Sri.M.Abdul Wahab, Kollam V. DCIt, Kollam

ITA 680/COCH/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64718 (ITAT-COCHIN)
• Duration Of Justice: 1 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 24-07-2012
• Assessment Year: misc
• Appeal Filed On: 15-12-2010
• Court: TRIBUNAL
• Department Lawyers: A S BINDHU
• Assessee Lawyers: VEDANGA R PRABHU
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI N.R.S.GANESAN, JM AND B.R.BASKAR AN, AM I.T.A NO. 680/COCH/2010 ASSESSMENT YEAR: 2007-08 SHRI M.ABDUL WAHAB, ARABIAN JEWELLERY, BEACH ROAD, KOLLAM. [PAN: AGOPK 2147N] VS. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOLLAM. (ASSESSEE-APPELLANT) (REVENUE- RESPONDENT) ASSESSEE BY SHRI VEDANGA R. PRABHU, CA REVENUE BY SMT. A.S. BINDHU, SR. DR DATE OF HEARING 24/07/2012 DATE OF PRONOUNCEMENT 10/08/2012 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THE APPEAL OF THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 14.9.2010 PASSED BY LD CIT(A) AND IT RELATES TO THE ASSESSMENT YEAR 2007-08. 2. IN THIS APPEAL, THE ASSESSEE IS CHALLENGING THE VALIDITY OF CHARGING INTEREST U/S 234B AND 234C OF THE ACT ON THE INCOME ADMITTED BY THE ASSESSEE ON AGREED BASIS. 3. THE FACTS RELATING TO THE SAID ISSUE ARE STA TED IN BRIEF. THE ASSESSEE IS RUNNING A JEWELLERY SHOP AT KOLLAM. FROM THE BALANCE SHEET F ILED BY THE ASSESSEE, THE AO NOTICED THAT THE SUNDRY CREDITORS BALANCE STOOD AT RS.7,20, 68,372/- AS AT THE YEAR END. ACCORDINGLY, THE AO CALLED FOR SUBMISSION OF CONFIR MATION LETTERS FROM THE CREDITORS. I.T.A. NO.680/COCH/2010 2 THE AO CAUSED ENQUIRIES ON SOME OF THE CONFIRMATION LETTERS AND FOUND CERTAIN DEFICIENCIES THEREIN. WHEN THE SAME WAS CONFRONTED TO THE ASSESSEE, HE CAME FORWARD TO OFFER A SUM OF RS.25.00 LAKHS AND ACCORDINGLY TH E ASSESSMENT WAS COMPLETED, INTER ALIA, BY MAKING THE ADDITION OF RS.25.00 LAKHS. TH E AO LEVIED INTEREST U/S 234B AND 234C ON THE ASSESSED INCOME. THE ASSESSEE CHALLENG ED THE SAID LEVY OF INTEREST BEFORE LD CIT(A), BUT COULD NOT SUCCEED. HENCE THE ASSESSE E IS IN APPEAL BEFORE US. 4. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERU SED THE RECORD. WE NOTICE THAT THE LEVY OF INTEREST U/S 234B AND 234C OF THE ACT IS MA NDATORY, IF THE ADVANCE TAX PAID FALLS SHORT OF THE ASSESSED TAX. HOWEVER, THE LD A.R PLA CED RELIANCE ON THE DECISION OF THE HONBLE KARNATAKA HIGH COURT IN THE CASE OF T.P.IND RAKUMAR VS. ITO (322 ITR 44) AND SUBMITTED THAT THE AMOUNT VOLUNTARILY OFFERED FOR T AXATION IN ORDER TO PURCHASE PEACE FROM THE DEPARTMENT IS NOT SUSCEPTIBLE TO INTEREST U/S 234B AND 234C OF THE ACT. HE ALSO PLACED RELIANCE ON THE DECISION OF JURISDICTIO NAL HONBLE KERALA HIGH COURT IN THE CASE OF CCIT VS. JIMMICHAN M VARICATT (330 ITR 338) . 5. WE NOTICE THAT THE DECISION RENDERED BY THE JURISDICTIONAL HIGH COURT RELATES TO THE WAIVER OF INTEREST, WHICH HAS BEEN RENDERED IN WRIT PROCEEDINGS AND HENCE, IN OUR VIEW, THE ASSESSEE COULD NOT TAKE SUPPORT FROM IT. WE HA VE ALSO CONSIDERED THE DECISION RENDERED BY HONBLE KARNATAKA HIGH COURT IN THE CAS E OF T.P. INDRAKUMAR REFERRED SUPRA AND NOTICE THAT THE SAID DECISION WAS RENDERE D IN THE PECULIAR FACTS PREVAILING IN THAT CASE, I.E., THE SAID DECISION CANNOT BE HELD T O BE APPLICABLE IN ALL CASES. IN THE INSTANT CASE, THE ASSESSEE HAS OFFERED THE ABOVE SA ID SUM OF RS.25.00 LAKHS AS ADDITIONAL INCOME IN ORDER TO COVER UP DEFICIENCIES NOTICED BY THE AO, WHICH MEANS THAT THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO DI SCLOSE TRUE ACCOUNTS. 6. IN VIEW OF THE ABOVE, WE DO NOT FIND ANY INF IRMITY IN THE DECISION OF LD CIT(A) IN UPHOLDING THE LEVY OF INTEREST U/S 234B AND 234C OF THE ACT. I.T.A. NO.680/COCH/2010 3 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMISSED. PRONOUNCED ACCORDINGLY ON 10-08-2012. SD/- SD/- (N.R.S.GANESAN) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER PLACE: KOCHI DATED: 10TH AUGUST, 2012 GJ COPY TO: 1. SHRI M.ABDUL WAHAB, ARABIAN JEWELLERY, BEACH ROA D, KOLLAM. 2. THE DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE-1, KOLLAM. 3. THE COMMISSIONER OF INCOME-TAX (APPEALS)-I, TRIV ANDRUM. 4. THE COMMISSIONER OF INCOME-TAX, TRIVANDRUM. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE.