Alka Roopchand Bhatia, Moti Daman V. The Income Tax Officer, Vapi Ward-4, Daman

ITA 2867/AHD/2013

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 9512 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 12-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-12-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: SAPNESH SHETH
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER ./ ITA NO. 2867/AHD/2013 / ASSESSMENT YEAR : 2010-11 ALKA ROOPCHAND BHATIA, BHATIA HOUSE, NEAR PLAY GROUND MOTI DAMAN-396220 PAN : ADDPB 9369 H VS ITO, VAPI WARD-4 DAMAN ./ ITA NO. 2868/AHD/2013 / ASSESSMENT YEAR : 2010-11 MRIGESH ROOPCHAND BHATIA, BHATIA HOUSE, NEAR PLAY GROUND MOTI DAMAN-396220 PAN : AABPB 4810 C VS ITO, VAPI WARD-4 DAMAN / (APPELLANT) / (RESPONDENT) ASSESSEE(S) BY : SHRI SAPNESH SHETH, AR REVENUE BY : SHRI ASHISH POPHARE, DR DATE OF HEARING : 1 2/01/2017 DATE OF PRONOUNCEMENT IN COURT : 12/01/20 17 / O R D E R THESE TWO APPEALS BY DIFFERENT ASSESSEES ARE DIRECT ED AGAINST THE RESPECTIVE ORDERS OF LD. CIT(A), VALSAD, BOTH DATED 27.09.2013, FOR ASSESSMENT YEAR 2010-11. 2. THE COMMON GROUND RAISED IS TO THE EFFECT THAT THE LD. CIT(A) ERRED IN LAW AND ON FACTS IN CONFIRMING THE ACTION OF THE AS SESSING OFFICER IN MAKING THE ADDITION ON ACCOUNT OF ALLEGED DIFFERENCE BETWE EN THE AMOUNT MENTIONED IN THE FORM NO.26AS AND IN THE TDS CERTIF ICATE FILED ALONGWITH THE RETURN AS UNDER:- NAME OF ASSESSEE ADDITION MADE ON ACCOUNT OF DIFFERENCE A. ALKA R. BHATIA RS.3,54,709 B. MRIGESH R. BHATIA RS.4,45,876/- SMC-ITA NOS. 2867/AHD/2013 & 2868/AHD/2013 ALKA R. BHATIA & MRIGESH R. BHATIA AY : 2010-11 2 ALTERNATIVELY, THE CREDIT OF TDS AS PER FORM NO.26A S ACTUALLY DEDUCTED MAY BE GIVEN. 3. THE BRIEF FACTS ARE THAT THE ASSESSEE(S) OFFERED INCOME FROM INTEREST INCOME ON THE BASIS OF CASH RECEIPTS WHICH WAS AT A LESSER FIGURE; WHEREAS IN FORM NO.26AS THE SAME WAS AT A HIGHER FIGURE AS UND ER:- NAME OF ASSESSEE AS PER ROI AS PER FORM NO.26AS I. ALKA R. BHATIA RS.2,81,730/- RS.7,36,440/ - II. MRIGESH R. BHATIA RS.2,91,807/- RS.8,3 7,683/- 3.1 THEREAFTER, THE LD. AO MADE THE ADDITION OF DIF FERENTIAL AMOUNT BY FOLLOWING OBSERVATIONS (REPRODUCED FROM THE ASSESSM ENT ORDER IN THE CASE OF ALKA R. BHATIA FOR THE SAKE OF CONVENIENCE):- 3. DURING THE COURSE OF ASSESSMENT PROCEEDINGS ON VERIFICATION OF CASE RECORD, IT IS SEEN THAT DURING THE PROCESSING OF RE TURN OF INCOME U/S 143(1) OF THE ACT, IT WAS NOTICED THAT THE ASSESSEE HAD OFFER ED INCOME UNDER THE HEAD OF INCOME FROM OTHER SOURCES OF RS.3,81,731/-, BUT O N VERIFICATION OF THE FORM NO.26AS, TOTAL RECEIPT OF RS.7,36,440/- WAS FOUND. THEREFORE, NOTICE U/S 154 OF THE IT ACT WAS ISSUED TO THE ASSESSEE FOR PROPOS ED ADDITIONS OF RS.3,54,709/- (RECEIPT AS PER FORM NO.26AS OF RS.7, 36,440 (-)) SHOWN IN RETURN OF INCOME OF RS.3,81,731/-. 3.1 DURING THE COURSE OF RECTIFICATION PROCEEDING S, THE ASSESSEE VIDE HER LETTER DATED 26.05.2011 HAS ACCEPTED THE SAID MISTA KE AND ALSO STATED THAT CORRECT FIGURE IS RS.6,26,288/-. HENCE IT WAS CLEA R THAT THE ASSESSEE HAD NO OBJECTION IF THE DIFFERENCE IS ADDED TO THE TOTAL I NCOME OF THE ASSESSEE. IN THIS CASE, AFTER VERIFICATION OF FORM NO.26AS, IT WAS F OUND THAT TOTAL RECEIPT WAS RS.7,36,440/-, BUT THE ASSESSEE HAS SHOWN TOTAL REC EIPT ONLY OF RS.3,81,731/- IN HER RETURN OF INCOME FOR THE YEAR UNDER CONSIDER ATION. THUS, THE ASSESSEE HAS SHOWN SHORT RECEIPTS OF RS.3,54,709/-. THEREFO RE, THE ADDITION OF RS.3,54,709/- WAS MADE DURING THE COURSE OF RECTIFI CATION AND INCOME DETERMINED OF RS.6,36,440/-. 3.2 AGGRIEVED, THE ASSESSEE(S) PREFERRED FIRST APPE AL WHICH WAS DISMISSED BY THE LD. CIT(A). AGGRIEVED BY THE ORDER OF THE L D. CIT(A), THE ASSESSEE(S) IS/ARE IN APPEAL BEFORE THE TRIBUNAL. 4. LD. COUNSEL FOR THE ASSESSEE(S) CONTENDED THAT T HE ASSESSEE(S) HAS CLAIMED TDS ON THE INTEREST INCOME ON PROPORTIONATE BASIS. THE ASSESSEE(S) SMC-ITA NOS. 2867/AHD/2013 & 2868/AHD/2013 ALKA R. BHATIA & MRIGESH R. BHATIA AY : 2010-11 3 THOUGH HAS ACCEPTED THE MISTAKE BEFORE THE ASSESSIN G OFFICER; HOWEVER, FULL CREDIT OF TDS DEDUCTED AS PER FORM NO.26AS HAS NOT BEEN GIVEN. THUS, THE ENTIRE INTEREST INCOME HAS BEEN TAXED IN THIS YEAR; WHEREAS THE TDS CREDIT HAS BEEN ALLOWED AS PER CLAIM ON PROPORTIONATE BASI S AS CLAIMED IN THE RETURN OF INCOME. THEREFORE, A DIRECTION MAY BE GIV EN TO THE EFFECT THAT AS THE ENTIRE INTEREST INCOME HAS BEEN TAXED IN THIS YEAR, THE TDS DEDUCTED AS PER FORM NO.26AS FOR WHICH A VALID CERTIFICATE HAS BEEN INCLUDED WITH THE RETURN MAY KINDLY BE GIVEN. 5. THE LD. DEPARTMENTAL REPRESENTATIVE CONTENDS THA T THE MISTAKE OF OFFERING PARTIAL INTEREST INCOME IN THE RETURN HAS BEEN ACCEPTED BY THE ASSESSEE(S); THEREFORE, THE CLAIM OF THE ASSESSEE(S ) ON MERIT HAS NO SUBSTANCE. HOWEVER, SINCE THE FULL INTEREST INCOME HAS BEEN TA XED TO INCOME-TAX, THERE IS NO OBJECTION TO GIVE THE FULL CREDIT OF TDS IF I T HAS NOT ALREADY BEEN GIVEN. 6. I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. IN VIEW OF THE FOREGOING, THE MAIN GROUND OF THE ASSESSEE(S) DOES NOT SURVIVE; HOWEVER, THE ALTERNATIVE GROUND ABOUT ALLOWING FULL CREDIT O F TDS IS DIRECTED TO VERIFY AND IF THE FULL TDS CREDIT HAS NOT ALREADY BEEN GIV EN, THEN AS PER TDS CERTIFICATE THE CREDIT THEREOF DESERVES TO BE GIVEN TO THE ASSESSEE(S). ACCORDINGLY, BOTH THE ASSESSEES APPEALS ARE PARTLY ALLOWED ON THIS LIMITED ISSUE. 7. IN THE RESULT, APPEALS FILED BY THE ASSESSEE(S) ARE PARTLY ALLOWED. SD/- R.P. TOLANI (JUDICIAL MEMBER) AHMEDABAD; DATED 12/01/2017 *BIJU T., SR. PS SMC-ITA NOS. 2867/AHD/2013 & 2868/AHD/2013 ALKA R. BHATIA & MRIGESH R. BHATIA AY : 2010-11 4 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) 5. , , / DR, ITAT, AHMEDABAD 6. / GUARD FILE . / BY ORDER, TRUE COPY / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD