S.Sakunthala, Erode V. ACIT Circle 1, Erode

ITA 2127/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0767 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 12-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S SRIDHAR ERODE
• Keywords: Opportunity of being heard
• Section: 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A (SMC) BENCH: CHENNAI , BEFORE SH RI GEORGE MATHAN, JUDICIAL MEMBER ./ ITA NO. 2 127 /CHNY/ 201 8 / ASSESSMENT YEAR: 201 3 - 1 4 SMT. S. SAKUNTHALA, NO.48, KANDAPPA STREET, ERODE 638 001 TAMIL NADU [PAN: A IZPS 4933P ] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX , CIRCLE 1, INCOME TAX OFFICE, GANDHIJI ROAD, ERODE 638 001. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S. SRIDHAR, ERODE , ADVOCATE /RESPONDENT BY : MR. A.R.V. SREENIVASAN , JCIT / DATE OF HEARING : 0 9 .06 .2020 / DATE OF PRONOUNCEMENT : 0 9 .06 .20 20 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) - 3 , COIMBATORE IN APPEAL NO. 61/16 - 17 DATED 08 .06 .201 8 FOR THE ASSESSMENT YEAR 201 3 - 201 4 . ITA NO. 2 127 / CHNY / 201 8 : - 2 - : 2. MR. S. SRIDHAR, ERODE, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND MR. A.R.V. SREENIVASAN, JCIT REPRE SENTED ON BEHALF OF THE R EVENUE . 3. IT WA S SUBMITTED BY THE LEARNED AUTHORIZED REPRESENTATIVE THAT THE ONLY ISSUE IN THE ASSESSEES APPEAL IS IN RESPECT OF THE CONFIRMATION OF THE DISALLOWANCE OF THE INTEREST EXPENSES TO AN EXTENT OF RS.11,37,571/ - . IT WAS A SUBMISSION THAT ON THE GROUND THAT TH E ASSESSEE HAD DIVERTED THE INTEREST BEARING FUNDS TO ITS SISTER CONCERNS, THE ASSESSING OFFICER HAD DISALLOWED THE AMOUNT OF RS.11,37,571/ - OUT OF THE INTEREST EXPENSES CLAIMED BY THE ASSESSEE BY COMPUTING THE DISALLOWANCE AT THE RATE OF 13.5% BEING THE R ATE OF INTEREST THAT THE ASSESSEE WAS PAYING ON HIS LOANS TO THE BANKS. IT WAS A SUBMISSION THAT THE ADVANCES GIVEN TO THE SISTER CONCERNS WERE FROM THE EXISTING CASH BALANCE AND THE INTERNAL ACCRUALS ONLY AND NOT FROM THE AMOUNT WHICH HA D BEEN TAKEN BY T HE ASSESSEE AS LOANS FROM THE BANKS . 4. THE LEARNED AUTHORIZED REPRESENTATIVE HAD PLACED BEFORE ME A CHART CONTAINING SEVEN PAGES GIVING THE DETAILS OF THE AMOUNTS TRANSFERRED TO EACH OF THE SISTER CONCERNS AND THE OPENING AND CLOSING CASH BALANCES AS ALS O THE DAY BOOK ENTRIES AND REMARKS. IT WAS A SUBMISSION THAT THESE DETAILS HAD UNFORTUNATELY NOT BEEN PRESENTED BY ITA NO. 2 127 / CHNY / 201 8 : - 3 - : THE ASSESSEE BEFORE THE ASSESSING OFFICER OR THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). IT WAS A SUBMISSION THAT THE ASSESSEE MAY BE GRANTED AN OPPORTUNITY TO SUBSTANTIATE HIS CLAIM AND PRODUCE EVIDENCES BEFORE THE LOWER AUTHORITIES. 5 . IN REPLY, THE LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY SUPPORTED THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS). HE DREW MY ATTE NTION TO PARA 7.1 OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) . IT WAS A SUBMISSION THAT THE ASSESSEE HAD NOT PRODUCED ANY OF THE EVIDENCES BEFORE THE LOWER AUTHORITIES. IT WAS A PRAYER THAT THE ORDER OF THE LEARNED COMMISSIONER OF I NCOME TAX (APPEALS) BE UPHELD. 6 . I HAVE HEARD THE RIVAL SUBMISSIONS THROUGH VIDEO - CONFERENCING AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 7. A PERUSAL OF THE CHART NOW FILED SHOWS THE DETAILS OF THE FUNDS TRANSFERRED TO THE SISTER CONCERNS AND ITS E NTRIES IN THE CORRESPONDING CASH BOOK AND THE OPENING AND CLOSING CASH BALANCE S . ADMITTEDLY, THE ASSESSEE HA D NOT PRODUCED THE EVIDENCES BEFORE THE LOWER AUTHORITIES. ITA NO. 2 127 / CHNY / 201 8 : - 4 - : IN THESE CIRCUMSTANCES, AS THE EVIDENCES ARE N OW BEING PRODUCED BEFORE THE TRIBUNAL, IN THE INTEREST OF JUSTICE, I AM OF THE VIEW THAT THE ASSESSEE MUST BE GRANTED AN OPPORTUNITY TO SUBSTANTIATE ITS CLAIM BEFORE THE ASSESSING OFFICER. IN THE CIRCUMSTANCES, THE ISSUES IN THIS APPEAL ARE RESTORED TO TH E FILE OF THE LEARNED ASSESSING OFFICER FOR RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 8 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T.A. NO. 2 127/CHNY/2018 IS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUN CED IN THE OPEN COURT ON 9 TH JUNE , 20 20 IN CHENNAI. SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / CHENNAI, / DATED: 9 TH J UNE , 2020 IA, SR. PS / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF