Pon Thiyagarajan, Coimbatore V. ACIT, Coimbatore

ITA 1934/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73733 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 27-02-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 04-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: A ARJUNARAJ

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , , !' # , $ % BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NO.1934/MDS./13 / ASSESSMENT YEAR :2008-09 PON THIYAGARAJAN, SRI GOMUKI ENTERPRISES, 10/B,GANESAN NAGAR, HB EAST CIVIL AERODROME POST, COIMBATORE 641 014. VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE II, COIMBATORE. PAN ADAPT 6727 C ( &' / APPELLANT ) ( #(&' / RESPONDENT ) / APPELLANT BY : SHRI A.ARJUNARAJ C.A. / RESPONDENT BY : SHRI SHAJI P JACOB,, ADDL. CIT D.R / DATE OF HEARING : 27.02.2014 ! /DATE OF PRONOUNCEMENT : 28.02.2014 ) / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED BY THE ORDER OF ITA NO.1934/MDS/13 2 THE LEARNED COMMISSIONER OF INCOME TAX (A) - I, COI MBATORE, DATED 06.08.2013 IN APPEAL NO.127/12-13 PASSED UNDER SECT ION 143(3), READ WITH SECTION SEC. 250 OF THE ACT FOR THE ASSES SMENT YEAR 2008-09. 2. THE ASSESSEE HAS RAISED FIVE GROUNDS IT HIS APP EAL, HOWEVER, THE CRUX OF THE ISSUE IS WITH RESPECT TO; EXCLUDING THE AMOUNT OF ` 8,37,975/- BEING THE CREDIT NOTE RECEIVED IN THE P REVIOUS YEAR 2006- 07, WHICH WAS WRONGLY TREATED AS THE INCOME FOR THE RELEVANT ASSESSMENT YEAR 2008-09 THOUGH IT WAS ALREADY TREAT ED AS INCOME FOR THE ASSESSMENT YEAR 2007-08. 3. THE BRIEF FACTS OF THE CASE ARE THAT, THE ASSES SEE IS AN INDIVIDUAL, EARNING INCOME FROM BUSINESS. THE LD. ASSESSING OFFICER WHILE GIVING EFFECT TO THE ORDER OF THE LD. CIT (A) FOR THE ASSESSMENT YEAR 2008-09, OBSERVED THAT THE DATE OF CREDIT NOT E RECEIVED FROM THE CLIENT OF THE ASSESSEE FOR ` 8,37,975/- WAS 30.03.2007, HOWEVER, THE ENTRY REFLECTED IN THE BOOKS OF ACCOUNT OF THE ASSE SSEE WAS ON 01.03.2007. FROM THIS THE LD. A.O ARRIVED AT A CONC LUSION THAT THE ENTRY MADE IN THE BOOKS OF ACCOUNTS ON 01.03.2007 F OR ` 8,37,975/- ITA NO.1934/MDS/13 3 WAS NOT DUE TO THE CREDIT NOTE DATED 30.03.2007. M OREOVER, SINCE THE CREDIT NOTE DATED 30.03.2007 WILL BE NORMALLY ENTER ED IN THE BOOKS OF ACCOUNTS SUBSEQUENTLY, THE LD. A.O OBSERVED THAT TH E ASSESSEE HAD RIGHTLY TREATED THE AMOUNT OF ` 8,37,975/- AS HIS INCOME FOR THE ASSESSMENT YEAR 2008-09 AND THE AMOUNT ENTERED IN T HE BOOKS OF ACCOUNTS OF THE ASSESSEE ON 01.03.2007 PERTAINED TO SOME OTHER CREDIT NOTE. 4. ON APPEAL, LD. CIT (A) ENDORSED THE VIEW OF THE LD. ASSESSING OFFICER BY OBSERVING AS UNDER:- THE A.O. WHILE GIVING EFFECT TO THE APPELALTE ORDER FOR THE ASSESSMENT YEAR 2008-09 STATED THAT THE DATE OF CREDIT NOTE WAS ON 30.03.2007 BUT IN THE LEDGER