M/s. Silicon India Pvt.Ltd., CHENNAI V. DCIT, CHENNAI

ITA 597/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3722 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2004-2005
• Appeal Filed On: 08-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SUNDARARAJAN
• Assessee Lawyers: G BASKAR
• Keywords: Corroborative evidences; Capital Gains
• Section: 143(3); 244A; 234B

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , BEFORE SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ ITA NO.597/CHNY/2019 /ASSESSMENT YEAR: 2004-05 M/S. SILICON INDIA PRIVATE LIMITED, JHAVER CENTRE, NO.72, MARSHALLS ROAD, EGMORE, CHENNAI 600 008. [PAN: AAECS1513K] VS. DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 6(2), 121, MAHATMA GANDHI ROAD, NUNGAMBAKKAM, CHENNAI 600 034. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. G. BASKAR, ADVOCATE /RESPONDENT BY : MR. A. SUNDARARAJAN, ADDL. CIT /DATE OF HEARING : 06.02.2020 /DATE OF PRONOUNCEMENT : 26.02.2020 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI DATED 30.10.2018 RELEVANT TO THE ASSESSMENT YEAR 2004-05. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: 1.1 THE ORDER OF COMMISSIONER OF INCOME-TAX (APPEALS) IS ERRONEOUS, ARBITRARY AND IS LIABLE TO BE QUASHED. 1.2 THE CIT(APPEALS) ALSO WENT WRONG IN PASSING THE IMPUGNED ORDER IN A CASUAL MANNER WITHOUT APPLYING HIS MIND NEITHER TO THE FACTS OF THE CASE NOR TO THE SUBMISSIONS MADE BEFORE HIM. 2.1 THE CIT(APPEALS) HAVING NOTICED THAT THE ASSESSING OFFICER PROCEEDED TO MERELY ACCEPT THE RETURNED INCOME IGNORING THE RELIEF GRANTED BY THE CIT(APPEALS) IN HIS ORDER DATED 19.12.2011 AND BY THE HONBLE TRIBUNAL IN ITS ORDER DATED 04.04.2013, WENT WRONG IN PROCEEDING TO CONFIRM THE ORDER IMPUGNED BEFORE HIM. :- 2 -: ITA NO.597/CHNY/19 2.2 THE CIT(APPEALS) OUGHT TO HAVE SEEN THAT THE AO HAS NOT REDUCED FROM THE INCOME RETURNED THE CAPITAL GAINS EXCLUDED BY THE CIT(APPEALS). 3.1 THE CIT(APPEALS) OUGHT TO HAVE ALSO SEEN THAT THE AO HAS NOT RECOMPUTED THE INTEREST LEVIABLE UNDER SECTION 234B AS DIRECTED BY THE HONBLE TRIBUNAL IN ITS ORDER DATED 04.04.2013. 3.2 THE CIT(APPEALS) OUGHT TO HAVE DIRECTED THE AO TO GIVE CREDIT FOR THE SUM OF .9,41,566/- WHEN THE CHALLAN WAS ALSO PRODUCED BEFORE HIM INSTEAD OF DIRECTING THE AO TO VERIFY. 3.3 THE CIT(APPEALS) OUGHT TO HAVE DIRECTED THE AO TO GRANT INTEREST U/S. 244A OF THE IT ACT. 3.4 THE CIT(APPEALS) ERRED IN CONFIRMING THE ACTION OF THE AO LEVYING INTEREST U/S 234C AMOUNTING TO .54,888/-. 2. THE APPEAL FILED BY THE ASSESSEE IS DELAYED BY 42 DAYS IN FILING THE APPEAL BEFORE THE TRIBUNAL, FOR WHICH, THE ASSESSEE HAS FILED A PETITION FOR CONDONATION OF THE DELAY IN SUPPORT OF AN AFFIDAVIT, TO WHICH; THE LD. DR HAS NOT RAISED ANY SERIOUS OBJECTION. CONSEQUENTLY, SINCE THE ASSESSEE WAS PREVENTED BY SUFFICIENT CAUSE, THE DELAY OF 42 DAYS IN FILING OF THE APPEAL STANDS CONDONED AND THE APPEAL IS ADMITTED FOR ADJUDICATION. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE COMPANY IS ENGAGED IN THE MANUFACTURE AND SALE OF ZIPPERS AND ZIPPER TAPES AND FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2004-05 ON 01.11.2004 ADMITTING AN INCOME OF .54,65,320/-. THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] DATED 15.12.2006. ON APPEAL, THE LD. CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. ON FURTHER APPEAL BY THE ASSESSEE AS WELL AS THE REVENUE, VIDE ORDER DATED :- 3 -: ITA NO.597/CHNY/19 04.03.2013, THE TRIBUNAL DISMISSED THE APPEAL FILED BY THE REVENUE WHILE THE APPEAL OF THE ASSESSEE WAS PARTLY ALLOWED FOR STATISTICAL PURPOSES. WHILE GIVING EFFECT TO THE ORDER OF THE TRIBUNAL UNDER SECTION 143(3) R.W.S. 254 OF THE ACT, THE ASSESSING OFFICER HAS GIVEN EFFECT TO THE ORDER OF THE LD. CIT(A), WHO GAVE RELIEF BY EXCLUDING THE CAPITAL GAINS ARISING ON THE SALE OF AGRICULTURAL LAND AT SHILINGANLLUR HAVING BEEN TAXED IN 2002-03 AND DESPATCHED TO THE ASSESSEE ON 14.02.2012, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT BY ACCEPTING HE INCOME RETURNED BY THE ASSESSEE. WHILE PASSING THE APPEAL ORDER, THE TRIBUNAL WAS OF THE OPINION THAT THE INTEREST UNDER SECTION 234B OF THE ACT WAS NOT RIGHTLY CALCULATED AND REMITTED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR FRESH ADJUDICATION, THE ASSESSING OFFICER HAS NOT ADJUDICATED THE SAME BESIDES NOT GIVEN CREDIT TO .10 LAKHS PAID SUBSEQUENT TO THE ORDER OF THE ASSESSMENT. THUS, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). AFTER TAKING INTO CONSIDERATION OF THE FACTS AND CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, THE LD. CIT(A) PARTLY ALLOWED THE APPEAL OF THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. BY FILING COPIES OF CHALLAN, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT CONSEQUENT UPON THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT DATED 15.12.2006, THE ASSESSEE HAS PAID TAX OF .9,41,566/- AS WELL AS .65,910/- ON 02.08.2007 (CHALLAN COPY ENCLOSED), WHEREAS, THE ASSESSING OFFICER LEVIED INTEREST UNDER SECTION 234C OF THE ACT OF .54,888/- WITHOUT :- 4 -: ITA NO.597/CHNY/19 GIVING ANY BREAK-UP AS TO HAVE HE HAS ARRIVED THE SAME. IT WAS FURTHER SUBMISSION THAT THE ASSESSING OFFICER HAS NOT GIVEN CREDIT TOWARDS THE TAX PAID BY THE ASSESSEE ON 02.08.2007 OF .9,41,566/- AND MOREOVER, THE ASSESSING OFFICER HAS FAILED TO GRANT INTEREST UNDER SECTION 244A OF THE ACT ON THE REFUND DUE TO THE ASSESSEE AND PRAYED FOR SUITABLE DIRECTION. 5. ON THE OTHER HAND, THE LD. DR FAIRLY CONCEDED THAT THE ISSUES MAY BE REMITTED BACK TO THE ASSESSING OFFICER FOR ADJUDICATION. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW ALONG WITH PAPER BOOK. WHILE UPHOLDING THE ORDER OF THE ASSESSMENT UNDER SECTION 143(3) R.W.S. 254 OF THE ACT, SINCE THE ASSESSEE COULD NOT PRODUCE SUPPORTING EVIDENCE TOWARDS THE CLAIM OF CREDIT OF .10 LAKHS PAID SUBSEQUENT TO THE ORIGINAL ASSESSMENT ORDER, THE LD. CIT(A) DIRECTED THE ASSESSING OFFICER TO VERIFY THE GENUINENESS OF THE CLAIM OF THE ASSESSEE AND TAKE NECESSARY ACTION AS PER THE PRESCRIBED PROCEDURE. SINCE THE ASSESSEE HAS PRODUCED COPIES OF THE CHALLANS TOWARDS PAYMENT OF .9,41,566/- ON 02.08.2007, THE ASSESSING OFFICER IS DIRECTED TO GIVE CREDIT OF THE ABOVE AFTER VERIFICATION OF THE DOCUMENTS BY PASSING CLEAR CUT ORDER. WE ALSO DIRECT THE ASSESSING OFFICER TO REFUND ALONG WITH INTEREST KEEPING IN VIEW PROVISIONS OF SECTION 244A OF THE ACT IN PURSUANCE TO THE ORDER OF THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) R.W.S. 254 OF THE ACT DATED 26.03.2015. SO FAR AS LEVY :- 5 -: ITA NO.597/CHNY/19 OF INTEREST UNDER SECTIONS 234B AND 234C OF THE ACT ARE CONCERNED, THE ASSESSING OFFICER SHALL RECOMPUTE AND LEVY THE INTEREST UNDER SECTION 234B AND SECTION 234C OF THE ACT, WHICH IS MANDATORY AND AUTOMATIC AS PER LAW. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 26 TH FEBRUARY, 2020 IN CHENNAI. SD/- SD/- (RAMIT KOCHAR ) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 26.02.2020 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.