ITO, CHENNAI v. Shri Ramji R.Abinashi, CHENNAI

ITA 1230/CHNY/2010 | 2003-2004
Pronouncement Date: 13-09-2011 | Result: Dismissed

Appeal Details

RSA Number 123021714 RSA 2010
Assessee PAN ADUPA5676R
Bench Chennai
Appeal Number ITA 1230/CHNY/2010
Duration Of Justice 1 year(s) 1 month(s) 13 day(s)
Appellant ITO, CHENNAI
Respondent Shri Ramji R.Abinashi, CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 13-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 13-09-2011
Date Of Final Hearing 13-09-2011
Next Hearing Date 13-09-2011
Assessment Year 2003-2004
Appeal Filed On 30-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH CHENNAI BEFORE DR. O.K.NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER ITA NO.1230(MDS)/2010 ASSESSMENT YEAR: 2003-04 THE INCOME-TAX OFFICER INTERNATIONAL TAXATION-I CHENNAI. VS. SHRI RAMJI R.ABINASHI FLAT NO.3 SUBKISHA ASHOKA NO.9 PINJALA SUBRAMANIAM ST. T.NAGAR CHENNAI-17. PAN ADUPA5676R. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SANJA Y V.R.DESHMUKH JCIT. RESPONDENT BY : SHRI T.N.SEETH ARAMAN ADVOCATE. DATE OF HEARING : 13 TH SEPTEMBER 2011 DATE OF PRONOUNCEMENT : 13 TH SEPTEMBER 2011 O R D E R PER DR.O.K.NARAYANAN VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2003-04. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-IV AT CHENNAI - - ITA NO.1230 OF 2010 2 DATED 8-4-2010. THE APPEAL ARISES OUT OF THE ASSES SMENT COMPLETED UNDER SECTION 143(3) READ WITH SECTION 14 7 OF THE INCOME-TAX ACT 1961. 2. THE GROUND RAISED BY THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DI RECTING THE ASSESSING OFFICER TO EXCLUDE THE RECEIPTS OF GRATUI TY AND SUPERANNUATION FROM THE TOTAL INCOME OF THE ASSESSE E AND CONSEQUENTLY ALLOW RELIEF IN RESPECT OF INTEREST UN DER SECTIONS 234B AND 234D OF THE ACT. ALL OTHER GROUNDS RAISED BY THE REVENUE ARE TO EXPLAIN THE MAIN ISSUE STATED ABOVE. 3. WE HEARD SHRI SANJAY V.R.DESHMUKH THE LEARNED JOINT COMMISSIONER OF INCOME-TAX APPEARING FOR THE REVENUE AND SHRI T.N.SEETHARAMAN THE LEARNED COUNSEL APPEA RING FOR THE ASSESSEE. 4. THE ASSESSING AUTHORITY HAD COME TO A PREMATURE FINDING IN THE PRESENT CASE MAINLY ON THE GROUND T HAT THE ASSESSEE DID NOT FURNISH THE NECESSARY DETAILS TO S UPPORT HIS - - ITA NO.1230 OF 2010 3 CLAIM OF EXEMPTION IN RESPECT OF GRATUITY AND SUPER ANNUATION RECEIPTS FROM HIS BRITISH EMPLOYER. 5. AFTER GOING THROUGH THE DETAILS AVAILABLE IN TH E FILE IN THE LIGHT OF THE DOUBLE TAXATION AVOIDANCE AGREE MENT (DTAA) ENTERED INTO BETWEEN UNION OF INDIA AND BRITISH GOV ERNMENT THE COMMISSIONER OF INCOME-TAX(APPEALS) FOUND THAT BOTH GRATUITY AND SUPERANNUATION EARNINGS FORM PART OF SALARY FOR THE PURPOSE OF TAXATION IN UNITED KINGDOM (UK). IT MEANS THAT THOSE ITEMS ARE NOT TAXABLE IN INDIA. THEY ARE TAXABLE ONLY IN UK. WE FIND THAT THERE IS NO DISPUTE BY THE REVENUE IN RESPECT OF THE NATURE OF THE TWO AMOUNTS RECEIVED BY THE ASSESSEE. AS PE R THE ARTICLES OF DTAA IT IS CRYSTAL CLEAR THAT SUCH TWO ITEMS ARE PART AND PARCEL OF THE SALARY LIABLE FOR TAXATION IN UK. IN SUCH CIRCUMSTANCES THE COMMISSIONER OF INCOME-TAX(APPEA LS) HAS RIGHTLY DIRECTED THE ASSESSING OFFICER TO EXCLUDE T HE ABOVE STATED AMOUNTS FROM THE TAXABLE INCOME OF THE ASSESSEE IN INDIA. THE RELIEF IN THE LEVY OF INTEREST IS ONLY CONSEQUENTIA L. - - ITA NO.1230 OF 2010 4 6. IN RESULT THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY THE 13 TH OF SEPTEMBER 2011 AT CHENNAI. SD/ SD/- (HARI OM MARATHA) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI DATED THE 13 TH SEPTEMBER 2011. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.