Jitendra Kumar Verma, Ranchi V. ITO WARD-3(3), Ranchi

ITA 67/RAN/2017

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0354 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 8 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 17-03-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A K MOHANTY
• Assessee Lawyers: JITENDRA KUMAR VERMA
• Keywords: Question of law
• Section: 234B

Judgement Text

P A G E 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO . 67 / RAN /201 7 ASSESSMENT YEAR : 2013 - 14 JITENDRA KUMAR VERMA, BHAWANI MARKET,JAGDAMB SAHAY LANE, GANDHI CHOWK, UPPER BAZAR, RANCHI. VS. ITO, WARD 3(3), RANCHI PAN/GIR NO. ACYPV 8511 B (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI JITENDRA KUMAR VERMA, CA REVENUE BY : SHRI A.K.MOHANTY, JCIT DATE OF HEARING : 20 / 11 / 2018 DATE OF PRONOUNCEMENT : 20 / 11 / 2018 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), RANCHI, D ATED 21.12.2016 FOR THE ASSESSMENT YEAR 2013 - 14. 2. GROUND NOS.1 & 4 OF APPEAL ARE GENERAL IN NATURE AND HENCE, REQUIRES NO SEPARATE ADJUDICATION BY ME. 3. GROUND NO.2 OF APPEAL READS AS UNDER: THE LD AO IS NOT JUSTIFIED IN TAKING TURNOVER OF RS.26,12,32,486/ - FOR ESTIMATION OF INCOME AS THIS TURNOVER WAS WRONGLY PUNCHED BY THE ASSESSE WHILE FILING HIS RETURN OF I NCOME AND CORRESPONDING INCREASE WAS MADE IN PURCHASES ALL OTHER INCOME AND EXPENSES ARE AS PER AUDIT REPORT. THE ITA NO. / RAN/ 2018 ASSESSMENT YEAR : P A G E 2 | 3 ACTUAL TURNOVER OF THE ASSESSE IS RS.18,48,22,873/ - WHICH IS AS PER AUDIT REPORT. 4. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE SUBMITT ED THAT HE IS NOT PRESSING THIS GROUND OF APPEAL AND HENCE, THIS GROUND OF APPEAL IS DISMISSED AS NOT PRESSED . 5. GROUND NO.3 OF APPEAL READS AS UNDER: THE AO IS NOT JUSTIFIED IN CHARGING INTEREST U/S.234A, 234B AND 234C AS THE HONBLE JHARKHAND HIGH COUR T IN T.A NO.38 OF 2010 (AJAY PRAKASH VERMA VRS ITO, RANGE - 1, WARD - 1, DHANBAD) HAS HELD THAT INTEREST UNDER THESE SECTIONS SHOULD BE CHARGED ON INCOME DECLARED BY THE ASSESSE AND NOT ON THE INCOME ASSESSED. 6 . AFTER HEARING THE RIVAL SUBMISSIONS AND PERUSING THE ORDERS OF LOWER AUTHORITIES BELOW, WE FIND THAT THE HON'BLE JHARKHAND HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA) HELD AS UNDER: - 23. LEARNED COUNSEL FOR THE APPELLANT SUBMITTED THAT IT HAS BEEN ORDERED BY THE A.O. THAT INTEREST BE CHARGED AS PER RULE. INTEREST CAN BE LEVIED UNDER SECTIONS 234A & 234B OF THE ACT. IT IS SUBMITTED THAT IN VIEW OF THE JUDGMENT OF FULL BENCH OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. TEJ KUMARI VS. CIT REPORTED IN (2001) 114 TAXMAN 404 (PAT) (FB), THE INTEREST CANNOT BE LEVIED OVER THE ASSESSED INCOME AND IT CAN BE LEVIED ONLY ON THE INCOME DECLARED IN THE RETURN. THE REVENUE PREFERRE D S.L.P. BEFORE THE HON'BLE SUPREME COURT AGAINST THE SAID JUDGMENT OF THE FULL BENCH OF PATNA HIGH COURT WHICH WAS DISMISSED BY THE HON'BLE SUPREME COURT ON MERITS VIDE ORDER DATED 01/08/2000 BY SAYING THAT THERE IS NO MERIT IN THE APPEAL. 24. LEARNED C OUNSEL FOR THE REVENUE COULD NOT DISPUTE THIS LEGAL POSITION. THEREFORE, SO FAR AS QUESTION OF LAW INVOLVED IN THIS APPEAL THAT WHETHER THE INTEREST COULD HAVE BEEN LEVIED AGAINST THE ASSESSED INCOME OF THE ASSESSEE UNDER SECTION 234A & 234B IS CONCERNED, IN VIEW OF THE FULL BENCH JUDGMENT OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. ITA NO. / RAN/ 2018 ASSESSMENT YEAR : P A G E 3 | 3 TEJ KUMARI, THE REVENUE CAN LEVY THE INTEREST ONLY ON THE TOTAL INCOME DECLARED IN THE RETURNS AND NOT ON THE INCOME ASSESSED AND DETERMINED BY THE A.O. T O THAT EXTENT. THE ORDERS PASSED BY THE AUTHORITIES BELOW ARE ACCORDINGLY MODIFIED AND INTEREST SHALL BE CHARGEABLE IN THE LIGHT OF THE FULL BENCH JUDGMENT REFERRED ABOVE. 7 . THEREFOR E, RESPECTFULLY FOLLOWING THE DECISION OF HONBLE JURISDICTIONAL HIG H COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA), WE DIRECT THE ASSESSING OFFICER TO CHARGE THE INTEREST ON THE INCOME DECLARED IN THE RETURN AND NOT ON ASSESSED INCOME AND ALLOW THIS GROUND OF APPEAL OF THE ASSESSE. 8 . IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED ORDER PRONOUNCED ON 20 / 11 /2018. SD/ - ( N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 20 / 11 /2018 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR. PVT. SECRETARY, ITAT, RANCHI ON TOUR 1. THE APPELLANT : JITENDRA KUMAR VERMA, BHAWANI MARKET,JAGDAMB SAHAY LANE, GANDHI CHOWK, UPPER BAZAR, RANCHI. 2. THE RESPONDENT. ITO, WARD 3(3), RANCHI 3. THE CIT(A) - RANCHI 4. PR.CIT - RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//