Shri Ashish Krishnakant Shah, Gandhinagar V. The Income Tax Officer,Ward-1, Gandhinagar

ITA 2945/AHD/2014

• Counselvise Citation: 294520514 RSA 2014
• Duration Of Justice: 10 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-09-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 07-11-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Keywords: Audit objection; Revised return
• Section: 148; 143(3)

Judgement Text

ITA NO . 2 9 4 5 /AHD/ 20 1 4 ASSESSMENT YEAR: 2 0 0 6 - 07 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH , SMC , AHMEDABAD [CORAM: PRAMOD KUMAR AM ] ITA NO. 2 9 4 5 / AHD / 2 0 1 4 ASSESSMENT YEAR: 20 0 6 - 07 ASHISH KRISHNAKANT SHAH, ....... .. . ..... APPELLANT 556, OPP. TEJAS SOCIETY, SECTOR 23, GANDHINAG AR. [PAN AFDPS 6935 G ] VS. INCOME TAX OFFICER, .... .................. .... .. RESPONDENT WARD 1 , GANDHINAGAR. APPEARANCES BY: NONE FOR THE APPELLANT A NIL KUMAR FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : SEPTEMBER 1 5 TH , 201 5 DATE O F PRONOUNCING THE ORDER : SEPTEMBER 21 ST , 2015 O R D E R 1. BY WAY OF TH IS APPEAL, THE ASSESSEE APPELLANT HAS C ALLED INTO QUESTION CORRECTNESS OF THE LD. CIT(A) S ORDER DATED 2 4 TH JULY, 201 4 FOR ASSESSMENT YEAR 2006 - 07, ON THE FOLLOWING GROUNDS : - 1. TH E L EARNED CIT ( A ) HAS GROSSLY ERRED IN LAW AND ON FACT S IN PARTLY ALLOWING THE APPEAL. HE OUGHT TO HAVE ALLOWED THE APPEAL FULLY IN ACCORDANCE WITH THE GROUNDS OF APPEAL RAIS E D BY THE APPELLANT BEFORE HIM. I. PENALTY U/S. 271(1)(C) OF RS.70,790/ - (A) THE LEARNED CIT ( A ) HAS ERRED IN LAW AND ON FACTS WHILE CONFIRMING THE PENALTY OF RS.70,790/ - BY LEARNED A.O. WHILE CONSIDERING THE INTEREST EXPENSES NOT ALLOWABLE AS NO TDS H A S BEEN DEDUCTED WHETHER INTEREST HAS BEEN CLAIMED UNDER THE HE A D OF INCOME FROM BUSI NESS OR PROFESSION OR UNDER ITA NO . 2 9 4 5 /AHD/ 20 1 4 ASSESSMENT YEAR: 2 0 0 6 - 07 PAGE 2 OF 3 HEAD AS INCOME FROM OTHER SOURCES WHILE NOT CONSIDERING THE FACT OF THE CASE OF THE APPELLANT. (B) (I) ORIGINAL RETURN WAS FILED BY TAKING HEAD WISE INCOME FROM PROFIT AND LOSS ACCOUNT DIRECTLY. (II) UNDER HEAD INCOME FROM BUS INESS PROFESSION DERIVATIVE INCOME OF RS.26,034/ - IS SHOWN. INTEREST W/O TDS IS DISALLOWED. (III) UNDER HEAD INCOME FROM OTHER SOURCES INTEREST P A ID OF RS.3,66,769/ - IS CLAIMED. ORDER U/S 143(3) WAS PASSED. (C) (I) REVISED RETURN (DUE TO REOPEN U/S 1 48 DUE TO AUDIT OBJECTION) WAS FILED BY SHOWING NET PROFIT AS PER PROFIT & LOSS ACCOUNT RS.2,56,878/ - . (II) I NTEREST PAID IS ADDED OF RS.3,66,769 UNDER HEAD INCOME FROM BUSINESS AND CLAIMED INTEREST PAID RS.3,66,769 UNDER THE HEAD INCOME FROM OTHER SOUR CES . THERE IS NO MALAFIDE INTENTION IN FILING ABOVE RETURNS. THE LD. A.O. HAS ADDED RS.3,66,769/ - INTEREST PAYMENT IN TOTAL INCOME AND PASSED ORDER U/S 143(3). THE LD. A.O. HAS NOT GIVEN CLAIM OF INTEREST PAYMENT UNDER ANY HEAD. ON THE CONTRARY, THE LD . A.O. HAS LEVIED PENALTY. AND CIT(A) HAS CONFIRMED THE SAME. HENCE, PENALTY MUST BE DELETED. 2. AS THE QUANTUM ADDITION ITSELF HAS BEEN RESTORED TO THE FILE OF ASSESSING OFFICER BY MY ORDER OF EVEN DATE, THE IMPUGNED PENALTY ORDER MUST STAND VACATED. THE ASSESSING OFFICER IS HOWEVER, AT LIBERTY TO TAKE SUCH ACTION HE MAY DEEM FIT AND IN ACCORDANCE WITH LAW AFTER DECIDING THE QUANTUM PROCEEDING S IN THE REMAND PROCEEDINGS. 3. IN THE RESULT, APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 21 ST DAY OF SEPTEMBER, 2015. SD/ - PRAMOD KUMAR (ACCOUNTANT MEMBER) AHMEDABAD, THE 21 ST DAY OF SEPTEMBER , 2015 PBN/* ITA NO . 2 9 4 5 /AHD/ 20 1 4 ASSESSMENT YEAR: 2 0 0 6 - 07 PAGE 3 OF 3 COPIES TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD