G VEERARAGHAVALU, CHENNAI V. ITO, WARD VII(2), CHENNAI

ITA 3426/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6567 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 17-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: R PADMANABHAN
• Keywords: Corroborative evidences; TDS; Set aside
• Section: 234B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , ! ' , $ '% BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO.3426/CHNY/2018 ( )( / ASSESSMENT YEAR : 2009-10 SHRI G. VEERARAGHAVALU, NO.197, TRIPLICANE HIGH ROAD, TRIPLICANE, CHENNAI - 600 005. PAN : ABRPV 2890 D V. THE INCOME TAX OFFICER, WARD VII(2), CHENNAI - 600 034. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SHRI R. PADMANABHAN, FCA -.+, / 0 / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT 1 / 2$ / DATE OF HEARING : 16.04.2019 34) / 2$ / DATE OF PRONOUNCEMENT : 30.04.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -10, CHENN AI, DATED 27.09.2018 AND PERTAINS TO ASSESSMENT YEAR 2009-10. 2. SHRI R. PADMANABHAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSING OFFICER MADE AN ADDITION OF 6,77,804/- ON THE BASIS OF THE INFORMATION REFLECTE D IN ITD TDS 2 I.T.A. NO.3426/CHNY/18 DATA. ACCORDING TO THE LD. REPRESENTATIVE, AS PER THE LATEST FORM 26AS DOWNLOADED FROM DEPARTMENTS WEBSITE, SOME OF THE CREDITS PREVIOUSLY REFLECTED ARE NOT NOW APPEARING IN ITD T DS. ACCORDING TO THE LD. REPRESENTATIVE, THE DEDUCTEE HAS FILED A REVISED TDS RETURN. THE CIT(APPEALS) CALLED FOR REMAND REPORT AND THE ASSESSING OFFICER COULD NOT FILE THE REMAND REPORT BEFORE THE CIT(APPEALS). HENCE, ACCORDING TO THE LD. REPRESEN TATIVE, THE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO TAKE THE LATEST FORM 26AS AND VERIFY WHETHER THE TRANSACTIONS PERTAINING TO THREE PARTIES REFLECTED IN INCOME-TAX RETURN ARE CORRECT OR NOT. ACCORDING TO THE LD. REPRESENTATIVE, ONLY IN RESPECT OF THREE PARTIE S, NAMELY, TRACTORS AND FARM EQUIPMENTS, TRACTORS AND FARM EQUIPMENTS L TD. AND EXECUTIVE ENGINEERS TO THE EXTENT OF 43,43,781/- THE ASSESSING OFFICER WAS ASKED TO VERIFY. HOWEVER, ACCORDING TO THE LD. REPRESENTATIVE, 6,77,804/- IN RESPECT OF INDIAN ADDITIVES LIMITED, BHARAT HEAVY ELECTRICAL LIMITED AND SPENCERS AND CO MPANY LIMITED WAS CONFIRMED BY THE CIT(APPEALS). THE CLA IM OF THE ASSESSEE THAT THE PAN OF THE ASSESSEE WAS MISUSED W AS NOT CONSIDERED BY THE CIT(APPEALS). THEREFORE, ACCORDI NG TO THE LD. REPRESENTATIVE, ENTIRE MATTER MAY BE RE-EXAMINED BY THE ASSESSING OFFICER. REFERRING TO THE ADDITION OF 23,16,422/-, THE LD. 3 I.T.A. NO.3426/CHNY/18 REPRESENTATIVE SUBMITTED THAT THIS WAS BECAUSE OF T HE MISUSE OF THE ASSESSEES PAN BY SHRI T. GIRI BABU. THIS ALSO NEE DS TO BE VERIFIED BY THE ASSESSING OFFICER. CONSEQUENTLY, ACCORDING TO THE LD. REPRESENTATIVE, CHARGING OF INTEREST UNDER SECTION 234A, 234B AND 234C OF THE INCOME-TAX ACT, 1961 (IN SHORT 'THE ACT ') ALSO NEEDS TO BE RE-EXAMINED. 3. ON THE CONTRARY, SHRI R. CLEMENT RAMESH KUMAR, T HE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE CIT (APPEALS) ALLOWED THE CLAIM OF THE ASSESSEE ON THE BASIS OF F ORM 26AS FILED BEFORE HER. SINCE THE REMAND REPORT WAS NOT FILED, THE CIT(APPEALS) DIRECTED THE ASSESSING OFFICER TO VERIFY. THEREFOR E, ACCORDING TO THE LD. D.R., THE ASSESSEE CANNOT HAVE ANY GRIEVANCE AT ALL. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN RESPECT OF ADDITION OF 43,43,781/-, THE CIT(APPEALS) DIRECTED THE ASSESSIN G OFFICER TO VERIFY THE LATEST FORM 26AS AND TO DELET E THE ADDITION IN CASE THE TRANSACTIONS ARE REFLECTED THEREIN. IN RE SPECT OF ADDITION OF 6,77,804/-, THE CIT(APPEALS) CONFIRMED THE ADDITION AFTER CONSIDERING THE CLAIM OF THE ASSESSEE THAT HIS PAN WAS MISUSED BY ONE SHRI T. GIRI BABU. IN RESPECT OF ADDITION OF 23,16,422/-, THE 4 I.T.A. NO.3426/CHNY/18 CIT(APPEALS) CONFIRMED THE ADDITION ON THE GROUND T HAT NO SUPPORTING EVIDENCE WAS FILED. THE FACT REMAINS TH AT THE CIT(APPEALS) CALLED FOR REMAND REPORT AND INSPITE O F REMINDERS, THE ASSESSING OFFICER DID NOT FILE THE REMAND REPORT. THIS IS OBVIOUS FROM THE OBSERVATION MADE BY THE CIT(APPEALS) AT PA RA 5.3.4 OF HER ORDER. WHEN THE ASSESSEE CLAIMS THAT HIS PAN WAS M ISUSED BY ONE SHRI T. GIRI BABU, THIS TRIBUNAL IS OF THE CONS IDERED OPINION THAT THE MATTER HAS TO BE EXAMINED BY THE ASSESSING OFFI CER. 5. NOW COMING TO THE ADDITION OF 23,16,422/-, THE ASSESSING OFFICER REJECTED THE CLAIM OF THE ASSESSEE ON THE G ROUND THAT HIS PAN WAS MISUSED AND NO SUPPORTING EVIDENCE WAS FILE D BY THE ASSESSEE. THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT THE ASSESSING OFFICER HAS TO EXAMINE THE FACT THAT WHET HER THE PAN WAS MISUSED AND BRING ON RECORD THE FACTUAL SITUATI ON IN WHICH THE PAN OF THE ASSESSEE WAS MISUSED. IN VIEW OF THE AB OVE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ENTI RE ISSUE NEEDS TO BE RE-EXAMINED BY THE ASSESSING OFFICER. ACCORDING LY, THE ORDERS OF BOTH THE AUTHORITIES BELOW ARE SET ASIDE AND THE EN TIRE DISALLOWANCE MADE BY THE ASSESSING OFFICER IS REMITTED BACK TO T HE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL RE- EXAMINE THE 5 I.T.A. NO.3426/CHNY/18 MATTER IN THE LIGHT OF THE MATERIAL THAT MAY BE FIL ED BY THE ASSESSEE AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANC E WITH LAW, AFTER GIVING A REASONABLE OPPORTUNITY TO THE ASSESSEE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 30 TH APRIL, 2019 AT CHENNAI. SD/- SD/- ( ! ' ) ( . . . ) (INTURI RAMA RAO) (N.R.S. GANESAN) $ / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 6 /DATED, THE 30 TH APRIL, 2019. KRI. / -278 98)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 :2 () /CIT(A)-10, CHENNAI-34 4. PRINCIPAL CIT- 7, CHENNAI 5. 8; -2 /DR 6. <( = /GF.