S.Sivaperumal (HUF), Salem V. ITO Ward 2(3), Salem

ITA 850/CHNY/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 3164 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 7 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-11-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 29-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S R ANITA
• Assessee Lawyers: S SRIDHAR
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI S. JAYARAMAN , ACCOUNTANT MEMBER I .T.A. NO. 850 /CHNY/20 1 9 ASSESSMENT YEAR: 20 09 - 2010 MR. S. SIVAPERUMAL [HUF], NO.52, KARUNALAYAA, RAM NAGAR, KUMARASAMIPATTI, SALEM 636 007. . [PAN: A AUHS 9889P ] VS. THE INCOME TAX OFFICER, WARD 2 (3), NO.3, GANDHI ROAD, SALEM 636 00 7. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. S. SRIDHAR, ADVOCATE /RESPONDENT BY : M R S . R. ANITA, J CIT / DATE OF HEARING : 0 4 . 1 1 .2020 / DATE OF PRONOUNCEMENT : 18. 1 1 .2020 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER : TH IS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) , SALEM IN APPEAL NO.247/2016 - 17 , DATED 25.01.2019 RELEVANT TO THE ASSESSMENT YEAR 20 09 - 2010 . I . T . A NO . 850 /CHNY/20 1 9 : - 2 - : 2. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSEE IS IN THE BUSINESS OF OPERATING HARVESTER MACHINES , FILED HIS RETURN OF INCOME DECLARING A TOTAL INCOME OF RS.1,45,810/ - . THE RETURN FILED BY THE ASSESSEE WAS INI TIALLY PROCESSED U/S.143(1) OF THE INCOME TAX ACT, 1961 AND THEREAFTER THE ASSESSMENT WAS RE - OPENED BY ISSUING A NOTICE U/S.148 DATED 28.03.2016 AND THE ASSESSMENT WAS COMPLETED U/S.143 (3) R.W.S.14 7 OF THE INCOME TAX ACT, 1961. 3. THE CASE OF THE ASSESSEE IS THAT HE HAS RECEIVED AN AMOUNT OF RS.14,49,000/ - BY OPERATING THE HARVESTER MACHINES AND AFTER INCURRING VARIOUS EXPENDITURES, THE NET INCOME OF THE ASSESSEE IS OF R S.4,49,000/ - THE ASSESSING OFFICER IS OF THE OPINION THAT THE ENTIRE AMOUNT RECEIVED BY THE ASSESSEE IS THE NET INCOME AND THEREFORE WANTED TO TAX THE ENTIRE RECEIPTS BASED ON THE BANK STATEMENT. THE SAME VIEW HAS BEEN CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) 4 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILA BLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW . 5. W E FIND THAT THE ENTIRE RECEIPTS FROM THE OPERATION OF HARVESTER MACHINES CANNOT BE CONSIDERED AS THE NET INCOME OF THE ASSESSEE AS T O RUN A MACHINE, PARTICULARLY THE HARVESTER MACHIN E, DIESEL & OIL AND REPAIRS AND MAINTENANCE ARE TO BE TAKEN INTO ACCOUNT . THEREFORE, THE I . T . A NO . 850 /CHNY/20 1 9 : - 3 - : ASSESSING OFFICER IS NOT JUSTIFIED BY CONSIDERING THE ENTIRE AMOUNT AS INCOME OF THE ASSESSEE . THE ASSESSEE AFTER DEDUCTING THE EXPENDITURE INCURRED HAS OFFERED CORRECTLY A NET INCOME OF RS.4,49,000/ - . IN OUR VIEW, THE SAME HAS TO BE TAXED. 6 . THUS, THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER AND CONFIRMED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ARE SET ASIDE AND THE APPEAL OF THE ASSESSEE ALLOWED. 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IN I.T.A.NO. 850 /CHNY/201 9 IS ALLOWED. ORDER PRONOUNCED ON 18 TH NOVEMBER, 2020 IN CHENNAI. SD/ - ( . ) ( S. JAYARAMAN ) /ACCOUNTANT MEMBER SD/ - ( ) ( V. DURGA RAO ) /JUDICIAL MEMBER / CHENNAI, / DATED: 18 TH NOVEMBER , 2020 IA , SR. P.S /COPY TO: 1. /APPEL LANT 2. /RESPONDENT 3. () /CIT(A) 4. /CIT 5. /DR 6. /GF