ACIT, CHENNAI V. Aashana Investments Pvt. Ltd., CHENNAI

ITA 281/CHNY/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2448 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-06-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 17-06-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 18-02-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA
• Keywords: Block assessment

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE SHRI ABRAHAM P.GEORGE, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER S. NO . ITA NO S . ASSESSMENT YEARS APPELLANT RESPONDENT 1-4 272 TO 275/ MDS/2013 2004-05 TO 2007-08 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II(1), CHENNAI-600 034. M/S.AKSHAY COMMUNICATION (P) LTD. 5E, MOOKAMBIKA COMPLEX, 4 LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. PAN:AAACA7628R 5-6 276/MDS/2013 & 430/MDS/2013 2008-09 & 2007-08 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II(1), CHENNAI-600 034. M/S.AKSHAY MERCANTILE (P) LTD. 5E, MOOKAMBIKA COMPLEX, 4 LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. PAN:AAACA6248H 7-11 277 TO 281 / MDS/2013 2005-06 TO 2009-10 ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-II(1), CHENNAI-600 034. M/S.AASHANA INVESTMENTS PVT. LTD. 5E, MOOKAMBIKA COMPLEX, 4 LADY DESIKA ROAD, MYLAPORE, CHENNAI-600 004. PAN:AAACA6251G APPELLANT BY : DR. S.MOHARANA, CIT RESPONDENT BY : NONE DATE OF HEARING : 17 TH JUNE, 2013 DATE OF PRONOUNCEMENT : 17 TH JUNE, 2013 O R D E R PER BENCH : ALL THESE APPEALS ARE FILED BY THE REVENUE AGAINST DIFFERENT ORDERS OF COMMISSIONER OF INCOME TAX (APP EALS)-II, CHENNAI DATED 26.11.2012, 29.11.2012 AND 17.12.2012 IN ITA NO.272 TO 281 & 430/MDS/2013 2 RESPECT OF THREE ASSESSEES FOR VARIOUS ASSESSMEN T YEARS AND SINCE THE ISSUE IN ALL THESE APPEALS IS COMMON, WE DISPOSE OFF ALL THESE APPEALS TOGETHER BY A COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE COUNSEL FOR THE ASSESSEE SOUGHT ADJOURNMENT BY FILING A PETITION DATED 17.06.2013 STATING THAT HE HAS TO GO TO HOSPITAL ACCOMPANYING HIS FATHER-IN-LAW. THE DEPAR TMENTAL REPRESENTATIVE SUBMITS THAT THE MAIN ADDITION IN TH E BLOCK ASSESSMENT BASED ON WHICH THESE ADDITIONS MADE IN T HE PRESENT APPEALS WAS ALREADY SET ASIDE BY THIS TRIBU NAL VIDE ORDER DATED 25.02.2013 IN IT(SS)A NOS. 150 TO 152/M DS/2007 & C.O.NOS.151 TO 153/MDS/2011 TO THE FILE OF THE AS SESSING OFFICER AND THEREFORE, ALL THESE APPEALS HAVE TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER. THE DEPARTMENTAL REPRESENTATIVE PLACED A COPY OF THE SAID ORDER BEF ORE US. ON GOING THROUGH THE ORDER OF THIS TRIBUNAL, WE FIN D THAT THE ADDITIONS MADE IN THE BLOCK ASSESSMENTS FOR ALL THE SE ASSESSEES HAVE BEEN RESTORED TO THE FILE OF THE ASS ESSING OFFICER. IN THE CIRCUMSTANCES, WE PROCEED TO DECIDE THE ISSUES ITA NO.272 TO 281 & 430/MDS/2013 3 IN ALL THESE APPEALS REJECTING THE PETITION FOR ADJ OURNMENT FILED BY THE ASSESSEES COUNSEL. 