Sunanda Shah, Hyderabad V. Income Tax Officer, Ward-6(3), Hyderabad

ITA 739/Hyd/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 8749 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 08-07-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 24-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH PADUCHURI
• Assessee Lawyers: B SATYANARAYANA MURTHY
• Keywords: Opportunity of being heard; TDS; Set aside
• Section: 143(3); 147; 148

Judgement Text

IN T HE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A , HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO S . 738 & 739 /HYD/201 8 ASSESSMENT YEAR S : 20 08 - 09 & 2010 - 11 SUNANDA SHAH, HYDERABAD. PAN A WHPS 5032 M VS. INCOME - TAX OFFICER, WARD 6 ( 2 ) , HYDERABAD. ( APPELLANT ) (RESPONDENT) ASSESSEE BY : SHRI B. SATYANARAYANA MURTHY REVENUE BY : S HRI DINESH PADUCHURI DATE OF HEARING : 0 8 / 0 7 /201 9 DATE OF PRONOUNCEMENT : 12 / 0 7 / 201 9 O R D E R PER S . RIFAUR RAHMAN , A .M. : BOTH T H E S E APPEAL S FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE ORDER S OF CIT(A) 6 , BOTH DATED 04 / 01 /201 8 , HYDERABAD FOR AY S 20 08 - 09 AND 20 10 - 11. ITA NO. 738/HYD/2019 FOR AY 2008 - 09. 2. BRIEF FACTS OF THE CASE ARE, THE ASSESSEE , BEING AN INDIVIDUAL, FILED THE RETURN OF INCOME FOR THE AY 2008 - 09 ON 31/07/2009, DISCLOSING THE GROSS TOTAL INCOME OF RS. 5,72,980/ - BEING INTEREST ON LOANS, NAMELY, RS. 90,000/ - RECEIVED FROM SRI L. ANANTA KUMAR, PROPRIETOR OF M/S AMAR EXPORTS, INTERES T ON FIXED DEPOSITS FROM BANK OF INDIA OF RS. 4,71,270/ - AND INTEREST FROM BANK OF INDIA TOWARDS SAVINGS BANK ACCOUNT OF RS. 40,043/ - . 2.1 SUBSEQUENTLY, THE AO NOTICED FROM FORM 26AS OF THE ASSESSEE THAT THE ASSESSEE RECEIVED A TOTAL INTEREST OF RS. 3,15 ,000/ - FROM M/S 2 ITA NO S . 738 & 739 /HYD/1 8 SUNANDA SHAH, HYD. AMAR EXPORTS RATHER THAN RS. 90,000/ - DISCLOSED IN THE RETURN OF INCOME. THEREFORE, HE INITIATED PROCEEDINGS U/S 147 OF THE ACT BY ISSUING NOTICE U/S 148 OF THE ACT AFTER DULY RECORDING THE REASONS FOR ISSUING NOTICE. IN RESPONSE TO THE SAI D NOTICE, THE ASSESSEE REQUESTED THE AO THAT THE RETURN OF INCOME FILED BY HER ON 31/07/2009 MAY BE TREATED AS RETURN OF FILED IN RESPONSE TO THE NOTICE ISSUED U/S 148 OF THE ACT. ACCORDINGLY, THE AO MADE THE ADDITION OF RS. 3,15,000/ - TOWARDS INTEREST REC EIVED FROM M/S AMAR EXPORTS BASED ON THE FORM 26AS. 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) CONFIRMED THE ADDITION MADE BY THE AO. 4. AGGRIEVED BY THE ORDER OF CIT(A), T HE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: (1) THE ORDER OF THE HON'BLE COMMISSIONER OF INCOME TAX IN SO FAR AS IT IS AGAINST THE APPELLANT, IS CONTRARY TO THE FACTS OF THE CASE AND THE PROVISIONS OF LAW. (2) THE HON'BL E COMMISSIONER IS NOT JUSTIFIED IN ADOPTING THE INTEREST FROM M / S. AM A R EXPORTS AT RS.3,15000 / - IN PLACE OF RS.90,000 / - , ACTUALLY RECEIVED BY THE APPELLANT BY WAY OF INTEREST . FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING IT IS SUB MITTED THAT THE ORDER OF THE LOWER AUTHORITIES BE SET ASIDE AND MODIFIED AS MAY BE DEEMED FIT. 5. BEFORE US, LD. AR OF THE ASSESSEE FILED AN ADDITIONAL EVIDE NCE WHICH IS A CONFIRMATION LETTER FROM M/S AMAR EXPORTS WHEREIN IT WAS STATED THAT THE Y HAVE PAID AN AMOUNT OF RS. 90,000/ - DURING THE FY 2007 - 08 TO THE ASSESSEE AND ALSO MODIFIED THE FORM 26AS. 6. THE LD. DR, ON THE OTHER HAND, RELIED ON THE ORDERS OF REVENUE AUTHORITIES. 