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

ITSSA 665/AHD/2010

• Counselvise Citation: [2013] 121 COUNSELVISE.COM (IT) 8715 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 6 month(s) 7 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 28-02-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 22-02-2013
• Assessment Year: misc
• Appeal Filed On: 20-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHELLEY JINDAL
• Assessee Lawyers: SAPNESH SHETH
• Section: 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH BEFORE: SHRI D.K. TYAGI JUDICIAL MEMBER AND SHRI T.R. MEENA, ACCOUNTA NT MEMBER SRI YASH DEVENDRA VAYLA SURAT (APPELLANT) PAN NO. AAZPV4892N VS. ACIT, CENTRAL CIRCLE-3 SURAT (RESPONDENT) REVENUE BY : SRI SHELLEY JINDAL, CIT- D.R. ASSESSEE BY : SRI SAPNESH SHETH, A.R. DATE OF HEARING : 22-02-2013 DATE OF PRONOUNCEMENT : 28-02-2013 / ORDER PER : D.K TYAGI, JUDICIAL MEMBER:- ALL THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE A GAINST THE ORDER OF LD. CIT(A)-II AHMEDABAD DATED 01-07-2010 FOR THE AS SESSMENT YEARS 2002- I.T(SS).A. NOS. 662,663,664 & 665/AHD/201 0 A.Y.:-2002-03,03-04,04-05 & 2005-06 RESPECTIV ELY IT(SS)A NOS 662,63,64,665/AHD/2010 A.Y. 2002-03,03- 04,04-05&05-06 PAGE YASH DEVENDRA VAYLA VS. ACIT 2 03,03-04,04-05 & 2005-06 RESPECTIVELY. IN ALL THES E APPEALS, THE FOLLOWING COMMON GROUNDS HAVE BEEN TAKEN BY THE ASSESSEE:- 1. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE A S WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (A) HAS ERRED IN NOT ACCEPTING ASSESSEES PLEA FOR TAKING A DATE OF SEIZURE OF CASH ON 07.11.2006 OR 22.02.2007 WHEN ASSESSEE FILED LETTER REQUESTING ADJUSTMENT OF CASH SEIZED AGAINST TAX AS DATE OF PA YMENT OF ADVANCE TAX FOR THE PURPOSE OF CALCULATION OF INTEREST U/S 234B. 2. ON THE FACTS AND IN CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT, THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN CONFIRMING THE ACTION OF ASSESSING OFFICER IN CHARGING INTEREST U/S 234C OF THE ACT. 3. IT IS THEREFORE PRAYED THAT DIRECTION MAY PLEASE BE GIVEN TO CHARGE INTEREST U/S 234B AND 234C AS PER ASSESSEES REQUEST. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FI LED AN APPLICATION U/S 154(4) OF THE ACT AGAINST THE CALCULATION OF INTERE ST U/S 234B AND 234C WHICH WAS REJECTED BY THE ASSESSING OFFICER. IN AP PEAL, THE ORDER OF ASSESSING OFFICER IN REJECTING THE APPLICATION U/S 154(4) OF THE ACT WAS CONFIRMED. FURTHER IN APPEAL THE ASSESSEE IS BEFORE US. AT TH E TIME OF HEARING BOTH THE PARTIES AGREED THAT THE ISSUE IS COVERED BY THE DEC ISION OF TRIBUNAL IN THE CASE OF YASH DEVENDRA VAYLA VS. ACIT FOR ASSESSMENT YEAR 2001-02 WHEREIN FOLLOWING WAS HELD AS UNDER:- 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE P ERUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE C ASH 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 ASSESSEE BY THE DEPARTMENT. IN THESE FACTS, THE INTEREST UNDER SECT ION 234B AND 234C OF RS.4,00,000/-SHOULD HAVE BEEN VALIDLY CHARGED ON LY UPTO THE DATE IT(SS)A NOS 662,63,64,665/AHD/2010 A.Y. 2002-03,03- 04,04-05&05-06 PAGE YASH DEVENDRA VAYLA VS. ACIT 3 OF SEIZURE OF CASH OF RS.4,00,000/- ON 7.11,2006 AN D NOT TILL THE DATE OF FINALIZATION OF ASSESSMENT. THE CIT(A) HAS SUMMARIL Y REJECTED THE APPEAL BEFORE HIM ON THE GROUND OF CHARGING OF INTE REST UNDER SECTIONS 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.4,00,000/- TILL THE DATE SEIZURE OF CA SH ON 7.11.2006 AND NOT TILL THE DATE OF FINALIZATION OF THE ASSESSMENT , AND HE IS DIRECTED TO RE-CALCULATE THE AMOUNT OF INTEREST PAYABLE BY THE ASSESSEE. WE DIRECT ACCORDINGLY. FOLLOWING THE ABOVE, THE APPEALS FILED BY THE ASSES SEE ARE ALLOWED. 3. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (T.R. MEENA) (D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 28 /02/2013 A.K. / COPY OF ORDER FORWARDED TO:- 1. / APPELLANT 2. / RESPONDENT 3. / CONCERNED CIT 4. - / CIT (A) 5. , ! , '# / DR, ITAT, AHMEDABAD 6. $% &' / GUARD FILE. BY ORDER/ , ( / ' ) ! , '#