Udayanath Choudhury, HUF, Bhubaneswar V. ITO, Berhampur

ITA 41/CTK/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2645 (ITAT-CUTTACK)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-06-2013
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 22-01-2013
• Court: TRIBUNAL
• Department Lawyers: S C MOHANTY
• Assessee Lawyers: MIHIR KR SAHU

Judgement Text

1 ITA NO. 41/CTK/2013 UDAYANATH CHOUDHURY, AY 2008-09 IN THE INCOME TAX APPELLATE TRIBUNAL: CUTTACK BENCH : CUTTTACK (BEFORE SHRI K. K. GUPTA, AM & SHRI GEORGE MATHAN, JM) ITA NO. 41/CTK/2013 ASSESSMENT YEAR: 2008-09 UDAYANATH CHOUDHURY (HUF), ODISHA VS. INCOME-TAX O FFICER, WD-3, BERHAMPUR (PAN: AABHC1153K) (APPELLANT) (RESPONDENT) DATE OF HEARING: 5TH JUNE, 2013 DATE OF PRONOUNCEMENT: 5TH JUNE, 2013 APPELLANT BY: SHRI MIHIR KR. SAHU, AR RESPONDENT BY: SHRI S. C. MOHANTY, DR ORDER PER BENCH: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT(A), BERHAMPUR IN APPEAL NO. 0160/11-12 DATED 25.10.2012 FOR AY 2008-09. 2. SHRI MIHIR KR. SAHU APPEARED ON BEHALF OF THE AS SESSEE AND SHRI S. C. MOHANTY APPEARED ON BEHALF OF REVENUE. 3. IN ASSESSEES APPEAL THE ASSESSEE HAS RAISED FOL LOWING GROUNDS: 1. THE ORDER OF THE LEARNED ASSESSING OFFICER OF A DDING INTEREST INCOME ON BANK DEPOSITS OF RS.5,50,677/- IS NOT JUS TIFIED AS T5HE TOTAL INTEREST INCOME ON BANK DEPOSITS OF RS.10,60,602/- SHOWN IN THE TDS CERTIFICATE ISSUED BY VARIOUS BRANCH OF DIFFERENT B ANKS, WERE SHARED BETWEEN JOINT DEPOSIT ACCOUNT HOLDERS AND ACCORDING LY INTEREST INCOME HAS BEEN INCLUDED IN THE TOTAL INCOME OF ALL THE JOINT HOLDERS. ASSESSING ENTIRE INCOME IN THE NAME OF THE ASSESSEE WOULD AMOUNT TO DOUBLE TAXATION, HENCE ILLEGAL. 2. THAT THE TOTAL TDS AS APPEARS IN FORM 16A AND/OR 26AS HAS TO BE GIVEN CREDIT WHILE CONSIDERING THE TAX DEMAND. 4. IT WAS THE SUBMISSION BY THE LD. AR THAT THE ASS ESSEE AND TWO OTHERS HAD RECEIVED THE INTEREST OF RS.10,60,602/- ON THE BANK DEPOSITS FROM VARIOUS BANKS. IT WAS THE SUBMISSION THAT THE TDS CERTIFICATE HAS BEE N ISSUED IN THE NAME OF THE 2 ITA NO. 41/CTK/2013 UDAYANATH CHOUDHURY, AY 2008-09 ASSESSEE BY BANKS IN RESPECT OF THE INTEREST OF RS. 10,60,602/- AS THE ASSESSEE WAS THE 1 ST PARTY IN THE BANKS RECORD. IT WAS THE SUBMISSION THAT THE INTEREST RELATING TO THE ASSESSEE BEING TO AN EXTENT OF RS.5,50,677/- HAD BE EN DISCLOSED BY THE ASSESSEE IN ITS RETURN. INTEREST TO THE EXTENT OF RS.2,54,224/- RELATING TO PRAFULLA KR. CHOUDHURY (HUF) HAD BEEN OFFERED TO TAX IN THE HANDS OF PRAFU LLA KR. CHOUDHURY (HUF) AND THE TDS IN RELATION TO THE SAID INTEREST HAD BEEN C LAIMED IN THE HANDS OF PRAFULL KR. CHOUDHURY (HUF). INTEREST TO THE EXTENT OF RS.3,58 ,227/- WAS IN RELATION TO BIJAYA KR. CHOUDHURY (HUF) AND THE SAME HAD BEEN OFFERED T O TAX IN THE HANDS OF BIJAYA KR. CHOUDHURY (HUF) ALONG WITH THE CORRESPONDING CL AIM OF TDS. IT WAS THE SUBMISSION THAT THE AO HAD TREATED THE TOTAL INTERE ST OF RS.10,60,602/- IN THE HANDS OF THE ASSESSEE AS THE TDS CERTIFICATES HAD BEEN IS SUED IN THE NAME OF THE ASSESSEE. IT WAS THE SUBMISSION THAT AS THE INCOME HAD BEEN D ISCLOSED BY THE RESPECTIVE OWNERS OF THE INTEREST BEING BIJAYA KR. CHOUDHURY ( HUF) AND PRAFULLA KR. CHOUDHURY (HUF) THE SAME WAS NOT LIABLE TO BE ASSES SED IN THE HANDS OF THE ASSESSEE. 