Abdul Mohamed Ibrahim, CHENNAI V. ITO Non Corporate Ward 10(3), CHENNAI

ITA 1831/CHNY/2018

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 9722 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 29-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: N VIJYAKUMAR

Judgement Text

, / SMC , IN THE INCOME TAX APPELLATE TRIBUNAL B / SMC BENCH: CHENNAI ... , , ' | BEFORE SHRI N.R.S. GANESAN , JUDICIAL MEMBER ./ ITA NO.1831/CHNY/2018 % % /ASSESSMENT YEAR: 2014-15 MR.ABDUL MOHAMED IBRAHIM FLAT NO.6/48, 2 ND MAIN ROAD, SENTHIL NAGAR, KOLATHUR, CHENNAI-600 099. [PAN: AOVPM 8570 N] VS. THE INCOME TAX OFFICER, NON-CORPORATE WARD-10(3), CHENNAI. ( ) /APPELLANT) ( *+) /RESPONDENT) ) , / APPELLANT BY : MR.N.VIJYAKUMAR, CA *+) , /RESPONDENT BY : MR.B. SAGADEVAN, JCIT , /DATE OF HEARING : 22.11.2018 , / DATE OF PRONOUNCEMENT : 03.12.2018 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-7, CHENNAI, DA TED 23.03.2018, AND PERTAINS TO THE AY 2014-15. 2. MR.N.VIJAYKUMAR, LD. REPRESENTATIVE OF THE ASSES SEE SUBMITTED THAT THERE ARE TWO ISSUES ARISE FOR CONSIDERATION. FIRS T ISSUE IS DISALLOWANCE OF RS.20,43,400/- U/S.40A(3) FOR PAYMENT OF CASH EXCEE DING RS.20,000/-. THE SECOND ADDITION WAS WITH REGARD TO THE ADDITION OF RS.1,85,838/-. ITA NO.1831/CHNY/2018 :- 2 -: ACCORDING TO THE LD.REPRESENTATIVE OF THE ASSESSEE, THE ASSESSEE HAS MADE CASH PAYMENT TO TWO PARTIES IN THE COURSE OF T HE TRADING ACTIVITY. LD.REPRESENTATIVE FURTHER SUBMITTED THAT THE PAYMEN T MADE IN CASH WAS NOT DEBITED TO P&L A/C AND IT WAS NOT CLAIMED AS EX PENDITURE. THEREFORE, IT CANNOT BE DISALLOWED. ACCORDING TO THE LD.REPRE SENTATIVE, THE QUESTION OF DISALLOWANCE WOULD NOT ARISE FOR CONSIDERATION, SINCE THE ASSESSEE HAS NOT CLAIMED PAYMENT MADE IN CASH AS EXPENDITURE. WI TH REGARD TO RS.1,85,838/- CONFIRMATION LETTER WAS FILED BY M/S. NIZAM ENERGY PVT. LTD., AND THEREFORE, THERE CANNOT BE ANY DISALLOWANCE. 3. I HEARD SHRI B.SAGADEVAN, THE LD.DR ALSO. THE LD . DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT SINCE THE ASSESSEE CL AIMS THAT THE PAYMENT OF RS.20,43,400/- IN CASH WAS NOT CLAIMED AS EXPEND ITURE AND IT WAS NOT DEBITED TO P&L A/C., THIS TRIBUNAL IS OF THE CONSID ERED OPINION THAT THERE CANNOT BE ANY DISALLOWANCE OF RS.20,43,400/-. THE QUESTION OF DISALLOWANCE WOULD ARISE PROVIDED THAT THE ASSESSEE CLAIMED THE SAME AS EXPENDITURE WHILE COMPUTING THE TAXABLE INCOME. IN VIEW OF THE ABOVE, IT NEEDS TO BE VERIFIED WHETHER THE ASSESSEE CLAIMED T HE PAYMENT OF RS.20,43,400/- AS EXPENDITURE WHILE COMPUTING THE T AXABLE INCOME. MOREOVER, THE ASSESSEE ALSO CLAIMS THAT HE FILED A CONFIRMATION LETTER FOR PAYMENT OF RS.1,85,838/-. THEREFORE, THIS SHOULD A LSO NEED TO BE VERIFIED. ACCORDINGLY, THE ORDERS OF BOTH THE AUTHORITIES BEL OW ARE SET-ASIDE AND THE ENTIRE ISSUES RAISED BY THE ASSESSEE ARE REMITTED B ACK TO THE FILE OF THE AO. THE AO SHALL RE-EXAMINE THE ISSUES RAISED BY T HE ASSESSEE AND ITA NO.1831/CHNY/2018 :- 3 -: THEREAFTER DECIDE THE SAME AFRESH IN ACCORDANCE WIT H LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 3 RD DAY OF DECEMBER, 2018, IN CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 3 /DATED: DECEMBER 03, 2018. TLN , *45 65 /COPY TO: 1. ) /APPELLANT 4. 7 /CIT 2. *+) /RESPONDENT 5. 5 * /DR 3. 7 ( ) /CIT(A) 6. % /GF