Soundarya Decorators Pvt. Ltd., CHENNAI V. DCIT, CHENNAI

ITA 539/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8152 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-10-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-10-2016
• Assessment Year: 2011-2012
• Appeal Filed On: 08-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYA PAL IRS
• Assessee Lawyers: V S JAYAKUMAR
• Keywords: Revised return

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . . . , !' . #$#% , & '' ( [ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ] ./ I.T.A. NO.539/MDS/2016 / ASSESSMENT YEAR : 2011-2012 M/S. SOUNDARYA DECORATORS PVT. LTD, PLOT NO.26, SURVEY NO.2 & 3, PORUR VILLAGE, KOLATHUR POST, KEEZHKATAIYUR, CHENNAI 600 048. [PAN AAFCS 8646C ] VS. THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE VI(3) CHENNAI. ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : SHRI. V.S. JAYAKUMAR, ADVOCATE /RESPONDENT BY : SHRI. SUPRIYA PAL, IRS, JCIT. / DATE OF HEARING : 13-10-2016 ! / DATE OF PRONOUNCEMENT : 28-10-2016 / O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER ASSESSEE IN THIS APPEAL IS AGGRIEVED ON A DISALLO WANCE OF C4,03,83,834/- CLAIMED AS PRIOR PERIOD EXPENDITURE. ITA NO. 539/MDS/2016 :- 2 -: 2. FACTS APROPOS ARE THAT ASSESSEE ENGAGED IN THE BUSI NESS OF INTERIOR DESIGNS AND FITTINGS HAD FILED ITS RETURN FOR THE IMPUGNED ASSESSMENT YEAR DECLARING LOSS OF C1,92,87,247/-. ASSESSMENT WAS COMPLETED ON 31.03.2014 ASSESSING THE TOTAL INCOME OF THE ASSESSEE AT NIL. ASSESSING OFFICER WHILE COMPLETING THE ASS ESSMENT DISALLOWED A PART OF THE TDS CREDIT CITING A REASON THAT INCOME ON WHICH TAX CREDIT WAS CLAIMED DID NOT PERTAIN TO THE IMPUGNED ASSESSM ENT YEAR. 3. ASSESSEE MOVED IN APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS), WHEREIN APART FROM ASSAILING THE DISALLOWANCE OF PART TAX CREDIT, IT ALSO RAISED A PLEA FOR ALLOW ING PRIOR PERIOD EXPENDITURE OF C4,03,83,834/-. AS PER THE ASSESSEE IT HAD FILED A LETTER DATED 28.03.2014 BEFORE THE ASSESSING OFFICER CLAI MING THIS. HOWEVER, THE COMMISSIONER OF INCOME TAX (APPEALS) THOUGH HE ALLOWED THE CLAIM FOR TAX CREDIT DID NOT ACCEDE TO ITS REQUEST FOR ALLOWING THE CLAIM FOR PRIOR PERIOD EXPENDITURE. 4. NOW BEFORE US, THE LD. AUTHORISED REPRESENTATIVE ST RONGLY ASSAILING THE ORDERS OF THE LOWER AUTHORITIES PLACE D A COPY OF THE LETTER DATED 28 TH MARCH, 2014 FILED BEFORE THE LD. ASSESSING OFFICER AND STATED THAT ASSESSING OFFICER HAD OMITTED TO CONSIDER THE CLAIM FOR PRIOR ITA NO. 539/MDS/2016 :- 3 -: PERIOD EXPENDITURE MADE THROUGH THIS LETTER THOUGH CERTAIN OTHER ITEMS MENTIONED IN THE SAID LETTER FOUND A PLACE IN THE A SSESSMENT ORDER. 5. PER CONTRA, LD. DEPARTMENTAL REPRESENTATIVE RELYING ON THE ORDER OF THE APEX COURT IN THE CASE OF GOETZE (INDIA) LTD VS. CIT 284 ITR 323 SUBMITTED THAT NO CLAIM OTHER THAN THOSE MADE THRO UGH A VALID REVISED RETURN COULD BE CONSIDERED BY THE LD. ASSESSING OFFICER. 6. WE HAVE PERUSED THE ORDERS AND HEARD THE RIVAL CONT ENTIONS. LETTER DATED 28 TH MARCH, 2014 FILED BY THE ASSESSEE BEFORE THE ASSESSING OFFICER, ON WHICH STRONG RELIANCE HAS BEE N PLACED BY THE ASSESSEE IS REPRODUCED HEREUNDER:- M/ S. SRIDHAR & SUMATHI CHARTERED ACCOUNTANTS NEW NO.141 OLD NO. 8 1 BORORHIYAR STREET, PLOT 179 -B/2, KAVERI RANGAN NAGAR, SALIGRAMAM, CHENNOI - 600 093. EMAIL ;[e-mail] P H. 2 3760069 --------------------------------------------------- --------------------------------------------------- -------------- TO DATE THE ASSISTANT COMMISSIONER OFINCOME TAX. COMPANY CIRCLE - VI(3), CHENNAI - 600034. 28 TH MARCH, 2014 DEAR MADAM, SUB: SOUNDARYA DECORATORS PVT. LTD. AIY 2011-12. ITA NO. 539/MDS/2016 :- 4 -: AS REQUIRED BY YOU WE ARE ENCLOSING THE FOLLOWING DETAILS: 1. LEDGER EXTRACT OF DELHI INTERNATIONAL AIRPORT LT D. (DIAL 1 &3) FOR 2010-11. FROM THE LEDGER IT IS CLEAR THAT THERE IS A DUE OF RS.1 0,64,83,006/- FROM THE PARTY AS ON 1.4. 2010. OUT OF THIS THE COMPANY HAS RECEIVED RS.5.20 CRORES DURING 2010-11 AND HENCE IT IS REFLECTED IN 26AS. SIX RECE IPTS AGGREGATING TO RS.5.20 CRORES ARE HIGHLIGHTED. 2. WE HAVE ALSO ATTACHED THE LEDGER EXTRACT OF C KRISHNAIAB CHETTY AND SONS PVT. LTD.(CKC) FOR 20 10-11. THE RETENTION ACCOUNT OF C KC IS ALSO ATTACHED FOR 2010- I L. FIVE RECEIPTS OF RS.2.12 CRORES IS AGAINST THE OPENING BALANCE OF BOTH THESE ACCOUNTS AND HENCE IT IS REFLECTED IN 26AS. DURING THE AUDIT OF FINANCIAL YEAR 2012-13, PRIOR PERIOD EXPENDITURE OF RS.17,51,94,2801- HAD BEEN ACCOUNTED, FOR THAT YEAR. OUT OF THESE RS.4,03,83,384/- PERTAIN TO THE EXPENSES UPTO 31.03.2011. WE ARE ENCLOSING A BREAK UP OF THE SAME WITH DETAILS. WE REQUEST YOU TO ALLOW THES E EXPENSES ALSO DURING THE ASSESSMENT YEAR 2011-12 . YOURS SINCERELY, THE LETTER HAS BEEN FILED ON 28 TH MARCH, 2014 AND ASSESSMENT WAS COMPLETED ON 31.03.2014. SECOND PAGE OF THE ASSESSM ENT ORDER DOES MENTION IN THE TABLE THEREIN, A SUM OF C5,20,00,00 0/- RECEIVED FROM M/S. DELHI INTERNATIONAL AIRPORT. THIS AMOUNT IS M ENTIONED IN PARA 1 OF THE LETTER DATED 28 TH MARCH, 2014 REPRODUCED SUPRA. THUS PART OF THE INFORMATION GIVEN BY THE ASSESSEE IN THE SAID LETT ER APPEARS TO HAVE BEEN CONSIDERED BY THE ASSESSMENT ORDER. BE THAT AS IT MAY, HONBLE APEX COURT AFTER CONSIDERING THE JUDGMENT IN THE CA SE OF NTPC VS. CIT 229 ITR 383 HAD CLEARLY HELD IN THE CASE OF GEOTZE (INDIA) LTD (SUPRA) ITA NO. 539/MDS/2016 :- 5 -: THAT RESTRICTIONS ON THE POWERS TO CONSIDER A NEW CLAIM MADE BY THE ASSESSEE WAS ONLY ON THE ASSESSING OFFICER AND NOT ON THE APPELLATE AUTHORITIES. IN THE CIRCUMSTANCES, WE ARE OF THE O PINION THAT THE ASSESSING OFFICER CAN CONSIDER THE ALLOWABILITY OF THE CLAIM OF PRIOR PERIOD EXPENDITURE MADE BY THE ASSESSEE THROUGH IT LETTER DATED 28 TH MARCH, 2014. WE THEREFORE SETASIDE THE ORDERS OF T HE AUTHORITIES BELOW AND REMIT THE ISSUE REGARDING CLAIM OF PRIOR PERIOD EXPENDITURE BACK TO THE FILE OF THE ASSESSING OFFICER FOR CONSI DERATION AFRESH IN ACCORDANCE WITH LAW. 7. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSE. ORDER PRONOUNCED ON FRIDAY, THE 28TH DAY OF O CTOBER, 2016, AT CHENNAI. SD/- SD/- ( . . . ' ) (N.R.S. GANESAN) / JUDICIAL MEMBER ( !' . #$#% ) (ABRAHAM P. GEORGE) & / ACCOUNTANT MEMBER #$ / CHENNAI %& / DATED: 28TH OCTOBER, 2016 KV &' ()*) / COPY TO: 1 . / APPELLANT 3. +,' / CIT(A) 5. )-. / / DR 2. / RESPONDENT 4. + / CIT 6. .01 / GF