Jayantilal jain, CHENNAI V. ITO Non Corporate Ward 4(2), CHENNAI

ITA 682/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 5401 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2015-2016
• Appeal Filed On: 26-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B. SAGADEVAN
• Keywords: FORM 26AS

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL , SMC C BENCH, CHENNAI . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.682/CHNY/2018 ( / ASSESSMENT YEAR: 2015-16) SHRI JAYANTILAL JAIN, NO.16/2, NARAYANA MUDALI LANE, SOWCARPET, CHENNAI 600079. VS THE ITO, NON-CORPORATE WARD 4(2), CHENNAI 600 006. PAN: ACSPJ8073C ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI D. ANAND, ADVOCATE /RESPONDENT BY : SHRI B. SAGADEVAN, JCIT /DATE OF HEARING : 10.09.2018 /DATE OF PRONOUNCEMENT : 04.10.2018 / O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEA LS)-5, CHENNAI DATED 17.01.2018 IN ITA NO.54/CIT(A)-5/17-1 8 FOR THE ASSESSMENT YEAR 2015-16 PASSED U/S.250(6) R.W.S.143 (3) OF THE ACT. 2. THE ASSESSEE HAS RAISED FOUR GROUNDS IN HIS A PPEAL HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD.CIT(A) HAS ERRED IN 2 ITA NO.682/CHNY/2018 SUSTAINING THE ORDER OF THE LD. ASSESSING OFFICER W HO HAD MADE ADDITIONS BASED ON THE DISCREPANCY REFLECTED IN FOR M 26AS. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESS EE IS AN INDIVIDUAL ENGAGED IN MONEY LENDING BUSINESS, FILED HIS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015-16 ON 27.03.201 6 DECLARING TOTAL INCOME OF RS.5,70,260/-. SUBSEQUENTLY, THE CA SE WAS TAKEN UP FOR SCRUTINY THROUGH CASS AND FINALLY ASSESSMENT ORDER WAS PASSED ON 28.06.2017, WHEREIN, THE LD. ASSESSING OF FICER MADE ADDITIONS WITH RESPECT TO INTEREST INCOME STATED IN THE FORM 26AS WHICH WAS NOT DISCLOSED IN THE RETURN OF INCOME ON THE FOLLOWING ENTITIES:- I) BHOOMI & BUILDING PVT. LTD. : RS. 5,000 II) AACHI SPECIAL FOODS PRIVATE LTD. : RS. 90,000 III) JUMBO BAG LIMITED : RS. 2,62,500 IV) INDIAN BARTYS AND CHEMICALS LTD. : RS. 68,627 V) MD SATHAK TRUST : RS. 12,00,000 VI) SPR CONSTRUCTION PVT. LTD. : RS. 3,00,000 TOTAL : RS. 19,26,127 4. BEFORE ME, THE LD. AR SUBMITTED THAT THE TAX DE DUCTOR HAD ERRONEOUSLY DEDUCTED TAX IN THE RELEVANT ASSESSMENT YEAR WITH RESPECT TO THE INTEREST PAID/ACCRUED NOT PERTAINING TO THE RELEVANT ASSESSMENT YEARS AND HENCE THERE WAS DISCREPANCY IN REGARD TO THE INTEREST INCOME DECLARED BY THE ASSESSEE IN THE RETURN OF 3 ITA NO.682/CHNY/2018 INCOME AND WITH THAT OF THE INTEREST INCOME SHOWN I N FORM 26AS. THE LD. AR FURTHER SUBMITTED THAT THE ENTIRE INTERE ST INCOME WAS ACCOUNTED IN THE BOOKS OF ASSESSEE FOR THE RELEVANT ASSESSMENT YEARS AND TAX WAS PAID. IT WAS THEREFORE, PLEADED T HAT THE ADDITION MADE BY THE LD. ASSESSING OFFICER, WHICH WAS SUBSEQ UENTLY CONFIRMED BY THE LD. CIT(A) MAY BE DELETED. ON THE OTHER HAND, THE LD. DR RELIED ON THE ORDERS OF REVENUE AUTHORITIES AND ARGUED IN SUPPORT OF THE SAME. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULL Y PERUSED THE MATERIALS ON RECORD. IT IS AN ACCEPTED LEGAL PR OPOSITION THAT IF THE ASSESSEE BEING AN INDIVIDUAL HAS DECLARED HIS E NTIRE INTEREST INCOME IN HIS BOOKS OF ACCOUNTS FOR THE RELEVANT AS SESSMENT YEARS ACCORDING TO THE METHOD REGULARLY ADOPTED BY HIM, W HICH MAY BE CASH OR MERCANTILE SYSTEM, THEN THERE WILL BE NO SC OPE FOR THE REVENUE TO MAKE ADDITION BASED ON FORM 26AS. IF THE REVENUE MAKES ADDITION TOWARDS INTEREST INCOME FOR THE RELE VANT ASSESSMENT YEAR EVEN WHEN THE SAME IS DECLARED IN A NOTHER ASSESSMENT YEAR IN ACCORDANCE WITH THE ACCOUNTING S YSTEM REGULARLY FOLLOWED BY THE ASSESSEE (BEING AN INDIVI DUAL) AND PAID TAX ACCORDINGLY THEN IT WOULD AMOUNT TO DOUBLE TAXA TION. THEREFORE, 4 ITA NO.682/CHNY/2018 IN THE INTEREST OF JUSTICE, I HEREBY REMIT THE MATT ER BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY WHETHER THE ASSESSE E HAS ACCOUNTED THE ENTIRE INTEREST STATED IN FORM 26AS I N HIS BOOKS OF ACCOUNT FOR THE RELEVANT ASSESSMENT YEARS IN ACCORD ANCE WITH THE ACCOUNTING METHOD REGULARLY FOLLOWED BY HIM AND IF FOUND SO, DELETE THE ADDITION, OTHERWISE, PASS APPROPRIATE ORDER IN ACCORDANCE WITH MERIT AND LAW. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES AS INDICATED ABOVE. ORDER PRONOUNCED ON THE 4 TH OCTOBER, 2018 AT CHENNAI. SD/- ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER '# /CHENNAI, $% /DATED 4 TH OCTOBER, 2018 RSR % '( )( /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. , ( )/CIT(A) 4. , /CIT 5. (-. / /DR 6. .0 /GF