ITO, Bangalore V. Shri. M.R. Palaniyappan, Bangalore

ITA 183/BANG/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8594 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-02-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 12-02-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KAMALADHAR
• Keywords: Additional evidence
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 40(a)(ia); 201(1); 194A

Judgement Text

ITA.183 & CO.68/BANG/2016 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BENGALURU BENCH 'A', BENGALURU BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T.A NO.183/BANG/2016 (ASSESSMENT YEARS : 2012-13) INCOME TAX OFFICER, WARD -6(3)(2), BENGALURU ..APPELLANT V. SHRI. M. R. PALANIYAPPAN, NO.487, 10 TH CROSS, SADASHIVANAGAR, BENGALURU 560 080 ..RESPONDENT PAN : AHUPP8124F CROSS OBJECTION NO.68/BANG/2016 (IN I.T.A NO.183/BANG/2016) (ASSESSMENT YEARS : 2012-13) (BY THE ASSESSEE) ASSESSEE BY : SHRI. H. GURUSWAMY, ITP REVENUE BY : SHRI. KAMALADHAR, STANDING COUNSEL HEARD ON : 29.11.2016 PRONOUNCED ON :06.02.2017 O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THESE ARE APPEAL AND CROSS OBJECTION FILED BY THE REVENUE AND THE ASSESSEE , RESPECTIVELY, AGAINST THE ORDER OF THE C IT (A), BENGALURU-6, DT.08.12.2015, FOR THE ASSESSMENT YEAR 2012-13 02. SHRI. M. R. PALANIYAPPAN, THE ASSESSEE, EN GAGED IN THE BUSINESS OF PROVIDING OF CONTRACT CARRIAGE BUS SERVICE TO TH E COMMUTERS AND IN THE DIGGING OF BORWELLS, FILED HIS RETURN THROUGH E-F ILING ON 25-09-2012 FOR ITA.183 & CO.68/BANG/2016 PAGE - 2 THIS ASST YEAR DECLARING AN INCOME OF RS. 2,60,720 /-. THE ASSESSEE CLAIMED PAYMENT FINANCE CHARGES, INTEREST AND INTE REST ON LOANS AS UNDER: 03. SINCE M/S. SUNDARAM FINANCE LTD., LNDIA BULLS L TD., M/S. SUNDARAM HFC LTD., M/S. SUNDARAM BNP PARIBASU LTD., ARE NOT COVERED U/SEC. 194A (3)(III), THE AO HELD THAT THE ASSESSEE IS LIA BLE TO DEDUCT TAX AT SOURCE U/SEC. 194A(1), BUT MADE THE PAYMENTS AT R S.1,25,40,612 /- WITHOUT DEDUCTING TAX , HENCE THE SAID INTEREST PA YMENTS ARE INADMISSIBLE U/SEC. 40(A)(IA) AND ADDED TO THE IN COME. ON AN APPEAL, THE CIT (A), RELYING THIS TRIBUNAL DECISION IN THE CASE OF M/S CAPITAL PHARMA IN ITA NO. 34(BANG) 2013 DT 14.8.2014 FOR AY 2005-06, ALLO WED THE APPEAL. AGGRIEVED, THE REVENUE FILED THE APPEAL WITH THE FO LLOWING GROUNDS: ITA.183 & CO.68/BANG/2016 PAGE - 3 ITA.183 & CO.68/BANG/2016 PAGE - 4 04. THE ASSESSEE FILED A CO , NO.68/BANG/201 6 , WITH THE FOLLOWING GROUNDS : ITA.183 & CO.68/BANG/2016 PAGE - 5 05. THE ASSESSEE FILED AN APPLICATION FOR ADMISSI ON OF ADDITIONAL EVIDENCE UNDER RULE 29 OF THE ITAT RULES , ENCLOSING THE C ERTIFICATES ISSUED U/S 201(1) BY (I)M/S. SUNDRAM FINANCE LTD SIGNED BY P B ABU, CA MEMBERSHIP NO 203358 ON BEHALF OF THE COMPANY,(II) M/S. SUNDRAM B NP PARIBASU HOME FINANCE LTD, SIGNED BY P BABU, CA MEMBERSHIP NO 20 3358 ON BEHALF OF THE COMPANY AND (III) INDIABULLS FINANCE LTD , SIGNED BY NEHA JAIN CA MEMBERSHIP NO 511402 ON BEHALF OF THE COMPANY AND P LEADED THAT THEY COULD NOT BE PRODUCED BEFORE THE AO OR BEFORE THE CIT(A) AS HE WAS NOT IN POSSESSION OF THEM. SINCE THESE DOCUMENTS ARE RELEV ANT FOR THIS PROCEEDINGS IN SUPPORT OF HIS CLAIM THAT THE PAYEE HAS PAID TAX ON THE INTEREST PAID BY HIM, THEY ARE RELATED TO THE FACTS ON THE SUBJECT MATTER OF APPEAL, HE WAS NOT IN POSSESSION OF THEM AT THE TIME OF ASSESSMENT OR BEF ORE THE FIRST APPELLATE AUTHORITY, THEY WERE SECURED BY HIM IN MAY, AUGUST, SEPTEMBER AND OCTOBER 2016, RESPECTIVELY, HENCE IT WAS BEYOND HIS REACH A ND CONTROL ETC AND HENCE PLEADED TO ADMIT THEM. WE HAVE HEARD THE RIVAL CONT ENTIONS, FIND MERIT IN THE SUBMISSIONS AND HENCE ADMIT THE ADDITIONAL EVIDENCE . SINCE, THESE CERTIFICATES WERE NOT PRODUCED BEFORE THE AO, THIS ISSUE IS REMI TTED BACK TO THE AO TO RE- EXAMINE THE ISSUE IN THE LIGHT OF THE ADDITIONAL EV IDENCE AND ADJUDICATE AFRESH ITA.183 & CO.68/BANG/2016 PAGE - 6 AFTER AFFORDING DUE OPPORTUNITY TO THE ASSESSEE. 06. IN THE RESULT, THE REVENUES APPEAL AND THE AS SESSEES CROSS OBJECTION ARE REMITTED TO THE AO FOR RE-EXAMINATION AND FRESH ADJUDICATION . ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH DAY OF FEBRUARY, 2017. SD/- SD/- (SMT. ASHA VIJAYARAGHAVAN) (S. JA YARAMAN) JUDICIAL MEMBER ACCOU NTANT MEMBER MCN* COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME TAX 4. THE COMMISSIONER OF INCOME TAX (A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR.