K.Subramaniam, Tiruchengode V. DCIT, Coimbatore

ITA 930/CHNY/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 9143 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 1 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 15-03-2016
• Assessment Year: 2005-2006
• Appeal Filed On: 09-05-2013
• Court: TRIBUNAL
• Department Lawyers: A B KOLI
• Assessee Lawyers: G BASKAR
• Section: 143(3); 153A; 132

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 930/MDS/2013 / ASSESSMENT YEAR :2005 - 06 SHRI K. SUBRAMANIAM, NO. 168/5 - B, KOZHIKKALNATHAM ROAD, TIRUCHENGODE 637 211. [PAN: A RPPS4578R ] VS. THE DEPUTY COMMISSIONER OF INCOME TAX , CENTRAL CIRCLE III , COIMBATORE. ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI G. BASKAR, ADVOCATE / RESPONDENT BY : SHRI A. B. KOLI , J CIT / DATE OF HEARING : 1 7 . 0 3 .201 6 / DATE OF P RONOUNCEMENT : 10 . 0 6 .201 6 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH I S APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) II , C OIMBATORE , DATED 2 5 .0 3 .20 13 R ELEVANT TO THE ASSESSMENT YEAR 200 5 - 0 6 PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] . 2. BRIEF FACTS OF THE CASE ARE THAT A SEARCH UNDER SECTION 132 OF THE ACT WAS CONDUCTED IN THE CASE OF THE ASSESSEE ON 02.07.2005 AND THE I.T.A. NO . 930 /M/ 13 2 SEARCH WAS CONCLUDED ON 27.08.2005. IN CONNECTION WITH THE ASSESSEE S CASE, THE TAMILNADU MERCANTILE BANK, ERODE BRANCH AT 260 ESWARAN KOIL STREET, ERODE AND TAMILNADU MERCANTILE BAN K , TIRUCHENGODE BRANCH AT 10, SOUTH CAR STREET, TIRUCHENGODE WERE ALSO SEA RCH ON 02.07.2005. THE ASSESSMENT FOR THE ASSESSMENT YEAR 2005 - 06 WAS COMPLETED UNDER SECTION 153A R.W.S 143(3) OF THE ACT ON 26.12.2007 DETERMINING THE TOTAL INCOME OF THE ASSESSEE AT .78,43,280/ - BY MAKING VARIOUS ADDITIONS. SUBSEQUENTLY, PENALTY PROCE EDINGS UNDER SECTION 271(1)(C) OF THE ACT WERE ALSO INITIATED BY THE ASSESSING OFFICER SINCE THE ASSESSEE IS STATED TO HAVE CONCEALED THE INCOME/FURNISHED INACCURATE PARTICULARS. AGAINST SERVICE OF NOTICE, THE ASSESSEE HAS FILED DETAILED REPLY. AFTER CONSI DERING THE SUBMISSIONS OF THE ASSESSEE, THE ASSESSING OFFICER HAS OBSERVED THAT THE ASSESSEE HAS MADE UNACCOUNTED DEPOSITS OF .52,00,000/ - AND THE SAME WAS TREATED AS UNDISCLOSED INCOME OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2002 - 03 AND THE ACCRUED INTEREST OF .14,80,075/ - WAS TREATED AS THE UNDISCLOSED INCOME OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2005 - 06. SINCE THE ASSESSEE HAS NOT ADMITTED THE INTEREST INCOME TO THE TUNE OF .14,80,075/ - IN THE RETURN OF INCOME FILED ON 08.06.2007, THE SAME WAS ADDED TO THE TOTAL INCOME OF THE I.T.A. NO . 930 /M/ 13 3 ASSESSEE IN THE ASSESSMENT YEAR 2005 - 06. SINCE THE ASSESSEE HAS CONCEALED THE INCOME/ FURNISHED IN ACCURATE PARTICULARS WITHIN THE MEANING OF SECTION 271(1)(C) OF THE ACT , THE ASSESSING OFFICER HAS WORKED OUT PENALTY FOR THE UNDISCLOSED INCOME OF .52,00,000/ - FOR THE ASSESSMENT YEAR 2002 - 03 AND THE UNDISCLOSED ACCRUED INTEREST OF .14,80,075/ - AND LEVI ED MINIMUM PENALTY OF .9,02,935/ - . 3. ON APPEAL, AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE AND ALSO BY FOLLOWING VARIOUS JUDICIAL PRONOUNCEMENTS, THE LD. CIT(A) CONFIRMED THE PENALTY LEVIED BY THE ASSESSING OFFICER. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT AGAINST THE QUANTUM ADDITION FOR THE ASSESSMENT YEAR 2002 - 03, THE TRIBUNAL HAS REMITTED THE MATTER BACK TO THE ASSESSING OFFICER FOR FRE SH CONSIDERATION AND THEREFORE, THE PENALTY LEVIED IN LIEU OF THE QUANTUM ADDITION FOR THE ASSESSMENT YEAR 2002 - 03 AND ACCRUED INTEREST OF THE QUANTUM ADDITION IN THE ASSESSMENT YEAR 2005 - 06, THE MATTER SHOULD ALSO BE REMITTED BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION. I.T.A. NO . 930 /M/ 13 4 5. ON THE OTHER HAND, THE LD. DR DID NOT SERIOUSLY OBJECT TO THE ABOVE SUBMISSIONS OF THE ASSESSEE BUT SUPPORTED THE ORDERS OF AUTHORITIES BELOW. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH T HE ORDERS OF AUTHORITIES BELOW. IN THIS CASE, AGAINST THE ADDITION MADE TOWARDS UNDISCLOSED INCOME OF THE ASSESSEE AT .52,00,000/ - IN THE ASSESSMENT YEAR 2002 - 03 AND THE ACCRUED INTEREST OF .14,80,075/ - , WHICH WAS NOT DISCLOSED IN THE RETURN OF INCOME FILED BY THE ASSESSEE ON 08.06.2007, THE PENALTY UNDER SECTION 271(1)(C) OF THE ACT WAS WORKED OUT BY THE ASSESSING OFFI CER AT .9,02,935/ - AND LEVIED PENALTY IN THE ASSESSMENT YEAR 2005 - 06. THE PENALTY WAS LEVIED FOR QUANTUM ADDITION FOR ASSESSMENT YEAR 2002 - 03 AND ACCRUED INTEREST WAS WORKED OUT FOR THE ABOVE SAID QUANTUM ADDITION AND THE ASSESSING OFFICER HAS HELD THAT T HE SAME AS UNDISCLOSED INCOME OF THE ASSESSEE IN THE ASSESSMENT YEAR 2005 - 06. WE HAVE PERUSED THE ORDER OF THE COORDINATE BENCH OF THE TRIBUNAL IN ASSESSEE S OWN CASE FOR THE ASSESSMENT YEAR 2000 - 01, 2002 - 03, 2002 - 03 AND 2000 - 01 IN I.T.A. NOS. 927 TO 929 & 931/MDS/2013 DATED 20.02.2015, WHEREIN, THE TRIBUNAL HAS SET ASIDE THE ORDER OF THE LD. CIT(A) AND REMITTED THE MATTER BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION. BY I.T.A. NO . 930 /M/ 13 5 CONSIDERING THE PLEA OF THE LD. COUNSEL FOR THE ASSESSEE AND ALSO CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE OF THE CONSIDERED OPINION THAT THE PENALTY LEVIED IN LIEU OF QUANTUM ADDITION FOR THE ASSESSMENT YEAR 2002 - 03 AND UNDISCLOSED ACCRUED INTEREST IN THE ASSESSMENT YEAR 2005 - 06 SHOULD ALSO BE EXAMINED AND DECIDE THE MATTER AFRESH BY THE ASSESSING OFFICER SINCE ALL ARE INTERLINKED. THUS, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION. THUS, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR S TATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 10 TH JUNE , 201 6 AT CHENNAI. SD/ - SD/ - ( CHANDRA POOJARI ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNA I, DATED, THE 10 . 0 6 .201 6 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.