R.Rangarajan, CHENNAI V. ACIT, CHENNAI

ITA 985/CHNY/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7989 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 22-09-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 15-05-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYA PAL
• Assessee Lawyers: G BASKAR
• Section: 143(3); 153A; 132; 139

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI , . , % & BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ I.T.A. NO. 985/MDS/2013 / ASSESSMENT YEAR : 2008-09 R. RANGARAJAN, NO. 38, (OLD NO. 24) A.B.M. AVENUE, R.A. PURAM, CHENNAI - 600 028. [PAN: AADPR 7092J] VS. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -III(3), CHENNAI - 600 034 ./ I.T.A. NO. 1304/MDS/2013 / ASSESSMENT YEAR : 2008-09 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - III (3), 3RD FLOOR, UTHAMAR GANDHI SALAI, NUNGAMBAKKAM, CHENNAI - 600 034. VS . R. RANGARAJAN, NO. 38, (OLD NO. 24) A.B.M. AVENUE, R.A. PURAM, CHENNAI - 600 028. [PAN: AADPR 7092J] ./ I.T.A. NO. 986/MDS/2013 / ASSESSMENT YEAR : 2008-09 SMT. R. MAHALAKSHMI, NO. 38, (OLD NO.24), A.B.M. AVENUE, R.A. PURAM, CHENNAI - 600 028. [PAN: AGQPM 8406N] VS . ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE -III(3), CHENNAI - 600 034. ./ I.T.A. NO. 1305/MDS/2013 / ASSESSMENT YEAR : 2008-09 DEPUTY COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE - III (3), VS . SMT. R. MAHALAKSHMI, NO. 38, (OLD NO.24), A.B.M. AVENUE, ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 2 -: 3RD FLOOR, UTHAMAR GANDHI SALAI, NUNGAMBAKKAM, CHENNAI - 600 034. R.A. PURAM, CHENNAI - 600 028. [PAN: AGQPM 8406N] ( /APPELLANT) ( /RESPONDENT) ( ) / APPELLANT BY : SHRI G. BASKAR, ADVOCATE +,( ) / RESPONDENT BY : MR. SUPRIYA PAL, JCIT ) /DATE OF HEARING : 22.09.2016 ) /DATE OF PRONOUNCEMENT : 25.11.2016 /O R D E R PER G. PAVAN KUMAR, JUDICIAL MEMBER: THESE ARE THE CROSS APPEALS FILED BY THE ASSESSEE A ND REVENUE AGAINST THE ORDERS OF CIT(A) - II, CHENNAI IN I.T.A . NO. 34/2011-12/A-II DATED 06.03.2013 FOR THE ASSESSMENT YEAR 2008-09 IN THE C ASE OF SHRI R. RANGARAJAN AND I.T.A. NO. 20/11-12/A-II DATED 06.03.2013 OF SM T. R. MAHALAKSHMI. SINCE, THE ISSUES IN THESE APPEALS ARE COMMON IN NATURE, T HESE APPEAL ARE CLUBBED AND HEARD TOGETHER AND DISPOSED BY THE COMMON ORDER . FOR THE SAKE OF CONVENIENCE WE FIRST TAKE UP ASSESSEE'S APPEAL ITA NO. 985/MDS/2013. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF AP PEAL: 2.1 THE CIT(A) WENT WRONG IN DIRECTING THE ASSESSIN G OFFICER TO LEVY PENALTY U/S. 271 AAA OF THE INCOME TAX ACT ON THE U NDISCLOSED INCOME. ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 3 -: 2.2 THE CIT(A) HAVING FOUND THAT THE PENALTY LEVIED U/S. 271(1)(C) IS UNTENABLE, OUGHT TO HAVE QUASHED THE ENTIRE ORDER I MPUGNED BEFORE HIM. 2.3 THE CIT(A) HAVING FOUND THAT THE PENALTY LEVIED BY THE ASSESSING OFFICER U/S. 271(1)(C) IS UNTENABLE, ALSO WENT WRON G IN GIVING SUCH A DIRECTION WITHOUT GIVING ANY SPECIFIC OPPORTUNITY TO THE APPE LLANT ON SUCH DIRECTION. 2.4 THE CIT(A) HAS NO JURISDICTION TO LEVY PENALTY DIFFERENT FROM THE ONE LEVIED BY THE ASSESSING OFFICER AND THEREFORE SUCH A DIRECTION GIVEN BY HIM IS LIABLE TO BE STRUCK DOWN FOR WANT OF JURISDICTION. 2.5 IN ANY EVENT THE CIT(A) OUGHT TO HAVE NOTICE TH AT THE PROVISIONS OF SECTION 271AAA ON THE SUM OF RS. 1,52,19,000/- IS N OT APPLICABLE TO FACTS OF THE PRESENT CASE AND AS SUCH EVEN ON MERITS, THE OR DER OF THE CIT(A) TO THE CONTRARY IS LIABLE TO BE VACATED. 3. THE BRIEF FACTS OF THE CASE ARE THE ASSESSEE IS AN INDIVIDUAL AND CHAIRMAN OF M/S. VEL TECH GROUP OF EDUCATIONAL INST ITUTIONS AND THE NOTICE U/S. 153A R.W.S 153C OF THE I.T ACT SERVED ON THE A SSESSEE TO FILE RETURN OF INCOME. IN COMPLIANCE TO THE NOTICE, THE ASSESSEE FILED RETURN OF INCOME ON 29.10.2010 ADMITTING TOTAL INCOME OF RS. 1,62,96,56 0/- SUBSEQUENTLY NOTICE U/S. 143(2) OF THE ACT ALONG WITH QUESTIONNAIRE WAS SERVED. IN COMPLIANCE TO THE ABOVE NOTICE, LD. AR OF THE ASSESSEE APPEARED F ROM TO TIME AND FILED THE ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 4 -: DETAILS AND EXPLAINED THAT AGRICULTURAL INCOME OF R S. 12,75,000/- WAS RECEIVED FROM M/S. VEL HORTICULTURE LTD., IN CASH BUT THE LD . AO FOUND THAT SUCH INCOME IS IN NATURE OF THE DISCLOSED INCOME AND MADE ADDIT ION TO RETURNED INCOME AND PASSED ORDER U/S. 153A R.W.S. 143(3) OF THE ACT DETERMINING ASSESSED INCOME OF RS. 1,75,71,560/-. SUBSEQUENTLY, THE LD. AO HAS INITIATED PENALTY PROCEEDINGS AND ISSUED NOTICE. IN COMPLIANCE, THE LD. AR APPEARED AND EXPLAINED THAT THE ASSESSEE HAS ADMITTED THE INCOME AND PAID TAXES AND IMMUNED FROM PENALTY PROVISIONS AS PER EXPLANATION 5 TO SECTION 271(1)(C) OF THE ACT. THE LD. AO RELIED ON THE SUBMISSIONS AND PROVISIONS OF LAW OBSERVED THAT THE ASSESSEE HAS FILED THE RETURN OF INCOME U/ S. 153A OF THE ACT ADMITTING THE TOTAL INCOME OF RS. 1,62,96,560/- AND DUE TO SEARCH U/S. 132 OF THE ACT, INCOME HAS BEEN UNEARTH. THE LD. AR EXPLA INED THAT THE DISCLOSED INCOME PERTAINS TO THE SAID FINANCIAL YEAR AND THE DIFFERENCE IN THE TOTAL INCOME WAS ALREADY FURNISHED AND COVERED BY THE EXP LANATION 5 OF 271(1)(C) OF THE ACT. THE LD. AO FOUND IN THE ASSESSMENT ORD ER THAT ASSESSEE HAS VARIOUS REAL ESTATE TRANSACTIONS AND RS. 12,75,000/ - WAS ADDED AS UNDISCLOSED INCOME IN THE HANDS OF ASSESSEE AS THERE IS NO CONV INCING EXPLANATIONS ON AGRICULTURE INCOME. FINALLY, THE LD. AO IS OF THE OPINION THAT THE ASSESSEE HAS NOT DISCLOSED THE SAID INFORMATION IN RETURN OF INC OME U/S. 139(1) OF THE ACT BUT DISCLOSED IN RETURN OF INCOME FILED IN COMPLIAN CE TO THE NOTICE U/S. 153A OF THE ACT AND THE ASSESSEE COULD NOT PRODUCE ANY BOOK S OF ACCOUNTS OR SUBSTANTIATE THE CLAIM AND THE INCOME WAS OFFERED U NDER INCOME FROM OTHER ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 5 -: SOURCES AND LEVIED THE PENALTY OF RS. 48,35,016/- A ND PASSED ORDER DATED 27.06.2011. 4. AGGRIEVED BY THE ORDER OF PENALTY THE ASSESSEE H AS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLANT PROCEEDINGS, THE LD. AR OF THE ASSESSEE ARGUED THAT THE LD. AO ERRED IN LEVYING PENALTY AS THE ASSESSEE HAS OFFERED RS. 1,52,19,000/- IN RETURN OF INCOME FILED IN CO MPLIANCE TO NOTICE U/S. 153A OF THE ACT. THE INCOME INCLUDES ON MONEY PAYMENTS MADE TO THE SELLERS AND AGRICULTURAL INCOME WHICH IS NOT LIABLE TO TAX AND WAS DISCLOSED VOLUNTARILY. THE ASSESSEE IN ASSESSMENT PROCEEDINGS ACCEPTED THE INCOME OF RS. 1,52,19,000/- TO BUY PEACE WITH THE INCOME TAX DEPA RTMENT AND THEREFORE THERE IS NO CONCEALMENT OF INCOME AND PENALTY CANNO T BE LEVIED. FURTHER, THE AGRICULTURAL INCOME IS NOT TAXABLE AND EXEMPTED FRO M INCOME TAX AND PENALTY CANNOT BE LEVIED ON THE AGRICULTURAL INCOME. THE L D. CIT(A) CONSIDERED THE ARGUMENTS AND FINDINGS OF THE ASSESSING OFFICER MAD E IN THE ASSESSMENT ORDER AND THE PENALTY ORDER. THE LD. AR EXPLAINED IN THE PENALTY PROCEEDINGS THAT THE ASSESSEE HAS ADMITTED ADDITIONAL INCOME TO PURCHASE PEACE AND AVOID LITIGATION AND THIS AMOUNT WAS OFFERED WITHOUT ANY CONDITIONS. THE INCOME TAX DEPARTMENT AFTER THE SEARCH HAS RECORDED STATEMENT ON MONEY PAYMENTS MADE BY THE ASSESSEE WHICH WAS ALREADY OFFERED AND THE AGRICULTURAL INCOME IS GENUINE SOURCE AND IS NOT TAXABLE. THEREFORE, N O PENALTY CANNOT BE LEVIED, THE ADMISSION OF INCOME CANNOT BE CONCEALMENT OF IN COME AND NO IMPOUNDED ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 6 -: MATERIAL WAS FOUND IN RESPECT OF TRANSACTION OF ON MONEY PAYMENTS AND RELIED ON THE JURISDICTIONAL HIGH COURT DECISION AND TRIBU NAL DECISIONS. THE LD. AR FURTHER EXPLAINED THAT THE PENALTY CAN BE LEVIED ON THE ORDER PASSED U/S. 153C OF THE ACT AND NOT U/S. 153A OF THE ACT. THE LD. C IT(A) ON PERUSAL OF THE PROVISIONS FOUND THAT THE ASSESSING OFFICER HAS JUS TIFIED HIS ACTION AND THERE IS REFERENCE ON PROVISIONS OF SECTION 153C ALONG WITH 153A IN THE ASSESSMENT ORDER AND ASSESSMENT ORDER CANNOT BE INVALID AND RE LIED ON THE PROVISIONS OF SECTION 292B OF THE ACT AND REJECTED THE OBJECTIONS OF THE ASSESSEE. FURTHER, THE LD. CIT(A) PERUSED THE PROVISIONS OF LEVY OF PE NALTY AND FOUND THAT THE ASSESSEE HAS DISCLOSED TOTAL INCOME OF RS. RS. 33,8 3,635/- IN THE RETURN OF INCOME FILED ON 17.10.2008, WHEREAS THE DUE DATE OF FILING RETURN OF INCOME IS 31.07.2008. SUBSEQUENTLY, IN COMPLIANCE TO THE NOT ICE U/S. 153A RETURN OF INCOME WAS FILED ON 29.03.2010 WITH TOTAL INCOME OF RS. 1,62,92,560/-. THE LD. CIT(A) FOUND THAT THERE WAS SEARCH OPERATIONS U /S. 132 OF THE ACT OF VEL TECH GROUP OF INSTITUTIONS ON 26.08.2008 AND THE AS SESSMENT BEING ASSESSMENT YEAR 2008-09 AND THE PROVISIONS OF SECTI ON 271AAA OF THE ACT ARE ATTRACTED AND NOT THE PROVISIONS OF SECTION 271(1)( C) OF THE ACT AND DUE TO MISTAKE IN STATING THE WRONG SECTION, THE ORDER CAN NOT BE SAID TO BE VOID AND DEFECT IS CURABLE U/S. 292B OF THE ACT. FURTHER, T HE LD. CIT(A) IS OF THE OPINION THAT SECTION 271AAA OF THE ACT WAS INTRODUCED FROM 01.04.2007 APPLICABLE FROM FINANCE ACT 2007 AND AS PER THE PROVISIONS WHE RE THE SEARCH HAS BEEN INITIATED U/S. 132 OF THE ACT ON OR AFTER 1ST JUNE 2007, THE ASSESSEE SHALL BE ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 7 -: LIABLE TO PAY BY WAY OF PENALTY IN ADDITION TO TAX, IF ANY PAYABLE BY HIM AS COMPUTED AT THE RATE OF 10% OF UNDISCLOSED INCOME O F THE SPECIFIED PREVIOUS YEAR AND DEALT EXHAUSTIVELY ON THE PROVISIONS AT PA GE 5 AND 6 OF THE ORDER AND CONCLUDE THAT THE PROVISIONS OF SECTION 271AAA OF T HE ACT ARE APPLICABLE TO THE ASSESSEE. THE LD. CIT(A) FOUND THAT THE UNDISCLOSE D INCOME OFFERED BY THE ASSESSEE AND ADDITION IN THE ASSESSMENT PROCEEDINGS ARE LIABLE FOR PENALTY U/S. 271AAA OF THE ACT AND DIRECTED THE ASSESSING O FFICER TO LEVY PENALTY @ 10% OF SUCH UNDISCLOSED INCOME OF THE ASSESSEE AND PARTLY ALLOWED THE APPEAL. AGGRIEVED THE ASSESSEE HAS FILED AN APPEAL WITH THE TRIBUNAL. 5. BEFORE US, THE LD. AR OF THE ASSESSEE ARGUED THA T THE CIT(A) ERRED IN GIVING DIRECTIONS TO THE ASSESSING OFFICER FOR L EVY OF PENALTY U/S. 271AAA OF THE ACT ON THE UNDISCLOSED INCOME. THE LD. CIT(A) HAVING FOUND THAT THE PENALTY LEVIED U/S. 271(1)(C) IS NOT TENABLE SHOULD HAVE VACATED THE ENTIRE PENALTY ORDER AND FURTHER ERRED IN NOT PROVIDING SP ECIFIC OPPORTUNITY TO THE APPELLANT BEFORE GIVING DIRECTIONS TO THE ASSESSING OFFICER FOR LEVY OF PENALTY AND THE PROVISIONS OF SECTION 271AAA OF THE ACT ARE NOT APPLICABLE TO THE ASSESSEE AND PRAYED FOR ALLOWING THE APPEAL ON MERI TS. CONTRA, THE LD. DR RELIED ON THE ASSESSING OFFICER ORDER AND OPPOSED T O THE GROUNDS. 6. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD AND PROVISIONS OF THE ACT. THE LD. AR ARGUED THAT THE ASSESSEE CANNOT BE MADE LIABLE TO PAY THE PENALTY U/S. 271AAA OF THE A CT. THERE WAS SEARCH U/S. ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 8 -: 132 OF THE ACT ON 26.08.2008 AND THE RETURN OF INCO ME WAS FILED ON 17.10.2008 DISCLOSING THE TOTAL INCOME OF RS. 38,83 ,635/- AND SUBSEQUENTLY ON RECEIPT OF NOTICE U/S. 153A R.W.S. 153C OF THE ACT THE ASSESSEE FILED THE RETURN OF INCOME ON 29.10.2010 DISCLOSING TOTAL INCOME OF RS. 1,62,96,560/- AND WAS CONSIDERED BY THE ASSESSING OFFICER FOR THE ASSESSM ENT PURPOSE. THE FACT REMAINS THAT THE ASSESSEE HAS OFFERED ADDITIONAL IN COME AND FILED THE RETURN OF INCOME TO BUY PEACE WITH THE DEPARTMENT AND TO A VOID VEXATIOUS LITIGATION AND THE ASSESSING OFFICER DOES NOT HAVE ANY IMPUGNE D DOCUMENT IN SUPPORT OF UNDISCLOSED INCOME. THE ASSESSING OFFICER RELIE D ONLY ON THE STATEMENT OF THE ASSESSEE AND THE RETURN OF INCOME FILED AND LEV IED PENALTY. THE ASSESSEE HAS NOT RETRACTED THE STATEMENT ON DISCLOSURE OF IN COME. THE LD. CIT(A) GAVE THE DIRECTIONS TO THE ASSESSING OFFICER TO LEVY PEN ALTY U/S. 271AAA OF THE ACT AS AGAINST PROVISIONS OF SECTION 271(1)(C) OF THE A CT. WE FOUND THAT THE STATEMENT IS RECORDED BY THE ASSESSING OFFICER AND THE LD. AO CAME TO A UNILATERAL CONCLUSION THAT THE SEARCH WAS INITIATED ON ASSESSEE AND BECAUSE OF SUCH ACTION INCOME WAS DISCLOSED BY THE ASSESSEE TO THE INCOME TAX DEPARTMENT. PRIMA FACIE DUE TO SEARCH OPERATIONS O N M/S. VEL TECH GROUP OF INSTITUTIONS THE ASSESSEE WAS SERVED WITH NOTICE U/ S. 153A OF THE ACT AND THE ASSESSEE HAS FILED RETURN OF INCOME FOR THE ASSESSM ENT YEAR WITH DISCLOSURE OF INCOME AS OTHER INCOME AND WHICH IS NOT PART OF REG ULAR ACCOUNTS AND SUCH INCOME IS LIABLE FOR LEVY OF PENALTY U/S. 271(1)(C) OF THE ACT. WE SUPPORT OUR VIEW ON THE DECISION OF COORDINATE BENCH ITA NO. 23 5 & 236 /MDS/2013 DATED ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 9 -: 30.04.2013 OF ASSISTANT COMMISSIONER OF INCOME TAX VS. SMT J.MYTHILLI ON APPLICABILITY OF PROVISIONS OF LEVY OF PENALTY. NO W THE QUESTION ARISES WHETHER THE ORDER OF THE LD. CIT(A) GIVING DIRECTIONS TO TH E ASSESSING OFFICER TO LEVY PENALTY U/S. 217AAA OF THE ACT SHALL SURVIVE. WE R EAD THE PROVISIONS OF SECTION 271AAA(1) OF THE ACT AS UNDER: (A) 'THE ASSESSING OFFICER MAY, NOTWITHSTANDING ANYTHIN G CONTAINED IN ANY OTHER PROVISIONS OF THIS ACT, DIRE CT THAT IN A CASE WHERE SEARCH HAS BEEN INITIATED U/S. 132 ON OR AFTER THE 1ST DAY OF JUNE, 2007 [BUT BEFORE THE 1ST DAY OF J ULY, 2012], THE ASSESSEE SHALL PAY BY WAY OF PENALTY, IN ADDITI ON TO TAX, IF ANY, PAYABLE BY HIM, A SUM COMPUTED AT THE RATE OF TEN PERCENT OF THE UNDISCLOSED INCOME OF THE SPECIFIED PREVIOUS YEAR'. (B) SPECIFIED PREVIOUS YEAR MEANS THE PREVIOUS YEAR- (I) WHICH HAS ENDED BEFORE THE DATE OF SEARCH, BUT THE DATE OF FILING THE RETURN OF INCOME UNDER SUB-SECTI ON (1) OF SECTION 139 FOR SUCH YEAR HAS NOT EXPIRED BEFORE THE DATE OF SEARCH AND THE ASSESSEE HAS NOT FURNISHED THE RETURN OF INCOME FOR THE PREVIOUS YEA R BEFORE THE SAID DATE; OR (II) IN WHICH SEARCH WAS CONDUCTED.' 7. WE PERUSED THE PROVISIONS AND FOUND THAT THE DIR ECTIONS OF THE CIT(A) TO LEVY OF PENALTY U/S. 271AAA CANNOT BE SUS TAINED. ON APPLICATION OF SAID PROVISIONS TO THE PRESENT CASE, THE SEARCH U/S . 132 OF THE ACT WAS CONDUCTED ON 26.08.2008 AND THE DUE DATE OF FILING THE RETURN OF INCOME OF ASSESSEE IS 31.07.2008 AND THE ASSESSEE HAS FILED T HE RETURN OF INCOME ON ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 10 -: 17.10.2008, WHICH IS AFTER THE DUE DATE OF RETURN O F INCOME U/S. 139(1) OF THE ACT AND IN COMPLIANCE TO THE PROVISIONS OF SECTION 271AAA OF THE ACT. THE SPECIFIED THE PREVIOUS YEAR APPLICABILITY FOR THE Y EAR ENDED IS 31.03.2008 AND THE PRESENT ASSESSMENT YEAR BEING ASSESSMENT YEAR 2 008-09, AND THE DUE DATE U/S. 139(1) OF THE ACT BEING 31.07.2008 AND WH EREAS SEARCH U/S. 132 OF THE ACT TOOK PLACE ON 26.08.2008 AND THE DUE DATE O F FILING RETURN OF INCOME U/S. 139(1) HAS ALREADY EXPIRED BEFORE THE SEARCH. HENCE, THE PENALTY CANNOT BE INITIATED. WE CONSIDERING THE APPARENT FACTS, P ROVISIONS OF LAW AND JUDICIAL DECISION ARE OF THE OPINION THAT THE LD. CIT(A) DOE S NOT HAVE THE POWER TO GIVE DIRECTIONS TO LEVY PENALTY U/S. 271AAA ON UNDI SCLOSED INCOME. SINCE, THE ORDERS OF THE ASSESSING OFFICER ON PENALTY MERGED W ITH THE APPELLATE AUTHORITY, WE ARE OF THE OPINION THAT ORDER OF CIT(A) CANNOT B E SUSTAINED AND IN THE INTEREST OF JUSTICE, WE DISMISS THE ORDER OF CIT(A) AND ALLOW THE GROUNDS OF THE ASSESSEE. 8. NOW, WE TAKE UP THE REVENUE APPEAL I.T.A. NO. 1 304/MDS/2013, SINCE WE HAVE DISMISSED THE ORDER OF CIT(A), THE AP PEAL FILED BY THE REVENUE BECOME INFRUCTOUS AND DISMISSED. 9. SIMILARLY, THE ASSESSEE'S APPEAL I.T.A. NO. 986/ MDS/2013 IS ALLOWED AND APPEAL NO. I.T.A. NO. 1305/MDS/2013 FILED BY TH E REVENUE IS DISMISSED. ITA NOS. 985, 1304 & 986, 1305/MDS/2013 :- 11 -: 10. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED AND THE REVENUE APPEALS ARE DISMISSED. ORDER PRONOUNCED ON FRIDAY, THE 25TH DAY OF NOVEMBE R, 2016 AT CHENNAI. SD/- ( ) (ABRAHAM P. GEORGE) / ACCOUNTANT MEMBER SD/- ( . ) (G. PAVAN KUMAR) ! /JUDICIAL MEMBER /CHENNAI, 3 /DATED: 25 TH NOVEMBER, 2016 JPV ) +%56 76 /COPY TO: 1. ( /APPELLANT 2. +,( /RESPONDENT 3. 8 ( )/CIT(A) 4. 8 / CIT 5. 6 +%% / DR 6. / GF