Tiruchirapalli District Co-operative Milk Producers Union Ltd., Trichy V. DCIT, Trichy

ITA 2087/CHNY/2014

• Counselvise Citation: 208721714 RSA 2014
• Duration Of Justice: 1 year(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: C
• Next Hearing Date: 17-08-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 08-08-2014
• Court: TRIBUNAL
• Department Lawyers: A V SREEKANTH
• Assessee Lawyers: A S SRIRAMAN
• Section: 43B; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : CHENNAI . . . , . ! , ' # $ [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ] ./ I.T.A.NO.2087/MDS/2014 / ASSESSMENT YEAR : 2008-09 THE TIRUCHIRAPPALLI DISTRICT CO - OPERATIVE MILK PRODUCERS UNION LTD KOTTAPATTU TRICHY - 23 VS. THE DY. CO MMISSIONER OF INCOME-TAX CIRCLE IV TRICHY [PAN AAAAT 0654 Q ] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : SHRI A.S. SRIRAMAN, ADVOCATE /RESPONDENT BY : SHRI A.V. SREEKANTH, JCIT / DATE OF HEARING : 17 - 08 - 2015 ! / DATE OF PRONOUNCEMENT : 04 - 09 - 2015 / O R D E R PER N.R.S.GANESAN, JUDICIAL MEMBER THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), TIRUCHIR APALLI, DATED 28.2.2014 AND PERTAINS TO ASSESSMENT YEAR 2008-09. ITA NO.2087/14 :- 2 -: 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISALLOW ANCE MADE BY THE ASSESSING OFFICER U/S 43B OF THE ACT IN RES PECT OF PAYMENT OF INTEREST TO THE EXTENT OF ` 31,01,902.75. 3. SHRI A.S.SRIRAMAN, LD. COUNSEL FOR THE ASSESSEE SUB MITTED THAT THE ASSESSING OFFICER DISALLOWED A SUM OF ` 31,01,902/- ON THE GROUND THAT INTEREST WAS NOT ACTUALLY PAID AND THE ASSESSEE HAS MADE ONLY A PROVISION IN THE ACCOUNT. REFERRING TO TH E PAPER BOOK, THE LD. COUNSEL SUBMITTED THAT THE ASSESSEE, IN FACT, PAID INTEREST TO THE EXTENT OF ` 12,46,902/-. THEREFORE, IF AT ALL ANY DISALLOWANCE HAS TO BE MADE U/S 43B, ONLY THE BALANCE AMOUNT HAS TO BE DIS ALLOWED. ON A QUERY FROM THE BENCH WHEN THE AMOUNT OF ` 12,46,902/- WAS PAID, THE LD. COUNSEL SUBMITTED THAT THE SAME WAS PAID BEFORE 30.9.2008 I.E BEFORE THE DUE DATE FOR FILING RETURN OF INCOME U/ S 139(1) OF THE ACT. 4. ON THE CONTRARY, SHRI A.V. SREEKANTH, LD. DEPARTMEN TAL REPRESENTATIVE SUBMITTED THAT THE ASSESSEE CLAIMS THAT A SUM OF ` 12,46,902/- WAS PAID BEFORE THE DUE DATE FOR FILING RETURN OF INCOME U/S 139 FOR THE FIRST TIME BEFORE THIS TRIBUNAL. T HIS CLAIM WAS NOT MADE EITHER BEFORE THE ASSESSING OFFICER OR THE CIT (A). MOREOVER, NO MATERIAL WAS FILED BEFORE THE LOWER AUTHORITIES TOW ARDS THE PAYMENT OF INTEREST. HOWEVER, THE LD. DR SUBMITTED THAT SINCE THE ASSESSEE ITA NO.2087/14 :- 3 -: CLAIMS THAT A SUM OF ` 12,46,902/- WAS PAID BEFORE 30.9.2008, THE CLAIM OF THE ASSESSEE NEEDS TO BE VERIFIED BY THE ASSESSING OFFICER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITHER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. TH E ASSESSING OFFICER DISALLOWED THE CLAIM OF ` 31,01,902.75 TOWARDS PAYMENT OF INTEREST ON THE GROUND THAT THE INTEREST WAS NOT ACTUALLY PAID, BUT THE ASSESSEE HAS MADE ONLY A PROVISION. SECTION 43B OF THE ACT CLEARLY SAYS THAT NOTWITHSTANDING ANYTHING CONTAINED IN ANY OTHER PRO VISION OF THE INCOME-TAX ACT, 1961, A DEDUCTION OTHERWISE ALLOWAB LE CANNOT BE ALLOWED UNLESS IT IS ACTUALLY PAID. IN THIS CASE, N OW THE ASSESSEE CLAIMS BEFORE THIS TRIBUNAL THAT A SUM OF ` 12,46,902/- WAS ACTUALLY PAID BEFORE 30.9.2008. AS RIGHTLY SUBMITTED BY THE LD. DR, THE ASSESSEE HAS MADE THIS CLAIM FOR THE FIRST TIME BEF ORE THIS TRIBUNAL. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE ASSESSING OFFICER HAS TO VERIFY WHETHER THE ASSESSEE HAD MAD E ANY PAYMENT BEFORE THE DUE DATE FOR FILING OF RETURN U/S 139(1) OF THE ACT. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES AR E SET ASIDE AND THE ENTIRE ISSUE OF DISALLOWANCE U/S 43B IS REMITTED B ACK TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL REE XAMINE THE ISSUE AFRESH AND VERIFY WHETHER THE ASSESSEE HAS ACTUALL Y MADE THE PAYMENT BEFORE 30.9.2008 TO THE EXTENT OF ` 12,46,902/-. THE ITA NO.2087/14 :- 4 -: ASSESSING OFFICER THEREAFTER DECIDE THE ISSUE AFRES H IN ACCORDANCE WITH LAW AFTER GIVING A REASONABLE OPPORTUNITY TO THE A SSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 4 TH OF SEPTEMBER, 2015, AT CHENNAI. SD/- SD/- ( . ! ) (A. MOHAN ALANKAMONY) ' / ACCOUNTANT MEMBER ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER #$ / CHENNAI %& / DATED:4 TH SEPTEMBER, 2015 RD &' ()*) / COPY TO: 1 . / APPELLANT 4. + / CIT 2. / RESPONDENT 5. ),- . / DR 3. +/' / CIT(A) 6. -01 / GF