V. Nagarajan (HUF), Erode V. ACIT, Erode

ITA 2901/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7336 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-10-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: NITHYA SANKARAN
• Keywords: Revised return
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

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 ./ I.T.A.NO.2901/MDS/2016 ( / ASSESSMENT YEAR: 2012-13) V. NAGARAJAN (HUF), 36/1, RAJA KADU, 1 ST STREET, ERODE 638 001 VS THE ASST. COMMISSIONER OF INCOME TAX, CIRCLE 1, ERODE-638 001. PAN: AADHV7044L ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MS. NITHYA SANKARAN, CA /RESPONDENT BY : SHRI SHIVA SRINIVAS, JCIT /DATE OF HEARING : 15.03.2017 ! /DATE OF PRONOUNCEMENT : 27.03.2017 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-3, COIMBATORE DATED 08.07.2016 IN IT APPEAL NO.63/15-1 6 FOR THE ASSESSMENT YEAR 2012-13 PASSED U/S. 250(6) R.W.S. 1 43(3) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN ITS A PPEAL, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN NOT ALLOWING DEDUCTION U/S.57(IV) OF THE ACT BY UPH OLDING THE 2 ITA NO.2901/MDS/2016 ORDER OF THE LD.AO, WHO HAD REJECTED THE CLAIM OF T HE ASSESSEE STATING THAT THE REVISED RETURN FILED BY THE ASSESS EE IS NOT VALID. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A HUF EARNING INCOME FROM HOUSE PROPERTY AND INCOME FROM OTHER SOURCES FILED ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR BELATEDLY ON 29.03.2013 ADMITTING TOTAL INCOME OF RS.71,45,960/- AND AGRICULTURAL INCOME OF RS.30,000 /-. THEREAFTER THE ASSESSEE FILED A REVISED RETURN ON 1 7.04.2013 WHEREIN TOTAL INCOME OF RS.38,18,480/- WAS DISCLOSE D ALONG WITH THE AGRICULTURAL INCOME OF RS.30,000/-. THE CASE W AS TAKEN UP FOR SCRUTINY UNDER CASS AND ASSESSMENT WAS COMPLETE D U/S.143(3) OF THE ACT ON 23.03.2015, WHEREIN THE LD . AO DISALLOWED THE CLAIM OF DEDUCTION U/S.57(IV) OF THE ACT TO THE ASSESSEE ON THE GROUND THAT THE REVISED RETURN FILE D BY THE ASSESSEE IS NOT VALID AND BY PLACING RELIANCE IN TH E DECISION OF THE HONBLE APEX COURT IN THE CASE GOETZE INDIA LTD V. CIT REPORTED IN 284 ITR 323 WHEREIN IT WAS HELD THAT AN Y FRESH CLAIM MADE BY THE ASSESSEE OTHERWISE THAN IN THE RETURN O F INCOME CANNOT BE ENTERTAINED. ON APPEAL, THE LD.CIT(A) AL SO UPHELD THE ORDER OF THE LD.AO BY OBSERVING AS UNDER: 3 ITA NO.2901/MDS/2016 I HAVE CAREFULLY CONSIDERED THE GROUNDS AND SUBMIS SIONS OF THE APPELLANT AND THE ASSESSMENT ORDER. THE APPELLANT H AD FILED RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 29/3/2013 ADMITTING TOTAL INCOME OF RS.71,45,960/-. THIS IS A FTER THE DUE DATE. THE APPELLANT CLAIMED 50% DEDUCTION ON ENHANC ED COMPENSATION BY FILING REVISED RETURN OF INCOME ON 17/4/2013. IF THE REVISED RETURN TO BE ACCEPTED AS VALID THE APPE LLANT SHOULD HAVE FILED THE ORIGINAL RETURN WITHIN THE DUE DATE. SINCE THIS HAS NOT BEEN DONE THE ASSESSING OFFICER IS CORRECT IN T REATING THE REVISED RETURN AS INVALID 4. THE LD. AR SUBMITTED BEFORE US THAT THE ASSESSEE HAS EVERY RIGHT TO RAISE A LEGAL ISSUE EVEN IN THE APPE LLATE STAGE FOR THE FIRST TIME. RELIANCE WAS PLACED ON THE DECISIO N NATIONAL THERMAL POWER COMPANY LTD VS. CIT REPORTED IN 229 I TR 383. SHE THEREFORE ARGUED STATING THAT THE ISSUE WITH RE SPECT TO THE DEDUCTION U/S.57(IV) OF THE ACT TOWARDS INTEREST RE CEIVED AGAINST COMPENSATION FOR ACQUISITION OF LAND BY THE STATE G OVERNMENT MAY BE DECIDED ON MERITS. THE LD. DR COULD NOT CON TROVERT TO THE SUBMISSION OF THE LD.AR. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. BY VIRTUE OF THE DECISION OF THE HONBLE APEX COURT GOETZE INDIA LIMITED AND NATIONAL THERMA L POWER COMPANY LIMITED CITED SUPRA, IT IS CLEAR THAT THE T RIBUNAL HAS POWER UNDER THE ACT TO ADMIT ANY LEGAL ISSUE RAISED BY THE 4 ITA NO.2901/MDS/2016 ASSESSEE EVEN FOR THE FIRST TIME DURING THE APPELLA TE PROCEEDINGS. THEREFORE IN THE INTEREST OF JUSTICE, WE HEREBY ADMIT THE GROUND RAISED BY THE ASSESSEE FOR THE FIR ST TIME AT THE APPELLATE STAGE AND FURTHER REMIT THE MATTER BACK T O THE FILE OF LD.AO WITH DIRECTIONS TO DECIDE THE ISSUE RAISED BY THE ASSESSEE IN ACCORDANCE WITH LAW AND MERITS. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 27 TH MARCH, 2017. SD/- SD/- ( . ) (G. PAVAN KUMAR) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER '# /CHENNAI, $% /DATED 27 TH MARCH, 2017 JR % '( )( /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. (-. / /DR 6. .0 /GF