ACIT, Chandigarh V. Mrs. Ravinder Kaur, Chandigarh

MA 214/CHANDI/2006

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 9650 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 year(s) 5 month(s) 29 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-12-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 07-12-2012
• Assessment Year: 1997-1998
• Appeal Filed On: 28-06-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R.SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER M.A. NO.214 /CHD/2006 (IN ITA NO.231 /CHD/2005) ( ASSESSMENT YEAR: 1997-98) THE A.C.I.T., VS. SMT.RAVINDER KAUR, CIRCLE 5(1), # 558, SECTOR 36, CHANDIGARH. CHANDIGARH. PAN: AND M.A. NOS.215 & 216 /CHD/2006 (IN ITA NO.232 & 233/CHD/2005) ( ASSESSMENT YEARS: 1996-97 & 1997-98) THE A.C.I.T., VS. SHRI PARAMJIT SINGH, CIRCLE 5(1), # 558, SECTOR 36, CHANDIGARH. CHANDIGARH. PAN: (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI PARIKSHIT AGGARWAL RESPONDENT BY : SHRI AKHILESH GUPTA, DR DATE OF HEARING : 07.12.2012 DATE OF PRONOUNCEMENT : 27.12.2012 O R D E R PER SUSHMA CHOWLA, JM THE REVENUE HAS FILED THESE MISCELLANEOUS APPLICATI ONS FOR RECALLING THE ORDER DATED 11.11.2005 IN ITA NOS. 23 1, 232 & 233/CHANDI/2005 AGAINST THE RELIEF ALLOWED TO THE A SSESSEE. 2. THE MISCELLANEOUS APPLICATION FILED BY THE REVEN UE READS AS UNDER: 2 THE SUBJECT APPEAL WAS AGAINST THE ORDER DATED 20.12.20 04 OF THE CIT (A PEALS), CHANDIGARH PASSED U/S 250(6) OF THE ACT. THE HON'BL E ITAT HAS N'SSED THE APPEAL OF THE DEPARTMENT VIDE THEIR ORDER DATED 11.11.2005 IN 5AL NO.231/CHANDI/2005. 2. THE ISSUE INVOLVED IN THIS CASE IS WITH REGARD TO DEDUC TION U/S 24(1)(VI) OF THE I. TAX ACT, 1961 ON ACCOUNT OF INTEREST OF RS.2,10,938 /- (ASSESSEES 1/4 TH SHARE IN TOTAL INTEREST OF RS.8,43,750/-) ON DELAY ED INSTALLMENTS PAID TO ESTATE OFFICE, CHANDIGARH. THE ASSESSING OFFICER DISALLOWED THE INTEREST BEING PENAL IN NAUTRE . THE LD. CIT(APPEALS) VIDE HIS ORDER DATED 20.12.2004 ALLOWED RELIEF TO ASSESS EE FOLLOWING THE HON'BLE ITAT, CHANDIGARH BENCH 'B ORDER IN ITA NO.837/CHANDI/02 DATED 07.05.2004 PASSED IN THE CASE OF OTHER CO-OWN ERS. THE ITAT V IDE ITS ORDER UNDER REFERENCE HAS ALLOWED THE CLAIM OF THE ASSESSEE FOLLOWING THE DECISION OF THE HON'BLE PUNJAB & HARY ANA HIGH COURT IN THE CASE OF CIT VS. SUNIL KUMAR SHARMA 254 ITR 103. 3.1 THE OBSERVATIONS OF THE HON'BLE HIGH COURT I N THE ABOVE NOTED CASE ARE REPRODUCED AS UNDER: 'WE ARE, THEREFORE, OF THE CONSIDERED VIEW THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) AND THE TRIBUNAL WERE JUSTIFIE D IN HOLDING THAT THE INTEREST PORTION OF THE PURCHASE PRICE INCLUDED IN THE INSTALLMENTS WAS ALLOWABLE AS DEDUCTION U/S 24(1)(VI) OF THE ACT. TH ERE IS THUS NO INFIRMITY IN THE VIEW TAKEN BY THE TRIBUNAL.' THE HON'BLE HIGH COURT HAS ALLOWED ONLY INTEREST PO RTION OF THE PURCHASE PRICE INCLUDED IN THE INSTALLMENTS, BUT NO T THE PENAL INTEREST ON THE DELAYED PAYMENT OF INSTALLMENT AS IS EVIDENT FROM THE OBSERVATIONS REFERRED TO ABOVE. 6. IN VIEW OF THE AFORESAID FACTS, IT MAY BE SEEN 'THAT WHETHER THE DECISION OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IS APPLICABLE IN THE CASE WHERE INTEREST HAS BEEN P AID ON THE DELAYED PAYMENT OF INSTALLMENTS I.E. THE INTEREST OF PENAL IN NATURE.' 5. IN VIEW OF THESE FACTS, IT IS PRAYED THAT T HE IMPUGNED ORDER MAY KINDLY BE SUITABLY AMENDED. 3. WE FIND IT CONVENIENT TO DISPOSE OF THESE MISCEL LANEOUS APPLICATIONS BY THIS CONSOLIDATED ORDER SINCE THESE RELATE TO IDENTICAL ISSUE. HOWEVER, REFERENCE IS MADE TO M.A.NO.214/CH D/2006 IN ITA NO.231/CHD/2006. 4. ON GOING THROUGH THE REASONS STATED IN THE PETIT ION AND AFTER HEARING BOTH THE SIDES, WE FIND THAT SIMILAR ISSUE AROSE BEFORE THE TRIBUNAL IN M.A.NO.4/CHANDI/2006 IN ITA NO.1289/CHA NDI/2004, WHICH WAS DISMISSED BY THE TRIBUNAL VIDE ORDER DATED 4.9. 2006. THE ISSUE RAISED VIDE PRESENT MISCELLANEOUS APPLICATIONS RELA TING TO ASSESSMENT 3 YEAR 1997-98 IS IDENTICAL TO THE ISSUE RAISED BY TH E REVENUE AGAINST THE ASSESSEE IN MISCELLANEOUS APPLICATION FILED RELATIN G TO ASSESSMENT YEAR 1996-97. FOLLOWING THE SAME WE DISMISS MISCELLAN EOUS APPLICATION FILED BY THE REVENUE. WE DIRECT THE REGISTRY TO AN NEX THE COPY OF ORDER IN M.A.NO.4/CHANDI/2006 IN ITA NO.1289/CHANDI/2004. 5. THE FACTS AND THE ISSUES ARISING IN M.A.NOS.215 & 216/CHD/2006 IN ITA NOS.232 & 233/CHD/2005 ARE SIMILAR TO THE FA CTS AND ISSUE RAISED IN M.A.NO.214/CHANDI/2006 IN ITA NO.231/CHANDI/2005 . OUR DECISION IN M.A.NO.214/CHANDI/2006 IN ITA NO.231/CHANDI/2005 SHALL APPLY MUTATIS MUTANDIS TO M.A.NOS.215 & 216/CHD/2006 IN I TA NOS.232 & 233/CHD/2005. 6. IN THE RESULT, ALL THE THREE THE MISCELLANEOUS A PPLICATIONS FILED BY THE REVENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 27 TH DAY OF DECEMBER, 2012. SD/- SD/- (T.R.SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED 27 TH DECEMBER, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH