Ushaben G. Parmar, Baroda V. The ACIT, Circle-6, Baroda

ITA 261/AHD/2015

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 6091 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 03-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Rectification of order; Capital receipt

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD , , BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER & SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ./ I.T.A. NO.261/AHD/2015 ( / ASSESSMENT YEAR : 2008-09) USHABEN G. PARMAR 202, SHIV OM ENCLAVE TP 13, NR.INDUCHACHA HALL CHHANI JAKAT NAKA BARODA / VS. THE ASST.CIT CIRCLE-6 BARODA # ./ ./ PAN/GIR NO. : AARPP 3560 B ( #% / APPELLANT ) .. ( &#% / RESPONDENT ) #%' / APPELLANT BY : WRITTEN SUBMISSION (NONE) &#%(' / RESPONDENT BY : SHRI JAMES KURIAN, SR.DR )*(+ / DATE OF HEARING 20/12/2017 ,-./(+ / DATE OF PRONOUNCEMENT 20/02/2018 / O R D E R PER PRADIP KUMAR KEDIA - AM: THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF I NCOME TAX(APPEALS)-VI, AHMEDABAD [CIT(A) IN SHORT] PASSED UNDER S.154 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO A S 'THE ACT') DATED 01/11/2014 ARISING IN THE APPELLATE ORDER DATED 10/12/2012 RELEVANT TO ITA NO.261/AHD/ 2015 USHABEN G. PARMAR VS. ACIT ASST.YEAR 2008-09 - 2 - ASSESSMENT YEAR (AY) 2008-09. THE ASSESSMENT ORDER WAS PASSED UNDER S.143(3) OF THE ACT DATED 30/04/2010. 2. IN THIS CASE, THE ASSESSEE FILED HER RETURN OF INCOME FOR AY 2008- 09 WHERE THE RELIEF WAS CLAIMED ON THE INTEREST INC OME OF RS.8,68,002/- RECEIVED BY THE ASSESSEE FROM NATIONAL INSURANCE CO MPANY LTD. ON COMPENSATION RECEIVED ON DEATH OF HER HUSBAND. THE RELIEF CLAIMED ON INTEREST INCOME WAS DENIED TO THE ASSESSEE. THE AS SESSEE TOOK THE MATTER BEFORE THE CIT(A) WHERE IT WAS CLAIMED THAT INTERES T OF LAST SEVERAL YEARS COULD NOT BE TAXED IN THE YEAR OF RECEIPT AND ALSO THE INCOME COULD NOT BE TAXED ENTIRELY IN HER HANDS FOR THE OBLIGATIONS ALL THE LEGAL HEIRS. THE CIT(A), HOWEVER, DISMISSED THE CONTENTION OF THE AS SESSEE. THE ASSESSEE MOVED APPLICATION UNDER S.154 BEFORE THE CIT(A) FOR RECTIFICATION OF MISTAKE FOR WRONG ADDITIONS ON ACCOUNT OF INTEREST ON BELATED COMPENSATION. THE CIT(A), HOWEVER, REJECTED THE RE CTIFICATION APPLICATION VIDE ORDER UNDER S.154 OF THE ACT DATED 01/11/2014. THE ASSESSEE HAS FILED PRESENT APPEAL AGAINST THE IMPUG NED ORDER OF THE CIT(A) UNDER S.154 OF THE ACT. 3. NONE APPEARED FOR THE ASSESSEE, A WRITTEN SUBMIS SION WAS HOWEVER PLACED ON RECORD. 4. THE LD.DR RELIED UPON THE ORDER OF THE CIT(A). ITA NO.261/AHD/ 2015 USHABEN G. PARMAR VS. ACIT ASST.YEAR 2008-09 - 3 - 5. WE FIND THAT THE ACTION OF THE REVENUE IS CONTRA RY TO THE DECISION(S) OF THE HONBLE GUJARAT HIGH COURT IN TH E CASE OF STANDARD RADIATORS VS. CIT (1987) 33 TAXMAN 151 (GUJ.) AND C IT VS. FAG PRECISION BEARING LTD. (2009 176 TAXMAN 27 (GUJ.). WE ARE O F THE CONSIDERED VIEW THAT THE INTEREST AMOUNT RECEIVED ON COMPENSAT ION AFTER 11 YEARS OF THE DATE OF AWARD IS NOTHING BUT PART OF COMPENSATI ON ITSELF AND CANNOT BE TAXED BEING IN THE NATURE OF CAPITAL RECEIPT HAVING REGARD TO THE DECISION OF THE COORDINATE BENCH IN THE CASE OF URVI CHIRAG SHETH VS. ITO IN ITA NO.630/AHD/16 ORDER DATED 31/05/2016. WE ALSO FIN D THAT A FAVOURABLE VIEW HAS BEEN TAKEN BY COORDINATE BENCH IN THE CASE OF ITO VS. SHRI BABU P. MATHEW IN ITA NO.2963/AHD/2011 ORDER DATED 11/05/2016. 6. THUS, RECTIFICATION OUGHT TO HAVE BEEN CARRIED O UT IN FAVOUR OF ASSESSEE. HE ACCORDINGLY DIRECT THE AO TO GRANT RE CTIFICATION AND DELETE THE ADDITION OF RS.75,413/- MADE IN THE ASSESSMENT. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . THIS ORDER PRONOUNCED IN OPEN COURT ON 20/ 02 /2018 SD/- SD/- () ( ) (RAJPAL YADAV) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 20/ 02 /2018 3..),.)../ T.C. NAIR, SR. PS ITA NO.261/AHD/ 2015 USHABEN G. PARMAR VS. ACIT ASST.YEAR 2008-09 - 4 - !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #% / THE APPELLANT 2. &#% / THE RESPONDENT. 3. 456+ 7+ / CONCERNED CIT 4. 7+ ( ) / THE CIT(A)-VI, BARODA 5. 89:+)56 , 56/ , 4 / DR, ITAT, AHMEDABAD 6. :<* / GUARD FILE. / BY ORDER, &8++ //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD 1. DATE OF DICTATION .. 22.12.17 (DICTATION-PAD 6- PAGES ATTACHED AT THE END OF THIS APPEAL-FILE) 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 22.12.17 3. OTHER MEMBER 4. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 5. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 6. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 20.2.18 7. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 20.2.18 8. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ... 9. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 10. DATE OF DESPATCH OF THE ORDER