Mr. Narendra Kumar Pasupathy, Bangalore V. Deputy Commissioner of Income Tax Officer, Circle-7(2)(1), Bangalore

ITA 1989/BANG/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8209 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-07-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 13-10-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: VIKAS SURYAVAMSHI B ENGALURU
• Keywords: Reassessment proceedings
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI JASON P. BOAZ , ACCOUNTANT MEMBER I TA NO. 1989/ BANG / 2017 ASSESSMENT YEAR : 2007 - 08 MR. NARENDRA KUMAR PASHUPATHY, # 337/61, 2 ND FLOOR, 43 RD CROSS, S P ROAD, 9 TH MAIN, 5 TH BLOCK, JAYANAGAR, BANGALORE 560 041. PAN: AAVPN 0728K VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE 7(2)(1), BANGALORE. APP EL L ANT RESPONDENT APP ELL ANT BY : S MT. SOUMYA, ADVOCATE R E SPONDENT BY : SHRI VIKAS SURYAVAMSHI, ADDL.CIT(DR)(ITAT), BENGALURU. DATE OF HEARING : 15. 0 7 . 201 9 DATE OF PRONOUNCEMENT : 17 . 0 7 . 201 9 O R D E R PER N V VASUDEVAN, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE OR DER DATED 14.8.2017 OF CIT(APPEALS)-7, BENGALURU, RELATING TO ASSESSMENT YEAR 2007-08. 2. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE REA DS THUS:- 1. THE LEARNED CIT (A) ERRED IN PASSING THE ORDER IN THE MANNER HE DID. 2. THE LEARNED CIT (A) ERRED IN LEVYING THE INTERES T U/S 234B OF THE ACT. ITA NO. 1989/BANG/2017 PAGE 2 OF 3 3. THE LEARNED CIT (A) HAS ALSO GROSSLY ERRED IN NO T CONSIDERING THE PROVISIONS OF SUB SECTION(3) OF SEC TION 234B WHICH IS ABUNDANTLY CLEAR THAT ON THE RE-ASSESSMENT THAT THE INTEREST HAS TO BE CHARGED FROM THE DATE OF THE ORI GINAL ORDER I.E.,143(1) AND LEARNED CIT(A) OUGHT TO HAVE APPREC IATED THAT IN THE ABSENCE OF THE ORDER, THE AO SHOULD HAVE CHARGE D FROM THE DATE OF ASSESSMENT ORDER. 4. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL, THE APPELLANT PRAYS THAT THE APPEAL MAY BE ALLOWED. 3. THE ASSESSEE IS AN INDIVIDUAL. HE OWNED PROPERT IES BASAVANAPURA VILLAGE, KRISHNARAJAPURAM HOBLI, BANGALORE EAST TAL UK. HE ENTERED INTO A JOINT DEVELOPMENT AGREEMENT (JDA) WITH A DEVELOPER. IN THE REASSESSMENT PROCEEDINGS U/S.147 OF THE INCOME TAX ACT, 1961 (THE ACT), THE LONG TERM CAPITAL GAIN ON SALE OF THE PROPERTY WAS BROUGHT TO TAX AND THE ACTION OF THE AO WAS CONFIRMED BY THE CIT(A). IN THE APPELLATE ORDER, THE ASSESSEE HAD CHALLENGED THE LEVY OF INTEREST U/ S.234-B OF THE ACT. THAT GROUND OF APPEAL WAS HELD BY THE CIT(A) TO BE PUREL Y CONSEQUENTIAL AND DIRECTED THE AO TO GIVE CONSEQUENTIAL RELIEF. AGAIN ST SUCH A DIRECTION OF THE CIT(A), THE ASSESSEE HAS PREFERRED THE PRESENT APPE AL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE SUBMISSION OF THE LEARNED COUN SEL FOR THE ASSESSEE, WHO REITERATED THE STAND OF THE ASSESSEE AS REFLECTED IN THE GROUNDS OF APPEAL FILED BEFORE THE TRIBUNAL. WE AR E OF THE VIEW THAT THE STAND TAKEN BY THE ASSESSEE IN THE GROUNDS OF APPEA L IS UNSUSTAINABLE BECAUSE THE DIRECTION OF THE CIT(APPEALS) HOLDING T HAT LEVY OF INTEREST U/S.234-B IS CONSEQUENTIAL, IS A DIRECTION WHICH IS IN ACCORDANCE WITH LAW. IF AT ALL THE ASSESSEE HAS ANY GRIEVANCE ON THE MAN NER OF CHARGING OF INTEREST U/S.234-B OF THE ACT, HE CAN DO SO ONLY AG AINST THE ORDER OF THE AO GIVING EFFECT TO THE ORDER OF THE CIT(APPEALS). OT HERWISE, THE LAW IS WELL SETTLED THAT LEVY OF INTEREST IS MANDATORY AS HELD BY THE HONBLE SUPREME COURT IN THE CASE OF CIT VS. ANJUM M.H. GHASWALA & ORS., 252 ITR 1 ITA NO. 1989/BANG/2017 PAGE 3 OF 3 (SC) . WE THEREFORE FIND NO MERIT IN THIS APPEAL BY THE ASSESSEE AND ACCORDINGLY DISMISS THE SAME. 5. IN THE RESULT, APPEAL BY THE ASSESSEE IS DISMISS ED PRONOUNCED IN THE OPEN COURT ON THIS 17 TH DAY OF JULY, 2019. SD/- SD/- ( JASON P. BOAZ ) ( N.V . V ASU DEVAN ) ACCOUNTANT MEMBER VICE PRESIDENT BANGALORE, DATED, THE 17 TH JULY, 2019. / D ESAI S MURTHY / COPY TO: 1. THE APP ELLANT 2. TH E R ESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUA R D F ILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.