Shri Balkrishnan Shanmugam Chettiar alias S Balan, Pune v. ACIT, Pune

ITA 1312/PUN/2013 | 2005-2006
Pronouncement Date: 28-09-2016 | Result: Dismissed

Appeal Details

RSA Number 131224514 RSA 2013
Assessee PAN AALPC5158J
Bench Pune
Appeal Number ITA 1312/PUN/2013
Duration Of Justice 3 year(s) 3 month(s) 2 day(s)
Appellant Shri Balkrishnan Shanmugam Chettiar alias S Balan, Pune
Respondent ACIT, Pune
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-09-2016
Date Of Final Hearing 28-09-2016
Next Hearing Date 28-09-2016
Assessment Year 2005-2006
Appeal Filed On 25-06-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A PUNE . . ' # BEFORE SHRI R.K. PANDA AM AND SHRI VIKAS AWASTHY JM . / ITA NOS.1312/PN/2013 & 1314/PN/2013 '% % / ASSESSMENT YEARS : 2005-06 & 2007-08 SHRI BALKRISHNAN SHANMUGAM CHETTIAR ALIAS S. BALAN 1133/5 NIRANKAR FERGUSSION COLLEGE ROAD SHIVAJINAGAR PUNE 411 016 PAN : AALPC5158J . / APPELLANT V/S ACIT CENTRAL CIRCLE-1(1) PUNE . /RESPONDENT / APPELLANT BY : SHRI PRAYAG JHA/ SHRI M.R. BHAGWAT / RESPONDENT BY : SHRI SUHAS S. KULKARNI / ORDER PER R.K.PANDA AM : THE ABOVE 2 APPEALS FILED BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDERS DATED 28-02-2013 OF THE CIT(A)-I I PUNE RELATING TO ASSESSMENT YEARS 2005-06 & 2007-08 RESPECTIVELY. FOR THE SAKE OF CONVENIENCE THESE APPEALS WERE HEARD TOGETHER AND A RE BEING DISPOSED OF BY THIS COMMON ORDER. / DATE OF HEARING :28.09.2016 / DATE OF PRONOUNCEMENT:28.09.2016 2 ITA NOS.1312/PN/2013 & 1314/PN/2013 ITA NO.1312/PN/2013 (A.Y. 2005-06) : 2. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER : 1) THE LEARNED CIT(A) ERRED IN SUSTAINING THE VALID ITY OF THE ASSESSMENT ORDER PASSED UNDER SECTION 153A EVEN THOUGH THE ORDER WAS SERVED ON THE APPELLANT BEYOND THE PERIOD OF LIMITAT ION. 2) THE ID CIT(A) ERRED IN SUSTAINING AN ADDITION OF RS.1 40 000/- ARISING OUT OF ESTIMATION OF THE ANNUAL VALUE OF APPELLANT'S RESIDENTIAL PROPERTY IN MODEL COLONY PUNE. 3) THE ID CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE OF RS.1 28 306/- OUT OF TOTAL DISALLOWANCE OF RS.2 66 269 /- ON ACCOUNT OF INTEREST PAID ON BORROWINGS FOR THE REASON THAT APPELL ANT HAD NOT UTILISED SUCH BORROWINGS FOR EARNING INTEREST INCOME. 4) THE LD CIT(A) ERRED IN UPHOLDING THE ADDITION O F RS.25 62 797/- BEING THE GAIN FROM SALE OF PLOT AT BANGALORE BY TR EATING THE SAME AS BUSINESS INCOME AS AGAINST INCOME FROM SHORT TERM CAPITA L GAINS DECLARED BY THE APPELLANT WITHOUT APPRECIATING THE FACT THAT APPELLANT HAD BOUGHT THIS PROPERTY AS INVESTMENT AND NOT AS STOCK- IN-TRADE. 5) THE LD CIT(A) ERRED IN UPHOLDING THE DISALLOWANC E U/S 14A TO THE EXTENT OF RS. 1 00 000/- THOUGH THE APPELLANT HAD N OT INCURRED SUCH EXPENDITURE FOR EARNING DIVIDEND INCOME AND THE DISA LLOWANCE IS ALSO EXCESSIVE. 6) THE ADDITIONS AND DISALLOWANCES CONTESTED IN THE AB OVE GROUNDS BE DELETED AND THE INCOME OF THE APPELLANT BE REDUC ED TO THAT EXTENT. 7) THE GROUNDS OF APPEAL ARE WITHOUT PREJUDICE TO O NE ANOTHER. 8) THE APPELLANT PRAYS FOR LEAVE TO ADD MODIFY OR ALTER HIS GROUNDS OF APPEAL AND LEAD EVIDENCE. 3. THE ASSESSEE HAS ALSO RAISED AN ADDITIONAL GROUND WH ICH READS AS UNDER : ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN UPHOLDING THE VALIDITY OF THE SEARCH ASSESSMENT ORDER PASSED U/S.153A OF THE ACT FOR ASSESSMENT YEAR 2005-06 EVENTHOU GH NO INCRIMINATING MATERIAL PERTAINING THERETO WERE FOUN D BY THE INCOME TAX AUTHORITIES IN THEIR SEARCH ACTION IN MY CASE. 4. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET DID N OT PRESS GROUNDS OF APPEAL NO.1 3 AND THE ADDITIONAL GROUND FOR WHIC H THE LD. DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION. ACCOR DINGLY THE ABOVE GROUNDS ARE DISMISSED AS NOT PRESSED. 3 ITA NOS.1312/PN/2013 & 1314/PN/2013 5. SO FAR AS GROUNDS OF APPEAL NO.2 IS CONCERNED THE LD. CO UNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT IDENTICAL ADDITION WAS SUSTAINED BY THE CIT(A) IN THE ORDER PASSED U/S.143(3) BY THE AO. WHEN THE MATTER TRAVELLED TO THE TRIBUNAL THE TRIBUNAL VID E ITA NO. 1398/PN/2012 ORDER DATED 25-08-2014 AT PARA 37 HAS DECIDED THE ISSUE AGAINST THE ASSESSEE. THEREFORE THE ISSUE STANDS DECIDED AGAINST THE ASSESSEE BY THE ORDER OF THE TRIBUNAL IN ASS ESSEES OWN CASE FOR THIS VERY ASSESSMENT YEAR. 6. IN VIEW OF THE ABOVE SUBMISSION OF THE LD. COUNSEL FOR T HE ASSESSEE THIS GROUND RAISED BY THE ASSESSEE IS DISMISSED. 7. SO FAR AS GROUNDS OF APPEAL NO.4 BY THE ASSESSEE IS C ONCERNED THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT IDENTICAL ADDITION WAS MADE BY THE AO IN THE ORDER PASSED U/S.143(3). WHEN THE MATTER TRAVELLED UPTO THE TRIBUNAL THE TRIBUNAL VIDE ORDER DATED 25- 08-2014 AT PARA 9 HAS DECIDED THE ISSUE AGAINST THE AS SESSEE AND UPHELD THE ORDER OF THE CIT(A) SUSTAINING THE ADDITION OF RS.25 62 797/-. THEREFORE THIS GROUND ALSO IS DECIDED AGAINS T THE ASSESSEE BY THE TRIBUNAL IN ASSESSEES OWN CASE. 8. IN VIEW OF THE ABOVE SUBMISSION OF THE LD. COUNSEL FOR T HE ASSESSEE THIS GROUND RAISED BY THE ASSESSEE IS ALSO DISMISSED. ITA NO.1314/PN/2013 (A.Y. 2007-08) : 9. THE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER : 1) THE LD. CIT(A) ERRED IN SUSTAINING THE VALIDITY O F THE ASSESSMENT ORDER PASSED UNDER SECTION 153A EVEN THOUGH THE ORDER WAS SERVED ON THE APPELLANT BEYOND THE PERIOD OF LIMITATION. 2) THE ID. CIT(A) ERRED IN SUSTAINING AN ADDITION OF RS.1 71 090/- ON ACCOUNT OF INTEREST PAID ON BORROWINGS FOR THE REASON THAT APPELLANT HAD NOT UTILISED SUCH BORROWINGS FOR EARNING INTEREST INCOM E. 4 ITA NOS.1312/PN/2013 & 1314/PN/2013 3) THE ID CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE OF RS.10 000/- U/S.80D THOUGH THE CLAIM WAS ALLOWABLE BEING MEDICAL INSURANCE PREMIUM PAID. 4) THE LD CIT(A) ERRED IN SUSTAINING THE DISALLOWANCE U/S.14A TO THE EXTENT OF RS.50 000/- WHICH IS HIGHLY EXCESSIVE. 5) THE ADDITIONS AND DISALLOWANCES BE DELETED AND THE INCOME OF THE APPELLANT BE REDUCED TO THAT EXTENT. 6) THE APPELLANT PRAYS FOR LEAVE TO ADD TO MODIFY OR ALTER HIS GROUNDS OF APPEAL AND LEAD EVIDENCE. 10. THE ASSESSEE HAS ALSO RAISED AN ADDITIONAL GROUND W HICH READS AS UNDER : ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) ERRED IN UPHOLDING THE VALIDITY OF THE SEARCH ASSESSMENT ORDER PASSED U/S.153A OF THE ACT FOR ASSESSMENT YEAR 2007-08 EVENTHOU GH NO INCRIMINATING MATERIAL PERTAINING THERETO WERE FOUN D BY THE INCOME TAX AUTHORITIES IN THEIR SEARCH ACTION IN MY CASE. 11. THE LD. COUNSEL FOR THE ASSESSEE AT THE OUTSET DID NOT PRESS THE ABOVE GROUNDS INCLUDING THE ADDITIONAL GROUND FOR WHICH THE LD. DEPARTMENTAL REPRESENTATIVE HAS NO OBJECTION. ACCORDING LY ALL THE GROUNDS RAISED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED. 12. IN THE RESULT BOTH THE APPEALS FILED BY THE ASSESSE E ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEA RING ITSELF I.E. ON 28 TH SEPTEMBER 2016. SD/- SD/- (VIKAS AWASTHY) (R.K. PANDA) JUDICIAL MEMBER ACCOUNTANT MEMBER PUNE; ' DATED : 28 TH SEPTEMBER 2016. 5 ITA NOS.1312/PN/2013 & 1314/PN/2013 ( )'+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3 . 4. THE CIT(A) - I I PUNE THE CIT- II PUNE 5. $ ''( ( / DR ITAT A PUNE; 5 . + / GUARD FILE. / BY ORDER // $ ' //TRUE COPY // -. ' ( / SR. PRIVATE SECRETARY ( / ITAT PUNE