3. THE ONLY ISSUE IN ALL THESE APPEALS OF THE REVEN UE IS THAT THE COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DELETING : (I) THE ADDITION MADE TOWARDS ACCRUED INTEREST ON PRO-NOTES; AND (II) THE ADDITION MADE TOWARDS ACCRUED INTEREST ON ADVANCES RECORDED IN LAPTOP COMPUTER BUT NOT REFLECTED IN THE ACCOUNTS. 4. BRIEF FACTS ARE THAT THE ASSESSING OFFICER WHILE COMPLETING THE ASSESSMENTS IN ALL THESE CASES MADE THE ABOVE ADDITIONS ON THE BASIS OF ADDITION OF UNDISCL OSED INCOME MADE IN THE BLOCK ASSESSMENT OF THE ASSESSEE S. THE ASSESSING OFFICER WAS OF THE VIEW THAT THE ASSESSEE DID NOT ACCOUNT FOR INTEREST ON THE PRO-NOTES AND INTEREST ON UNDISCLOSED INCOME AS PER THE DATA IN LAPTOP FOR AL L THESE ASSESSMENT YEARS AND THEREFORE INTEREST WAS WORKED OUT AT 24% ON SUCH PRO-NOTES AND ADVANCES RECORDED IN LA PTOP ITA NO.272 TO 281 & 430/MDS/2013 4 COMPUTER AND MADE ADDITIONS ACCORDINGLY IN ALL THES E ASSESSMENT YEARS. ON APPEAL, THE COMMISSIONER OF IN COME TAX (APPEALS) DELETED THE ADDITION MADE TOWARDS INT EREST ON PRO-NOTES AND INTEREST ON ADVANCES RECORDED IN THE LAPTOP COMPUTER HOLDING THAT THE ADDITIONS MADE IN THE BLO CK ASSESSMENT WERE DELETED BY THE COMMISSIONER OF INCO ME TAX (APPEALS) BY ORDERS DATED 14.08.2007 AND 16.08. 2007. AGAINST THIS ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS) DELETING THE DISALLOWANCE OF INTEREST ON PRO-NOTES AND INTEREST ON ADVANCES RECORDED IN THE LAPTOP COM PUTER, THE REVENUE IS IN APPEAL IN ALL THESE ASSESSEES CAS ES. 5. THE DEPARTMENTAL REPRESENTATIVE SUBMITS THAT THI S TRIBUNAL BY ORDER DATED 25.02.2013 IN IT(SS)A NOS. 150 TO 152/MDS/2007 & C.O.NOS.151 TO 153/MDS/2011 HAD REMI TTED THE APPEALS OF REVENUE FILED AGAINST THE DELETION O F ADDITIONS MADE IN THE BLOCK ASSESSMENT TO THE FILE OF THE ASS ESSING OFFICER TO DECIDE THE ISSUES AFRESH IN ACCORDANCE W ITH LAW. THEREFORE, HE SUBMITS THAT IN VIEW OF THE ORDER OF THIS TRIBUNAL DATED 25.02.2013 ALL THESE APPEALS OF REVENUE WHERE THE ITA NO.272 TO 281 & 430/MDS/2013 5 ADDITIONS MADE WERE BASED ON THE UNDISCLOSED INCOME MADE IN THE BLOCK ASSESSMENT HAVE ALSO TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER TO CONSIDER AFRESH ALONG WITH THE ISSUES IN BLOCK ASSESSMENT. 6. WE HAVE GONE THROUGH THE ORDER OF THIS TRIBUNAL DATED 25.02.2013 AND FIND THAT THE CO-ORDINATE BENCH HAD REMITTED THE ADDITIONS MADE IN BLOCK ASSESSMENT TO THE FILE OF THE ASSESSING OFFICER TO DECIDE AFRESH IN ACCORDANCE WI TH LAW. IN THE CIRCUMSTANCES, WE RESTORE ALL THESE APPEALS OF THE REVENUE TO THE FILE OF THE ASSESSING OFFICER TO DEC IDE THESE ADDITIONS AFRESH ALONG WITH THE ADDITIONS IN BLOCK ASSESSMENTS, AFTER PROVIDING ADEQUATE OPPORTUNITY T O THE ASSESSEE. 7. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MONDAY, THE 17 TH DAY OF JUNE, 2013, CHENNAI. SD/- SD/- (ABRAHAM P.GEORGE) (CHALLA NAG ENDRA PRASAD) ACCOUNTANT MEMBER J UDICIAL MEMBER CHENNAI, DATED THE 17 TH JUNE, 2013. SOMU ITA NO.272 TO 281 & 430/MDS/2013 6 COPY TO: (1) APPELLANT (4) CIT (A) (2) RESPONDENT (5) D.R. (3) CIT (6) G.F.