ACCOUNT THERE WAS NO ENTRY FOR THAT AMOUNT ON THAT DATE BUT THERE IS ONE ENTRY ON 01.03.2007 TO THE TUNE OF ` 8,37,975/- . THE DATE OF CREDIT NOTE WAS ON 30.03.2007. THE ASSESSEE MIGHT HAVE RECEIVED CREDI T NOTE EITHER ON 30.03.2007 OR AFTERWARDS ONLY BUT NOT BEFORE 30.03.2007 . SO C ORRESPONDING LEDGER ENTRY ON DISCOUNT RECEIVED DEFINITELY AS ON 30.03.2007 OR AFTERWARDS ONLY. THE LEDGER ACCOUNT ENTRY ON 01.03.2007 MIGHT BE ANOTHER DISCOU NT RECEIVED BY THE ASSESSEE, OTHERWISE LEDGER ACCOUNT CANNOT BE POSTED EARLIER DATE. SO THE ASSESSEE CLAIM IS REJECTED. SINCE THE AO HAS MADE VERIFICATION AND HAD COME TO THE CONCLUSION THAT THE PERFORMANCE REBATE RELAT ES TO ONLY ASSESSMENT YEAR 2008-09. I AGREE WITH THE AO AND DISMISS THE APPEAL . ITA NO.1934/MDS/13 4 5. LD. A.R. ARGUED BEFORE US STATING THAT BY MIST AKE THE ACCOUNTANT OF THE ASSESSEE HAD MADE DUPLICATE ENTRY FOR THE AFORESAID AMOUNT FOR THE RELEVANT ASSESSMENT YEAR. THEREFORE, THIS AMOUNT HAS TO BE EXCLUDED FROM THE INCOME OF THE AS SESSEE FOR THE ASSESSMENT YEAR 2008-09. LD. D.R ARGUED IN SUPPO RT OF THE ORDERS OF THE REVENUE. 6. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY P ERUSED THE MATERIALS AVAILABLE ON RECORD. THE LD. ASSESSING OFFICER TREATED THE DUPLICATE ENTRY PASSED BY THE ASSESSEE TO BE CORREC T ON THE PREMISES THAT THE LEDGER ACCOUNT ENTRY MADE ON 01.03.2007 MIGHT BE FOR ANOTHER DISCOUNT RECEIVED BY THE ASSESSEE. LD. A.O FAILED TO VERIFY BOTH THE CREDIT NOTES OF THE ASSESSEE OR MAKE ENQUI RIES TO SUPPORT HIS VIEW. THUS, THE ACTION OF THE LD. ASSESSING OFFICER WAS BASED ON ASSUMPTIONS AND NOT BY VERIFYING THE CREDIT NOTES M AINTAINED BY THE ASSESSEE. LD. CIT (A) ALSO ERRONEOUSLY HELD THAT T HE LD. ASSESSING OFFICER HAD MADE VERIFICATIONS AND THEN HAD COME TO THE CONCLUSION THAT BOTH THE ENTRIES WERE PERTAINING TO DIFFERENT CREDIT NOTES RECEIVED BY THE ASSESSEE. CONSIDERING FACTS AND CIRCUMSTANCE S OF THE CASE, WE DO NOT FIND MERIT IN BOTH THE ORDERS OF THE REVE NUE. SINCE THERE IS ITA NO.1934/MDS/13 5 A FINDING BY THE LD. ASSESSING OFFICER THAT THE AMO UNT OF ` 8,37,975/- IS TREATED AS THE INCOME OF THE ASSESSEE FOR THE AS SESSMENT YEAR 2007-08, WE ARE OF THE VIEW THAT THIS AMOUNT OF ` 8,37,975/- SHOULD BE EXCLUDED FROM THE INCOME OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR. ACCORDINGLY, WE HEREBY DIRECT THE LD. ASSESSING OFFICER TO EXCLUDE THE AFORESAID AMOUNT OF ` 8,37,975/- FROM THE INCOME OF THE ASSESSEE FOR THE RELEVANT ASSESSMENT YEAR 2008-09. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED . ORDER PRONOUNCED ON 28 TH FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD ) (A.MOHAN ALA NKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 28 TH FEBRUARY, 2014. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE