V.Arthanari, Salem V. ACIT, Salem

MA 7/CHNY/2014

• Counselvise Citation: [2014] 111 COUNSELVISE.COM (IT) 0512 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 21-02-2014
• Appeal Filed By: Assessee
• Bench Allotted: D
• Assessment Year: 2005-2006
• Appeal Filed On: 06-01-2014
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM
• Assessee Lawyers: T VASUDEVAN
• Section: 254(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : CHENNAI BEFORE DR. O.K. NARAYANAN, VICE PRESIDENT & SHRI VIKAS AWASTHY, JUDICIAL MEMBER M.P. NO. 07 /MDS/201 4 ( IN ITA NO. 830/MDS/2013 ) ASSESSMENT YEAR : 2005-06 SHRI V. ARTHANARI, 34-J, NARAYANA NAGAR, SALEM-636 015 [PAN: AGRPA 2322 G] (PETITIONER) VS ASST. COMMISSIONER OF INCOME TAX, CIRCLE-III, SALEM (RESPONDENT) PETITIONER BY : SHRI T. VASUDEVAN, ADVOCATE RESPONDENT BY : SHRI GURU BHASHYAM, J CIT DATE OF HEARING : 21-02-2014 DATE OF PRONOUNCEMENT : 21-02-2014 O R D E R PER VIKAS AWASTHY, JUDICIAL MEMBER: THE MISCELLANEOUS PETITION U/S. 254(2) OF THE INCO ME TAX ACT HAS BEEN FILED BY THE ASSESSEE FOR RECTIFICATIO N OF THE ORDER OF THE TRIBUNAL DATED 27-11-2013 IN THE AFOREMENTIONED APPEAL RELEVANT TO THE ASSESSMENT YEAR 2005-06. M.P. NO. 07/MDS/14 :- 2 -: 2. THE ASSESSEE HAD FILED APPEAL IMPUGNING THE ORDE R OF THE CIT(APPEALS), SALEM DATED 28-02-2013. THE APPEAL O F THE ASSESSEE WAS DISMISSED BY THE TRIBUNAL ON 27-11-201 3 AFTER CONSIDERING THE SUBMISSIONS MADE BY THE LD.COUNSEL FOR THE ASSESSEE. THE ASSESSMENT ORDER WAS PASSED U/S.143( 3) R.W.S. 147 OF THE INCOME TAX ACT ON 31-12-2007. NOTICE U/ S.148 WAS ISSUED TO THE ASSESSEE FOR THE REASON THAT THE ASSE SSEE WAS MAINTAINING BANK ACCOUNT WITH LAKSHMI VILAS BANK AT VARIOUS BRANCHES IN SALEM AND THE SAME WERE NOT DISCLOSED I N THE RETURN OF INCOME. ON ISSUANCE OF NOTICE U/S.148, THE ASSE SSEE GAVE REASON FOR NON-DISCLOSURE OF ACCOUNTS THAT THESE BA NK ACCOUNTS BELONG TO V.ARTHANARI IN THE STATUS OF HUF. PRIOR TO THE ISSUANCE OF NOTICE, RETURNS WERE NOT FILED BY HUF. THE RETU RN FOR THE AY.2005-06 WAS FILED BY THE HUF ON 31-03-2007 AFTER THE RECEIPT OF NOTICE DATED 20-11-2006 U/S.148 OF THE ACT. NOT ONLY THIS, BUT THE RETURNS FOR THE EARLIER AYS STARTING FROM 2001- 02 WERE ALSO FILED ENBLOCK ON BEHALF OF THE HUF ON 31-03-2007. THE TRIBUNAL IN ITS ORDER DATED 27-11-2013 HAD CATEGORICALLY OB SERVED THAT THE CONDUCT OF THE ASSESSEE AND THE HUF SQUARELY SHOWS THAT RETURNS ON BEHALF OF THE HUF HAVE BEEN FILED ONLY TO BAIL O UT THE ASSESSEE M.P. NO. 07/MDS/14 :- 3 -: FROM THE BURDEN OF EXPLAINING UN-DISCLOSED BANK ACC OUNTS MAINTAINED WITH LAKSHMI VILAS BANK AT SALEM. THE H IGHLY BELATED RETURNS FILED ON BEHALF OF THE HUF WERE HELD TO BE NONEST . HOWEVER, THE ASSESSEE HAS ALLEGEDLY PAID TAX IN THE NAME OF HUF FOR THE AFORESAID AYS TO THE TUNE OF ` 7.25 LAKHS WHEREAS THE INCOME HAS BEEN ASSESSED IN THE HANDS OF THE INDIVI DUAL. IN THE MISCELLANEOUS PETITION, THE ASSESSEE HAS PRAYED THA T THE TRIBUNAL HAS NOT GIVEN A DIRECTION TO THE ASSESSING OFFICER TO GIVE CREDIT FOR THE TAX PAID IN THE HANDS OF HUF SO AS TO AVOID DOU BLE TAXATION OF THE SAME AMOUNTS. THE LD.COUNSEL PRAYED THAT A DIR ECTION MAY BE GIVEN TO THE ASSESSING OFFICER TO GIVE CREDIT O F THE TAX AMOUNTS ALREADY PAID BY THE HUF FOR THE RELEVANT AY IN THE CASE OF ASSESSEE AS INDIVIDUAL. 3. IT IS NOT DISPUTED THAT ALONG WITH THE RETURN OF INCOME FILED IN THE CAPACITY OF HUF, TAX TO THE TUNE OF ` 7.25 LAKHS HAS BEEN PAID WHEREAS, THE INCOME HAS BEEN ASSESSED IN THE HANDS OF THE ASSESSEE IN HIS INDIVIDUAL CAPACITY. SINCE THE RET URNS FILED IN THE CAPACITY OF HUF HAVE BEEN HELD TO BE NONEST , THE ASSESSEE IS ENTITLED FOR THE CREDIT OF THE TAX AMOUNT PAID IN T HE CAPACITY OF M.P. NO. 07/MDS/14 :- 4 -: HUF. THE ASSESSING OFFICER IS DIRECTED TO VERIFY F ROM THE RECORDS THE AMOUNT OF TAX PAID IN THE CASE OF HUF AND GIVE CREDIT OF THE SAME TO THE ASSESSEE TO THE EXTENT OF TAX AMOUNT PA ID SO AS TO AVOID DOUBLE PAYMENT OF TAX ON THE SAME AMOUNT. TH E MISCELLANEOUS PETITION OF THE ASSESSEE IS ALLOWED A S PRAYED FOR. HOWEVER, WITH THE ABOVE DIRECTION, THERE WILL BE N O CHANGE IN THE FINAL RESULT OF THE APPEAL. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON FRIDAY, THE 21 ST FEBRUARY, 2014 AT CHENNAI. SD/- SD/- (DR. O.K. NARAYANAN) (VI KAS AWASTHY) VICE PRESIDENT JUDICIAL MEMBER DATED: 21 ST FEBRUARY, 2014 TNMM COPY TO: PETITIONER/RESPONDENT/CIT(A)/CIT/DR