Radheshyam Goyal, Secunderabad V. ITO, CHENNAI

ITA 405/CHNY/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 6443 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 24-07-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 17-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAGADEVAN

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC C BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.405/MDS/2017 ( / ASSESSMENT YEAR: 2012-13) SHRI RADHESHYAM GOYAL, NO.1089, POONAMALLEE HIGH ROAD, FLAT NO.A803, A BLOCK, 5 TH FLOOR, SREE SANKESHWARA SERENITY, VEPERY, CHENNAI 600 007. VS THE INCOME TAX OFFICER, NON CORPORATE WARD 6(5), CHENNAI . PAN: AAGPG9775N ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI PAWAN KUMAR CHAKRAPANI, CA /RESPONDENT BY : SHRI SAGADEVAN, JCIT /DATE OF HEARING : 25.07.2017 ! /DATE OF PRONOUNCEMENT : 08.08.2017 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-5, CHENNAI DATED 15.12.2016 IN ITA NO.77/CIT(A)-5/2015 -16 FOR THE ASSESSMENT YEAR 2012-13 PASSED U/S.250(6) R.W.S.143 (3) OF THE ACT. 2. THE ASSESSEE HAS RAISED SEVERAL GROUNDS IN HIS A PPEAL, HOWEVER THE CRUX OF THE LONE ISSUE ARGUED BEFORE ME IS THAT THE LD.AO AS WELL AS THE LD.CIT(A) HAS ERRONEOUSLY HELD THE AMOUNT OF RS.5,16,398/- 2 ITA NO.405/MDS/2017 REFLECTED IN FORM 26AS AS THE INCOME OF THE ASSESSE E, WHEN THE ASSESSEE HAD NOT RECEIVED ANY SUCH INCOME. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF TRADING IN IRON & STEEL, FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2012-13 ON 18.09.201 2 ADMITTING INCOME OF RS.11,23,220/-. THE CASE WAS SELECTED FO R SCRUTINY UNDER CASS AND FINALLY ORDER WAS PASSED U/S.143(3) OF THE ACT ON 31.03.2015, WHEREIN THE LD.AO ADDED RS.5,16,398/- T O THE INCOME OF THE ASSESSEE BASED ON THE FORM 26AS AND ALSO DIS ALLOWED AN AMOUNT OF RS.72,000/- AS ALLOWABLE DEDUCTION. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE LD.AO NOTICED AN AMOUNT OF RS.5,16,398/- MENTIONED AS INC OME OF THE ASSESSEE IN THE FORM 26AS FURNISHED BY HIM, HOWEVER THE SAME WAS NOT REFLECTED IN THE RETURN OF INCOME. IT WAS FURTHER REVEALED THAT THE TAX DEDUCTOR IS UNDER-SECRETARY TO ACCOUNT S, DEPT. OF GENERAL ADMINISTRATION, TAN NO. PTNU10359. SINCE T HE ASSESSEE HAS NOT DISCLOSED THE AMOUNT IN HIS RETURN OF INCOM E, THE LD.AO MADE ADDITION WHICH WAS SUBSEQUENTLY CONFIRMED BY T HE LD.CIT(A). 3 ITA NO.405/MDS/2017 5. BEFORE ME, THE LD.AR SUBMITTED THAT THE ASSESSEE HAS NOT RECEIVED ANY SUCH AMOUNT FROM ANYONE THOUGH THE AMO UNT WAS STATED IN FORM 26AS AND TAX WAS DEDUCTED AT SOURCE BY THE PAYER. THE LD.AR FURTHER CLARIFIED THAT THE ASSESSEE HAD A LSO NOT CLAIMED THE BENEFIT OF THE TAX CREDITED TO HIS ACCOUNT AS M ENTIONED IN FORM 26AS. THE LD.AR FURTHER SUBMITTED THAT THE ASSESSEE HAD COMMUNICATED TO THE TAX DEDUCTOR VIZ., UNDER SECRET ARY TO ACCOUNTS, DEPT. OF GENERAL ADMINISTRATION, BUT THE ASSESSEE DID NOT RECEIVED ANY REPLY FROM THEM. WITH THE ABOVE SUBMIS SION, THE LD.AR PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF LD.AO, IN ORDER TO VERIFY THE ACTUAL RECIPIENT OF T HE INCOME AND THEREAFTER PASS ORDERS IN ACCORDANCE WITH LAW. THE LD.DR COULD NOT SUCCESSFULLY CONTROVERT TO THE SUBMISSION OF THE LD .AR. 6. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. FROM THE FACTS OF THE CASE, I T IS APPARENT THAT THE LD.AO HAS NOT VERIFIED THE ACTUAL RECIPIENT OF THE INCOME BUT SOLELY RELIED ON THE FORM 26AS WHICH THE ASSESSEE C LAIMS TO BE ERRONEOUS. IN SUCH SITUATIONS, IT IS THE DUTY OF T HE LD.AO TO MAKE PROPER VERIFICATION AS TO WHO IS THE ACTUAL RECIPIE NT OF THE INCOME AND THEREAFTER PROCEED TO PASS ORDER IN ACCORDANCE WITH MERITS. 4 ITA NO.405/MDS/2017 THEREFORE IN THE INTEREST OF JUSTICE, I HEREBY REMI T THE MATTER TO THE FILE OF LD.AO WITH DIRECTIONS TO VERIFY THE ACTUAL RECIPIENT OF THE INCOME AND THEREAFTER PASS ORDER IN ACCORDANCE WITH LAW AND MERITS. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 08 TH AUGUST, 2017 AT CHENNAI. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER '# /CHENNAI, $% /DATED 08 TH AUGUST, 2017 JR % '( )( /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. (-. / /DR 6. .0 /GF