Ranjita Jena, Angul V. ACIT, Central Circle,Cuttack, Cuttack

ITSSA 15/CTK/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 0973 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 11 month(s) 29 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 11-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 12-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K GAUTAM
• Assessee Lawyers: J M PATNAIK
• Section: 194J; 153

Judgement Text

P A G E 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/ SHRI C HANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT (SS) A NO . 15 /CTK/201 9 ASSESSMENT YEAR : 2010 - 2011 RANJITA JENA, AT - SMALAPADA, TALACHER, ANGUL. VS. ACIT, CENTRAL CIRCLE, CUTTACK PAN/GIR NO. ACVPJ 3787 A (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI J.M.PATNAIK , AR REVENUE BY : SHRI M.K.GAUTAM , CIT DR DATE OF HEARING : 8 / 3 / 20 2 1 DATE OF PRONOUNCEMENT : 11 / 3 /20 2 1 O R D E R PER BENCH THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) - 2 , BHUBANESWAR DATED 19.12.2018 FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN THIS APPEAL IS THAT THE LD CIT(A) IS NOT JUSTIFIED IN PARTLY CONFIRMING THE ADDITION OF RS.7,85,200/ - DUE TO NON - DEDUCTION OF T DS U/S.40(A)(IA) OF THE ACT EVEN THE RECIPIENTS ARE THE EXISTING INCOME TAX ASSESSEES ASS ESSED BY THE DEPARTMENT ON THE SAID AMOUNT. IT(SS)A NO.15 /CTK/2019 ASSESSMENT YEAR : 2010 - 2011 P A G E 2 | 5 3. FACTS IN BRIEF ARE THAT THE ASSESSEE IS IN NURSING HOME BUSINESS AT TALCHER, ODISHA AND SUBJECTED TO SEARCH U/S.132 OF THE ACT ON 3.9.2015 IN HER BUSINESS PREMISES AND RESIDENCE. DURING THE COURSE OF SEARCH OPERATION, SOME ALLEGED INCREMENTAL DOCUMENTS WERE SEIZED AS UNDER: J & J - 7 & 8 - INCOME FROM OPERATION. J&J - 1 & 3 - INCOME FROM OPD. J & J - 9 & 10 INCOME FROM ULTRA SOUND J & J - 4 - INCOME FROM ABORATION DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSEE HAS FURNISHED THE DETAILS OF DOCTORS TO WHOM FEES WERE PAID DURING THE YEAR AS UNDER: NAMES FEES PAID PAN NUMBER DR. SUKLAMBAR PANDA RS. 2,80, 000/ - AFQPP5683M (ITO WARD, ANGUL) DR. SUREKHA MOHAPATRA RS. 2, 50,000/ - ADDPM0836G (ITO WARD, DHENKANAL) DR. SUNIT KUMAR MISHRA RS. 2, 55,200/ - ABLPM3849F (ITO WARD, DHENKANAL) DR SUBASH CH JENA RS. 3,25,000/ - ABRPJ2247E (ITO 3(5), BBSR) TOTAL: 11,10,200/ - THE ASSESSING OFFICER REQUIRED THE ASSESSEE TO FURNISH EVIDENCE IN SUPPORT OF DEDUCTION AND DEPOSIT IN GOVERNMENT ACCOUNT OF TAX AT SOURCE ON SUCH PAYMENT. HOWEVER, THE ASSESSEE FAILED TO FURNISH ANY SUCH EVIDENCE. ACCORDINGLY, THE ASSESSING OFFICER OBSERVED THAT AS PE R THE PROVISIONS OF SECTION 194J OF THE ACT, IF AN INDIVIDUAL WHOSE GROSS RECEIPTS EXCEED THE IT(SS)A NO.15 /CTK/2019 ASSESSMENT YEAR : 2010 - 2011 P A G E 3 | 5 MINIMUM AMOUNT FOR WHICH ACCOUNTS ARE REQUIRED TO BE AUDITED U/S.44AB, HE OR SHE IS REQUIRED TO DEDUCT AND DEPOSIT6 TAX AT SOURCE ON PAYMENT OF PROFESSIONAL FEES EXCEEDING RS.30,000/ - IN A YEAR. SINCE, THE ASSESSEE FAILED TO DO SO, THE ASSESSING OFFICER DISALLOWED THE SAME U/S.40(A)(IA) OF THE ACT AND COMPLETED THE ASSESSMENT U/S. 153 A OF THE I.T. ACT ON 29/12/2017 BY DETERMINING THE TOTAL INCOME AT RS. 50, 06, 180/ - AS AGAINST THE DISCLOSED INCOME AT RS. 7, 18, 072/ - THEREBY MAKING ADDITION OF RS. 42, 88,108/ - , INCLUDING ADDITION OF RS.11,10,200/ - U./S,.40(A)(IA) OF THE ACT. 4. THE ASSESSEE HAS PREFERRED APPEAL AGAINST ADDITION OF RS.11,10,200/ - BEFORE THE L D CIT(A). THE CIT(A) FOUND THAT THE ASSESSMENT IN THE CASE OF DR. SUBHAS CHANDRA JENA HAS BEEN COMPLETED U/S.153A OF THE ACT AND NO ADVERSE FINDING OF NON - DISCLOSURE OF RS.3,25,000/ - PAID BY THE ASSESSEE HAS COME TO THE NOTICE. THEREFORE, THE LD CIT(A) DELETED THE ADDITION OF RS.3,25,000/ - . HOWEVER, IN RESPECT OF BALANCE AMOUNT OF RS. 7,85,200/ - , SINCE THE ASSESSEE DID NOT FILE ANY EVIDENCE TO SUBSTANTIATE THE CLAIM, THE LD CIT(A) CONFIRMED THE SAME. 5. BEFORE US, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE HAS SUBMITTED ALL RELEVANT DETAILS OF FOUR PAYEES I.E. DR. SUBAS CHANDRA JENA, DR. SUKLAMBAR PANDA, DR SUREKHA MOHAPATRA AND DR SUNITA KUMAR MISHRA BEFORE THE AO AS WELL AS LD CIT(A) INCLUDING THEIR PAN NOS. COPIES OF RESPECTIVE INCOME TAX RETURNS, WHEREIN, THEY HAVE OFFERED THE IMPUGNED AMOUNT AS INCOME FOR TAXATION. LD COUNSEL FURTHER SUBMITTED THAT, IT(SS)A NO.15 /CTK/2019 ASSESSMENT YEAR : 2010 - 2011 P A G E 4 | 5 HOWEVER, LD CIT(A) IN PARAS 4.1, 4.2 & 4.3 OF HIS ORDER ONLY ACCEPTED THE PAYMENT MADE TO SHR I SUBHAS CHANDRA JENA AMOUNTING TO RS.3,25,000/ - AND REMAINING AMOUNT OF RS.7,85,200/ - WHICH PERTAINED TO OTHER THREE DOCTORS HAVE BEEN CONFIRMED U/S.40(A)(IA) OF THE ACT. LD COUNSEL SUBMITTED THAT WHEN THE ASSESSEE HAS SUBMITTED ALL RELEVANT DETAILS OF T HE RECIPIENTS OF AMOUNT INCLUDING THEIR PAN NOS, COPIES OF INCOME TAX RETURNS AND OFFERED THE INCOME FOR TAXATION, THEREFORE, NO ADDITION IS CALLED FOR IN THE HANDS OF THE ASSESSEE IN THIS REGARD. 6. REPLYING TO ABOVE, LD CIT DR STRONGLY SUPPORTED THE ORD ER OF THE LD CIT(A). HOWEVER, IN ALL FAIRNESS, LD CIT DR SUBMITTED THAT THE DEPARTMENT HAS NO SERIOUS OBJECTION, IF THE ISSUE IS RESTORED TO THE FILE OF THE AO FOR VERIFICATION, AS TO WHETHER THE RESPECTIVE RECIPIENTS OF THE AMOUNT HAVE OFFERED THE INCOME FOR TAXATION IN THEIR RESPECTIVE INCOME TAX RETURNS. 7. ON CAREFUL CONSIDERATION OF THE RIVAL SUBMISSIONS AND KEEPING IN VIEW THE ORDER OF THE FIRST APPELLATE ORDER ESPECIALLY IN PARAS 4.1, 4.2 & 4.3, WE FIND THAT THE LD CIT(A) HAS ALLOWED PAYMENT OF RS. 3,25,000/ - PAID TO DR. SUBHASH CHANDRA JENA AND DELETED THE SAME. LD CIT(A) FURTHER NOTED THAT WITH REGARD TO OTHER THREE DOCTORS , THE APPELLANT HAS NOT FILED ANY EVIDENCE THAT THEY HAVE DISCLOSED THE AMOUNTS PAID BY THE ASSESSEE IN THEIR RESPECTIVE RET URNS FOR TAXATION AND TAXES HAVE BEEN PAID THEREON. IN VIEW OF THIS FINDING RECORDED BY LD IT(A), AND SUBMISSION OF LD CIT DR, WE ARE OF THE CONSIDERED OPINION THAT TO M EET ENDS OF JUSTICE, THE ISSUE IS REQUIRED TO IT(SS)A NO.15 /CTK/2019 ASSESSMENT YEAR : 2010 - 2011 P A G E 5 | 5 RESTORED TO THE FILE OF THE AO FOR EXAMINATION AND VERIFICATION AS TO WHETHER THE RESPECTIVE DOCTORS HAVE OFFERED THE INCOME RECEIVED FROM THE ASSESSEE IN THEIR RETURN OF INCOME FOR TAXATION. IF AFTER VERIFICATION, THE AO FINDS THAT THE INCOME RECEIVED BY THE RESPECTIVE DOCTORS HAVE BEEN OFFERED FOR TAXATION AND SAME HAVE BEEN DEPOSITED IN GOVERNMENT EXCHEQUER, THEN HE IS DIRECTED TO DELETE THE ADDITION . WITH THESE OBSERVATIONS, THE ISSUE IS RESTORED TO THE FILE OF THE AO. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 11 / 3 /20 2 1 . S D/ - SD/ - ( LAXMI PRASAD SAHU ) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 11 / 3 /20 2 1 B.K.PARIDA, SPS (OS) COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : RANJITA JENA, AT - SMALAPADA, TALACHER, ANGUL. 2. THE RESPONDENT. ACIT, CENTRAL CIRCLE, CUTTACK 3. THE CIT(A) - 2 , BHUBANESWAR 4. PR.CIT - 2 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//