SHOBANA SHIVARAM PRASAD, COIMBATORE V. DCIT CORPORATE CIRCLE 2, COIMBATORE

ITA 1814/CHNY/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4773 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-08-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 28-05-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A R V SREENIVASAN IRS
• Keywords: TDS; Set aside
• Section: 143(3); 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI . . . , , [BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ] ./I.T.A. NO. 1814/CHNY/2018 ! / ASSESSMENT YEAR : 2013-2014. SHOBANA SHIVARAM PRASAD, NO.31, OLD NO.10-Z, BHARATHI PARK VII CROSS SAIBABA COLONY, P.O. COIMBATORE 641 011. [PAN AEFPP 5651R] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2, COIMBATORE ( / APPELLANT) ( /RESPONDENT) '# $ % / APPELLANT BY : NONE &' '# $ % /RESPONDENT BY : SHRI. AR.V. SREENIVASAN, IRS, JCIT. ( ) $ * /DATE OF HEARING : 01-08-2019 +,! $ * /DATE OF PRONOUNCEMENT : 09-08-2019 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE PRINCIPAL COMMISSIONER OF INCOME TAX-1 , COIMBATORE (PCIT FOR SHORT) DATED 23.03.2018 FOR THE ASSESS MENT YEAR (AY) 2013-2014. ITA NO.1814/2018 :- 2 -: 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : (1) THE IMPUGNED ORDER OF THE LEARNED PCIT-1, COI MBATORE, U/S 263 OF THE I.T.ACT, 1961, IS OPPOSED TO LAW AND UNS USTAINABLE, IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE. (2) THE LEARNED PCIT HAS GROSSLY ERRED IN STATING I N THE IMPUGNED ORDER THAT THE AO HAD FAILED TO BRING TO TAX THE IN TEREST RECEIPTS BASED ON THE ENABLING PROVISIONS OF THE ACT, CONTRA RY TO THE REGULAR METHOD OF ACCOUNTING FOLLOWED BY THE APPELL ANT AND CONSISTENT METHOD OF ACCOUNTING OF SUCH INCOME, IN THE HANDS OF THE APPELLANT, EVERY YEAR, IN THE FACTS AND THE CIR CUMSTANCES OF THE CASE AND IN LAW. (3) THE LEARNED PCIT IS NOT CORRECT IN STATING THAT THE AO DID NOT MAKE THE REQUISITE ENQUIRIES OR EXAMINE THE GENUINE NESS OF THE CLAIM OF THE APPELLANT, IN THE FACTS AND THE CIRCUM STANCES OF THE CASE AND IN LAW. (4) THE LEARNED PCIT IS WRONG IN SETTING ASIDE THE ASSESSMENT U/S 143(3) OF THE I.T. ACT, 1961, MADE BY THE AO, AFTER DUE APPLICATION OF HIS MIND TO THE INFORMATION AVAILABL E IN THE RETURN OF INCOME, AFTER DUE SCRUTINY OF THE SAME, IN THE F ACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. (5) FOR THESE AND OTHER ADDITIONAL GROUNDS OF APPEA L THAT MAY BE ADDUCED AT THE TIME OF HEARING, THE ORDER OF THE PC IT-1, IS OPPOSED TO LAW AND UNSUSTAINABLE, IN THE FACTS AND THE CIRCUMSTANCES OF THE CASE AND IN LAW. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS AN INDIVIDUAL DERIVING INCOME UND ER THE HEADS INCOME FROM SALARIES, BUSINESS AND OTHER SOUR CES. THE RETURN OF INCOME FOR THE AY 2013-14 WAS FILED ON 29.07.2013 D ISCLOSING TOTAL INCOME OF RS.24,68,281/-. AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE DY. COMMISSIONER O F INCOME TAX, ITA NO.1814/2018 :- 3 -: CORPORATE CIRCLE-2, COIMBATORE VIDE ORDER DATED 0 8.03.2016 PASSED U/S. 143(3) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT) AT TOTAL INCOME OF RS. 25,80,981/-. SUBSEQUENTLY, THE LD. P CIT, COIMBATORE -1 ISSUED SHOW CAUSE NOTICE U/S.263 OF THE ACT CALLIN G UPON THE ASSESSEE AS TO WHY THE ASSESSMENT ORDER CANNOT BE SET ASIDE AS INTEREST EARNED BY THE ASSESSEE WAS NOT ASSESSED TO TAX. IN RESPONSE TO SHOW CAUSE NOTICE, IT WAS SUBMITTED BY THE ASSESSEE TH AT IT HAD NOT RECEIVED ANY INTEREST INCOME ON WHICH TDS U/S.194A WAS MADE. THE LD. PCIT AFTER CONSIDERING THE STATEMENTS HELD THA T ASSESSEE HAD FAILED TO OFFER TO TAX FOR THE FOLLOWING INTEREST INCOME EARNED WHICH ARE REFLECTED IN FORM 26AS. PARTICULARS INCOME AS PER 26AS TDS AS PER 26AS INTEREST FROM RAMASAMY JEEVANLATHA (FROM M/S.VIJAYALAKSHMI 4,50,201 45,021 INTEREST FROM SERVALL ENGG. WORKS P. LTD 1,34,730 13,473 INTEREST FROM DHANAL AKSHMI PAPER MILLS P. LTD 4,14,720 41,472 TOTAL 9,99,651 99,966 ACCORDINGLY, HELD THAT SINCE THE ASSESSING OFFICER HAD FAILED TO BRING THE ABOVE INTEREST INCOME TO TAX, THE ASSESSMENT O RDER PASSED IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF THE RE VENUE AND ACCORDINGLY VIDE ORDER DATED 23.03.2018 HAD SET ASI DE THE ASSESSMENT ITA NO.1814/2018 :- 4 -: ORDER AND DIRECTED THE ASSESSING OFFICER TO REDO TH E ASSESSMENT AFTER CONSIDERING THE INFORMATION CONTAINED IN FORM 26AS . 4. BEING AGGRIEVED BY THE ORDER OF THE PCIT, THE APPE LLANT IS IN APPEAL BEFORE US IN THE PRESENT APPEAL. WHEN THE MA TTER WAS CALLED UP FOR HEARING, ASSESSEE HAD FILED A PETITION SEEKING ADJOURNMENT OF HEARING THROUGH HIS LD. AUTHORISED REPRESENTATIVE STATING THAT THE LD. AUTHORISED REPRESENTATIVE SHRI. K. RAGHU IS OUT OF STATION. THEREFORE THE MATTER MAY BE ADJOURNED. 5. THE ADJOURNMENT PETITION IS REJECTED IN THE LIGHT O F THE LAW LAID DOWN BY HON'BLE SUPREME COURT THAT COUNSEL BEI NG OUT OF STATION CANNOT BE A REASON FOR ADJOURNMENT. THEREFORE WE P ROCEEDED TO DISPOSE THE APPEAL ON MERITS. 6. ON THE OTHER HAND, THE LD. SR. DEPARTMENTAL REPRESE NTATIVE PLACED RELIANCE ON THE ORDER OF LD. PCIT. 7. WE HEARD THE LD. SR. DEPARTMENTAL REPRESENTATIVE AN D PERUSED THE MATERIAL ON RECORD. THE ONLY ISSUE IN VOLVED IN THE PRESENT APPEAL IS WHETHER THE LD. PCIT WAS JUSTIFIE D IN EXERCISING THE POWERS OF REVISION U/S.263 OF THE ACT IN THE FACTS OF THE PRESENT CASE. ADMITTEDLY, THE LD. PCIT HAD BROUGHT MATERIAL IN TH E FORM OF INFORMATION CONTAINED IN FORM 26AS TO SHOW THAT ASS ESSEE HAD EARNED ITA NO.1814/2018 :- 5 -: INTEREST INCOME WHICH WAS NOT OFFERED TO TAX. APPA RENTLY THE ASSESSING OFFICER NEITHER CONSIDERED THE INFORMATI ON CONTAINED IN FORM 26AS NOR MADE ANY ENQUIRY AS TO HOW THE INTEREST IN COME CONTAINED IN THE FORM 26AS IS NOT TAXABLE AND THEREFORE THE ASS ESSING OFFICER HAD FAILED TO CONDUCT NECESSARY ENQUIRY ON THE ISSUE AN D HENCE THE LD. PCIT WAS JUSTIFIED IN EXERCISING HIS JURISDICTION U/S.263 OF THE ACT. ACCORDINGLY, WE UPHOLD THE ORDER OF THE LD. PCIT U/ S. 263 OF THE ACT AND DISMISS THE APPEAL OF THE ASSESSEE. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS DISMISSED. ORDER PRONOUNCED ON 9TH DAY OF AUGUST, 2019, AT CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER - ) / CHENNAI . / DATED:9TH AUGUST,, 2019 KV $ &*01 21!* / COPY TO: 1 . '# / APPELLANT 3. ( 3* () / CIT(A) 5. 16 &*7 / DR 2. &' '# / RESPONDENT 4. ( 3* / CIT 6. 8 9) / GF