5. IN REPLY, THE LD. DR SUBMITTED THAT THE TDS CERT IFICATE SHOWED THAT THE INTEREST HAD BEEN PAID TO THE ASSESSEE. THE 26AS A LSO SHOWED THAT THE TDS HAD BEEN MADE IN THE HANDS OF THE ASSESSEE. IT WAS THE SUBMISSION THAT AS THE INTEREST WAS RECEIVED IN THE HANDS OF THE ASSESSEE THE FULL AMOUNT WAS LIABLE TO BE ASSESSED IN THE HANDS OF THE ASSESSEE. 6. IT WAS, HOWEVER, AGREED BY BOTH THE SIDES THAT T HE ISSUE CAN BE RESTORED TO THE FILE OF THE AO FOR READJUDICATION AFTER VERIFYING W HETHER THE INTEREST OFFERED IN THE HANDS OF PRAFULLA KR. CHOUDHURY (HUF) AND BIJAYA KR . CHOUDHURY (HUF) WAS THE SAME INTEREST AND IF IT WAS SO THE SAME CAN BE DELE TED TO SUCH EXTENT FROM THE HANDS OF THE ASSESSEE. 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. AS IT IS NOTICED THAT THE ASSESSEE HAD OFFERED ONLY RS.5,09,925/- IN HIS HANDS AND AS IT IS SPECIFICALLY CLAIMED THAT THE BALANCE OF THE INTEREST HAS BEEN OFFERED IN THE HAN DS OF PRAFULLA KR. CHOUDHURY (HUF) AND BIJAYA KR. CHOUDHURY (HUF) AS IT RELATES TO THEM, WE ARE OF THE VIEW 3 ITA NO. 41/CTK/2013 UDAYANATH CHOUDHURY, AY 2008-09 THAT THE ISSUE INVOLVED IN THIS APPEAL IS LIABLE TO BE RESTORED TO THE FILE OF THE AO FOR READJUDICATION AFTER VERIFYING AS TO WHETHER THE IN TEREST SHOWN IN THE HANDS OF PRAFULLA KR. CHOUDHURY (HUF) AND BIJAYA KR. CHOUDHU RY (HUF) IS PART OF THE INTEREST OF RS.10,60,602/- RECEIVED ON THE FIXED DE POSIT FROM VARIOUS BANKS IN THE NAME OF THE ASSESSEE. THE AO SHALL VERIFY THE SAME AFTER LOOKING INTO THE TDS CERTIFICATES WHICH HAVE BEEN ISSUED AND CLAIMED IN THE RESPECTIVE HANDS. THE AO SHALL ALSO BE AT LIBERTY TO VERIFY WITH THE BANKS A S TO WHETHER THE DEPOSITS WERE RELATING TO ALL THE THREE PERSONS OR IT WAS OF THE ASSESSEE ALONE. IF THE AO FINDS THAT THE INTEREST OFFERED BY BIJAYA KR. CHOUDHYR (HUF) A ND PRAFULLA KR. CHOUDHURY (HUF) IS PART OF THE TOTAL RECEIPT OF RS.10,60,602/ - RECEIVED IN THE NAME OF THE ASSESSEE THE AO SHALL REDUCE THE ADDITION TO SUCH E XTENT IN THE HANDS OF THE ASSESSEE AS HAS BEEN OFFERED IN THE HANDS OF PRAFULLA KR. CH OUDHURY (HUF) AND BIJAYA KR. CHOUDHURY (HUF). 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. 9. ORDER IS PRONOUNCED IN THE OPEN COURT. SD/- SD/- (K. K. GUPTA) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATE: 5TH JUNE, 2013 (JD) SR. P.S COPY FORWARDED TO :- 1. APPELLANT UDAYANATH CHOUDHURY (HUF), 2271, BISWAL COMMERCIAL COMPLEX, 3 RD FLOOR, ROOM NO.19, 20, CUTTACK ROAD, BHUBANESWAR. 2. RESPONDENT- ITO, WARD-3, BERHAMPUR 3. CIT(A), BERHAMPUR 4. CIT,. 5. DR, ITAT, CUTTACK TRUE COPY BY ORDER SR. PVT. SECY. ITAT, CUTTACK