Shri Yash Devendra Vayla, Surat V. The ACIT.,Cent.Circle-3., Surat

ITSSA 613/AHD/2010

• Counselvise Citation: [2012] 121 COUNSELVISE.COM (IT) 8560 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 26 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 14-12-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Next Hearing Date: 04-12-2012
• Assessment Year: 2001-2002
• Appeal Filed On: 19-07-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Section: 234B

Judgement Text

, , , , A , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, A BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ # ## #. .. .% $% % $% % $% % $%, , , , &' ( &' ( &' ( &' ( & ' & ' & ' & ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER) IT(SS)A NO.613/AHD/2010 [ASSTT. YEAR : 2001-2002] SHRI YASH DEVENDRA VAYLA 2/5175, GEET GOVIND RUSTAMPURA, FARM STREET SURAT. PAN : AAZPV 4892 N /VS. ACIT, CENT.CIR.3 SURAT. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ./ 0 1 &/ ASSESSEE BY : SHRI MEHUL SHAH ( 0 1 &/ REVENUE BY : SHRI SHELLEY JINDAL 3 0 /4'/ DATE OF HEARING : 4 TH DECEMBER, 2012 5%6 0 /4'/ DATE OF PRONOUNCEMENT : 14.12.2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE ASSESSEE FOR THE ASSESSMENT YEAR 2001-2002 IS DIRECTED AGAIN ST THE ORDER OF THE CIT(A)-II, DATED 24.05.2010. 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THE LD.CIT(A) HAS ERRED IN GIVING C ONSEQUENTIAL DIRECTION INSTEAD OF GIVING SPECIFIC DIRECTION AND THEREBY ERRED IN CONFIRMING THE ACTION OF THE AO IN CHARGING INTERES T U/S.234B AND 234C ON AMOUNT OF RS.4,00,000/- TILL THE DATE OF AS SESSMENT WHICH WAS ADJUSTED BY AO OUT OF CASH SEIZED IN COURSE OF SEARCH ACTION IT(SS)A NO.613/AHD/2010 -2- ON 7.11.2006 FOR WHICH ASSESSEE REQUESTED FOR ADJUS TMENT OF CASH SEIZED AGAINST TAX LIABILITY VIDE LETTER DATED 24.0 2.2007 FILED ON 27.02.2007. 2. IT IS THEREFORE PRAYED THAT THE INTEREST CHARGED BY THE AO U/S.234B AND 24C AND CONFIRMED BY THE CIT(A) MAY PL EASE BE DELETED OR REDUCED ON AMOUNT OF RS.4,00,000/- BY GI VING DIRECTION TO CHARGE INTEREST U/S.234B AND 234C TILL THE DATE OF THE SEIZURE OF CASH ON 7.11.2006 OR THE LETTER FILED BY ASSESSEE O N 27.02.2007 AND NOT TILL DATE OF ASSESSMENT. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT AT THE TIME OF SEARCH ON 7.11.2006 AN AMOUNT OF RS.4,00,000/- WAS SEIZED IN CASH BY THE DEPARTMENT AND THE SAME WAS ADJUSTED BY THE AO AGAI NST THE TAX LIABILITY AND STILL THE CREDIT THEREOF WAS NOT ALLOWED WHILE CHARGING INTEREST UNDER SECTION 234B AND 234C. HE SUBMITTED THAT INTEREST UNDER SECTION 234B AND 234C WAS CHARGED UPTO THE DATE OF THE ASSESSMEN T, WHICH SHOULD HAVE BEEN RESTRICTED TO THE DATE OF SEIZURE OF CASH ON 7.11.2006. THE LEARNED DR RELIED ON THE ORDER OF THE AO AND THE CI T(A). 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE CASH OF RS.4 LAKHS WAS SEIZED BY THE DEPARTMENT AT THE TIME OF SEARCH ON 7 .11.2006, AND THE SAME WAS ADJUSTED AGAINST THE TAX LIABILITY OF THE ASSES SEE BY THE DEPARTMENT. IN THESE FACTS, THE INTEREST UNDER SECTION 234B AND 234C OF RS.4,00,000/- SHOULD HAVE BEEN VALIDLY CHARGED ONLY UPTO THE DATE OF SEIZURE OF CASH OF RS.4,00,000/- ON 7.11.2006 AND NOT TILL THE DATE OF FINALISATION OF ASSESSMENT. THE CIT(A) HAS SUMMARILY REJECTED THE APPEAL BEFORE HIM ON THE GROUND OF CHARGING OF INTEREST UNDER SECTION S 234B AND 234C. IN THESE FACTS OF THE CASE OF THE ASSESSEE, WE DIRECT THE AO TO CHARGE INTEREST UNDER SECTION 234B AND 234C ON THE AMOUNT OF RS.4,0 0,000/- TILL THE DATE IT(SS)A NO.613/AHD/2010 -3- OF SEIZURE OF CASH ON 7.11.2006 AND NOT TILL THE DA TE OF FINALISATION OF THE ASSESSMENT, AND HE IS DIRECTED TO RE-CALCULATE THE AMOUNT OF INTEREST PAYABLE BY THE ASSESSEE. WE DIRECT ACCORDINGLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PAR TLY ALLOWED AS ABOVE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( #.% $% /A.MOHAN ALANKAMONY) &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD