Narayana Diamonds, CHENNAI V. JCIT, Kumbakonam

ITA 287/CHNY/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 95815 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-08-2015
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 11-06-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 18-02-2013
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN JCITD R

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI ... , . , , BEFORE SHRI N.R.S.GANESAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.287 /MDS./2013 ( !' #' / ASSESSMENT YEAR :2005-06) M/S.NARAYANA DIAMONDS , 9,GANDHI ROAD, MAYILADUTHURAI. VS. JOINT COMMISSIONER OF INCOME TAX, KUMBAKONAM RANGE, KUMBAKONAM. PAN AADFN 2809 D ( / APPELLANT ) ( / RESPONDENT ) $% & ' / APPELLANT BY : MR.PHILIP GEORGE, ADVOCATE ()$% & ' / RESPONDENT BY : MR.N.MADHAVAN,JCIT, D.R * + & ,- / DATE OF HEARING : 11.06.2015 .# & ,- /DATE OF PRONOUNCEMENT : 11.08.2015 / O R D E R PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A), TIRUCHIR APPALLI DATED ITA NO.287/MDS/2013 2 07.11.2012 IN ITA NO.149/2010-11 PASSED UNDER 271E READ WITH SECTION SEC. 250 OF THE ACT. 2. THE ASSESSEE HAS RAISED FIVE ELABORATE GROUNDS IN ITS APPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE ASSESSEE IS AGGRIEVED BY THE ORDER OF THE LD. CIT (A), WHO HAD UPHELD THE OR DER OF THE LD. ASSESSING OFFICER FOR LEVY OF PENALTY AT ` 11,05,883/- DUE TO VIOLATION OF SECTION-269T OF THE ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS A FIRM, FIELD ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2005-0 6 ON 01.08.2005 ADMITTING ITS TOTAL INCOME AT ` 14,370/-. SUBSEQUENTLY THE CASE WAS TAKEN UP FOR SCRUTINY AND THE ASSESSMENT WAS COMPLE TED U/S.143(3) OF THE ACT ON 28.12.2007. DURING THE COURSE OF ASSE SSMENT PROCEEDINGS IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE HAD REPAID LOAN OF ` 3/- LAKHS EACH ON 06.12.2004 AND 28.02.2005 AGGREGATING TO ` 6/- LAKHS TO M/S.NARAYANA GOLD HOUSE (P) LTD. IT WAS FURTHER NOTICED THAT THE ASSESSEE HAD REPAID LOAN OF ` 5,05,883/- ON VARIOUS DATES TO M/S.NARAYANA JEWELLE RY. SINCE THE ITA NO.287/MDS/2013 3 ASSESSEE HAD VIOLATED THE PROVISIONS SECTION-269T O F THE ACT, THE LD. ASSESSING OFFICER LEVIED PENALTY OF ` 11,05,883/- BEING 100% OF AMOUNT REPAID BY CASH BY INVOKING THE PROVISIONS OF SECTION 271E OF THE ACT. ON APPEAL, THE LD. CIT (A) CONFIRMED THE ORDER OF THE LD. ASSESSING OFFICER. 4. BEFORE US, THE LD. A.R. REITERATED HIS SUBMISSI ONS MADE BEFORE THE REVENUE ON EITHER OCCASION BY STATING THAT BOTH M/S. M/S.NARYANA JEWELLERY & M/S.NARAYANA GOLD HOUSE (P) LTD., ARE SISTER CONCERNS OF THE ASSESSEE FUNCTIONING IN THE SAME PREMISES. THE LD. A.R. FURTHER SUBMITTED THAT THE CHENNAI BEN CH OF THE TRIBUNAL IN THE CASE OF SHRI N.KRISHNAMOORTHTY VS. ACIT IN ITA NOS.907 TO 910/MDS./2014 VIDE ORDER DATED 25.06.2014 HAS HELD IN SIMILAR CIRCUMSTANCES THAT WHEN ALL THE PARTIES ARE INTER-R ELATED AND FUNCTIONING IN THE SAME OFFICE PREMISES, THEN PROVI SIONS OF SECTIONS 269SS, 269T, 271B & 271E OF THE ACT CANNOT BE INVOK ED. LD. D.R ON THE OTHER HAND STOUTLY RELIED ON THE ORDERS OF THE REVENUE. ITA NO.287/MDS/2013 4 5. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. WE FIND MERIT IN TH E CONTENTION OF THE LD. A.R. AS POINTED OUT BY THE LD. A.R. ON AN IDEN TICAL SITUATION WHEN ALL THE PARTIES WHERE INTER-RELATED SISTER CONCERN S AND FUNCTIONING IN THE SAME OFFICE PREMISES, THIS BENCH OF THE TRIBUNA L HAS HELD IN THE CASE CITED SUPRA THAT PROVISIONS OF SECTIONS 269SS, 269T, 271B & 271E OF THE ACT CANNOT BE INVOKED. ON PERUSING THE PAPER BOOK SUBMITTED BY THE LD. A.R, IT APPEARS THAT THE ASSES SEE, M/S. NARYANA GOLD HOUSE AND M/S.NARYANA JEWELLERY ARE ALL INTER- CONNECTED SISTER CONCERNS AND FUNCTIONING FROM THE SAME OFFICE PREMI SES. HOWEVER, THESE FACTS WERE NOT EXAMINED BY THE REVENUE ON EIT HER OCCASION. THEREFORE, IN THE INTEREST OF JUSTICE, WE REMIT BAC K THE MATTER TO THE FILE OF LD. ASSESSING OFFICER TO VERIFY WHETHER ALL THE ABOVE SAID PARTIES ARE SISTER CONCERNS AND INTER RELATED AND F UNCTIONING IN THE SAME OFFICE PREMISES, IF FOUND SO, DELETE THE PENAL TY LEVIED U/S.271E AS HELD BY THE DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL CITED SUPRA. ITA NO.287/MDS/2013 5 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES ORDER PRONOUNCED ON 11 TH AUGUST, 2015 AT CHENNAI. SD/- SD/- ( . . . ) ( N.R.S.GANESAN ) ( . '#$ %' ) (A.MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 11 TH AUGUST, 2015. K S SUNDARAM. & (,/0 1 0#, /COPY TO: 1. $% /APPELLANT 2. ()$% /RESPONDENT 3. * 2, ( ) /CIT(A) 4. * 2, /CIT 5. 05 (,6! /DR 6. 7' 8+ /GF