Shri Yogenbhai Bhalabhai Patel, Ahmedabad V. The Income tax Officer,Ward-11(2), Ahmedabad

ITA 757/AHD/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 4381 (ITAT-AHMEDABAD)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-09-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 14-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH AHMADABAD BEFORE SHRI G.C.GUPTA , VICE PRESIDENT AND SHRI T.R. MEENA, ACCOUNTANT MEMBER ITA NO. 757/AHD/2013 ASSESSMENT YEAR :2009-10 SHRI YOGENBHAI BHALABHAI PATEL SHREE LEKHA BHAVAN, PALDI GAM, PALDI, AHMADABAD 380007 V/S . THE INCOME-TAX OFFICER, WARD 11(2), AHMEDABAD PAN NO. A EDPP6784R (APPELLANT) .. (RESPONDENT) BY APPELLANT SMT. URVASHI SODHAN, A.R. /BY RESPONDENT SHRI K. C. MATHEWS, SR. D.R. /DATE OF HEARING 02.09.2013 /DATE OF PRONOUNCEMENT 18.10.2013 O R D E R PER : SHRI T.R.MEENA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF THE CIT(A)-XVI, AHMEDABAD, ORDER DATED 16.01.2013 FOR A.Y. 2009-10. THE SOLE GROUND OF APPEAL IS RESTRICTING CREDIT OF TDS AT RS.55,166/- AS AGAINST CLAIM OF RS.1,42,846/-. 2. THE A.O. ALLOWED THE CREDIT OF TDS OF RS.55,166/ - AGAINST TDS CLAIM OF RS. 1,42,846/- ON THE GROUND THAT RENTAL INCOME HAD NOT BEEN DISCLOSED BY THE ASSESSEE, ON THE BASIS OF TDS CERTIFICATE. THE ASS ESSEE FILED APPEAL BEFORE THE CIT(A) WHO HAS ALSO NOT ALLOWED THE APPEAL IN F AVOUR OF THE ASSESSEE ON ITA NO. 757/AHD/2013 A.Y. 09-10 PAGE 2 THE BASIS OF RENTAL INCOME DISCLOSED BY THE ASSESSE E FROM BPCL, ON WHICH TDS DEDUCTED BUT ASSESSEE DID NOT DISCLOSE FULL INC OME DURING THE YEAR. THEREFORE, HE CONFIRMED THE ACTION OF THE A.O. 3. NOW THE ASSESSEE IS BEFORE US. LD. COUNSEL FOR THE APPELLANT CONTENDED AS UNDER: 1. THE CAPTIONED APPEAL IS FILED AGAINST RESTRIC TING CREDIT OF TAX DEDUCTED AT SOURCE (TDS) ON PAYMENT RECEIVED FROM B HARAT PETROLEUM CORPORATION (BPCL) TO RS. 55, 166/- AS AG AINST OF RS. I, 42, 846/- DEDUCTED AND CLAIMED. 2. THE ASSESSEE OFFERED RENTAL INCOME FROM BPCL OF RS. 3, 57, 060/ (P/B PAGE 3) CLAIMED TDS OF RS. 1, 42, 846/- ( P/B PAGE 5) 3. BPCL ISSUED FORM 16A IN THE NAME OF ASSESSEE FO R RS. 1, 42, 846/- (P/B PAGE 22/23) 4. AO RESTRICTED CREDIT OF TDS TO RS. 55, 166/- PR OPORTIONATELY WORKING OUT TO THE RENTAL INCOME RECEIVED BY THE AS SESSEE FROM BPCL. 5. THE BREAK UP OF TDS FROM CERTIFICATE OF BPCL SU BMITTED IS AS UNDER TDS ON RENTAL INCOME OF THE ASSESSEE R S. 55, 166/- TDS BY BPCL ON AMOUNT NOT PAID TO THE ASSESSEE RS. 17, 263A (PG 8/54) TDS ON RENTAL INCOME OF THE SON RS. 70 ,417- ------------------------ TOTAL RS.1,42,846/- ITA NO. 757/AHD/2013 A.Y. 09-10 PAGE 3 6. BPCL DEDUCTED TDS OF RS. 17, 263/- ON PAYMENT O F RS. 11, 17, 359/-NEVER MADE TO THE ASSESSEE AND ON REALIZIN G THE MISTAKE REVERSED THE ENTRY BUT ADJUSTED TDS PAID TO GOVERNM ENT A/C FROM RENTAL FOR NEXT MONTH (PAYMENT ADVICE ON PAGE 8/ 23 ) 7. BPCL MADE COMPOSITE PAYMENT OF RENT (ASSESSEE + SON) OF RS. 65, 727/- PM FOR THE YEAR UNDER CONSIDERATION ( RENT A/C ON PAGE 10). ASSESSEE VIDE JOURNAL ENTRY CREDITED RENT OF R S. 4, 31, 664/- TO SHRI AKASH Y PATEL - WHO BECAME OWNER OF PART OF PR OPERTY ON TURNING MAJOR ( LEASE AGREEMENT RELEVANT @ PAGE 32) 8. DESPITE SUBMISSION TO BPCL TO ISSUE SEPARATE PA YMENT TO MAJOR SON (PAGE 19) BPCL ISSUED PAYMENT AND DEDUCTE D TAX FROM COMPOSITE PAYMENT OF RS. 1, 42, 846/- IN THE NAME O F THE ASSESSEE WHO CLAIMED THE CREDIT IN HIS RETURN OF INCOME AND SHRI AKASH Y PATEL OFFERED HIS SHARE OF RENTAL INCOME BUT DID NO T CLAIM ANY TDS (PAGE 58/59) UNDER THE CIRCUMSTANCES IT IS RESPECTFULLY SUBMITTE D THAT THE CREDIT OF TAX DEDUCTED AT SOURCE BE ALLOWED AS CLAIMED SINCE INCOME DECLARED IN THE CERTIFICATE IS OFFERED TO TAX BY TH E ASSESSEE & HIS SON. AT THE OUTSET, LD. SR. D.R. VEHEMENTLY RELIED UPON THE ORDER OF THE CIT(A). 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE A.O. IS DIRECTED TO VERIFY THE CONTENT S OF THE REPLY SUBMITTED BEFORE US AND VERIFY THE RETURN OF ASSESSEES SON A S WELL AS IN CASE OF ASSESSEE ON THE BASIS OF TDS CERTIFICATE ISSUED BY THE BPCL AND ALSO VERIFY THE REVERSE ENTRY FOR RS.17,263/- FROM BPCL WHICH H AS BEEN ADJUSTED IN NEXT MONTH. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE CIT(A) TO THE A.O. FOR DE ITA NO. 757/AHD/2013 A.Y. 09-10 PAGE 4 NOVO. THE A.O. IS DIRECTED TO GIVE REASONABLE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE BEFORE PASSING THE ORDER. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. THIS ORDER PRONOUNCED IN OPEN COURT ON 18.10.2013 SD/- SD/- (G.C.GUPTA) (T.R. MEENA) VICE PRESIDENT ACCOUNTANT MEMBER TRUE COPY S.K.SINHA ! ! ! ! '! '! '! '! / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. '(' ) * / CONCERNED CIT 4. *- / CIT (A) 5. !./ ), ) , 12( / DR, ITAT, AHMEDABAD 6. /45 67 / GUARD FILE. BY ORDER/ , 8/ 1 ': ) , 12( ;