SUMEET MEHRA , MUMBAI v. DY CIT-1(3)(1), MUMBAI, MUMBAI

ITA 4276/MUM/2019 | 2015-2016
Pronouncement Date: 22-03-2021 | Result: Allowed

Appeal Details

RSA Number 427619914 RSA 2019
Assessee PAN AGJPM7660D
Bench Mumbai
Appeal Number ITA 4276/MUM/2019
Duration Of Justice 1 year(s) 9 month(s) 3 day(s)
Appellant SUMEET MEHRA , MUMBAI
Respondent DY CIT-1(3)(1), MUMBAI, MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 22-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 22-03-2021
Last Hearing Date 15-03-2021
First Hearing Date 15-03-2021
Assessment Year 2015-2016
Appeal Filed On 18-06-2019
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH MUMBAI BEFORE SHRI SHAMIM YAHYA ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE JUDICIAL MEMBER ITA NO. 4276/MUM/2019 ( ASSESSMENT YEARS: 2015-16 ) SUMEET MEHRA 5-C PREM KUTIR 177 MARINE DRIVE BACKBAY RECLAMATION MUMBAI-400 020. / VS. DCIT 1(3)(1) ROOM NO. 547 AAYAKAR BHAVAN M.K. ROAD MUMBAI 400 007. ./ ./ PAN/GIR NO. : AGJPM7660D ( / APPELLANT ) .. ( / RESPONDENT ) / APPELLANT BY : SHRI GOVIND PRASAD AR / RESPONDENT BY : SHRI RAJESH KUMAR (CIT-DR) / DATE OF HEARING 15/03/2021 !'# / DATE OF PRONOUNCEMENT 22/03/2021 / O R D E R PER SHRI PAVANKUMAR GADALE JM: THE ASSESSEE HAS FILED THE APPEAL AGAINST THE OR DER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-3 (FOR SHORT THE CIT(A)) MUMBAI PASSED U/SEC.143(3 ) AND 250 OF THE INCOME TAX ACT 1961 (FOR SHORT THE ACT). ITA NO . 4276 MUM 2019-SUMEET MEHRA . - 2 - THE ASSESSEE HAS RAISED THE FOLLOWING GROUND OF APPEAL: 1. THE LEARNED CIT(A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN CONCURRING WITH THE VIEW TAKEN BY LD. AO OF NOT REDUCING THE SALARY INCOME BY RS. 28 66 662/- AND NOT ALLOWING ADDITION OF WITHHOLDING TAX OF RS. 31 707/-. 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A SALARIED EMPLOYEE AND DERIVES INCOME FROM SALARY INCOME FROM BUSINESS & PROFESSION AND INCOME FROM OTHER SOURCES. THE ASSESSEE HAS FILED THE RETURN OF INCOME ELECTRONICALLY ON 30.03.2017 WITH TOTAL INCOME OF RS. 2 46 82 660/-. THE RETURN OF INCOME WAS PROCESSED U/S. 143(1) OF THE ACT. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE U/S. 143(2) & 142(1) OF THE ACT ARE ISSUED. IN COMPLIANCE TO THE NOTICE THE LD. AUTHORIZED REPRESENTATIVE (AR) OF THE ASSESSEE APPEARED FROM TIME TO TIME AND SUBMITTED THE DETAILS AND CLARIFICATIONS. THE ASSESSING OFFICER (AO) ON PERUSAL OF THE INCOME TAX RETURN FOUND THAT THE ASSESSEE HAS DISCLOSED THE INCOME FROM SALARY OF RS. 2 47 97 416/- AND INCOME FROM OTHER SOURCES OF RS. 60 248/- AND ITA NO . 4276 MUM 2019-SUMEET MEHRA . - 3 - CLAIMED DEDUCTION UNDER CHAPTER VIA AND DISCLOSED THE TOTAL INCOME OF RS. 2 46 82 660/-. IN THE ASSESSMENT PROCEEDINGS THE LD. AR OF THE ASSESSEE SUBMITTED THAT THE ASSESSEE AT THE TIME OF FILING OF RETURN HAS DISCLOSED DIRECTORS REMUNERATION FROM SINGAPORE COMPANIES IN US DOLLAR (USD) AND THE TAX DEDUCTION WAS CLAIMED IN USD. WHEREAS THE SALARY CERTIFICATE DISCLOSES THE DIRECTORS REMUNERATION AND WITHHOLDING TAX IN SINGAPORE DOLLAR. THE ASSESSEE INADVERTENTLY DECLARED DIRECTORS REMUNERATION OF USD 93256.44 AND WITHHOLDING TAX USD 8984.42FROM M/S SPARKLE CLEAN HOLDINGS INSTEAD OF USD 47456.08 AND WITHHOLDING TAX USD 9491.00 AS PER CERTIFICATE ISSUED TO THE ASSESSEE IN SINGAPORE DOLLAR. THE ASSESSEE HAS REQUESTED THE A.O. TO REDUCE DIRECTORS REMUNERATION BY RS 28 66 662/- AND INCREASE WITH HOLDING TAX BY RS31 707/- . THE AO ON VERIFYING THESE FACTS FOUND THAT THE CLAIM CANNOT BE ACCEPTED AS THE ASSESSEE CANNOT CHANGE AND REDUCED INCOME OFFERED IN THE RETURN OF INCOME WITHOUT FILING THE REVISED RETURN OF INCOME AND RELIED ON THE APEX COURT DECISION IN THE CASE OF GOETZE (INDIA) LTD. VS. CIT AND THE ASSESSED TH E ITA NO . 