ACIT, CHENNAI V. G.Bharathi, CHENNAI

ITA 1938/CHNY/2015

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7772 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2017
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 04-09-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: Tax effect
• 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

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . . . , !'. . # $ % , ' () BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S.SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO.1938/MDS/2015 * +* /ASSESSMENT YEAR: 2011-12 THE ASST. COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE-8, CHENNAI-600 034. VS. SMT. G. BHARATHI, PLOT NO.4, KRISHNA NAGAR, 27 TH STREET, MADURAVOYAL, CHENNAI-600 095. [PAN: AHGPB 3678 N] ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : MR.SHIVA SRINIVAS, JCIT ./,- 0 1 /RESPONDENT BY : MR.M.NARAYANAN, RETD. ADDL. CIT. # 0 2' /DATE OF HEARING : 23.01.2017 34+ 0 2' /DATE OF PRONOUNCEMENT : 23.02.2017 / O R D E R PER D.S.SUNDER SINGH , ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST AN ORDER DATED 17.06.2015 OF COMMISSIONER OF INCOME TAX (APPEALS)- 9, CHENNAI, IN ITA NO.31/2014-15 FOR THE AY 2011-12 ON THE FOLLOWING G ROUNDS: 1. THE ORDER OF THE LEARNED CIT(A) IS CONTRARY TO LAW AND FACTS OF THE CASE. 2.1.THE LEARNED CIT(A) ERRED IN DELETING THE DISALL OWANCE OF CLAIM ON COMMISSION PAYMENT FOR THE ASST. YEAR 2011-12 OF RS.15,00,119/-. ITA NO.1938/MDS/2015 :-2-: 2.2. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED T HE FACT THAT THE ONUS IS UPON THE ASSESSEE TO PROVE THE NECESSITY AND GENUINENESS OF THE TRANSACTION TOWARDS COMMISSION PAYABLE. 2.3. THE LEARNED CIT(A) OUGHT TO HAVE APPRECIATED T HE FACT THAT AS PER SECOND LIMB OF SECTION 37 OF THE IT. ACT, OF INCURRING THE EXPENDI TURE FOR THE PURPOSE OF BUSINESS, HAVE NOT BEEN SATISFACTORILY ESTABLISHED BY THE ASSESSEE . 2.4. HAVING REGARD TO THE HONBLE PUNJAB & HARYANA HIGH COURTS DECISION IN THE CASE OF RAJ KUMAR WADHWA VS.CIT (2014) 42 TAXMANN.COM 177, THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ACTION OF THE AO IN MAKING DISALLOWANCE OF COMMISSION PAYMENT U/S.37(1). 3. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE LEARNED CIT(A) MAY BE SET ASI DE AND THAT OF THE ASSESSING OFFICER RESTORED. 2.0 LD.A.R. BROUGHT TO THE NOTICE OF THE BENCH THAT TH E APPEAL IS NOT MAINTAINABLE SINCE THE TAX EFFECT IS BELOW RS.10.00 LAKHS. THE ASSESSING OFFICER PASSED ORDER U/S.143(3) ON 25.03.2014 DETER MINING THE TOTAL INCOME AT RS.63,50,783/-, RAISING THE DEMAND OF RS. 6,75,160/-. ON HEARING FROM THE LD. DEPARTMENTAL REPRESENTATIV E, WE FIND THAT THE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.10 LA KHS. THE CBDT IN CIRCULAR NO.21/2015 DATED 10.12.2015 INCREASED THE MONETARY LIMIT FOR FILING APPEAL BEFORE THIS TRIBUNAL FROM RS.4 LAKHS TO RS.10 LAKHS. THE CBDT FURTHER CLARIFIED THAT THE INSTRUCTION DATED 1 0.12.2015 WILL APPLY RETROSPECTIVELY TO ALL THE PENDING APPEALS BEFORE T HIS TRIBUNAL. THE CBDT HAS ALSO INSTRUCTED ITS OFFICERS TO WITHDRAW THE AP PEALS PENDING BEFORE THIS TRIBUNAL. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS O F THE CONSIDERED OPINION THAT THE CIRCULAR ISSUED BY THE CBDT ON 10.12.2015 IS BINDING ON THE DEPARTMENT. THEREFORE, THE APPEAL FILED BY THE REV ENUE IS NOT MAINTAINABLE. ACCORDINGLY, THE APPEAL OF THE REVEN UE IS DISMISSED. ITA NO.1938/MDS/2015 :-3-: 3.0 IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD FEBRUARY, 2017, AT CHENNAI. SD/- ( .. . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( !' . . # $ % ) (D.S.SUNDER SINGH) ' /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 23 RD FEBRUARY, 2017. TLN 0 .2$6 76+2 /COPY TO: 1. ,- /APPELLANT 4. # 82 /CIT 2. ./,- /RESPONDENT 5. 69 .2 /DR 3. # 82 ( ) /CIT(A) 6. '* < /GF