Jalan Forgings Limited ( in Liqn.), Ahmedabad V. The Income Tax Officer, Ward-4(2), Ahmedabad

ITA 694/AHD/2016

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 4616 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-12-2019
• Assessment Year: 2012-2013
• Appeal Filed On: 21-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Liquidation
• Section: 201; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER JALAN FORGINGS LTD. (IN LIQN.) C/O. OFFICIAL LIQUIDATOR, JIVABHAI CHAMBERS, ASHRAM ROAD, AHMEDABAD - 380009 PAN: AACCJ1326P (APPELLANT) VS THE IT O , WARD - 4( 2) , AHMEDABAD (RESPONDENT) REVENUE BY : S H RI MUDIT NAGPAL , SR. D . R. ASSESSEE BY: SHRI MUKUND BAKSHI , A.R. DATE OF HEARING : 15 - 10 - 2 019 DATE OF PRONOUNCEMENT : 15 - 11 - 2 019 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THIS ASSESSEE S APPEAL FOR A.Y. 2012 - 13 , ARI SES FROM ORDER OF THE CIT(A) - 7, AHMEDABAD DATED 30 - 08 - 2 015 , IN PROCEEDINGS UNDER SECTION 14 4 R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. ALL THE GROUNDS OF APPEAL OF THE ASSESSEE ARE INTER CONNECTED TO THE COMMON ISSUE OF ADDITION OF RS. 85 , 16 , 140/ - UNDER THE HEAD INCOME FROM I T A NO . 694 / A HD/20 16 A SS ESSMENT YEAR 2012 - 13 I.T.A NO. 694 /AHD/20 16 A.Y. 2012 - 13 PAGE NO JALAN FORGINGS LTD. VS. IT O 2 OTHER SOURCES ON THE BASIS OF DIFFERENCE BETWEEN THE INTEREST INCOME DISCLOSED AS PER BOOKS AND INTEREST INCOME SHOWN IN THE FORM 26AS. 3. THE FACT IN BRIE F IS THAT ASSESSEE HAS NOT FILED RETURN OF INCOME FOR ASSESSMENT YEAR 2012 - 13, THEREFORE, A NOTICE U/S. 148 OF THE ACT WAS ISSUED ON 12 TH NOV, 2013 UPON THE OFFICIAL LIQUIDATOR AS THE ASSESSEE COMPANY WAS UNDER LIQUIDATION. DURING THE COURSE OF ASSESSMENT , THE ASSESSING OFFICER HAS ISSUED SHOW CAUSE NOTICE STATING THAT ON VERIFICATION OF FORM NO. 26AS , IT IS SEEN THAT ASSESSEE HAS SHOWN INTEREST INCOME OF RS. 85 , 16 , 140/ - UNDER THE HEAD INCOME FROM OTHER SOURCES, THEREFORE, THE ASSESSEE WAS ASKED TO EXPLAIN WHY NOT THE INTEREST INCOME OF R S. 85 , 16 , 140/ - SHOULD BE TREATED AS UNDISCLOSED INCOME DURING THE YEAR UNDER CONSIDERATION . THE OFFICIAL LIQUID ATOR OF THE ASSESSEE COMPANY SUBMITTED THAT DIFFERENCE IN INTEREST INCOME AS PER RECEIPT AND PAYMENT ACCOUNT REP ORTED IN 26AS FORM WA S ON ACCOUNT OF MISTAKE IN QUOTING SINGLE PAN FOR DEDUCTING TAX OF TWO COMPANIES I.E. JALAN FORGING LTD. AND JALAN ISPAT CASTING LTD. BOTH WERE IN LIQUIDATION. IT WAS FURTHER EXPLAINED THAT THIS MATTER WAS R EPORTED TO THE BANK AND T HE BANK HAD GIVEN ASSURANCE TO REVISE THE TDS RETURN BY CORRECTING THE MISTAKE IN QUO TING PAN OF THESE COMPANIES IN LIQUIDATION. THE ASSESSING OFFICER HAS NOT ACCEPTED THE EXPLANATION OF THE ASSESSEE AND STATED THAT ASSESSEE COMPANY HAS RECEIVED INTEREST OF RS. 75 , 63 , 663/ - FROM PNB AND RS. 9 , 52 , 4 77/ - FROM UNION BANK OF INDIA AN D THE ASSESSEE COMPANY HAS SHOWN INTEREST RECEIPT OF RS. 27 , 66 , 125/ - AGAINST RS. 85 , 16 , 140/ - REFLECTED IN THE FORM 26AS. I.T.A NO. 694 /AHD/20 16 A.Y. 2012 - 13 PAGE NO JALAN FORGINGS LTD. VS. IT O 3 4. THE ASSESSEE HAS FILED APPEAL BEFORE THE LD. CIT(A) TH E LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE REITE RATING THE FACTS REPORTED BY THE ASSESSING OFFICER. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MAT ERIA L ON RECORD. THE ASSESSING OFFICER HAS TREATED THE AMOUNT OF INTEREST EXPENDITURE OF RS. 85 , 16 , 140/ - REPORTED IN THE FORM 26AS AS INCOME FROM OTHER SOURCE IN THE HAND OF THE ASSESS EE AS THE SAME WAS NOT DISCLOSED BY T H E ASSESSEE AS ITS INCOME. THE ASSESSEE COMPANY HAS TAKEN UP THE MATTER WITH THE BANK AND THE BANK HAS GIVEN ASSURANCE TO REVISE THE TDS RETURN AFTER CORRECT REPORTING OF PAN OF THESE COMPANIES IN LIQUIDATION. WE HAVE GONE THROUGH THE PAPER BOOK FURNISHED BY THE ASSESSEE COMPRISING DETAIL AND SUBMISSION MADE BEFORE THE LOWER AUTHORITIES AND NOTICED THAT OFFICIAL LIQUIDATO R OF THE ASSESSEE COMPANY HAS WRITTEN LETTER TO THE BANK ON 31 ST OCTOBER, 2014 STATING THERE WAS FD ACCOUNT IN RESPECT OF TWO COMPANIES IN LIQUIDATION I.E. M/S. JALAN FORGING LTD. (IN LIQ N .) AND M/S JALAN CASTING LTD. (IN LIQ N .) AND SINGLE PAN NO. WAS REFE RRED IN THE BANK RECORD FOR THE TWO COMPANIES. THEREFORE, THE BANK WAS REQUESTED TO UPDATE THE CORRECT PAN NOS. TO TWO COMPANIES AS UNDER: - I. M/S. JALAN FORGINGS LTD. (IN LIQ N .) PAN NO. AACCJ1326P II. M/S. JALAN ISPAT CASTING LTD. (IN LIQ N .) PAN NO. AADCJ22 36R AFTER CONSIDERING THE ABOVE FACTS AND CIRCUMSTANCES , IT IS OBSERVED THAT THE ASSESSING OFFICER HAS NOT VERIFIED THE CONTENTION OF THE ASSESSEE THAT BECAUSE OF QUOTING SINGLE PAN , THE INTEREST INCOME OF THE OTHER COMPANY M/S. JALAN ISPAT CASTING LTD. W HICH WAS ALSO IN LIQUIDATION MISTAKENLY REPORTED AS I.T.A NO. 694 /AHD/20 16 A.Y. 2012 - 13 PAGE NO JALAN FORGINGS LTD. VS. IT O 4 INCOME O F THE ASSESSEE. IN VIEW OF ABOVE FACTS , WE CONSIDER THAT IT IS APPROPRIATE TO RESTORE THIS CASE TO THE FILE OF THE ASSESSING OFFICER FOR DECIDING THE IMPUGNED ISSUE AFRESH AFTER VERIFICATION AND EXAMIN ATION OF THE CLAIM OF THE ASSESSEE OF INCORRECT REPORTING OF PAN AND THE INTEREST INCOME ACTUALLY PERTAINED TO M/S. JALAN ISPAT CASTING LTD . ACCORDINGLY , THE CASE IS RESTORED TO THE FILE OF ASSESSING OFFICER AS DIRECTED ABOVE FOR DE - NOVO ASSESSMENT AFTER PROVIDING ADEQUATE OPPORTUNITY TO THE ASSESSEE. 6 . IN THE RESULT T H E APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE S . ORDER PR ONOUNCED IN THE OPEN C OURT ON 15 - 11 - 201 9 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 15 /11 /2019 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,