4276 MUM 2019-SUMEET MEHRA . - 4 - TOTAL INCOME OF RS. 2 46 82 660/- AND PASSED THE ORDER U/S. 143(3) OF THE ACT. 3. AGGRIEVED BY THE ORDER OF AO THE ASSESSEE HAS FILED THE APPEAL BEFORE THE CIT(A). THE CIT(A) CONSIDERED THE GROUNDS OF APPEAL SUBMISSIONS OF TH E ASSESSEE AND FINDINGS OF THE A.O AND OBSERVED THAT THE ACTION OF THE A.O. CANNOT BE INTERFERED AND UPHELD THE SAME AND DISMISSED THE ASSESSEES APPEAL. AGGRIEVED BY THE ORDER OF CIT(A) THE ASSES SEE HAS FILED THE APPEAL BEFORE THE HONBLE TRIBUNAL. 4. AT THE TIME OF HEARING THE LD. AR OF THE ASSESS EE SUBMITTED THAT THE ASSESSEE HAS INADVERTENTLY INCLUDED THE HIGHER INCOME IN THE RETURN OF INCOME FILED AND WITHHOLDING TAX.WHEREAS THE ACTUAL DIRECT OR REMUNERATION IS RS.29 70 314/- AS AGAINST RS. 58 36 976/- AND WITHHOLDING TAX ALSO CHANGES. THE MISTAKE IS GENUINE AND HAS TO BE REDUCED TO ASSESS THE CORRECT INCOME AND PRAYED FOR ALLOWING THE APPEAL. 5. CONTRA THE LD.DR RELIED ON THE ORDER OF CIT(A) AND HAS RAISED OBJECTIONS THAT THE ASSESSEE ITA NO . 4276 MUM 2019-SUMEET MEHRA . - 5 - WITHOUT FILING THE REVISED RETURN OF INCOME AND EXPLAINING THE DETAILED REASONS CANNOT CLAIM THE RELIEF. FURTHER HE EXPLAINED THAT THE APPEAL SHOUL D NOT BE ADMITTED AND DISMISSED. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE SOLE CRUX OF THE DISPUTED ISSUE IS THAT THE ASSESSEE IS AN EMPLOYEE AND FILED THE RETURN OF INCOME WITH HIGHER INCOME. WHEREAS THE SALARY CERTIFICATE IN RESPECT OF DIREC TOR REMUNERATION ISSUED BY M/S SPARKLE CLEAN HOLDINGS IS RS. 29 70 314/- INSTEAD OF RS58 36 976/- DISCLOSED IN THE INCOME TAX RETURN AND SIMILARLY THERE IS DIFFERENCE IN WITHHOLDING T AX. THE CONTENTIONS OF THE LD.AR THAT THAT THE ASSESSEE SHOULD NOT BE MADE TO PAY THE TAX ON HIGHER SALARY BUT ONLY ACTUAL SALARY HAS TO BE TAXED. THE LD AR ALSO SUBMITTED THAT THE MISTAKE ON THE PART OF THE EMPLOYEE IS NOT A WANTON ACT BUT DUE TO OVERSIGHT THE CORRECT INCOME COULD NOT BE CONSIDERED IN THE RETURN OF INCOME FILED. WE FOUND THE SUBMISSIONS OF THE LD.AR ARE REALISTIC. THE ASSESSEE SHOULD NOT BE DEPRIVED OF HIS LEGITIMATE CLAIM AND TAX HAS TO BE LEVIED ON THE INCOME ACTUALLY GENERATED. WE ITA NO . 4276 MUM 2019-SUMEET MEHRA . - 6 - CONSIDERING THE OVERALL FACTS CIRCUMSTANCES AND JUDICIAL DECISIONS ARE INCLINED TO GRANT ONE MORE OPPORTUNITY TO THE ASSESSEE TO SUBSTANTIATE THE CLAIM. ACCORDINGLY THE DISPUTED ISSUE IS RESTORED TO THE FILE OF THE AO FOR LIMITED PURPOSE AND THE A.O SHALL EXAMINE AND PASS THE ORDER. WE ALLOW THE GROUNDS OF APPEAL OF THE ASSESSEE FOR STATISTICAL PURPOSE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER PRONOUNCED ON 22.03.2021 IN THE OPEN COURT. SD/- SD/- SD/- SD/- ( SHAMIM YAHYA ) ( PAVAN KUMAR GADALE ) ACCOUNTANT MEMBER JUDICIAL MEMB ER MUMBAI DATED 22/03/2021 SK PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. & '( ) / THE CIT(A) 4. ) ( ) / CONCERNED CIT 5. -. //'( '(# & / DR ITAT MUMBAI 6. .34 5 / GUARD FILE. / BY ORDER / //TRUE COPY// 1. / ( ASST. REGISTRAR) !' # / ITAT MUMBAI