ITO, CHENNAI V. RAKESH SARIN, CHENNAI

MA 117/CHNY/2020

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 3118 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 9 month(s) 11 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 23-08-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-08-2022
• Assessment Year: 2013-2014
• Appeal Filed On: 11-11-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect; Block assessment; Tax effect

Judgement Text

आयकर अपीलीय अिधकरण, ‘डी’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी महावीर ͧसंह, उपाÚय¢ एवं Įी मनोज क ु मार अĒवाल, लेखा सदèय के सम¢ BEFORE SHRI MAHAVIR SINGH, VICE PRESIDENTAND SHRI MANOJ KUMAR AGGARWAL, ACCOUNTANT MEMBER ͪवͪवध याͬचका सं / M.A. Nos.115, 116, 117, 118 & 119/CHNY/2020 (arising in I.T.A. Nos. 3048, 3049, 3050, 3051 & 3052/CHNY/2019) Ǔनधा[रण वष[ / Assessment Years : 2011-12, 2012-13, 2013-14, 2014-15 & 2015-16 The Income Tax Officer, Corporate Ward 1(1), Chennai – 34. vs. Shri Rakesh Sarin, No.5E, Mookambigai Complex, Lady Desika Road, Chennai – 600 004. PAN: ADXPR 7428R (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) Ĥाथ[क कȧ ओर से /Petitioner by : Shri Hema Bhupal, JCIT Ĥ×यथȸ कȧ ओर से/Respondent by : Shri K. Ravi, Advocate स ु नवाई कȧ तारȣख/ Date of hearing : 19.08.2022 घोषणा कȧ तारȣख /Date of Pronouncement : 24.08.2022 आदेश /O R D E R PER MAHAVIR SINGH, VICE PRESIDENT: By way of these Miscellaneous Applications, Revenue seeks recalling of the common order of the Tribunal in ITA Nos.3048 to 3052/CHNY/2019 dated 31.01.2020. 2. The Revenue has raised the issue that the Hon’ble High Court of Madras in T.C.A. No.1060 of 2019, judgment dated 16.10.2020 2 M.A Nos.115 to 119/CHNY/2020 reversed the order of Tribunal and confirmed the addition on account of sundry debtors added by the AO in the block assessment. But the addition confirmed by the Hon’ble High Court is in regard to sundry debtors in block assessment year and not for these five assessment years under dispute. In these five assessment years, consequent interest on these sundry debtors are assessed by AO and deleted by CIT(A), which was affirmed by the Tribunal deleting the addition. Now, the Revenue is in Miscellaneous Application for the following assessment years and consequent interest on sundry debtors:- Assessment year Interest on sundry debtors 2011-12 85,68,236/- 2012-13 96,61,882/- 2013-14 92,49,885/- 2014-15 97,51,233/- 2015-16 97,37,807/- According to Revenue, the above interest is on the same sundry debtors which are confirmed by the Hon’ble High Court, reversing the order of the CIT(A) and that of the Tribunal and hence, the tax effect is more in these appeals. 3. We have gone through the arguments of the ld. Senior DR but he could not explain before us how tax effect in the above noted amounts is above the prescribed limit and how it will change the quantum addition. We agree that the Hon’ble High Court has 3 M.A Nos.115 to 119/CHNY/2020 confirmed the disallowance and confirmed the assessment order in regard to addition made on sundry debtors but that pertains to block assessment and not these five years as noted above. The only issue in these five assessment years is as regards to the interest on sundry debtors and in any case, the sum will remain below tax effect as prescribed by the CBDT Circular issued filing of appeal in case of low tax effect cases. Hence, we find no merit in the miscellaneous applications filed by the Revenue and hence, all these five Miscellaneous Applications are dismissed. 4. In the result, all these five Miscellaneous Applications of the Revenue are dismissed. Order pronounced in the open court on 24 th August, 2022 at Chennai Sd/- Sd/- (मनोज कुमार अᮕवाल) (MANOJ KUMAR AGGARWAL) लेखा सद᭭य /ACCOUNTANT MEMBER (महावीर ᳲसह ) (MAHAVIR SINGH) उपा᭟यᭃ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 24 th August, 2022 RSR आदेश कᳱ ᮧितिलिप अᮕेिषत/Copy to: 1. ᮧाथᭅक/Petitioner 2. ᮧ᭜यथᱮ/Respondent 3. आयकर आयुᲦ )अपील(/CIT(A) 4. आयकर आयुᲦ /CIT 5. िवभागीय ᮧितिनिध/DR 6. गाडᭅ फाईल/GF.