFFERENCE OF 63,03,150/ - . W ITHOUT GIVING ANY FIN D ING, DELETED THE ADDITION IN ITS ENTIRETY. IT WAS THE SUBMISSION THAT THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) WAS LIABLE TO BE REVERSED. 4 . IN REPLY, AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE DIFFERENCE WAS ON ACCOUNT OF APPLICABILITY OF THE PROVISIONS OF SECTION 5A OF THE ACT AS ALSO ON ACCOUNT OF TDS ON THE SERVICE TAX WHICH HAS BEEN DONE BY THE PAYERS, THE CASH METHOD OF ACCOUNTING SYSTEM FOLLOWED BY THE ASSESSEE INSOFAR AS THE ASSESSEE HAS OFFERED THE INCOME AS AND WHEN HE HAS RECEIVED IT, BUT THE PAYERS HAVE ACCOUNTED FOR THE SAME FOLLOWING THE MERCANTILE SYSTEM OF ACCOUNTING. THE TDS WHICH HAS BEEN DONE ON THE TRAVELLI NG EXPENSES WHICH WERE IN FACT REIMBURSEMENT AND TDS ON THE INCOME FROM OTHER SOURCES, WHICH HAS BEEN TREATED BY THE ASSESSING OFFICER AS PART OF THE TURNOVER. IT WAS THE SUBMISSION THAT HE HAD NO OBJECTION IF THE AMOUNT OF 63,03,150/ - WHICH WAS THE BAL ANCE DIFFERENTIAL WAS RESTORED TO THE FILE FOR VERIFICATION AND RECONCILIATION . 3 ITA NO. 179/PAN/2016 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMITTEDLY, THE ASSESSEE IS A GOAN RESIDENT AND IS MARRIED UNDER THE PORTUGUESE CIVIL CODE. THE ASSESSEE HAS ALSO PRODUCED COPY OF THE RETURN OF THE ASSESSEES WIFE , WHEREIN IT IS NOTICED THAT THE ASSESSEES WIFE HAS ALSO DISCLOSED AN EQUAL AMOUNT OF 2,18,58,845/ - WHICH IS THE SAME AS HAS BEEN DISCLOSED BY THE ASSESSEE. IF THIS AMOUNT OF 2,18,58,845/ - IS DELETED FROM THE ADDI TION THERE REPRESENTS A BALANCE OF 63,03,150/ - WHICH ADMITTEDLY THE COMMISSIONER OF INCOME TAX (APPEALS) HAS DELETED WITHOUT SPECIFYING VERIFICATION THAT HAS BEEN DONE BY HIM . IN THESE CIRCUMSTANCES, ACCEPTING THE CONTENTIONS AS PUT FORWARD BY THE ASSES SEE AS ALSO THE RECONCILIATION WHICH HAS BEEN PLACED BY THE ASSESSEE BEFORE US, THE ISSUE OF THE BALANCE OF 63,03,150/ - IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION AND RECONCILIATION TO BE PROVIDED BY THE ASSESSEE IN RESPECT OF THE ISSUE OF TDS ON SERVICE TAX, CASH METHOD OF ACCOUNTING FOLLOWED BY THE ASSESSEE, TDS ON THE TRAVELLING CLAIM WHICH IS CLAIMED TO BE REIMBURSEMENT AS ALSO THE TDS ON THE INCOME FROM OTHER SOURCES, WHICH HAS BEEN OFFERED BY THE ASSESSEE, BUT HAS BEEN TREATED AS PART OF THE GROSS RECEIPTS OF THE ASSESSEE. IN THESE CIRCUMSTANCES, APPEAL OF THE REVENUE STANDS ALLOWED FOR STATISTICAL PURPOSES. 6 . IN THE RESULT, APPEAL OF THE REVENUE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE HEARING ON WEDNESDAY , THE 2 3 RD DAY OF NOVEMBER , 201 6 AT GOA . S D / - S D / - ( RAMIT KOCHAR ) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 2 3 RD NOVEMBER , 201 6 . 4 ITA NO. 179/PAN/2016 VR/ - COPY TO: 1 . THE ASSESSEE. DR. RAGHUVIR KALYAN SALKAR, H.NO. 1158, B.B. BORKAR ROAD, PORVORIM, BARDEZ GOA. 2 . THE REVENUE. ACIT, CIRCLE - 2(1), PANAJI GOA. 3 . THE PR. CIT, PANAJI. 4 . THE CIT(A) , PANAJI - 1, GOA. 5 . THE D.R . 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI