ITO, CORPORATE WARD - 1 (1), CHENNAI V. SHRI RAKESH SARIN, CHENNAI

ITA 730/CHNY/2020

AI Insights

The case involves an appeal by the Income Tax Officer against the order of the Commissioner of Income Tax (Appeals)-1, Chennai, which had granted relief to Shri Rakesh Sarin for the Assessment Year 2016-17. The dispute centered on the estimated interest income on loans and advances, and accrued interest on pro-notes and various advances, which were initially added to the assessee's income by the Assessing Officer under section 143(3) of the Income Tax Act. The CIT(A) had previously deleted these additions, relying on earlier appellate orders and Tribunal decisions favoring the assessee. The revenue's appeal to the Tribunal did not succeed as the Tribunal found no grounds to deviate from the established precedents.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133823 (ITAT-CHENNAI)
• Duration Of Justice: 2 year(s) 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 23-04-2023
• Assessment Year: 2016-2017
• Appeal Filed On: 17-08-2020
• Other Referred Cases: Mrs. Renu Sarin vs. Income Tax Officer, ITA No.66/Chny/2007
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Block assessment
• Section: 143(3)

Judgement Text

आयकर अपीलीय अिधकरण ‘ए’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ6वाल ,लेखा सद9 के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.730/Chny/2020 (िनधाBरण वषB / Assessment Year: 2016-17) Income Tax Officer Corporate Ward 1(1) Chennai – 600 034 बनाम/ V s. Shri Rakesh Sarin No.5E, Mokkambigai Complex Lady Desika Road Chennai – 600 004 थायी लेखा सं./जीआइ आर सं./P AN /GI R No . ADX P R -7 4 2 8 - R (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri AR. V Sreenivasan (Addl CIT)- Ld. DR थ की ओरसे/Respondent by : Shri K. Ravi (Advocate) – Ld. AR सुनवाई की तारीख/Date of Hearing : 24-04-2023 घोषणा की तारीख /Date of Pronouncement : 24-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by revenue for Assessment Year (AY) 2016- 17 arises out of the order of learned Commissioner of Income Tax (Appeals)-1, Chennai [CIT(A)] dated 20-01-2020 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) of the Act on 19-07-2018. The registry has noted a delay of 134 days in the appeal which stand condoned in the light of lockdown situation arising ITA No.730 /Chny/2020 - 2 - out of Covid-19 Pandemic. Having hearD rival submissions and after perusal of case records, our adjudication would be as under. 2. The assessee was assessed u/s 143(3) wherein various additions were made in the hands of the assessee. The same include estimated interest income of Rs.95.44 Lacs on loans and advances advanced by the assessee; estimated accrued interest of Rs.400.34 Lacs on pro- notes and various advance as enumerated in the assessment order. 3. During appellate proceedings, the assessee submitted that the issue of estimated interest on loans and advances was decided in assessee’s favor by the first appellate authority for AYs 2011-12 to 2015-16 which has followed the decision of Tribunal in the case of assessee’s wife Mrs. Renu Sarin. Considering the same, Ld. CIT(A) granted relief to the assessee. 4. The estimated accrued interest on pro-notes and various other advances was deleted by Ld. CIT(A) by relying upon first appellate order in assessee’s own case for AYs 2011-12 to 2015-16 which, in turn, relied on the decision of Tribunal for block assessment in ITA No.66/Chny/2007 dated 11.03.2019. 5. Aggrieved as aforesaid, the revenue is in further appeal before us. 6. The undisputed fact is that impugned issues stood covered in assessee’s favor by the decision of this Tribunal in assessee’s own case as well as in the case of assessee’s wife Smt. Renu Sarin and Ld. CIT(A) has merely followed the same. The revenue is unable to controvert this position. This being so, no interference is called for in the impugned order. ITA No.730 /Chny/2020 - 3 - 7. In the result, the appeal stands dismissed. Order pronounced in the open Court on 24 th April, 2023. Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद9 / ACCOUNTANT MEMBER चे*ई / Chennai; िदनांक / Dated : 24-04-2023 EDN/- आदेश की Vितिलिप अ 6ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आयु / CIT 4. िवभागीय ितिनिध/DR 5. गाड फाईल/GF