M/s. Ambarwadikar & Company ,, Aurangabad v. Assistant Commissioner of Income-tax, Circle - 3,, Aurangabad

ITA 2070/PUN/2017 | 2007-2008
Pronouncement Date: 27-05-2021 | Result: Allowed

Appeal Details

RSA Number 207024514 RSA 2017
Assessee PAN AAHFA6223A
Bench Pune
Appeal Number ITA 2070/PUN/2017
Duration Of Justice 3 year(s) 8 month(s) 25 day(s)
Appellant M/s. Ambarwadikar & Company ,, Aurangabad
Respondent Assistant Commissioner of Income-tax, Circle - 3,, Aurangabad
Appeal Type Income Tax Appeal
Pronouncement Date 27-05-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted B
Tribunal Order Date 27-05-2021
Date Of Final Hearing 17-05-2021
Next Hearing Date 17-05-2021
Last Hearing Date 17-11-2020
First Hearing Date 15-12-2020
Assessment Year 2007-2008
Appeal Filed On 01-09-2017
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH PUNE (THROUGH VIRTUAL COURT) BEFORE SHRI R.S. SYAL VICE PRESIDENT AND SHRI S.S. VISWANETHRA RAVI J UDICIAL MEMBER . / ITA NO . 2070 /PUN/201 7 / ASSESSMENT YEAR : 20 07 - 08 M/S. AMBARWADIKAR & COMPANY GUT NO. 103 BEED BYE PASS ROAD DEOLAI AURANGABAD - 431010 PAN : AAHFA6223A ...... / APPELLANT / V/S. ASSTT. COMMISSIONER OF INCOME TAX CIRCLE 3 AURANGABAD / RESPONDENT ASSESSEE BY : SHRI M.K. KULKARNI REVENUE BY : SHRI MADHAVAN A.M. KRISHNAN / DATE OF HEARING : 1 8 - 0 5 - 2021 / DATE OF PRONOUNCEMENT : 27 - 0 5 - 2021 / ORDER PER S.S. VISWANETHRA RAVI JM : THIS APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 14 - 07 - 2017 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) - 2 AURANGABAD [CIT(A)] FOR ASSESSMENT YEAR 20 07 - 08. 2 ITA NO .2070/PUN/2017 A.Y. 2007 - 08 2. THE ASSESSEE RAISED GROUND NOS. 1 TO 3 QUESTIONING THE ACTION OF CIT(A) IN ENHANCING THE INCOME OF THE ASSESSEE BY INVOKING S ECTION 251(1)(I - A) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3. THE LD. AR SUBMITS THAT THE ASSESSEE IS READY TO RECONCILE THE ENTRIES STATE D TO HAVE BEEN APPEARING IN THE IMPOUNDED MATERIAL WITH THE BOOKS OF ACCOUNTS BEFORE THE LOWER AUTHORITIES. THE CIT(A) BY AO DID NOT GIVE PROPER OPPORTUNITY TO THE ASSESSEE TO RECONCILE WITH THE BOOKS OF ACCOUNTS. THE LD. D R REFERRED TO PAGE NO. 2 OF THE AO AND SUBMITTED THAT IMPOUNDED MATERIAL WITH REFERENCE TO ENTRIES THAT THE ASSESSEE FAILED TO RECONCILE THE SAME WITH THE COGENT EVIDENCES. WE NOTE THAT THAT IN PARA NO. 11 OF THE IMPUGNED ORDER THE CIT(A) CLEARLY MENTIONED THAT THE ASSESSEE COULD NOT SUBSTANTIATE THE ENTRIES TO RECONCILE WITH BOOKS OF ACCOUNTS AND DRAWN ADVERSE INFERENCE AGAINST THE ASSESSEE W HICH RESULTED IN ENHANCING THE INCOME OF THE ASSESSEE. THE ONLY ISSUE RAISES BEFORE US IN VIEW OF THE GROUNDS RAISED BY THE ASSESSEE THAT THERE WAS NO OPPORTUNITY FOR THE ASSESSEE TO RECONCILE THE SAME AND CONSIDERING THE FACTS AND CIRCUMSTANCES OF SUBMISSIONS OF THE LD. AR AND LD. DR IN INTEREST OF JUSTICE WE DEEM IT PROPER TO REMAND THE MATTER TO THE FILE OF AO FOR ITS FRESH CONSIDERATION. THE ASSESSEE IS LIBERTY TO FILE EVIDENCES IF ANY IN SUPPORT OF ITS CLAIM. THUS GROUND NOS. 1 TO 3 RAISED BY THE ASSESSEE A RE ALLOWED FOR STATISTICAL PURPOSE. 4. GROUND NO. 4 RAISED BY THE ASSESSEE THAT THE CONFIRMATION OF DISALLOWANCE U/S. 40(A)(I - A) OF THE ACT IN THE FACTS AND CIRCUMSTANCES OF THE CASE. 3 ITA NO .2070/PUN/2017 A.Y. 2007 - 08 5. HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL AVAILABLE ON RE CORD. ACCORDING TO AO THE ASSESSEE HAS TAKEN LOAN FROM TATA MOTORS FINANCE LTD. AND PAID INTEREST AT RS.4 95 413/ - . THE AO SHOW CAUSED THE ASSESSEE WHY DISALLOWANCE U/S. 40(A)(I - A) OF THE ACT SHOULD NOT BE MADE FOR NOT DEDUCTING THE TAX ON INTEREST PAID TO TATA MOTORS FINANCE LTD. THE ASSESSEE CONTENDED THAT THE TATA MOTORS FINANCE LTD. FILED RETURN OF INCOME ACKNOWLEDGING THE INTEREST PAID BY THE ASSESSEE AS INCOME AND SHOWN THE SAME IN THEIR ACCOUNTS. THE DISALLOWANCE SHOULD NOT BE MADE IN VIEW OF TH E RETROSPECTIVE AMENDMENT. THE AO FOUND THAT THE ARGUMENTS OF THE ASSESSEE AS NOT ACCEPTABLE AND HELD THE RETROSPECTIVE AMENDMENT IS NOT APPLICABLE FOR THE YEAR UNDER CONSIDERATION. THE CIT(A) ALSO CONFIRMED THE ORDER OF AO. THE MAIN CONTENTION BEFORE U S BY THE LD. AR IS THAT IN SIMILAR SITUATION THE TRIBUNAL IN MANY CASES REMANDED THE SIMILAR ISSUE TO THE AO FOR ITS VERIFICATION TO FIND OUT WHETHER THE PAYEE ACKNOWLEDGING THE RECEIPTS AS THEIR INCOME OR NOT IF THE PAYEE ACKNOWLEDGES THE RECEIPT AS THEI R INCOME THE TRIBUNAL HELD NO DISALLOWANCE SHOULD BE MADE IN THE HANDS OF PAYER. TAKING INTO CONSIDERATION THE SAME WE DEEM IT PROPER TO REMAND THE ISSUE TO THE FILE OF AO FOR IS EXAMINATION AND TO FIND OUT WHETHER THE TATA MOTORS FINANCE LTD. WHICH IS NBFC ACKNOWLEDGE D THE INTEREST PAID BY THE ASSESSEE AS INCOME OR NOT IN THEIR ACCOUNTS. THUS GROUND NO. 4 RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. 6. THE LD. AR SUBMITS THAT THE ASSESSEE IS NOT INTERESTED TO PROSECUTE GROUND NOS. 5 AND 6. ACCORDINGLY GROUND NOS. 5 AND 6 RAISED BY THE ASSESSEE ARE DISMISSED AS NOT PRESSED. 4 ITA NO .2070/PUN/2017 A.Y. 2007 - 08 7. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH MAY 202 1 . SD/ - SD/ - ( R.S. SYAL ) ( S.S. VISWANETHRA RAVI ) VICE PRESIDENT JUDICIAL MEMBER / PUNE; / DATED : 27 TH MAY 202 1 . RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(A) - 2 AURANGABAD 4. THE PR. CIT - 2 AURANGABAD 5. / DR ITAT B BENCH PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER / PRIVATE SECRETARY / ITAT PUNE