Systematix Shares and Stocks India Ltd., Mumbai V. ACIT, CHENNAI

ITA 2870/CHNY/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 4633 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 04-10-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: N R SURESH
• Keywords: Rejection of books of accounts; Opportunity of cross examination; Earning of tax free income; Bad and doubtful debts
• Section: 143(3); 14A; 131

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , . , $ % BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER, AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ ITA NO.2870/MDS/2016 / ASSESSMENT YEAR : 2010-11 M/S. SYSTEMATIX SHARES AND STOCKS INDIA LTD., 2 ND FLOOR, JK SOMANI BUILDING, BRITISH HOTEL LANE, FORT MUMBAI 400 001 V. THE ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(4), CHENNAI-34. PAN: AAECS8827N ( /APPELLANT) ( /RESPONDENT) /APPELLANT BY : SHRI N R SURESH, CA /RESPONDENT BY : SHRI SHIVA SRINIVAS, JCIT /DATE OF HEARING : 16.03.2017 /DATE OF PRONOUNCEMENT : 11.05.2017 / O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE AGGRIEVED BY T HE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IN ITA NO. 1430/13-14 DATED 23.12.2014 PASSED U/S. 250(6) R.W. S. 143(3) OF THE ACT. 2 I.T.A. NO.2870/MDS/2016 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS A PPEAL, HOWEVER THE CRUXES OF THE ISSUE ARE THAT:- I. THE LD.CIT(A) HAS ERRED IN SUSTAINING THE ORDER OF THE LD. AO WHO HAD DISALLOWED THE CLAIM OF BAD DEBTS AMOUNT ING TO RS.1,56,47,105/- II. THE LD.CIT(A) HAS ERRED IN SUSTAINING THE ORDER OF THE LD.AO WHO HAD MADE ADDITION OF RS. 2,23,019/- BY INVOKING PROVISIONS OF SECTION 14A READ WITH RULE 8 D OF THE RULES. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A LIMITED COMPANY ENGAGED IN THE BUSINESS OF SHARE BROKING, F ILED ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ON 15.09 .2010 DECLARING INCOME OF RS.2,49,52,000/-. THE CASE WAS SELECTED FOR SCRUTINY AND ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT ON 3 0.03.2013, WHEREIN THE LD. AO DISALLOWED THE CLAIM OF BAD DEBT S AMOUNTING TO RS.1,56,47,105/- AND MADE ADDITION OF RS.2,23,019/- BY INVOKING PROVISIONS OF SECTION 14A READ WITH RULE 8D OF THE RULES. 3 I.T.A. NO.2870/MDS/2016 4. GROUND NO.2 (I) : BAD DEBTS:- THE ASSESSEE COMPANY HAD WRITTEN OFF BAD DEBTS AMOUNTING TO RS.1,56,47,105/-. ON QUERY IT WAS EXP LAINED BY THE LD.AR THAT THE BAD DEBTS AROSE DUE TO THE FOLLOWING REASONS: 1) DUES RELATING TO NON-PAYMENT OF BROKERAGE CHARGE S WHICH WAS ALREADY BOOKED AS INCOME. 2) LOSS RELATED TO NON-PAYMENT OF COST OF SHARES PURCHASED ON BEHALF OF CLIENTS. THE LD.AO RELYING ON THE DECISION OF THE MUMBAI BEN CH OF THE TRIBUNAL IN THE CASE G.R. PANDIYA SHARE BROKING LTD VS. ITO (2008) REPORTED IN 26 SOT 431(MUM) QUESTIONED THE L D.AR AS TO WHY THE BAD DEBTS WITH RESPECT TO NON-PAYMENT OF CO ST OF SHARES SHOULD NOT BE DISALLOWED U/S.36(1)(VII) READ WITH S EC 36(2) OF THE ACT, SINCE ONLY THE BROKERAGE INCOME HAS BEEN TAKEN INTO ACCOUNT FOR COMPUTING THE TOTAL INCOME OF THE ASSESSEE. TH E LD.AR RELIED ON THE DECISION OF THE HONBLE MUMBAI HIGH COURT IN THE CASE CIT V. SHRIYAS S. MORAKHIA (2012) REPORTED IN 19 TAXMAN N.COM 64 (BOM), WHEREIN IT WAS HELD THAT THE SALE CONSIDERAT ION OF SUCH SHARES SHOULD BE REDUCED FROM THE COST OF SHARES PU RCHASED 4 I.T.A. NO.2870/MDS/2016 WHERE PAYMENT HAS NOT BEEN RECEIVED AND THE BALANCE SHALL BE CLAIMED AS BAD DEBTS. THEREAFTER THE LD.AO POINTED OUT THE FOLLOWING DISC REPANCIES:- I. THE ASSESSEE HAD NOT PROVIDED A CLEAR BREAK-UP O F BROKERAGE INCOME AND COST OF THE SCRIPTS AGAINST WH ICH PAYMENT WAS NOT RECEIVED. II. THE BREAK-UP OF BAD DEBTS RELATING TO BROKERAGE INCOME AND BAD DEBTS RELATING TO PURCHASE OF SHARES AGAINST WH ICH PAYMENT WAS NOT RECEIVED, WAS NOT PRODUCED. III. SOME OF THE PARTIES AGAINST WHOM BAD DEBTS WER E CLAIMED RELATING TO PURCHASE OF SHARES AGAINST WHICH PAYMEN TS WERE NOT RECEIVED, GAVE CONTRADICTORY STATEMENTS VIZ.:- A) SHRI P.S. KATHIRVEL AGAINST WHOM BAD DEBTS OF RS.29,193/- WAS WRITTEN OFF STATED THAT HE DID NOT HAVE ANY KNOWLEDGE ABOUT THE SHARE TRANSACTION MADE IN H IS NAME. B) SHRI R. SIVASANKAR AGAINST WHOM BAD DEBTS OF RS.12,061/- WAS WRITTEN OFF STATED THAT THE ASSESSE E COMPANY HAD ADJUSTED SUCH LOSS FROM THE SALARY OF T HE 5 I.T.A. NO.2870/MDS/2016 EMPLOYEES WHO HAD ALLEGEDLY TRADED IN SHARES WITHOU T THE KNOWLEDGE OF THE CLIENT. IV. BAD DEBTS WRITTEN OFF IN THE NAME OF SOME OF TH E PARTIES SUCH AS M/S.DHANSRI INVESTMENT PVT LTD, DINESH BUTURA AN D M.R.GEETHA, SAME PAN NUMBER WAS FURNISHED. V. BAD DEBTS WRITTEN OFF IN THE NAME OF BICHITRA B EHRA FOR RS.3,13,287/- DID NOT APPEAR TO BE GENUINE BECAUSE IT WAS REVEALED ON INVESTIGATION THAT HE ONLY WORKED AS AN OFFICE PEON COUPLE OF YEARS BACK IN M/S. MEHTA AND PARIDA, CHARTERED ACCOUNTANTS. HE WAS STILL WORKING AS PEO N IN ANOTHER FIRM. WITH THE ABOVE FINDINGS, THE LD.AO OBSERVED T HAT THE GENUINENESS OF THE CLAIM OF BAD DEBTS IS NOT ESTABL ISHED AND FURTHER RELYING ON THE CASE DECIDED BY THE HONBLE PUNJAB & HARYANA HIGH COURT CIT V. LAL WOOLEN AND SILK MILLS PVT. LTD. (2009) REPORTED IN 183 TAXMAN 145 WHEREIN IT WAS HE LD THAT WHEN DEBT HAS NEVER BEEN DEPICTED AS INCOME OF THE ASSES SEE IN ITS ACCOUNTS, ONE OF THE ESSENTIAL CONDITIONS OF SECTIO N 36(2) OF THE ACT IS NOT MET AND THUS THE ASSESSEE WOULD NOT BE ENTIT LED TO CLAIM THE 6 I.T.A. NO.2870/MDS/2016 DEDUCTION U/S.36(1)(VII) OF THE ACT WITH RESPECT TO BAD DEBTS WRITTEN OFF IN THE BOOKS OF ACCOUNTS. ACCORDINGLY THE LD.A O MADE AN ADDITION OF RS.1,56,47,105/- IN THE HANDS OF THE AS SESSEE DISALLOWING THE CLAIM OF BAD DEBTS. 4.1 ON APPEAL, THE LD.CIT(A) AGREEING WITH THE FIND INGS OF THE LD.AO SUSTAINED HIS ORDER BY OBSERVING AS ORDER: I HAVE CONSIDERED THE SUBMISSIONS OF THE AR OF THE APPELLATE CAREFULLY. I HAVE ALSO PERUSED THE COPY OF THE STA TEMENTS RECORDED BY THE ASSESSING OFFICER. I FIND FROM THE STATEMEN TS OF THE PERSON SRI SIVASANKAR RECORDED U/S 131 OF THE IT ACT THAT THE PARTIES HAVE NEVER INVESTED IN OR ASSOCIATED WITH THE ASSESSEE C OMPANY. I HAVE ALSO PERUSED THE REPORT IN OF THE INSPECTOR OF INCO ME TAX WHEREIN ONE MR. BICHITRA BEHRA HAS DENIED TO HAVE INVESTED OR ASSOCIATED WITH THE ASSESSEE COMPANY. DURING THE COURSE OF AS SESSMENT PROCEEDINGS, THE AO HAD RECORDED STATEMENTS OF THE FEW PERSONS ON TEST CHECK BASIS AND ALL OF THEM HAVE DENIED THE RELEVANT TRANSACTION. THE AR OF THE APPELLANT DID NOT AVAIL OPPORTUNITY OF CROSS EXAMINATION OF THE PERSONS BEFORE AO. AT THE TIME OF ASSESSMENT PROCEEDINGS, THE AR OF THE APPELLANT KEP T SILENT WITHOUT DOUBTING THE VERACITY OF THE CONTENTS OF TH E REPLIES GIVEN BY THE PERSONS. FURTHER, THE AR OF THE APPELLANT D ID NOT FURNISH ANY DETAILS OF THE BREAK UP OF THE BAD DEBTS IN THE BROKERAGE INCOME AND COST OF SHARE COMPONENTS ALTHOUGH SAME W AS REQUIRED VIDED SPECIFIC NOTICE DATED 08.03.2013. IN VIEW OF THE SPECIFIC FACTS BROUGHT ON BY THE AO, THE PLEA OF THE AR OF T HE APPELLANT TO CROSS EXAMINE THE PARTIES IS REJECTED. I FIND THAT THE PLEA OF THE AR OF THE APPELLANT TO CROSS EXAMINE THE PARTIES IS ON LY DELAYING TACTIC TO MISLEAD THE REVENUE. NO AFFIDAVIT WAS ALSO MADE BY THE PARTIES DENYING THE CONTENTS OF THE STATEMENTS MADE BEFORE THE AO. UNDER THE CIRCUMSTANCES, I FULLY AGREE WITH THE VIEW OF T HE AO THAT THE CLAIM OF BAD DEBT MADE BY THE APPELLANT IS NOT GENU INE CLAIM AND 7 I.T.A. NO.2870/MDS/2016 HENCE ALL THE GROUNDS OF APPEAL FILED BY THE APPELL ANT ON THIS ISSUE ARE REJECTED. 4.2 THE LD.AR SUBMITTED BEFORE US THAT THE ASSESSEE HAD EXPLAINED BEFORE THE LD.AO VIDE LETTER DATED 01.03. 2013 THAT THE AMOUNT WRITTEN OFF WERE OUTSTANDING IN THE BOOKS OF THE ASSESSEE FOR MORE THAN 3 YEARS PERTAINING TO EITHER NON RECE IPT OF BROKERAGE TOWARDS PURCHASE AND SALE OF SHARES WHICH WAS TREAT ED AS INCOME EARLIER OR DUE TO LOSS INCURRED ON PURCHASES/SALE O F SHARES ON BEHALF OF CLIENTS. THE LD A.R FURTHER SUBMITTED THA T IN ALL THERE WERE 921 CLIENTS WHOSE ACCOUNTS ARE WRITTEN OFF DURING T HE RELEVANT ASSESSMENT YEAR IN THE CASE OF THE ASSESSEE. THE LD.AR FURTHER ARGUED STATING THAT THE BOOKS OF ACCOUNTS INCLUDING LEDGER COPIES, ETC., WERE FURNISHED BEFORE THE LD.AO WITH RESPECT TO THE CLAIM OF BAD DEBTS RELATED TO BROKERAGE CHARGES AND PURCHASE OF SHARES. HE FURTHER ARGUED THAT, BASED ON THE STATEMENTS OF FEW CLIENTS WHO DID NOT HAVE GOOD RELATIONSHIP WITH THE ASSESSEE AN D WHO HAD DEFAULTED PAYMENT TO THE ASSESSEE, THE LD.AO HAD AR RIVED AT THE HARSH DECISION OF DISALLOWING THE ENTIRE CLAIM OF B AD DEBTS. IT WAS THEREFORE PLEADED THE CLAIM OF BAD DEBT MAY BE ALLO WED AND THE ADDITION MADE BY THE LD.AR ON THIS GROUND MAY BE DE LETED. THE 8 I.T.A. NO.2870/MDS/2016 LD.DR ON THE OTHER HAND ARGUED IN SUPPORT OF THE RE VENUE AUTHORITIES. 4.3 WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFUL LY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CAS E, IT IS APPARENT THAT THE ASSESSEE WHO IS A SHARE BROKER HAD INCURRE D LOSS ON ACCOUNT OF TWO COUNTS:- 1) NON-PAYMENT OF BROKERAGE CHARGES BY THE CLIENT O F THE ASSESSEES WHICH WAS TREATED AS INCOME BY THE ASSESS EE ON THE EARLIER OCCASION. 2) NON-PAYMENT OF PURCHASE CONSIDERATION OF SHARES BY THE CLIENTS OF THE ASSESSEES. ON THE FIRST INSTANCE, BY VIRTUE OF SECTION 36(1)(VII) R.W.S 36(2) OF THE ACT, AND THE DECISION OF THE HONBLE APEX CO URT IN THE CASE TRF LIMITED VS. CIT REPORTED IN 323 ITR 397 IT IS C LEAR THAT THE ASSESSEE IS ENTITLED TO CLAIM THE AMOUNT OF BROKERA GE COMMISSION NOT RECEIVED AS BAD DEBT, IF THE SAME WAS TREATED A S INCOME EARLIER AND WRITTEN OFF IN THE BOOKS OF ACCOUNTS DU RING THE RELEVANT ASSESSMENT YEAR WHEN THE DEBT WAS CONSIDERED AS NOT RECEIVABLE. 9 I.T.A. NO.2870/MDS/2016 ON THE SECOND INSTANCE, THOUGH THE CLAIM OF BAD DEBTS WITH RESPECT TO NON-RECEIPT OF PURCHASE CONSIDERATION OF SHARES PURCHASED ON BEHALF OF THE CLIENTS, CANNOT BE ALLOW ED AS DEDUCTION U/S.36(1)(VII) R.W.R 36(2) OF THE ACT, THE ACTUAL L OSS INCURRED IF ANY WITH RESPECT TO THE PURCHASE CONSIDERATION OF THE S HARES AGAINST WHICH PAYMENT FROM THE CLIENTS ARE NOT RECOVERABLE LESS SALE CONSIDERATION OF THOSE SHARES, HAS TO BE ALLOWED AS LOSS INCURRED DURING THE COURSE OF THE BUSINESS OF THE ASSESSEE U /S.28 OF