3 ITA NO S . 738 & 739 /HYD/1 8 SUNANDA SHAH, HYD. 7. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. IT IS CLEAR THAT THE ASSESSEE HAS RECEIVED ONLY RS. 90,000/ - TOWARDS INTEREST FROM M/S AMAR EXPORTS, WHICH WAS CONFIRMED BY M/S AMAR EXPORTS IN THEIR LETTER. HOW EVER, IN ORDER TO VERIFY THE CLAIM OF THE ASSESSEE, WE REMIT THIS ISSUE BACK TO AO AND DIRECT HIM TO VERIFY THE CLAIM OF THE ASSESSEE AND THE FORM 26AS MODIFIED BY M/S AMAR EXPORTS AND COMPLETE THE ASSESSMENT ACCORDINGLY. ITA NO. 739/HYD/2018 FOR AY 2010 - 11. 8. THE ASSESSEE FILED HER RETURN OF INCOME ADMITTING AN INCOME OF RS. 11,99,170/ - FOR AY 2010 - 11 . THE AO WHILE COMPLETING THE ASSESSMENT U/S 143(3) RWS 147 OF THE ACT ON 27 TH JANUARY, 2014 , ADDED A FURTHER SOME OF RS. 7,08,632/ - TOWARDS INTEREST RECEIVED FROM BANK OF INDIA AND DETERMINED THE TOTAL INCOME AT RS. 19,19,505/ - REJECTING THE SUBMISSION OF THE ASSESSEE THAT THE INTEREST DOES NOT RELATE TO THE ASSESSEE AS IT IS RELATED TO HER HUSBA ND. ON APPEAL, THE CIT(A) CONFIRMED THE ADDITION. 9. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US RAISING THE FOLLOWING GROUNDS OF APPEAL: (1) THE ORDER OF THE HON'BLE COMMISSIONER OF INCOME TAX IN SO FAR AS IS AGAINST THE APPELLANT IS CONTRARY TO THE FACTS OF THE CASE AND THE PROVISIONS OF LAW. (2) THE HON'BLE COMMISSIONER IS NOT JUSTIFIED IN SUSTAINING THE ACTION OF THE INCOME TAX OFFICER IN TAXING THE AMOUNT OF RS.7,08,663/ - AS INTEREST FROM THE BANK OF INDIA WHEREAS IT DOES NOT BELONG TO HER. (3) THE COMMISSIONER SHOULD HAVE APPRECIATED THAT THIS AMOUNT OF RS. 7,08,662/ - BELONG TO SUNIL D. SHAH, THE APPELLANT'S HUSBAND AND NOT TO THE APPELLANT. 10. CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. BEFORE US, THE ASSESSEE F ILED A CERTIFICATE ISSUED BY THE BANK OF INDIA WHEREIN IT WAS STATED THAT THE INTEREST AMOUNT OF RS. 4 ITA NO S . 738 & 739 /HYD/1 8 SUNANDA SHAH, HYD. 7,08,632/ - PERTAINING TO HER HUSBAND MR. SUNIL D SHAH, FOR WHICH TDS WAS ALSO DEDUCTED. IN ORDER TO VERIFY THE RELEVANT INFORMATION BROUGHT ON RECORD BY TH E ASSESSEE, WE DEEM IT FIT TO REMIT THIS ISSUE BACK TO THE FILE OF AO. AO IS DIRECTED TO COLLECT THE INFORMATION FROM THE BANK AND COMPLETE THE ASSESSMENT AS PER LAW AND AS PER THE INFORMATION ON RECORD AFTER GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSES SEE. 11. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 12 TH JULY , 201 9 . SD/ - SD/ - ( P. MADHAVI DEVI ) (S . RIFAUR RAHMAN ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 12 TH JULY , 201 9 KV C OPY TO: - 1) SMT. SUNANDA SHAH, C/O VENUGOPAL & CHENOY, CAS, 4 - 1 - 889/16/6, TILAK ROAD, HYDERABAD 500 0 01 . 2) ITO, WARD 4 ( 1 ) , HYDERABAD 3) CIT(A) 6 HYDERABAD. 4) PR. CIT - 6 , HYD. 5 ) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDERABAD. 6 ) GUARD FILE 5 ITA NO S . 738 & 739 /HYD/1 8 SUNANDA SHAH, HYD.