Hemamalini S, Coimbatore V. JCIT, Coimbatore

ITA 2394/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 96103 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 22-09-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 23-09-2014
• Court: TRIBUNAL
• Department Lawyers: A B KOLI JCIT

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , , BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NOS.2393 & 2394 /MDS./201 4 ( / ASSESSMENT YEAR :2008-09) SMT. HEMAMALINI S., 75/4, ATT COLONY, UPPILIPALAYAM, COIMBATORE 641 018. VS. THE JOINT COMMISSIONER OF INCOME TAX, RANGE III, CHENNAI 641 018 PAN ABVPH 3750 L ( / APPELLANT ) ( / RESPONDENT ) ! ' # / APPELLANT BY : MRS.PUSHYA SITARAMAN, SR.ADVOCATE FOR MRS. J. SREE VIDYA, ADVOCATE $% ! ' # / RESPONDENT BY : MR. A.B. KOLI, JCIT & ' ' () / DATE OF HEARING : 22.09.2015 * ' () /DATE OF PRONOUNCEMENT : 29.09.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE APPEALS ARE FILED BY THE ASSESSEE AGGRIEVE D BY THE ORDER OF LD. CIT(A) FOR THE ASSESSMENT YEAR 2008-09 IN ITA N OS.218 & 219/13-14 DATED 17.07.2014 PASSED U/S 271D AND 271E READ WITH SECTION 250 OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). SIN CE ISSUES IN BOTH THE 2 APPEALS ARE INTER RELATED AND SIMILAR, BOTH THE APP EALS ARE DISPOSED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE IDENTICAL GROUNDS IN BOTH THE APPEALS ARE CO NCISED HEREIN BELOW FOR ADJUDICATION. (1) THE LD. CIT(A) HAS ERRED IN UPHOLDING THE ORDER OF LD. AO FOR IMPOSING PENALTY U/S. 271D AND 271E OF THE ACT WHIC H IS BARRED BY LIMITATION U/S. 275(1)(C) OF THE ACT. (2) THE LD. CIT(A) ERRED IN UPHOLDING THE ORDER OF THE LD. A.O. FOR IMPOSING PENALTY U/ 271D & 271E OF THE ACT SINC E THE TRANSACTIONS WAS GENUINE AND NOT A SHAM TRANSACTION TO COVER UP UNACCOUNTED MONEY AND HAD RESULTED OUT OF URGENCY. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF TRADING IN YARN, FILED H ER RETURN OF INCOME FOR ASSESSMENT YEAR 2008-09 ON 02.04.2009 ADMITTING INC OME AS RS.2,04,899/-. SUBSEQUENTLY, THE CASE WAS SELECTE D FOR SCRUTINY AND ASSESSMENT WAS COMPLETED ON 22.04.2010. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, IT WAS REVEALED THAT THE AS SESSEE HAS OBTAINED LOAN TO THE TUNE OF RS. 21,55,000/- ON VAR IOUS DAYS OTHERWISE THAN BY ACCOUNT PAYEE CHEQUE / DRAFT. SIMILARLY, THE ASSESSEE HAD REPAID THE LOAN ON VARIOUS DAYS BY CASH AMOUNTING T O RS 13,50,000/-. THEREFORE, THE LD. A.O INVOKING THE PROVISIONS OF S ECTION 269SS AND 3 269T OF THE ACT IMPOSED PENALTY ON THE ASSESSEE IN ACCORDANCE WITH SECTION 271D & 271E OF THE ACT BY PASSING TWO SEPAR ATE ORDERS BOTH DATED 26.03.2013. SUBSEQUENTLY, THE LD. CIT ALSO C ONFIRMED THE ORDER OF THE LD. A.O. BY SEPARATE ORDERS DATED 17.07.2014 , AGGRIEVED BY WHICH THE ASSESSEE IS ON APPEAL BEFORE US. 4. AT THE OUTSET, THE LD. AR SUBMITTED THAT THE ORD ER OF THE LD.A.O. IMPOSING PENALTY U/S. 271D & 271E IS BARRED BY LIMI TATION AS PER SECTION 275(1) OF THE ACT. IT WAS THEREFORE PLEADED THAT T HE ORDER OF THE LD. A.O. IMPOSING PENALTY MAY BE QUASHED. LD. DR VEHEMENTLY OPPOSED TO THE SUBMISSION OF THE LD. AR. HE ARGUED BY STATING THA T THE ISSUE OF LIMITATION WAS RAISED BEFORE THE BENCH FOR THE FIRS T TIME AND THE LD. CIT(A) DID NOT HAVE AN OPPORTUNITY TO EXAMINE THE S AME. HE, THEREFORE, REQUESTED THAT THE MATTER MAY BE REMITTED BACK TO T HE FILE OF THE LD. CIT(A) TO EXAMINE AND DECIDE THE LEGAL ISSUE WHICH WAS NOT RAISED BEFORE HIM ON THE EARLIER OCCASION. SINCE BOTH THE PARTIES HAVE AGREED FOR THE MATTER TO BE REMITTED BACK TO THE FILE OF T HE LD. CIT(A), ACCEDING TO THEIR REQUEST, WE HEREBY REMIT THE ISSUE BACK TO THE FILE OF THE LD. CIT(A) FOR CONSIDERING THE ISSUE OF LIMITATION AFRE SH AND TO PASS APPROPRIATE ORDER AS PER MERIT AND LAW. IT IS ACCO RDED ACCORDINGLY. 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE AS INDICATED HEREINABOVE. 4 ORDER PRONOUNCED ON 29 TH SEPTEMBER, 2015 AT CHENNAI. SD/- SD/- (DUVVURU RL REDDY) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 29 TH SEPTEMBER, 2015. K S SUNDARAM. + ' $(,- .-( /COPY TO: 1. ! /APPELLANT 2. $% ! /RESPONDENT 3. & /( ( ) /CIT(A) 4. & /( /CIT 5. -23 $(4 /DR 6. 35 6' /GF