ACIT, Ootacamund V. C.Devaraj, Coonoor

ITA 2715/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86296 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-02-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 31-10-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: V S JAYAKUMAR
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . ! '# , $ % BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ./ ITA NO. 2715/MDS/2014 $ # '# / ASSESSMENT YEAR : 2006-07 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE I(1), CHRISTO BUILDING, 2 ND FLOOR, BANK ROAD, OOTACAMUND 643 001. V. SHRI C. DEVARAJ, M/S SRI MURUGAN TRADERS, C.D. CHAMBERS, MOUNT ROAD, COONOOR 643 102. PAN : ADMPD 3484 E ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SH. P. RADHAKRISHNAN, JCIT +,)* - . / RESPONDENT BY : SH. V.S. JAYAKUMAR, ADVOCATE ! - / / DATE OF HEARING : 28.01.2015 0' - / / DATE OF PRONOUNCEMENT: 20.02.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I , COIMBATORE, DATED 26.08.2014 RELEVANT TO THE ASSESSMENT YEAR 20 06-07. 2 I.T.A. NO. 2715/MDS/14 2. FACTS ARE IN BRIEF THAT THE ASSESSEE HAD FILED R ETURN OF INCOME BY DECLARING A TOTAL INCOME OF ` 8,23,131/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF TH E INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). THE ASSESSEE HAS F ILED AN AUDIT REPORT IN FORM 3CB ALONG WITH THE RETURN OF INCOME. ON EX AMINATION OF THE AUDIT REPORT BY THE A.O., IT IS REVEALED THAT IN CO LUMN NO.24, SUB- COLUMN (A), (B), & (C), THE AUDITOR HAS MENTIONED N IL TRANSACTION. HOWEVER, EXAMINATION OF THE BALANCE SHEET FILED ALO NG WITH THE RETURN OF INCOME REVEALED THAT THE ASSESSEE HAS RED UCED HIS LIABILITY UNDER THE HEAD UNSECURED LOAN. FOR PREVIOUS YEAR , LOAN WAS:- (A) DR. RAMAMOORTHY : ` 70,000 (B) MR. V. RAVICHANDRAN : ` 4,68,414 (C) MRS. VIMALA DEVARAJ : ` 17,70,673 (D) MR. V.K. RAVIDASS : ` 1,50,000 TOTAL : ` `` ` 24,59,087 WHEREAS FOR THIS YEAR, IT HAS REDUCED AS BELOW:- (A) DR. RAMAMOORTHY : ` 70,000 (B) MR. V. RAVICHANDRAN : - (C) MRS. VIMALA DEVARAJ : ` 15,14,140 (D) MR. V.K. RAVIDASS : ` 50,000 TOTAL : ` `` ` 16,34,140 ACCORDINGLY, THE A.O. HAS COME TO A CONCLUSION THAT THE ASSESSEE HAS MADE REPAYMENT TO THOSE PARTIES. THEREFORE, SE CTION 269SS OF THE ACT APPLICABLE TO THE ASSESSEES CASE. HOWEVER , THE AUDIT REPORT FURNISHED BY THE ASSESSEE DOES NOT CONTAIN A NY INFORMATION 3 I.T.A. NO. 2715/MDS/14 ON REPAYMENT OF LOAN, I.E. WHETHER REPAYMENT WAS MA DE IN CASH OR ANY OTHER MODE THAN ACCOUNT PAYEE CHEQUE. THEREFOR E, NOTICE UNDER SECTION 271E WAS ISSUED TO THE ASSESSEE. THE ASSESSEE HAS NOT RESPONDED TO THE SAID NOTICE. THEREFORE, T HE A.O. ISSUED NOTICE TO THE CONCERNED BANK. FROM THE REPLY GIVEN BY THE BANK, BASED ON THE BANK ACCOUNT STATEMENT, THE A.O. HAS C OME TO A CONCLUSION THAT THE ASSESSEE HAS VIOLATED THE PROVI SIONS OF SECTION 269T OF THE ACT. ACCORDINGLY, PENALTY WAS LEVIED. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCE EDINGS, THE ASSESSEE HAS FILED VIJAYA BANK ACCOUNT OF M/S SRI M URUGAN TRADERS WHEREIN AN AMOUNT OF ` 1,00,000/- WAS REPAID TO SHRI V.K. RAVIDASS BY ACCOUNT PAYEE CHEQUE TO REDUCE THE LIABILITY IN THE CASE OF SHRI V.K. RAVIDASS. SIMILARLY, IN THE CASE OF SMT. VIMA LA DEVARAJ, AN AMOUNT OF ` 5,00,000/- WAS REPAID ON 28.02.2006 BY REDUCING TH E LIABILITY BY ` 5,00,000/-. THERE WAS ALSO AN INTEREST CREDIT IN THE CASE OF SMT. VIMALA DEVARAJ AS ON 31.03.2006 AMOUNT ING TO ` 2,43,467/- LEAVING THE BALANCE OF ` 15,14,140/-. IN THE CASE OF SHRI V. RAVICHANDRAN ALSO, A CHEQUE PAYMENT WAS MADE ON 23.02.2006 IN INDUS IND BANK, COONOOR. THE ASSESSEE HAS PRODU CED THE DETAILS OF BANK ACCOUNTS ALONG WITH THE LEDGER BEFO RE THE LD. 4 I.T.A. NO. 2715/MDS/14 CIT(APPEALS). THE LD. CIT(APPEALS), AFTER CONSIDER ING THE DETAILED EXPLANATION GIVEN BY THE ASSESSEE, THE BANK STATEME NTS AND LEDGER, HAS GIVEN HIS FINDING THAT IT IS VERY CLEAR FROM THE BANK ACCOUNTS THAT THE UNSECURED LOANS WERE REDUCED THROUGH ACCOU NT PAYEE CHEQUES. BY OBSERVING THE ABOVE, THE LD. CIT(APPE ALS) DIRECTED THE A.O. TO DELETE THE PENALTY. 4. EVEN BEFORE US, THE ASSESSEE FILED A PAPER-BOOK OF WHICH PAGES 2,3,4,5 & 6 SHOW THAT PAYMENTS WERE MADE BY T HE ASSESSEE THROUGH BANK ACCOUNTS. IN VIEW OF THIS, WE FIND NO INFIRMITY IN THE ORDER PASSED BY THE LD. CIT(APPEALS). 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED ON FRIDAY THE 20 TH OF FEBRUARY, 2015 AT CHENNAI. SD/- SD/- ( . ) ( . ! '# ) (A. MOHAN ALANKAMONY) (V. DURGA RAO) /ACCOUNTANT MEMBER $ /JUDICIAL MEMBER /CHENNAI, = /DATED, THE 20 TH FEBRUARY, 2015. KRI. 5 I.T.A. NO. 2715/MDS/14 > - +$/?@ A@'/ /COPY TO: 1. )* /APPELLANT 2. +,)* /RESPONDENT 3. ! B/ () /CIT(A)-I, COIMBATORE 4. ! B/ /CIT-II, COIMBATORE 5. @D' +$/$ /DR 6. 'E# F /GF.