Sri Satyabrata Roy, Kolkata v. ACIT, Circle - 24, Kolkata, Kolkata

ITA 2130/KOL/2009 | 2004-2005
Pronouncement Date: 25-02-2011

Appeal Details

RSA Number 213023514 RSA 2009
Bench Kolkata
Appeal Number ITA 2130/KOL/2009
Duration Of Justice 1 year(s) 2 month(s) 8 day(s)
Appellant Sri Satyabrata Roy, Kolkata
Respondent ACIT, Circle - 24, Kolkata, Kolkata
Appeal Type Income Tax Appeal
Pronouncement Date 25-02-2011
Appeal Filed By Assessee
Bench Allotted C
Tribunal Order Date 25-02-2011
Date Of Final Hearing 13-05-2010
Next Hearing Date 13-05-2010
Assessment Year 2004-2005
Appeal Filed On 17-12-2009
Judgment Text
I.T.A NO. 2130/KOL/2009-BKH 1 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : KOLKATA () . . ! . '. # '$ ) [BEFORE HONBLE SRI B.R.MITTAL JM & HONBLE SRI B. K. HALDAR AM] !% / I.T.A NO. 2130/KOL/2009 &' () / ASSESSMENT YEAR : 2004-05 SRI SATYABRATA ROY - VS- ASSTT. COMMISSIO NER OF PAN:AERPR 4636Q INCOME-TAX CIRCLE-24 KOLKATA (+ /APPELLANT ) (-.+ / RESPONDENT ) + / FOR THE APPELLANT : / �! / NONE -.+ / FOR THE RESPONDENT : 1 / SHRI P.K.MISHRA LD.DR '2 / ORDER .'.# '$ SHRI B.K.HALDAR ACCOUNTANT MEMBER . : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX(APPEALS) XIV KOLKATA DATED 14-09-2009 FOR THE ASSESSMENT YEAR 2004-05. 2. THE APPELLANT HAS TAKEN FOLLOWING GROUNDS OF APP EAL:- 1. (A) ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE CIT(A)- XIV ERRED IN CONFIRMING THE ADDITION OF RS. 1 92 46 8/- ON THE ALLEGED GROUND OF ANNUITY INCOME RECEIVED FROM LIC OF INDI A AS TAXABLE INCOME AS AGAINST CLAIM OF EXEMPTED INCOME U/S. L0( 1OA)(III) READ WITH CLAUSE 23AAB OF SECTION 10 WITHOUT CONSIDERING THE SUBMISSION SUBMITTED AT THE TIME OF HEARING AND THEREBY VIOLAT ING THE PRINCIPLES OF NATURAL JUSTICE ALTHOUGH RELEVANT PAPERS WHICH WAS ASKED AT THE TIME HEARING WERE SUBMITTED BEFORE THE LD. ASST. (B) IN ANY CASE THE ADDITION IS UNJUSTIFIED SINCE WITHOUT NECESSARY APPROVALS FROM THE CONTROLLER OF INSURANCE OR THE I NSURANCE REGULATORY AND DEVELOPMENT AUTHORITY NO SCHEME OR POLICY IS FLOATED BY LIFE INSURANCE CORPORATION OF INDIA A PREMIER CE NTRAL GOVERNMENT ORGANIZATION SO THE CONCLUSION OF THE L D. A.O. THAT THE POLICY OF THE ASSESSEE VIZ. NO. 4040/7 IS NOT APPR OVED BY THE CONTROLLER OF INSURANCE OR THE INSURANCE RECOVERY A ND DEVELOPMENT AUTHORITY AS REQUIRED BY THE ACT IS NOT AT ALL ACC EPTED BY YOUR PETITIONER. 2. THAT THE APPELLANT BE GIVEN SUCH RELIEF AS PRAYE D FOR. I.T.A NO. 2130/KOL/2009-BKH 2 3. THAT FURTHER GROUND OR GROUNDS OF APPEAL MAY BE SUBMITTED ON OR BEFORE THE DATE OF HEARING. 3. AT THE TIME OF HEARING NEITHER ANY BODY WAS PRE SENT NOR THERE WAS ANY ADJOURNMENT APPLICATION ON BEHALF OF THE ASSESSEE. HOWEVER A WRITTEN SUBMISSION DATED 16/06/2010 OF THE LD.AR FOR THE ASSESSEE IS A VAILABLE ON RECORD. WE THEREFORE PROCEEDED TO HEAR THE CASE. 4. THE LD.DR WAS AWARE OF THE WRITTEN SUBMISSION A S FILED BY THE APPELLANT. HE HOWEVER RELIED ON THE ORDERS OF THE AUTHORITIES B ELOW ON THIS ISSUE AND PRAYED THAT THE CONCURRENT FINDINGS OF THE AUTHORITIES BELOW MAY P LEASE BE CONFIRMED. 5. WE HAVE GONE THROUGH THE SAID WRITTEN SUBMISSION FILED BY THE LD. AR FOR THE ASSESSEE AND RECORD OF THE TRIBUNAL. 6. THE ASSESSEE IS A PENSIONER RECEIVING PENSION F ROM M/S. EAST INDIA HOTEL LTD. IN ADDITION HE RECEIVED ANNUITY FROM LIC OF INDIA AM OUNTING TO RS.1 92 468/- DURING THE RELEVANT PREVIOUS YEAR AT RS.16039/- P.M. THE ASSE SSEE CLAIMED ANNUITY AMOUNT OF RS.1 92 468/- AS EXEMPT U/S.10(10A)(III) R.W.S 10(2 3AAB) OF THE ACT. THE AO NOTED THAT AN AMOUNT OF RS.16 039/- P.M. WAS PAID TO THE ASSESSEE BY THE LIC ON A/C OF ANNUITY POLICY NO.4040/7. AT THE END OF YEAR THE LI C OF INDIA HAD ALSO DEDUCTED TAX AT SOURCE FROM THE ANNUITY AMOUNT. THE AO THEREFORE HELD THAT THE ASSESSEE WAS NOT ENTITLED TO THE SAID EXEMPTION ON A/C OF FOLLOWING REASONS:- I) THAT THE SCHEME UNDER WHICH THE ANNUITY POLICY W AS TAKEN BY THE ASSESSEE WAS NOT APPROVED BY THE CONTROLLER OF INSURANCE OR INSURANCE REGULATORY & DEVELOPMENT AUTHORITY [IR DA] AS REQUIRED BY THE ACT AND. II) THE ASSESSEE DID NOT RECEIVE ANY AMOUNT ON A/C OF COMMUTATION OF PENSION AS PROVIDED IN SECTION 10(10 A)(III) THUS HE ADDED THE IMPUGNED AMOUNT AS INCOME OF TH E ASSESSEE. 7. AGGRIEVED THE ASSESSEE FILED APPEAL BEFORE THE L D.CIT(A). 8. BEFORE THE LD.CIT(A) IT WAS CONTENDED BY THE AS SESSEE THAT THE AO HAS WRONGLY INTERPRETED THE PROVISION OF SECTION 10(23AAB) OF THE I.T ACT61. IT WAS CLAIMED THAT THE LIC DID NOT DEDUCT TAX ON THIS AMOUNT AND IN S UPPORT THEREOF COPIES OF ADVICES FROM THE LIC RELATED TO FY UNDER CONSIDERATION WERE ALSO SUBMITTED. I.T.A NO. 2130/KOL/2009-BKH 3 9. THE LD.CIT(A) HOWEVER HELD THAT AS PER PROVISI ON OF SECTION 10(23AAB) ONLY THE INCOME OF THE FUND WAS EXEMPT. INCOME RECEIVED FROM SUCH FUND BY THE POLICY HOLDER WAS NOT EXEMPT. IT IS ALSO CLEAR FROM WORDI NG OF SECTION 10(10A)(III) THAT ONLY THE COMMUTATION AMOUNT OF PENSION RECEIVED FROM SU CH A FUND WAS EXEMPT. THE ASSESSEE WAS RECEIVING ANNUITY IN MONTHLY INSTALLM ENTS AND THE SAME WAS NOT COMMUTED AMOUNT RECEIVED BY HIM. THUS THE AMOUNT W AS ALSO NOT EXEMPT UNDER THE SAID SECTION. HE THEREFORE CONFIRMED THE IMPUGNED ADDITION. 10. IN THE WRITTEN SUBMISSION FILED BEFORE US THE A SSESSEE HAS REITERATED THE SUBMISSIONS MADE BEFORE THE AUTHORITIES BELOW. IT W AS ALSO SUBMITTED THAT THE SCHEME FLOATED BY THE LIC HAD THE APPROVAL OF THE COMPETEN T AUTHORITY AS REQUIRED UNDER SECTION 10(23AAB) OF THE ACT. IT IS HOWEVER NOT DISPUTED THAT THE IMPUGNED AMOUNT WAS NOT RECEIVED ON A/C OF COMMUTATION OF PENSION FROM A FUND APPROVED UNDER CLAUSE(23AAB) OF SECTION 10 OF THE ACT. 11. IN THE ABOVE VIEW OF THE MATTER WE ARE OF THE CONSIDERED OPINION THAT THE IMPUGNED AMOUNT DOES NOT FULFILL THE CONDITIONS OF EXEMPTION AS LAID DOWN IN SECTION 10(10A)(III) R.W.C 23AAB OF SECTION 10 OF THE ACT. THUS WE UPHOLD THE IMPUGNED ORDER OF THE LD.CIT(A) ON THIS ISSUE AND DISMISS TH E GROUNDS RAISED BY THE APPELLANT. 12. IN THE RESULT THE APPEAL OF THE ASSESSEE IS D ISMISSED. # '2 $3' 4 3& 5 #6 0$ 25-02-2011 ORDER PRONOUNCED IN THE OPEN COURT ON 25-02-2011. SD/- SD/- [ . . ] [ . ' . # '$ ] (B.R.MITTAL ) (B. K. HALDAR) JUDICIAL MEMBER ACCOUNTANT MEMBER (0$) DATED :25-02-2011 I.T.A NO. 2130/KOL/2009-BKH 4 *PP 78 &9: ; /SR.P.S. '2 < -= >'=(?- COPY OF THE ORDER FORWARDED TO: 1. + /APPELLANT- SRI SATYABRATA ROY 20 DAKSHINAYAN P.O SODEPUR KOLKATA-110. 2 -.+ / RESPONDENT : ASSTT. COMMISSIONER OF INCOME-TAX CI R-24 KOLKATA. 3. 2&/ THE CIT 4. 2& ()/ THE CIT(A) KOLKATA. 5. F5 -&/ DR KOLKATA BENCHES KOLKATA .= -/ TRUE COPY '2&3/ BY ORDER # !: /ASSTT REGISTRAR