Raman Mayavan, Namakkal V. ITO Ward 1, Namakkal

ITA 756/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1375 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-02-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 21-03-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G JOHNSON
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside
• Section: 201; 44AB; 12; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA , ACCOUNTA NT MEMBER I .T.A. NO. 756 /CHNY/20 19 ( ASSESSMENT YEAR S : 20 1 2 - 201 3 ) SHRI . RAMAN MAYAVAN , NO.65, RANGAR SANNATHI STREET, NAMAKKAL 637 001 TAMIL NADU. PAN : A BBPM 8802G VS. THE INCOME TAX OFFICER, WARD 1, NO.138/3, LMR SHOPPING ARCADE, SALEM ROAD , NAMAKKAL 637 001. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S. SRIDHAR, ADVOCATE /RESPONDENT BY : MR. G. JOHNSON, ADDL. CIT / DATE OF HEARING : 0 8 . 0 2 .202 1 / DATE OF PRONOUNCEM ENT : 09. 0 2 .2021 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : TH E APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) , SALEM IN I.T.A. NO. 14 1 /201 7 - 1 8 DATED 21 .02 .2019 PERTAIN ING TO ASS ESSMENT YEAR 201 2 - 201 3 . I . T . A NO 75 6 /CHNY/2019 2. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE IS AN INDIVIDUAL DOING MEDICAL PROFESSION AND RUNNING A HOSPITAL IN THE NAME OF SHANTHI HOSPITAL. HE HAD FILED THE RETURN OF INCOME ADMITTING AN INCOME OF RS.7,11,710/ - . TH E ASSESSING OFFICER AFTER FOLLOWING DUE PROCEDURES COMPLETED THE ASSESSMENT U/S.143(3) R.W.S.263 OF THE INCOME TAX ACT, 1961. THE ASSESSEE IN THE RETURN OF INCOME HAS CLAIMED THAT HE HAD PAID AN AMOUNT OF RS.24,88,857/ - TOWARDS INTEREST PAYMENT TO SUNDARA M BNP PARIPASU. THE ASSESSING OFFICER HAS ASKED THE ASSESSEE AS TO WHY THE ABOVE PAYMENT IS MADE AND IN RESPONSE TO THAT THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS DOING A MEDICAL PROFESSION AND MAINTAINING THE BOOKS OF ACCOUNTS WHICH WAS SUBJECTED T O AUDIT U/S.44AB OF THE INCOME TAX ACT, 1961 AND THAT THE INCOME FROM OTHER SOURCES WAS THE INCOME DERIVED FROM THE ACTIVITIES WHICH ARE NOT REGULAR AND CONSISTENT FOR WHICH NO BOOKS OF ACCOUNTS ARE MAINTAINED. 3. THE ASSESSING OFFICER AFTER CONSIDERING THE SAME HAS DISALLOWED THE INTEREST CLAIM MADE BY THE ASSESSEE. I . T . A NO 75 6 /CHNY/2019 4 . ON APPEAL, THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) HAD CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 5 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 6 . THE ASSESSEE IN HIS RETURN OF INCOME HAS CLAIMED AN INTEREST INCOME OF RS.24,88,857/ - . THE ASSESSEE HAS NOT FILED ANY DETAILS IN RESPECT OF THE PROPERTY PURCHASED AND THE INCOME DERIVED FROM THE PR OPERTY PURCHASED AND SIMPLY SUBMITTED THAT HE IS COVERED BY SECTION 44AB OF THE INCOME TAX ACT, 1961. 7. IN OUR OPINION, IT IS NOT SUFFICIENT WHEN THE ASSESSEE HAD CLAIMED HUGE INTEREST AMOUNT AS IT IS THE DUTY OF THE ASSESSEE TO SUBMIT ALL THE DETAILS IN RESPECT OF THE NATURE OF THE PROPERTY AND WHAT IS THE INCOME GENERATED OUT OF THE PROPERTY. THE ASSESSEE HAS FAILED TO SUBSTANTIATE BEFORE THE ASSESSING OFFICER. THUS, WE SET ASIDE THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) AND REMIT BACK THE ISSUE TO THE ASSESSING OFFICER TO PASS AN ASSESSMENT ORDER DE I . T . A NO 75 6 /CHNY/2019 NOVO IN ACCORDANCE WITH LAW. THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 8 . IN THE RESULT, THE APPE AL FILED BY THE ASSESSEE IN I.T.A NO. 75 6 /CHNY/20 19 IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 9 TH FEBRUARY , 2021 IN CHENNAI. SD/ - ( ) ( G. MANJUNATHA ) /ACCOUNTANT MEMBER SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 9 TH FEBRUARY , 2021 IA , SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. () /CIT(A) 4. /CIT 5. /DR 6. /GF