THE ACT. THESE ASPECTS HAVE BEEN CLEARLY DEALT IN THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE CIT VS. SHREY AS S MORAKHIA (SUPRA). NEEDLESS TO MENTION THAT LOSS INCURRED BY THE ASSESSEE DUE TO NON-DELIVERY OF SHARES SOLD BY THE ASSESSEE ON BEHALF OF ITS CLIENTS ALSO HAS TO BE TREATED AS LOS S INCURRED BY THE ASSESSEE DURING THE COURSE OF ITS BUSINESS AND THE ASSESSEE WOULD BE ENTITLED TO CLAIM DEDUCTION ON ACCOUNT OF THE SAME. IN THE CASE OF THE ASSESSEE THE LD.AR HAD EXPLAINED BEFORE THE LD.AO THAT THE LOSS WAS EITHER DUE TO FAILURE ON THE PART OF THE CLIENTS OF THE ASSESSEE TO MAKE PAYMENT FOR THE PURCHASE OF SH ARES ON BEHALF THEM BY THE ASSESSEE OR DUE TO FAILURE ON TH EIR PART TO 10 I.T.A. NO.2870/MDS/2016 DELIVER THE SHARES TRADED BY THE ASSESSEE ON BEHALF OF THE CLIENTS AND FURTHER NONPAYMENT OF THE BROKERAGE CHARGES WHI CH WAS BOOKED AS INCOME BY THE ASSESSEE ON MERCANTILE BASI S. THE LD.AR HAD FURTHER CLARIFIED BEFORE THE LD.AO THAT W HILE CLAIMING SUCH LOSS, DUE ADJUSTMENT WITH RESPECT TO SALE OF S HARES HAD BEEN TAKEN INTO ACCOUNT AND ONLY THE ACTUAL LOSS IS CLAI MED AS DEDUCTION. CONSIDERING THE ABOVE FACTS, IT IS EVID ENT THAT THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CA SE OF CIT VS. SHREYAS S MORAKHIA (SUPRA) WILL BE APPLICABLE IN THE CASE OF THE ASSESSEE AND THE LOSS INCURRED BY THE ASSESSEE ON T HE ABOVE TRANSACTION HAS TO BE ALLOWED AS DEDUCTION. IN THE CASE OF THE ASSESSEE THE GROUSE OF THE LD.AO IS THAT THE ASSESSEE HAS NOT PROVIDED THE DETAILS OF SUCH DEBTO RS. WE FAIL TO UNDERSTAND AS TO HOW THE LD.AO COULD STATE SO WHEN HE HAS NOT MADE ANY FINDINGS ON EXAMINING THE BOOKS OF ACCOUNT S OF THE ASSESSEE. IT IS NOT THE CASE OF THE REVENUE THAT TH E ASSESSEE HAS NOT MAINTAINED BOOKS OF ACCOUNTS OR PRODUCED THE BO OKS OF ACCOUNTS BEFORE THE LD.A.O. ALL THE BOOKS OF ACCOUN TS WERE VERY MUCH AVAILABLE BEFORE THE REVENUE. THE LEDGER ACCOU NTS 11 I.T.A. NO.2870/MDS/2016 MAINTAINED BY THE ASSESSEE WILL HAVE THE DETAILS OF ALL THE DEBTORS. THE DEBTS THAT ARE CONSIDERED BAD ARE ALSO WRITTEN OFF IN THE BOOKS OF ACCOUNTS AND THE SAME IS NOT DISPUTED. FURTHER B Y EXAMINING THOSE BOOKS OF ACCOUNTS OF THE ASSESSEE IT CAN BE E ASILY VERIFIED WHETHER THE BROKERAGE CHARGES WAS BOOKED AS INCOME ON THE EARLIER OCCASION AND WHETHER THE ASSESSEE HAS INCUR RED LOSS ON THE SALE OF SHARES PURCHASED BY IT ON BEHALF OF ITS CLIENTS AGAINST WHOM PAYMENT HAS BECOME IRRECOVERABLE/PARTLY IRRECO VERABLE. THE OPENING BALANCES OF THOSE DEBTORS ARE ALSO VERIFIAB LE. SINCE THE REVENUE HAS NOT