ACIT, V. M/s gahna,

ITSSA 18/RAN/2014

• Counselvise Citation: [2015] 122 COUNSELVISE.COM (IT) 1207 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 29-10-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 14-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DEEPAK ROUSHAN SR S C
• Keywords: Question of law
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER IT(SS) NO. 14/RAN/2014 (ASST. YEAR : 2005-06) ACIT, CENTRAL CIRCLE-1, RANCHI. VS. SRI SHARWAN KUMAR SHARDA, S/O LATE KAMESHWAR PRASAD SHARDA, NALDA, BARBIL, KEONJHAR, ORISSA. PAN NO. ACBPS 9524 J IT(SS) NO. 17/RAN/2014 (ASST. YEAR : 2007-08) ACIT, CENTRAL CIRCLE-2, RANCHI. VS. M/S. JEWER, MAIN ROAD, CHAS, BOKARO. PAN NO. AADFJ 3037 B IT(SS) NO. 18/RAN/2014 (ASST. YEAR : 2007-08) ACIT, CENTRAL CIRCLE-2, RANCHI. VS. M/S. GAHNA, MAIN ROAD, CHAS, BOKARO. PAN NO. AADFG 6069 L IT(SS) NO. 19/RAN/2014 (ASST. YEAR : 2007-08) ACIT, CENTRAL CIRCLE-2, RANCHI. VS. M/S. SONA CHANDI, CITY CENTRE, SECTOR-IV, BOKARO. PAN NO. AALFS 5196 E (APPELLANT) (RESPONDENT) 2 IT(SS) NOS. 14, 17-19/RAN/2014 ASSESSEE BY : SHRI S.K. PODDAR WITH SHRI M.K. CHOUDHARY ADV. DEPARTMENT BY : SHRI DEEPAK ROUSHAN SR.SC DATE OF HEARING : 29/10/2015. DATE OF PRONOUNCEMENT : 29/10/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THESE ARE THE APPEALS FILED BY THE REVENUE AGAINST THE SEPARATE ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS), RAN CHI, DATED 25/02/2014 & 30/05/2014. 2. THE COMMON GROUND OF APPEAL TAKEN IN ALL THESE AP PEALS READS AS UNDER:- WHETHER THE CIT(A) WAS JUSTIFIED UNDER THE LAW AND UNDER CIRCUMSTANCES OF THE CASE TO DIRECT THE ASSESSING O FFICER TO CHARGE INTEREST UNDER SECTION 234B OF THE IT ACT, 1 961 ON THE RETURNED INCOME AND NOT ON RETURNED INCOME AS ORDAI NED BY THE PROVISIONS OF THE IT ACT, 1961? 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER CH ARGED INTEREST UNDER SECTION 234B ON ASSESSED INCOME. 4. THE ASSESSEE BEING AGGRIEVED BY THE SAID ORDER OF THE ASSESSING OFFICER FILED APPEAL BEFORE THE COMMISSIONER OF INC OME TAX (APPEALS), WHO HELD THAT THE INTEREST IS TO BE CHARGED ON RETU RNED INCOME ONLY BY FOLLOWING THE DECISION OF THE HON'BLE JHARKHAND HIG H COURT IN THE CASE OF AJAY PRAKASH VERMA VS. ITO IN TA NO. 38/2010 ORDER DATED 25/07/2012. 3 IT(SS) NOS. 14, 17-19/RAN/2014 5. THE DEPARTMENTAL REPRESENTATIVE RELYING ON THE DEC ISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF RAJKUMAR SINGHAL VS. UNION OF INDIA (2002) 255 ITR 561 HAS SUBMITTED THAT THE INTEREST CAN BE LEVIED ON THE ASSESSED INCOME AS PER SEC. 23 4B IN VIEW OF THE AMENDMENT CARRIED OUT IN THE ACT. THEREFORE, HE PR AYED THAT THE APPEALS OF THE REVENUE SHOULD BE ALLOWED. 6 . ON THE OTHER HAND, AUTHORIZED REPRESENTATIVE OF T HE ASSESSEE SUBMITTED THAT THE REVENUE HAS PREFERRED CIVIL REVI EW BEFORE THE HON'BLE JHARKHAND HIGH COURT IN THE CASE OF ITO VS. AJAY PRAKASH VERMA IN CIVIL REVIEW NO. 66/2013 AND THE HON'BLE H IGH COURT VIDE ITS ORDER DATED 01/09/2015 DISMISSED THE REVIEW PETITIO N, WHEREIN A SIMILAR PLEA WAS TAKEN BEFORE THE HON'BLE HIGH COURT AS TAK EN BEFORE THE TRIBUNAL NOW. 7 . WE FIND THAT THE COMMISSIONER OF INCOME TAX (APPE ALS) HAS HELD THAT THE INTEREST UNDER SECTION 234B IS CHARGEABLE ON THE RETURNED INCOME, AND WHILE DOING SO, HAS FOLLOWED THE DECISI ON OF THE HON'BLE JHARKHAND HIGH COURT IN THE CASE OF AJAY PRAKASH VERMA (SUPRA) WHEREIN IT WAS HELD AS UNDER:- 23. LEARNED COUNSEL FOR THE APPELLANT SUBMITTED T HAT IT HAS BEEN ORDERED BY THE A.O. THAT INTEREST BE CHARGED AS PER RULE. INTEREST CAN BE LEVIED UNDER SECTIONS 234A & 234B OF THE ACT . IT IS SUBMITTED THAT IN VIEW OF THE JUDGMENT OF FULL BENC H OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. TEJ KUMARI VS. CIT REPORTED IN (2001) 114 TAXMAN 404 (P AT) (FB), THE INTEREST CANNOT BE LEVIED OVER THE ASSESSED INC OME AND IT CAN BE LEVIED ONLY ON THE INCOME DECLARED IN THE RETURN . THE REVENUE PREFERRED S.L.P. BEFORE THE HON'BLE SUPREME COURT A GAINST THE SAID JUDGMENT OF THE FULL BENCH OF PATNA HIGH COURT WHICH WAS DISMISSED BY THE HON'BLE SUPREME COURT ON MERITS VI DE ORDER DATED 01/08/2000 BY SAYING THAT THERE IS NO MERIT I N THE APPEAL. 24. LEARNED COUNSEL FOR THE REVENUE COULD NOT DISP UTE THIS LEGAL POSITION. THEREFORE, SO FAR AS QUESTION OF LAW INV OLVED IN THIS APPEAL THAT WHETHER THE INTEREST COULD HAVE BEEN LE VIED AGAINST 4 IT(SS) NOS. 14, 17-19/RAN/2014 THE ASSESSED INCOME OF THE ASSESSEE UNDER SECTION 2 34A & 234B IS CONCERNED, IN VIEW OF THE FULL BENCH JUDGMENT OF RANCHI BENCH OF PATNA HIGH COURT DELIVERED IN THE CASE OF SMT. T EJ KUMARI, THE REVENUE CAN LEVY THE INTEREST ONLY ON THE TOTAL INC OME DECLARED IN THE RETURNS AND NOT ON THE INCOME ASSESSED AND DETE RMINED BY THE A.O. TO THAT EXTENT. THE ORDERS PASSED BY THE AUTHORITIES BELOW ARE ACCORDINGLY MODIFIED AND INTEREST SHALL B E CHARGEABLE IN THE LIGHT OF THE FULL BENCH JUDGMENT REFERRED ABOVE . 8 . FURTHER, HE ALSO FOUND THAT THE REVENUE FILED THE REVIEW PETITION BEFORE THE HON'BLE JHARKHAND HIGH COURT BEING CIVIL REVIEW NO. 66/2013 IN THE CASE OF AJAY PRAKASH VERMA (SUPRA) AND THE SAME WAS ALSO DISMISSED ON 01/09/2015. THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE COMMISSIONER OF INCOME TAX (APP EALS) WHICH IS CONFIRMED AND THE GROUND OF APPEAL OF THE REVENUE I S DISMISSED. 9. IN THE RESULT, ALL THE APPEALS OF THE REVENUE ARE D ISMISSED. ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON THURSDAY, THE 29 TH DAY OF OCTOBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 29 TH OCTOBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 5 IT(SS) NOS. 14, 17-19/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 29/10/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 30/10/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 30/10/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 30/10/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 30/10/2015 SR.PS 6. DATE OF PRONOUNCEMENT 29/10/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 30/10/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER