AL.PR.Slevam Alaghappan, CHENNAI V. ACIT Non Corporate Circle 2, CHENNAI

ITA 1839/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2718 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 30-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

, SMC , IN THE INCOME TAX APPELLATE TRIBUNAL C SMC BENCH : CHENNAI BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ I.T.A.NO.1839/CHNY/2018 / ASSESSMENT YEAR : 2012-13 SHRI AL.PR.SELVAM ALAGHAPPAN , OLD NO.15, NEW NO.17, BHRATHI NAGAR, IIND STREET, T.NAGAR, CHENNAI 600 017. VS. THE INCOME TAX OFFICER, NON-CORPORATE CIRCLE-2, CHENNAI 600 034. [PAN AAMPS 0588 D ] ( / APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR.SAROJ KUMAR PARIDA,ADVOCATE /RESPONDENT BY : MR.B.SAGADEVAN,JCIT,D.R ! '# / DATE OF HEARING : 24 - 1 0 - 201 8 $% ! '# / DATE OF PRONOUNCEMENT : 24 - 1 0 - 201 8 / O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-2,CHENNAI IN ITA NO.146/2016-17/A.Y 2012-13/CIT(A)-2 DATED 09.04. 2018 FOR THE ASSESSMENT YEAR 2012-13. 2. SHRI SAROJ KUMAR PARIDA REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI B.SAGADEVAN REPRESENTED ON BEHALF OF T HE REVENUE 3. IT WAS SUBMITTED BY LD.A.R THAT THE ISSUE IN TH IS APPEAL WAS AGAINST THE ACTION OF THE LD.CIT(A) IN CONFIRMING T HE DISALLOWANCE OF THE INTEREST PAYMENT OF ` 20,11,559/- PAYABLE TO BANK IN RESPECT OF BORROWING UTILIZED FOR ACQUISITION OF LAND AND BUIL DING. IT WAS A ITA NO.1839/CHNY/2018 :- 2 -: SUBMISSION THAT THE ISSUE WAS NOW SQUARELY COVERED BY THE DECISION OF SMC B BENCH OF THIS TRIBUNAL IN THE CASE OF ASSESSEES WIFE SMT.ALAGAPPAN KAMALAA IN ITA NO.1412/CHNY/2017 VIDE ORDER DATED 22.03.2018. IT WAS A SUBMISSION THAT ON IDENTICAL DIRECTIONS, THE ISSUE IN THIS APPEAL CAN ALSO BE RESTORED TO THE FILE OF LD. ASSESSING OFFICER. 4. IN REPLY, LD.D.R ENDORSED THE SUBMISSIONS OF LD . A.R. IT WAS A SUBMISSION THAT THE LD.D.R HAD NO OBJECTION, IF THE ISSUE IN THIS APPEAL CAN ALSO BE RESTORED TO THE FILE OF LD. ASSESSING O FFICER ON IDENTICAL DIRECTIONS GIVEN IN ASSESSEES WIFE CASE REFERRED T O SURPA. 5. I HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PER USAL OF DECISION OF ASSESSEES WIFE CASE VIDE ORDER DATED 22.03.2018 RE FERRED TO SUPRA, SHOWS THAT IT IS SIMILAR TO THE FACTS IN THE CASE O F ASSESSEE AND THE TRIBUNAL HAS HELD IN THE CASE OF ASSESSEES WIFE S MT.ALAGAPPAN KAMALAA REFERRED TO SUPRA, AS FOLLOWS:- 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. WE FIND MERIT IN THE SUBMISSION OF THE L D.AR. IT IS OBVIOUS THAT INTEREST EXPENSE INCURRED BY THE ASSESSEE TOWARDS L OAN OBTAINED FOR THE ACQUISITION OF AN ASSET WHICH IS PUT TO USE FOR THE PURPOSE OF EARNING INCOME, WILL BE IN THE NATURE OF REVENUE EXPENDITUR E. THE LD.AR HAD SUBMITTED THAT THE ASSESSEE HAD UTILIZED ALL THE AS SETS PURCHASED/CONSTRUCTED BY OBTAINING LOAN, INTO HER A CTIVITY OF RENTING/BUSINESS ETC., AND THEREBY EARNED INCOME. I N THESE CIRCUMSTANCES, IM OF THE VIEW THAT THE ASSESSEE IS ENTITLED FOR DEDUCTION TOWARDS THE INTEREST EXPENSE INCURRED AS PER THE PR OVISIONS OF SECTION 57(III) OF THE ACT IF THE CLAIM OF THE LD.AR IS GEN UINE. HOWEVER, SINCE IM NOT ABLE TO VERIFY THE ENTIRE FACTS OF THE CASE, I HEREBY REMIT THE MATTER ITA NO.1839/CHNY/2018 :- 3 -: TO THE FILE OF LD.CIT(A) WITH A DIRECTION TO VERIFY THE ENTIRE ACTIVITY OF THE ASSESSEE, SCOPE OF INCOME EARNED BY HER, THE LOAN O BTAINED BY HER AND THE ASSET PUT TO USE FOR THE PURPOSE OF EARNING INC OME AGAINST WHICH LOAN HAS BEEN OBTAINED ETC., AND THEREAFTER DECIDE THE I SSUE IN ACCORDANCE WITH MERIT AND LAW BASED ON OUR OBSERVATION HEREIN ABOVE. I ALSO DIRECT THE LD.CIT(A) TO OBTAIN A REMAND REPORT FROM THE LD .AO, IF CERTAIN NEW MATERIALS ARE BROUGHT BEFORE HIM FOR THE FIRST TIME AND THEREAFTER DECIDE THE ISSUE IN ACCORDANCE WITH MERIT. AS IT IS NOTICED THAT THE ISSUE IN THIS APPEAL HAS BEEN SQUARELY COVERED BY THE ABOVE DECISION OF SMC B BENCH OF THIS TR IBUNAL, RESPECTFULLY FOLLOWING THE DECISION OF SMC BENCH OF THIS TRIBUNA L, I HEREBY RESTORE THE MATTER TO THE FILE OF LD. ASSESSING OFFICER FOR RE-ADJUDICATION ON IDENTICAL DIRECTIONS GIVEN IN ASSESSEES WIFE CASE REFERRED TO SUPRA. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS P ARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 24 TH OCTOBER, 2018, AT CHENNAI. SD/ - ( ) (GEORGE MATHAN) ! ' / JUDICIAL MEMBER & / CHENNAI ' / DATED: 24 TH OCTOBER, 2018. K S SUNDARAM (!)* +*! / COPY TO: 1 . / APPELLANT 3. ,!- . / CIT(A) 5. */0!1 / DR 2. / RESPONDENT 4. ,! / CIT 6. 023 / GF