Shri Munshi Ram L/h of Late Shri Banwari Lal (HUF), Haryana V. ITO, Bhiwani

ITA 4769/DEL/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6391 (ITAT-DELHI)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 30-03-2017
• Assessment Year: 1994-1995
• Appeal Filed On: 08-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: M.L. KATARIA
• Keywords: Condonation of delay; Set aside
• 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 DELHI BENCHES : SMC : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER ITA NOS.3499 & 3500/DEL/2014 ASSESSMENT YEARS : 1994-95 & 1995-96 LATE SHRI BANWARI LAL, L/HS S/SHRI VEER SINGH, NIHAL SINGH, PHOOL SINGH, SATPARKASH & MUNSHI RAM, VPO DHANI KUSHAL, THE. BAWANI KHERA, BHIWANI. PAN: BNJPR7010J VS. ITO, WARD-2, BHIWANI. ITA NOS.4769 & 4770/DEL/2016 ASSESSMENT YEARS : 1994-95 & 1995-96 MUNSHI RAM, L/H OF LATE SHRI BANWARI LAL (HUF), VPO DHANI KUSHAL, TEH BAWANI KHERA, DISTT. BHIWANI, HARYANA. PAN: BNJPR7010J VS. ITO, WARD-2, BHIWANI. (APPLICANT) (RESPONDENT) ASSESSEE BY : SHRI M.L. KATARIA, ADVOCATE DEPARTMENT BY : MS BEDOBANI CHAUDHURI, SR. DR ITA NOS.3499 & 3500/DEL/2014 ITA NOS.4769 & 4770/DEL/2016 2 DATE OF HEARING : 30.03.2017 DATE OF PRONOUNCEMENT : 30.03.2017 ORDER THESE FOUR APPEALS BY TWO DIFFERENT, BUT, CONNECTE D ASSESSEES INVOLVING THE SAME SUBJECT MATTER RELATE TO ASSESSM ENT YEARS 1994-95 AND 1995-96. I AM, THEREFORE, PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. 2. TWO APPEALS HAVE BEEN FILED BELATEDLY. AN APPLI CATION FOR CONDONATION OF DELAY HAS BEEN FILED. I AM SATISFIE D WITH THE REASONS FOR DELAY. AS SUCH, THE DELAY IS CONDONED AND THESE AP PEALS ARE ADMITTED FOR DISPOSAL ON MERITS. 3. BRIEFLY STATED, THE FACTS FOR ASSESSMENT YEAR 19 94-95 ARE THAT THE ASSESSING OFFICER RECEIVED SOME INFORMATION ABOUT T HE ASSESSEE RECEIVING ENHANCED COMPENSATION AND/OR INTEREST ON ENHANCED COMPENSATION AMOUNTING TO RS.7,43,140/- FOR THE ASS ESSMENT YEAR 1994- 95. ACTION WAS TAKEN U/S 147 BY MEANS OF NOTICE U/ S 148. NO RETURN WAS FILED IN RESPONSE TO SUCH NOTICE. THERE WAS NO APPEARANCE FROM THE ITA NOS.3499 & 3500/DEL/2014 ITA NOS.4769 & 4770/DEL/2016 3 SIDE OF THE ASSESSEE AS WELL. IN VIEW OF THESE FAC TS, THE ASSESSING OFFICER OPINED THAT THE ASSESSEE WAS NOT INTERESTED IN COMP LETING THE ASSESSMENT PROCEEDINGS. ACTING U/S 144, THE ASSESSING OFFICER BROUGHT TO TAX A SUM OF RS.7,43,140/- TREATING HALF OF THE AMOUNT AS ENH ANCED COMPENSATION AND THE REMAINING HALF AS INTEREST THEREON. SIMILA R AMOUNT WAS ADDED IN THE HANDS OF HUF ON PROTECTIVE BASIS. THEREAFTER, THE ASSESSEE MOVED APPLICATIONS U/S 154 CONTENDING THAT THE COMPENSATI ON AROSE ON ACCOUNT OF ACQUISITION OF HUF PROPERTY. THE ASSESSING OFFI CER REJECTED SUCH APPLICATIONS AS BEING BARRED BY TIME LIMIT. THE LD . CIT(A) DISMISSED THE APPEALS. 4. THE FACTS ARE SIMILAR FOR ASSESSMENT YEAR 1995-9 6 AS WELL. FOR THIS YEAR ALSO, THE ASSESSING OFFICER BROUGHT TO TAX A S UM OF RS.2,42,510/- ON ACCOUNT OF ENHANCED COMPENSATION AND INTEREST THERE ON ON SUBSTANTIVE BASIS IN THE HANDS OF INDIVIDUAL AND ON PROTECTIVE BASIS IN THE HANDS OF HUF. SIMILAR APPLICATIONS MOVED U/S 154 FOR THIS Y EAR ALSO MET WITH THE SAME FATE AND THE APPEALS FILED BY THE ASSESSEE ALS O CAME TO BE DISMISSED BY THE LD. CIT(A). ITA NOS.3499 & 3500/DEL/2014 ITA NOS.4769 & 4770/DEL/2016 4 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD. THE LD. AR HAS PLACED ON RECOR D CERTAIN MATERIAL, NAMELY, INTKAL, WHICH, PRIMA FACIE SHOWS THAT THE PROPERTY ACQUIRED WAS THAT OF HUF AND NOT INDIVIDUAL. BECAUSE OF THE DEATH OF SHRI BANWARI LAL, THE PROCEEDINGS WERE NOT ATTENDED TO O N BEHALF OF THE ASSESSEE. THE LD. AR SUBMITTED THAT THE ASSESSEE W AS WILLING TO PAY TAX ON ACCOUNT OF RECEIPT OF ENHANCED COMPENSATION AND INTEREST THEREON FOR BOTH THE YEARS IF THE SAME WAS RIGHTLY TAXED IN THE HANDS OF THE HUF AND THE INDIVIDUAL WAS RELINQUISHED OF SUCH BURDEN. SI NCE THE ASSESSING OFFICER HAS NOT CONDONED THE DELAY IN FILING THE AP PLICATIONS U/S 154 OF THE ACT, I AM OF THE CONSIDERED OPINION THAT THE EN DS OF JUSTICE WOULD MEET ADEQUATELY IF THE IMPUGNED ORDER IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF ASSESSING OFFICER. I ORDER ACCORDINGLY AND DIRECT HIM TO DECIDE THE CHARGEABILITY OF ENHANCED COMPENS ATION AND INTEREST THEREON IN THE HANDS OF THE RIGHT PERSON, AFTER ALL OWING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. IF THE ASSESSEES CONTE NTION TURNS OUT TO BE CORRECT THAT THE PROPERTY SO ACQUIRED BELONGED TO T HE HUF, THEN, ITA NOS.3499 & 3500/DEL/2014 ITA NOS.4769 & 4770/DEL/2016 5 OBVIOUSLY, TAX SHOULD BE CHARGED IN THE HANDS OF TH E HUF ALONE AND NOT THE INDIVIDUAL AND VICE VERSA. 6. IN THE RESULT, ALL THE APPEALS ARE ALLOWED FOR S TATISTICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 30.03.201 7. SD/- [R.S. SYAL] ACCOUNTANT MEMBER DATED, 30 TH MARCH, 2017. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.