M/S SHRI KUSHAL SURI ENGINEERING SERVICES PVT. LTD., JAIPUR V. INCOME TAX OFFICER, WARD-6-3, JAIPUR

ITA 722/JPR/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2174 (ITAT-JAIPUR)
• Duration Of Justice: 3 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-01-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 26-09-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: POONAM ROY DCIT DHK
• Assessee Lawyers: VIKASH RAJBANSHI
• Section: 244A

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 722/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 M/S SHRI KUSHAL SURI ENGINEERING SERVICES PVT. LTD., E-12, MOJI COLONY, MALVIYA NAGAR, JAIPUR-302017. CUKE VS. INCOME TAX OFFICER, WARD-6(3), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAICS 1640 M VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI VIKASH RAJBANSHI (CA) JKTLO DH VKSJ LS@ REVENUE BY : SMT. POONAM ROY (DCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 15/01/2018 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 16/01/2018 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATES FR OM THE ORDER OF THE LD. CIT(A)-2, JAIPUR DATED 28/08/2017 FOR THE A. Y. 2013-14. 2. THE ASSESSEE COMPANY IS ENGAGED IN CARRYING ON TH E BUSINESS OF PROVIDING PROFESSIONAL CONSULTANCY SERVICES IN ALL ASPECTS OF CIVIL ENGINEERING SUCH AS PLANNING, ENGINEERING DESIGN AN D EVALUATION TO CONSTRUCTION SUPERVISION OF INFRASTRUCTURE DEVELOPM ENT PROJECTS. DURING THE YEAR, THE ASSESSEE HAS RECEIVED INTEREST ON REF UND TO THE TUNE OF RS. ITA 722/JP/2017_ M/S KUSHAL SURI ENGINEERING SERVICES P LTD. VS ITO 2 2,82,060/-. THE ASSESSING OFFICER MADE THIS ADDITION TO THE INCOME OF THE ASSESSEE. 3. THE LD. CIT(A) HAS DEALT THIS ISSUE BY HOLDING AS UNDER: 2.3 I HAVE PERUSED THE FACTS OF THE CASE, THE ASSE SSMENT ORDER AND THE SUBMISSIONS OF THE APPELLANT. DURING THE ASSESSMENT PROCEEDINGS, THE A.O. NOTED THAT THE ASSESSEE WAS IN RECEIPT OF INTEREST UNDER SECTION 244A OF THE ACT OF RS. 2,82,06/- IN THE REF UND OF ASSESSMENT YEAR 2009-10 RECEIVED DURING THE YEAR UNDER CONSIDE RATION. THE AMOUNT WAS NOT DECLARED BY THE ASSESSEE IN THE INCO ME AND THE SAME HAS BEEN ADDED BY THE A.O.. IN THE PRESENT PRO CEEDINGS, IT WAS SUBMITTED THAT THE A.O. HAS IGNORED THE FACT THAT A S PER FORM 26AS THE ASSESSEE HAS RECEIVED LESS TDS CREDIT. THERE WE RE SOME TDS AMOUNT WHICH WAS RECEIVABLE BY THE COMPANY BUT COUL D NOT BE RECEIVED AND IF THE FULL AMOUNT OF INTEREST AND NON RECEIPT OF TDS IS ADJUSTED, IT WOULD BE TAX NEUTRAL. THE ASSESSEE THU S RELIED ON THE ACCOUNTING SYSTEM FOLLOWED BY IT WHEREIN THE NON RE CEIPT OF TDS OR SHORT RECEIPT OF TDS AND INTEREST RECEIVED ARE BALA NCED OUT AND ONLY THE NET INCOME IS SHOWN. SINCE THE AMOUNT OF INTERE ST RECEIVED ON REFUNDS IS TAXABLE, THE SAME HAS TO BE SHOWN SEPARA TELY BY THE ASSESSEE IRRESPECTIVE OF THE SHORT RECEIPT OF TDS, THIS ARGUMENT OF THE ASSESSEE CANNOT BE ACCEPTED. THE ADDITION MADE BY THE A.O. IS CONFIRMED. THE GROUND OF APPEAL IS DISMISSED. 4. AFTER HEARING BOTH THE SIDES ON THIS ISSUE, THE BENCH IS OF THE VIEW THAT THE INTEREST RECEIVED ON REFUND OF INCOME TAX IS TAXABLE. THE SAME HAS TO BE DECLARED BY THE ASSESSEE AS INCOME IN THE RECEIPT SIDE OF THE P&L ACCOUNT. THERE IS NO SCOPE FOR ANY TELESCOPING, THE SHORT RECEIPT OF ITA 722/JP/2017_ M/S KUSHAL SURI ENGINEERING SERVICES P LTD. VS ITO 3 THE TDS WITH THE INTEREST ON INCOME TAX REFUND RECEI VED BY THE ASSESSEE. THEREFORE, THE LD. CIT(A) HAS RIGHTLY CONF IRMED THE ADDITION. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES, THE AP PEAL OF THE ASSESSEE HAS NOT MERIT AND THE SAME STANDS DISMISSE D. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16/01/2018. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 16 TH JANUARY, 2018 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- M/S SHRI KUSHAL SURI ENGINEERING SERV ICES PVT. LTD., JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD-6(3), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 722/JP/2017) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR