Napa Radhakrishnan, CHENNAI V. ACIT, CHENNAI

ITA 839/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 8511 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 24-08-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 04-04-2016
• Court: TRIBUNAL
• Department Lawyers: A NATARAJA
• Assessee Lawyers: G BASKAR
• Keywords: Cost of acquisition
• Section: 143(3); 234B

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , . , BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 83 9 /MDS/2016 / ASSESSMENT YEAR :20 1 0 - 1 1 SHRI NAPA RADHAKRISHNAN, NO. 9 (OLD NO. 24), SHANMUGARAYAN STREET, OLD WASHERMENPET, CHENNAI 600 021. [PAN: A AJPR4332F ] VS. THE ASSISTANT COMMISSIONE R OF INCOME TAX , NON - CORPORATE CIRCLE 5, CHENNAI 6. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI G. BASKAR, ADVOCATE / RESPONDENT BY : SHRI A. NATARAJA , J CIT / D ATE OF HEARING : 24 . 0 8 .201 6 / DATE OF P RONOUNCEMENT : 28 . 0 9 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX ( APPEALS) 5 , CHENNAI , DATED 2 8 . 0 1 .20 1 6 RELEVANT TO THE ASSESSMENT YEAR 20 1 0 - 1 1 . THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DENYING CREDIT FOR THE PREPA ID TAXES, NAMELY ADVANCE TAX AND TDS REFERABLE TO THE INCOME ASSESSED. I.T.A. NO . 83 9 /M/ 16 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND ENGAGED IN THE BUSINESS OF TRADING FUTURES AND OPTIONS AND COMMISSION AGENT. THE ASSESSEE FILED HIS RETURN OF I NCOME ADMITTING TOTAL INCOME OF .14,97,250/ - . THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] RAISING A DEMAND OF .3,01,420/ - . THEREAFTER, THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY TO EXAMINE THE GENUINENESS OF SHORT TERM CAPITAL GAINS UNDER SECTION 111A OF THE ACT AND TO EXAMINE THE LONG TERM CAPITAL GAINS WITH REGARD TO SALE CONSIDERATION AND INDEXED COST OF ACQUISITION AND ACCORDINGLY, NOTICE UNDER SECTION 143(2) OF THE ACT WAS I SSUED AND SERVED ON THE ASSESSEE ON 03.09.2011. IN RESPONSE TO THE NOTICES, THE DETAILS FILED BY THE ASSESSEE WAS EXAMINED AND THE ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE ACT BY DETERMINING TAXABLE INCOME AT .3,51,040/ - . 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE WRITTEN SUBMISSIONS FILED BY THE AR OF THE ASSESSEE AS WELL AS CONSIDERING THE FACTS OF THE CASE, THE LD. CIT(A) DISMISSED THE APPEAL FILE BY THE ASSE SSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE AUTHORITIES BELOW I.T.A. NO . 83 9 /M/ 16 3 HAVE NOT GIVEN CREDIT FOR THE TDS AND ADVANCE TAX OF .4,32,592/ - AND PLEADED THAT SUITABLE DIRECTIONS MAY BE GIVEN TO THE ASSESSING OFFICER. 5. ON THE OTHER HAND, THE LD. DR SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE ASSESSMENT ORDER PAS SED UNDER SECTION 143(3) OF THE ACT DATED 01.02.2013 IS REPRODUCED AS UNDER: ASSESSMENT ORDER THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRADING FUTURES AND OPTIONS AND COMMISSION AGENT. FOR THE ASSESSMENT YEAR 2010 - 11, THE ASSESSEE FILED THE RETURN OF INCOME ON 18 - 09 - 2010 ADMITTING A TOTAL INCOME OF RS.14,97,250/ - AND THE SAME WAS PROCESSED U/S 143(1) OF THE INCOME - TAX ACT, 1961 RAISING A DEMAND OF RS.3,01,420/ - . THEREAFTER, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS TO EXAMINE THE GENUINENESS OF SHO RT TERM CAPITAL GAINS U/S LL1A OF THE IT. ACT AND TO EXAMINE THE LONG TERM CAPITAL GAINS WITH REGARD TO SALE CONSIDERATION AND INDEXED COST OF ACQUISITION. NOTICE U/S 143(2) WAS ISSUED AND SERVED ON THE ASSESSEE ON 03/09/2011. THE CASE WAS ORIGINALLY ASS ESSED BY ACIT, BUSINESS CIRCLE - VII, CHENNAI. VIDE NOTIFICATION IN C.NO.7071/CIT - VII/2012 - 13 OF THE COMMISSIONER OF INCOME TAX, CHENNAI - VII, CHENNAI DATED 28/12/2012, THE SCRUTINY ASSESSMENT FOR THE A.Y.2010 - 11 IN THIS CASE WAS TRANSFERRED TO THIS OFFICE. FRESH NOTICE U/S.143(2) ISSUED AND SERVED ON THE ASSESSEE. IN RESPONSE TO THE NOTICE ISSUED, SHRI D. PURUSHOTHAMAN, OF M/S. R. BUPATHY & CO, CHENNAI APPEARED ON VARIOUS DATES AND FILED DETAILS CALLED FOR AND THE CASE WAS DISCUSSED. AFTER DISCUSSION AND VE RIFICATION OF DETAILS FILED BY THE A. R., THE ASSESSMENT IS COMPLETED ON THE BASIS OF INCOME RETURNED. I.T.A. NO . 83 9 /M/ 16 4 TOTAL INCOME . 14,97,250 INCOME TAX . 3,53,174 ADD: EDUCATION CESS . 10,595 . 3,63,769 LESS: TDS . 81,264 BALANCE PAYABLE . 2,82,505 LESS: AT PAID . 30,000 . 2,52,505 ADD: INTEREST U/S 234B . 88,375 INTEREST U/S 234C . 10,155 TOTAL PAYABLE . 3,51,040 (ROUNDED OFF) DEMAND NOTICE U/S. 156 ENCLOSED HEREWITH. WE ARE OF THE OPINION THAT THE ABOVE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS VERY CRYPTIC AND NOT REFLECTED THE DETAILS OF INVESTMENT MADE. THE RETURN FILED BY THE ASSESSEE WAS ORIGINALLY ASSESSED BY THE BUSINESS CIRCLE VII AND THEREAFTER, AS PER THE DIRECTIONS OF THE LD. CIT, CHE NNAI VII, CHENNAI, THE SCRUTINY ASSESSMENT WAS CARRIED OUT BY THE BUSINESS WARD VII(3). BEFORE US, IN THE FORM OF PAPER BOOK, THE ASSESSEE HAS FILED FORM 26AS OF INDIAREIT FUND ADVISORS P. LTD. AND OTHER PARTICULARS. IN VIEW OF THE ABOVE, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER TO VERIFY THE DETAILS AS FILED BEFORE THE TRIBUNAL AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND PASS A SPEAKING ORDER ALLOWING OPPORTUNITY OF HEARING TO THE ASSESSE E. THUS, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. I.T.A. NO . 83 9 /M/ 16 5 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 28 TH SEPTEMBER , 201 6 AT CHENNAI. SD/ - SD/ - ( A. MOHAN ALANK AMONY ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 28 . 0 9 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.