Anubhav Plantations Ltd. in Liquidation), CHENNAI V. ITO Corporate Ward 1(1), CHENNAI

ITA 1914/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0512 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2012-2013
• Appeal Filed On: 12-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITA
• Assessee Lawyers: S PARTHASARATHY
• Keywords: Capital expenditure; TDS; Liquidation
• Section: 40(a)(ia); 201; 13

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER ./ ITA NO. 1 914 /CHNY/ 201 8 / ASSESSMENT YEAR: 201 2 - 1 3 M/S. ANUBHAV PLANTATIONS LIMITED (IN LIQUIDATION) THE OFFICE OF O FFICIAL LIQUIDATOR, NO.29, CORPORATE BHAVAN, RAJAJI SALAI, CHENNAI 600 001. [PAN: AADCA 6810C ] VS. THE INCOME TAX OFFICER CORPORATE WARD (1), CHENNAI 600 034 ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : M R. S. PARTHASARATHY, C.A. /RESPONDENT BY : M S . R. ANITA , JCIT / DATE OF HEARING : 11 . 1 2 .2019 / DATE OF PRONOUNCEMENT : 11 .12 .2019 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 1 , CHENNAI I N ITA NO. 254/CIT(A) - 1/2015 - 16 DATED 29.03.2018 FOR THE ASSESSMENT YEAR 201 2 - 13 . ITA NO. 1 914 / CHNY / 201 8 : - 2 - : 2. SHRI S. PARTHASARATHY, CHARTERED ACCOUNTANT REPRESENTED ON BE HALF OF THE ASSESSEE AND MS. R. ANITA , JCIT REPRE SENTED ON BEHALF OF THE R EVENUE . 3 . IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSEE IS A COMPANY UNDER LIQUIDATION. IT WAS A SUBMISSION THAT THE ASSESSEE HAD E - FILED HIS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ON 04.09.2012 ADMITTING INCOME AT NIL. IT WAS A SUBMISSION THAT THE ASSESSING OFFICER HAS DISALLOWED AN AMOUNT OF RS.4 8 ,22,936/ - REPRESENTING CERTAIN EXPENDITURE INC URRED BY THE ASSESSEE ON THE GROUND THAT N O TDS HAS BEEN DEDUCTED U/S. 40(A)(IA) OF THE INCOME TAX ACT, 1961. IT WAS A SUBMISSION THAT ON APPEAL THE LEARNED CIT(A) HAD DECIDED THE ISSUE OF THE NON - DEDUCTION OF TDS IN FAVOUR OF THE ASSESSEE BUT HAD PROCEEDED TO HOLD THAT THE ASSESSEE HAD ONLY INTER EST INCOME AND THEREFORE THE INCOME WAS LIABLE TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES AND THE EXPENDITURE CLAIMED TO RS.48,22,936/ - DID NOT RELATE TO THE EARNINGS OF THE INTEREST INCOME AND THEREFORE DI SALLOWED THE SAME U/S.57(III) OF THE INCOME TAX ACT, 1961. IT WAS A SUBMISSION OF THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ASSESSEE HAS NOT CLAIMED ON THE SAID CLAIMED EXPENDITURE OF RS.48,22,936/ - IN SO FAR AS IT WAS A CAPITAL EXPENDITURE. IT WAS FAIRLY AGREED BY THE LEARNED AUTHORIZED REP RESENTATIVE THAT HE HAD NO OBJECTION IF THE ISSUE WAS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINATION AND TO EX AMINE IF ANY EXPENDITURE HAD BEEN INCURRED FOR THE PURPOSE OF EARNING INTEREST INCOME AND IF THERE WERE ANY EXPENDITURES FOR THE PU RPOSE OF EARNING OF INTEREST INCOME AND SUCH ITA NO. 1 914 / CHNY / 201 8 : - 3 - : EXPENDITURE HAS BEEN CLAIMED BY THE ASSESSEE, THE N THE SAME WAS LIABLE TO BE ALLOWABLE . 4. IN REPLY, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER THE LEARNED ASSESSING OFFICER AND THE LEARNED CIT (A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 6. A PERUSAL OF THE FACTS IN THE PRESENT CASE SHOWS THAT THE ASSESSING OFFICER HAD ORIGINALLY DISALLOWED AN AMOUNT OF RS.48,22,936/ - ON ACCOUNT OF NON - DEDUCTI ON OF TDS. THE LEARNED CIT(A) SHIFTED THE DISALLOWANCE FROM THE NON - DEDUCTION OF TDS TO NON - ALLOWABLE U/S.57(III) OF THE INCOME TAX ACT, 1961. THE ASSESSEE CLAIMS THAT HE HAS NOT CLAIMED THE EXPENDITURE IN HIS INCOME EXPENDITURE ACCOUNTS. THE INCOME EXP ENDITURE ACCOUNTS ARE NOT BEFORE US. THIS BEING SO, IN THE INTEREST OF JUSTICE, THE ISSUES IN THIS APPEAL ARE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION AND VERIFICATION AS TO THE EXPENDITURE , IF ANY , CLAIM ED BY THE ASSESSEE IN HIS INCOME EXPENDITURE ACCOUNTS. IF THE ASSESSEE, HAS CLAIMED ANY SPECIFIC EXPENDITURE, THEN IT IS OPEN TO THE ASSESSING OFFICER TO EXAMINE WHETHER THE SAME HAS BEEN INCURRED FOR THE PURPOSE OF MAINTAINING THE STATUS OF THE COMPANY AND WHETHER IT HAS BEEN AN EXPENDITURE FOR EARNING THE INTEREST INCOME AND WHETHER THE SAID EXPENDITURE ARE ALLOWABLE UNDER THE HEAD INCOME FROM OTHER SOURCES. ADMITTEDLY, THE ASSESSEE HAS OFFERED INTEREST INCOME WHICH IS ACCESSIBLE UNDER INCOME FROM OTHER SOURCES. ITA NO. 1 914 / CHNY / 201 8 : - 4 - : 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALL OWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER , 2019 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER / CHENNAI, / DATED: 11 TH DECEMBER , 2 019 . IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF