Ramdas Mahadu Ahire, Nashik V. Income tax Officer, Palghar

ITA 666/PUN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0289 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 06-12-2018
• Assessment Year: 2011-2012
• Appeal Filed On: 20-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Revised return

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NOS.666 & 667/PUN/2017 / ASSESSMENT YEARS : 2010-11 & 2011-12 MR. RAMDAS MAHADU AHIRE, SWAMIKRUPA, ROW HOUSE NO.3, CHANAKYA NAGAR, GREEN PARK, KHUTWAD NAGAR, NASHIK 422 006 PAN : AHUPA8472F VS. ITO, WARD-3, PALGHAR (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THESE TWO APPEALS BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS PASSED BY THE CIT(A)-3, THANE, BOTH DATED 09-12-2016 IN RELATION TO THE ASSESSMENT YEARS 2010-11 & 2011-12. SINCE SOME OF THE ISSUES RAISED IN THESE APPEALS ARE COMMON, I AM, THEREFORE, PROCEEDING TO DISPOSE THEM OFF BY THIS CONSOLIDATED ORDER FOR THE SAKE OF CONVENIENCE. APPELLANT BY SHRI ABHAY AVCHAT RESPONDENT BY SHRI RAJESH GAWALI DATE OF HEARING 06-12-2018 DATE OF PRONOUNCEMENT 07-12-2018 ITA NOS.666 & 667/PUN/2017 RAMDAS M. AHIRE 2 2. FACTS FOR THE A.Y. 2011-12 IN RESPECT OF GROUND NO.2, ARE THAT THE ASSESSEE IS A SALARIED EMPLOYEE, WHO AT THE MATERIAL TIME WAS WORKING AS A TEACHER AT PRIMARY ASHRAM SCHOOL, VAWAR, TAL. JAWHAR, DIST. THANE. IN THE ORIGINAL RETURN F ILED, THE ASSESSEE DECLARED TO HAVE EARNED INTEREST INCOME OF RS.8,81,829/- FROM M/S. SAMRUDDHI WEALTH MANAGEMENT PVT. LTD. ON 07-01-2013, THE ASSESSEE FURNISHED A REVISED R ETURN DECLARING THE TOTAL INCOME AT RS.1,92,756/-. THE AMOUNT OF INTEREST EARLIER DECLARED AS INCOME IN THE ORIGINAL RETURN WAS NOT OFFERED IN THE REVISED RETURN IN VIEW OF THE CONTENTION THA T THE INTEREST INCOME WAS NOT EARNED. IN REPLY TO THE AO, THE ASSESSEE SUBMITTED THAT HE DEPOSITED CERTAIN AMOUNTS IN FIXED DEPOSIT WITH M/S SAMRUDDHI WEALTH MANAGEMENT PVT. LTD. AND INTEREST INCOME THEREON WAS OFFERED. HOWEVER, NO INTE REST INCOME WAS ACTUALLY RECEIVED IN AS MUCH AS M/S SAMRUDDHI WEALTH MANAGEMENT PVT. LTD. DEFAULTED IN MAKING REPAYMENT OF THE PRINCIPAL AMOUNT. THE ASSESSEE PLACED ON RECORD A COPY OF THE POLICE REPORT AGAINST THE COMPANY. NOT CONVINCED, THE AO MADE ADDITION FOR INTEREST INCOME, WHICH THE LD. CIT(A) AFFIRMED IN THE FIRST APPEAL. ITA NOS.666 & 667/PUN/2017 RAMDAS M. AHIRE 3 3. SIMILAR IS THE POSITION FOR GROUND NO. 2 RELATING TO THE ASSESSMENT YEAR 2010-11 THROUGH WHICH ADDITION OF RS.29,065/- ON ACCOUNT OF INTEREST HAS BEEN CHALLENGED WH ICH WAS, IN FACT, NOT RECEIVED FROM M/S SAMRUDDHI WEALTH MANAGEMENT PVT. LTD. THE LD. CIT(A) SUSTAINED THIS ADDITION AS WELL. 4. HAVING HEARD BOTH THE SIDES AND PERUSED THE RELEVANT MATERIAL ON RECORD, IT IS OBSERVED THAT THE ASSESSEE, A TEACH ER INVESTED HIS LIFE TIME SAVINGS WITH M/S SAMRUDDHI WEALTH MANAGEMENT PVT. LTD., WITH A VIEW TO EARN INTEREST INCOME. EVENTUALLY, THIS COMPANY DEFAULTED IN MAKING PAYMENT OF INTEREST OR EVEN THE REPAYMENT OF PRINCIPAL AMOUNT OF DEPOS IT. THE ASSESSEE FILED A POLICE COMPLAINT, A COPY OF WHICH IS AVAILABLE ON RECORD. THIS CONTENTION WAS RAISED BEFORE THE AO AS WELL, WHO INSTEAD OF VERIFYING THE SAME, REJECTED THE SA ME OUTRIGHTLY WITHOUT ANY CONTRARY MATERIAL. IT GOES WITHOUT SAYING THAT WHEN A PARTICULAR CONTENTION IS RAISED BY THE ASSESSEE BEFORE AN AUTHORITY, IT BECOMES HIS BOUNDEN DUTY TO EITHER CONTROVERT THE SAME BY PLACING ON RECORD SOME CONTR ARY MATERIAL OR ACCEPT THE SAME. HERE IS A CASE IN WHICH THE ASSESSEES CONTENTION HAS NOT BEEN CONTROVERTED WHICH IS DU LY ITA NOS.666 & 667/PUN/2017 RAMDAS M. AHIRE 4 SUPPORTED BY A COPY OF POLICE COMPLAINT AS WELL AND REJECTED WITHOUT ANY REASON OR RHYME. ONCE THE PRINCIPAL AMOUNT HAS BECOME IRRECOVERABLE, THERE CAN BE NO QUESTION OF TREATING ANY INTEREST INCOME THEREFROM AS CHARGEABLE TO TAX IN THE HANDS O F THE ASSESSEE, WHICH HAS NOT BEEN RECEIVED. IN MY CONSID ERED OPINION, THE LD. CIT(A) DID NOT RIGHTLY APPRECIATE THE POSITION IN UPHOLDING THE INCLUSION OF INTEREST INCOME FROM M/S SAMRUDDHI WEALTH MANAGEMENT PVT. LTD., IN THE TOTAL INCOME OF THE ASSESSEE FOR THE TWO YEARS UNDER CONSIDERATION. THE IMPUGNED ORDERS ARE, THEREFORE, SET-ASIDE ON THIS SCORE AND THE ADDITIONS ARE DIRECTED TO BE DELETED. 5. GROUND NO.1 FOR A.YRS. 2010-11 AND 2011-12 IS GEN ERAL, WHICH DOES NOT REQUIRE ANY ADJUDICATION. GROUND NO. 3 IN BOTH THE APPEALS WAS NOT PRESSED BY THE LD. AR. THE SAME IS, THEREFORE, DISMISSED. 6. IN THE RESULT, BOTH THE APPEALS ARE PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 07 TH DECEMBER, 2018. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 07 TH DECEMBER, 2018 ITA NOS.666 & 667/PUN/2017 RAMDAS M. AHIRE 5 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-3, THANE 4. / THE PR. CIT-3, THANE 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NOS.666 & 667/PUN/2017 RAMDAS M. AHIRE 6 DATE 1. DRAFT DICTATED ON 06-12-18 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 06-12-18 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. DATE OF UPLOADING ORDER SR.PS 8. FILE SENT TO THE BENCH CLERK SR.PS 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK 10. DATE ON WHICH FILE GOES TO THE A.R. 11. DATE OF DISPATCH OF ORDER. *