SMT. SUSHILA DEVI AGRAWAL, RAIGARH(CG) V. THE ITO - 1, RAIGARH(CG)

ITA 181/BIL/2013

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8976 (ITAT-RAIPUR)
• Duration Of Justice: 4 year(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 17-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R B DOSHI
• Keywords: Reassessment proceedings

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RAIPUR BENCH, RAIPUR BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.181/RPR/2013 ASSESSMENT YEAR : 2007-08 SMT. SUSHILA DEVI AGRAWAL, W/O SHRI BRIJ MOHAN AGRAWAL, DANIPARA, RAIGARH VS. THE INCOME TAX OFFICER-1, RAIGARH. PAN/GIR NO.BBNPA 6570 Q (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI R.B.DOSHI, AR REVENUE BY : SHRI SANJAY KUMAR, DR DATE OF HEARING : 11/01/ 2018 DATE OF PRONOUNCEMENT : 15/01/ 2018 O R D E R PER PAVAN KUMAR GADALE, JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDE R OF THE CIT(A)- BILASPUR, DATED 2.8.2013 FOR THE ASSESSMENT YEAR 2007 -08. 2. GROUND NO.2 OF APPEAL IN RESPECT OF INITIATION OF REASSESSMENT PROCEEDINGS U/S.147 OF THE ACT WAS NOT PRESSED BY LD A.R. OF THE ASSESSEE, THEREFORE, SAME IS DISMISSED AS NOT PRESSED. 3. THE SOLE ISSUE INVOLVED FOR ADJUDICATION IN THIS APP EAL IS THAT THE CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING O FFICER IN ASSESSING THE TOTAL INCOME AT RS.51,55,930/- AS AGAINST INCOME SHO WN AT RS.60,000/-. 2 ITA NO.181/RPR/2013 ASSESSMENT YEAR : 2007-08 4. THE FACTS ARE THAT, ON AN AIR INFORMATION, THE ASSESSI NG OFFICER FOUND THAT CASH OF RS.66,33,386/- WAS DEPOSITED IN ASSESSEES SAVIN G BANK ACCOUNT WITH UNION BANK OF INDIA, RAIGARH DURING THE YEAR UNDER CONSIDERATION. OUT OF ABOVE, A SUM OF RS.51,55,928/- W AS RECEIVED AS ARBITRATION AWARD FROM EXECUTIVE ENGINEER, PHE DEPAR TMENT AGAINST SUPPLY OF MATERIALS OF RS.8,78,115/- IN THE FINANCIAL YEAR 1993-94 RELEVANT TO ASSESSMENT YEAR 1994-95 AND FINANCIAL YEAR 1994-95 RELEV ANT TO ASSESSMENT YEAR 1995-96. IN THE BILLS RAISED AND ACCEPTED BY THE PURCHASER DEPARTMENT, IT WAS STIPULATED THAT PAYMENTS OF BILLS WE RE TO BE MADE WITHIN 15 DAYS OF SUPPLY OF GOODS AND BILLS RAISED AND IN CASE OF NON-PAYMENT, INTEREST @ 24% PER ANNUM HAD TO BE CHARGED. SINCE THE PAYMENTS WERE NOT RECEIVED, A RECOVERY SUIT WAS FILED BEFORE THE HON BLE DISTRICT JUDGE, RAIGARH INCLUDING RECOVERY OF INTEREST THEREON. THE TOTAL CLAIM AS PER SUIT WAS RS.15,43,282/- I.E. RS.8,78,115/- AS PRINCIPAL AMOUN T, RS.6,60,166/- AS INTEREST ON PRINCIPAL AMOUNT AND RS.5000/- AS NOTICE EXP ENSES. THE CIVIL SUIT WAS DECIDED IN FAVOUR OF THE ASSESSEE ON 28.2.2005 A ND DECREE OF RS.15,43,282/- WAS AWARDED. FURTHER, INTEREST FOR THE PERIOD FROM THE DATE OF FILING OF SUIT TO THE DATE OF PAYMENT AND EXPENSE S OF RS.36,12,646/- WAS ALSO GRANTED. AGAINST THE ABOVE DECREE, THE PHE DEPAR TMENT FILED APPEAL BEFORE THE HONBLE HIGH COURT ON 18.5.2005 AND PRAY ED FOR STAY OF EXECUTION OF JUDGMENT. THE HONBLE HIGH COURT GRANTED STAY ON 8.8.2005. THE ABOVE 3 ITA NO.181/RPR/2013 ASSESSMENT YEAR : 2007-08 STAY WAS VACATED BY HONBLE HIGH COURT ON 19.12.2005 WITH THE DIRECTION TO THE GOVERNMENT TO DEPOSIT THE AMOUNT WITHIN A PERIO D OF FOUR WEEKS ALONGWITH INTEREST COMPONENT @ 6% PER ANNUM UPON THE PRINCIPAL AMOUNT FROM THE DATE OF FILING OF THE SUIT I.E. 28.10.1996. ACCORDINGLY, CASH OF RS.51,55,928/-, I.E. RS.15,43,282/-,ON 23.3.2006 AND RS.36.12.646/- ON 10.7.2006 WAS DEPOSITED BY THE EXECUTIVE ENGINEER, PHE DEPARTMENT IN THE DISTRICT CIVIL COURT. AFTER FILING SOLVENT SECURITY GU ARANTEE BEFORE THE DISTRICT CIVIL COURT, THE ASSESSEE WITHDREW RS.15,43,282/- AND R S.26,12,646/- AND DEPOSITED THE SAME IN HER BANK ACCOUNT. THE ASSESSING OF FICER OBSERVED THAT THE PAYMENTS RECEIVED BY THE ASSESSEE FROM THE EXECUT IVE ENGINEER, PHE DEPARTMENT IS IN THE NATURE OF REVENUE AND CRYSTAL ISED WITH THE ORDER OF THE COURT IN THE YEAR UNDER AND THE ASSESSING OFFICER H AS BROUGHT TO TAX THE ENTIRE AMOUNT OF RS.51,55,930/-. 5. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE OR DERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UN DISPUTED FACT OF THE CASE ARE THAT THE ASSESSEE HAS RECEIVED RS.51,55,928/- AS AR BITRATION AWARD FROM EXECUTIVE ENGINEER, PHE DEPARTMENT. THE ASSESSEE I N THE INCOME TAX RETURN HAS OFFERED INCOME ONLY IN THE YEAR CORRESPONDIN G TO THE RECEIPT WHEREAS THE MATTER HAS TRAVELLED BEYOND THE ASSESSMENT Y EAR 2007-08 AND 4 ITA NO.181/RPR/2013 ASSESSMENT YEAR : 2007-08 WAS CRYSTALISED BY THE ORDER OF THE HONBLE HIGH COURT DATED 12.12.2014, WHEREIN, INTEREST COMPONENT OF 6% HAS BEEN SETTLED. W E ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE IS REQUIRED TO OFFER THE INCOME IN THE ASSESSMENT YEAR 2015-16 AS THE INCOME HAS BEEN CRYSTALISED A FTER THE FINAL DISPOSAL OF THE CASE BY THE HONBLE HIGH COURT. THEREF ORE, WE CONSIDER IT FIT AND PROPER TO REMIT THE MATTER BACK TO THE FILE OF T HE ASSESSING OFFICER TO COMPUTE THE INCOME OF THE ASSESSEE IN THE FINANCIAL YEAR 2015-16 IN ACCORDANCE WITH THE DECISION OF HONBLE HIGH COURT AND T O TAX THE INCOME OF THE ASSESSEE ACCORDINGLY. WE ALSO DIRECT THE ASSESSING OFFICER TO ALLOW PROPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 15/01/2018. SD/- SD/- (N.S SAINI) ( PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIALMEMBER RAIPUR; DATED 15 /01/2018 B.K.PARIDA, SPS 5 ITA NO.181/RPR/2013 ASSESSMENT YEAR : 2007-08 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, RAIPUR 1. THE APPELLANT : SMT. SUSHILA DEVI AGRAWAL, W/O SHRI BRIJ MOHAN AGRAWAL, DANIPARA, RAIGARH 2. THE RESPONDENT. THE INCOME TAX OFFICER-1, RAIGARH 3. THE CIT(A)- BILASPUR 4. PR.CIT- BILASPUR 5. DR, ITAT, RAIPUR 6. GUARD FILE. //TRUE COPY//