GANGA JEWELLERY, COIMBATORE V. DCIT CENTRAL CIRCLE, SALEM

ITA 2090/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 5241 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 15-07-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: AR V SRINIVASANJCITD R
• Assessee Lawyers: S SRINIRANJANI
• Keywords: Unexplained investment
• Section: 143(3); 234B; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI . . . , !' , # '$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S.JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NO.2090/CHNY/2019 % &% /ASSESSMENT YEAR: 2013-14 M/S.GANGA JEWELLERY , D.NO.136-A, SAMY IYER NEW STREET, COIMBATORE 641 001. PAN : AAJFG 6365 M VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, NO.3, GANDHI ROAD, SALEM 636 007. [ PAN: A ] ( '( /APPELLANT) ( )*'( /RESPONDENT) '( + , / APPELLANT BY : MS. S. SRINIRANJANI, ADVOCATE )*'( + , /RESPONDENT BY : MR. AR.V.SRINIVASAN,JCIT,D.R - + . # /DATE OF HEARING : 27.11.2019 /0& + .# /DATE OF PRONOUNCEMENT : 20.02.2020 / O R D E R PER S.JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-19, CHENNAI IN ITA NO.123/18- 19, DATED 27.05.2019 FOR THE ASSESSMENT YEAR 2013-1 4. ITA NO.2090/CHNY/2019 :- 2 -: 2. THE ASSESSEE, M/S.GANGA JEWELLERY, IS A PARTNERSH IP FIRM, ENGAGED IN THE BUSINESS OF GOLD JEWELLERY. A SURVEY UNDER S ECTION133A OF THE ACT WAS CONDUCTED ON 10.05.2012. THE CASE WAS TAKEN FOR SCRUTINY AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E ACT ON 18.12.2005 WHEREIN A SUM OF .83,54,375/- WAS ADDED UNACCOUNTED INVESTMENT AND .1,00,539/- WAS DISALLOWED AS EXCESS CLAIM OF INTER EST PAYMENT. AGGRIEVED WITH THE ORDER OF THE A.O., THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A)-16, WHICH IS PENDING FOR DISPOSAL . IN THE MEANTIME, AN ORDER UNDER SECTION.154 OF THE ACT DATED 02.01.2019 WAS PASSED ENHANCING THE INTEREST LEVIED UNDER SECTION.234B OF THE ACT. 3. IT WAS SUBMITTED BY LD. A.R. THAT THE PRESENT A PPEAL ARISES AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 154 OF T HE ACT WHEREIN THE INTEREST UNDER SECTION.234B OF THE ACT WAS ENHANCED BY .4,93,340/-. THE LD. A.R. PLEADED BEFORE US THAT THE APPEAL FILED AG AINST THE ASSESSMENT ORDER IS STILL PENDING FOR DISPOSAL, THEREFORE, THE MATTER MAY BE SENT BACK TO THE FILE OF THE LEARNED CIT(A)-16 TO DISPOSE THE PRESENT APPEAL ALSO ALONG WITH THE APPEAL FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER. 4. PER CONTRA, THE LD. D.R. SUBMITTED THAT THE ORI GINAL APPEAL WAS PENDING BEFORE THE CIT(A)-16, AND THIS APPEAL WAS D ISPOSED BY THE CIT(A)-19. ON A QUERY FROM THE BENCH, WHY THE APPEA L ARISING OUT OF SECTION 154 PROCEEDING COULD NOT BE DISPOSED OF ALO NG WITH MAIN APPEAL? ITA NO.2090/CHNY/2019 :- 3 -: IN RESPONSE TO A QUERY, THE LD. D.R. SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF LEARNED CIT(A) SO THAT ALL THE APPEALS FILED BY THE ASSESSEE ARE TO BE HEARD AND DECIDED BY ONE OF THE LEARNED CSIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PE RUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOTICED THAT WHEN TWO D IFFERENT PROCEEDINGS AROSE OUT OF THE SAME ASSESSMENT, THE TRIBUNAL IS O F THE CONSIDERED OPINION THAT ONLY ONE AUTHORITY HAS TO DISPOSE BOTH THE APPEALS IN ORDER TO AVOID MULTIPLICITY OF PROCEEDINGS AND CONFLICTING J UDICIAL OPINION. EVEN THOUGH LEVY OF INTEREST UNDER SECTION 234B OF THE A CT IS MANDATORY, IT WOULD DEPEND UPON THE DECISION TAKEN BY THE CIT(A)- 16. CONSIDERING THE SUBMISSIONS MADE BY BOTH THE SIDES IN ALL FAIRNESS, THE APPEAL ARISING OUT OF THE PROCEEDINGS UNDER SECTION154 OF THE ACT HAS ALSO TO BE HEARD BY THE LEARNED CIT(A) ALONG WITH THE APPEAL FILED BY T HE ASSESSEE AGAINST THE ASSESSMENT ORDER. NECESSARY ADMINISTRATIVE STEPS SH ALL BE TAKEN TO POST THE APPEAL BEFORE THE SAME LEARNED CIT(A), WHO IS H ANDLING THE APPEAL FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER. IN THE INTERESTS OF CO-ORDINATION AND THE JUSTICE, WE DEEM IT FIT TO RE MIT THIS ISSUE BACK TO THE FILE OF LEARNED CIT(A) AND ALL THE APPEALS FILED BY THE ASSESSEE AGAINST THE ASSESSMENT ORDER BE HEARD BY THE SAME LEARNED CSIT (A) TO AVOID MULTIPLICITY OF PROCEEDINGS AND CONFLICTING JUDICIA L OPINION. ITA NO.2090/CHNY/2019 :- 4 -: 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 20 TH FEBRUARY,2020 IN CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 20 TH FEBRUARY,2020. K S SUNDARAM + ).23 43&. /COPY TO: 1. '( /APPELLANT 4. - 5. /CIT 2. )*'( /RESPONDENT 5. 36 ). /DR 3. - 5. ( ) /CIT(A) 6. 9% : /GF