REJECTED THE BOOKS OF ACCOUNTS AND FOUND OUT ANY DISCREPANCIES WITH RESPECT TO THE CLAIM OF THE ASSE SSEE, WE ARE OF THE CONSIDERED VIEW THAT THE DISALLOWANCE OF RS.1,5 6,47,105/- IN THE HANDS OF THE ASSESSEE IS NOT WARRANTED ONLY ON THE PRETEXT OF THE LAME FINDING OF THE REVENUE THAT THE DETAILS WI TH RESPECT TO THE CLAIM OF DEDUCTION IS NOT PROVIDED. FOR THE ABOVE S TATED REASONS WE HEREBY DIRECT THE LD.AO TO DELETE THE ADDITION O F RS.1,56,47,105/-. 12 I.T.A. NO.2870/MDS/2016 5. GROUND NO. 2(II) : DISALLOWANCE UNDER SECTION 14A R EAD WITH RULE 8D OF THE RULES: DURING THE COURSE OF SCRUTINY ASSESSMENT IT WAS O BSERVED BY THE LD.AO THAT THE ASSESSEE HAD MADE INVESTMENT TO THE TUNE OF RS.1,25,80,877/- AS ON 31.03.2010, WHEREIN IT HAS R ECEIVED DIVIDEND INCOME OF RS.2,70,892/-. THE ASSESSEE HAD ONLY DISALLOWED RS.5,418/- BEING THE DEMAT CHARGE AS EXP ENSE INCURRED FOR EARNING EXEMPT INCOME. SINCE, THE ASSESSEE HAD NOT TAKEN INTO CONSIDERATION OF THE OTHER EXPENSES INVOLVED F OR MAINTAINING THE INVESTMENT OF RS.1,25,80,877/- WHICH EARNED EXE MPT DIVIDEND INCOME THE LD.AO INVOKED THE PROVISIONS OF SEC.14A READ WITH RULE 8D OF THE ACT AND THEREBY MADE DISALLOWANCE OF RS.2,23,019/-. ON APPEAL THE LD.CIT(A) CONFIRMED T HE ORDER OF THE LD.AO BY RELYING ON VARIOUS DECISIONS OF HIGHER JUD ICIARY. WE DONT FIND ANY INFIRMITY IN THE DECISION OF THE REVENUE A UTHORITIES IN THIS ISSUE BECAUSE THE ASSESSEE HAS NOT CONVINCED THE RE VENUE AUTHORITIES WITH RESPECT TO THE EXPENSES ATTRIBUTAB LE FOR EARNING EXEMPT INCOME BY APPORTIONING ALL SUCH EXPENSES. T HEREFORE THE REVENUE HAS NO OTHER OPTION BUT TO COMPUTE THE DISA LLOWANCE IN ACCORDANCE WITH RULE 8D OF THE RULES. MOREOVER THE LD.AO HAS 13 I.T.A. NO.2870/MDS/2016 ONLY INVOKED RULE 8D(III) OF THE RULES AND THEREBY COMPUTED THE DISALLOWANCE AT RS.62,904/-, ON WHICH WE ARE OF THE VIEW THAT NO INTERFERENCE IS NECESSARY IN THE ORDER OF THE REVEN UE AUTHORITIES. HOWEVER AT THE SAME TIME WE FIND THAT THE LD.AO HAS STATED IN HIS ORDER THAT THE DISALLOWANCE U/S.14A IS TO BE MADE F OR RS.2,23,019/- IT APPEARS THERE IS A MISTAKE IN THE ORDER OF THE LD.AO. THEREFORE WE HEREBY CORRECT THE ORDER OF TH E LD.AO BY SUSTAINING THE ADDITION AT RS.62,904/- TOWARDS DISA LLOWANCE U/S.14A R.W.R 8D OF THE RULES. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON 11 TH MAY, 2017. SD/- SD/- ( . ) )) ) (G. PAVAN KUMAR) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATED, THE 11 TH MAY, 2017. JR. /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( ) /CIT(A) 4. /CIT, 5. /DR 6. /GF.