DCIT, CHENNAI v. Shri S.Duraipandi & Shri S.Thalavaipandian (AOP), CHENNAI

ITA 737/CHNY/2015 | 2003-2004
Pronouncement Date: 31-07-2015 | Result: Dismissed

Appeal Details

RSA Number 73721714 RSA 2015
Assessee PAN AAAAD4723G
Bench Chennai
Appeal Number ITA 737/CHNY/2015
Duration Of Justice 3 month(s) 22 day(s)
Appellant DCIT, CHENNAI
Respondent Shri S.Duraipandi & Shri S.Thalavaipandian (AOP), CHENNAI
Appeal Type Income Tax Appeal
Pronouncement Date 31-07-2015
Appeal Filed By Department
Order Result Dismissed
Bench Allotted D
Assessment Year 2003-2004
Appeal Filed On 08-04-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL D B ENCH CHENNAI . ' $ % ' BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD JUDICIAL MEMBER ./ I.T.A.NOS . 736 TO 741/MDS/2015 ( / ASSESSMENT YEARS: 2002-03 TO 2007-08) ASSISTANT COMMISSIONER OF INCOME TAX CENTRAL CIRCLE-III(4) CHENNAI-34. VS SHRI S.DURAIPANDI & SHRI S.THALAVAIPANDIAN (AOP) C/O. CNGSN & ASSOCIATES SWATHI COURT FLAT C & D 22 VIJAYARAGHAVA ROAD T.NAGAR CHENNAI-600 017. PAN:AAAAD4723G ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. KRISHNAMURTHY CIT /RESPONDENT BY : MR. B.RAMAKRISHNAN FCA /DATE OF HEARING : 4 TH JUNE 2015 /DATE OF PRONOUNCEMENT : 31 ST JULY 2015 / O R D E R PER CHALLA NAGENDRA PRASAD JM: ALL THESE APPEALS ARE FILED BY THE REVENUE AGAINST THE COMMON ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-19 CHENNAI DATED 30.12.2014 FOR THE ASSE SSMENT YEARS 2002-03 TO 2007-08. THE ONLY ISSUE IN ALL THE SE APPEALS OF THE REVENUE IS THAT COMMISSIONER OF INCO ME TAX (APPEALS) ERRED IN DIRECTING THE ASSESSING OFFICER TO RECOMPUTE INTEREST CHARGED UNDER THE PROVISIONS OF SECTION 234A & 234B OF THE ACT AS PER THE DECISION OF THIS TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS (57 SOT 67). 2 ITA NOS.736 TO 741/MDS/2015 2. BRIEF FACTS ARE THAT THERE WAS A SEARCH AND SEIZURE OPERATION IN THE PREMISES OF SHRI S. DURAPANDI AND SHRI S. THALAVAIPANDIAN ON 16.5.2007. THEY WERE IN THE BUSINESS OF MONEY-LENDING AND AGRICULTURE. A SURVEY UNDER SECTION 133A WAS CARRIED OUT IN THE BUSINESS PREMISES OF M/S TEX B SECURITIES PVT. LTD IN WHICH BOTH MR. DURAPANDI AND MR. THALAVAIPANDIAN ARE DIRECTORS. SUBSEQUENTLY SHRI S. DURAIPANDI AND SHRI S.THALAVAIPANDIAN REQUESTED THE ADIT(INV.) UN IT- IV(1) CHENNAI THAT THEY HAD BEEN DOING THE BUSINES S JOINTLY IN THE CAPACITY OF AOP. THE AOP HAD NOT MAINTAINED ANY REGULAR BOOKS OF ACCOUNT. BASED ON THE BOOKS AND DOCUMENTS SEIZED THE ACCOUNTS WERE PREPARED USING TALLY SOFTWARE AND WERE SUBMITTED AF TER SEARCH OPERATION. SUBSEQUENTLY RELEVANT STATUTORY NOTICES WERE ISSUED FOR THE SUBJECT ASSESSMENT YEAR S AND THE ASSESSMENTS WERE COMPLETED U I S.153C OF THE ACT BY MAKING VARIOUS ADDITIONS. THE ASSESSEE WENT ON AN APPEAL BEFORE THE CIT(A) WHO HAD DISPOSED THE APPEAL BY GIVING PARTIAL RELIEF. ON FU RTHER APPEAL THE TRIBUNAL HAS CONFIRMED THE ORDER OF TH E 3 ITA NOS.736 TO 741/MDS/2015 CIT(A). THE ASSESSING OFFICER WHILE GIVING EFFECT T O THE ORDER OF CIT(A) PASSED ORDER DATED 20.09.2010. THEREAFTER THE ASSESSEE FILED RECTIFICATION PETIT ION U/S . 154 BEFORE THE ASSESSING OFFICER FOR RECTIFICATION OF CERTAIN MISTAKES ALLEGEDLY APPARENT IN ORDER DATED 20.09.2010 PASSED BY THE AO FOR GIVING EFFECT TO TH E ORDER OF CIT(A). THE AO DISMISSED THE RECTIFICATION PETITIONS WITH OBSERVATIONS THAT THERE WAS NO MISTA KE. IN FIRST APPEAL COMMISSIONER OF INCOME TAX (APPEAL S) CONSIDERED THE SCOPE OF SECTION 154 AND HELD THAT ISSUE RAISED IN RECTIFICATION PETITION IS DEBATABLE AND DISMISSED THE APPEALS OF THE ASSESSEE. AGAIN ASSESSEE WENT ON APPEAL BEFORE THE TRIBUNAL AND TRIBUNAL VIDE ORDER IN ITA NOS.2223 TO 2229/2002 DATED 20.03.2013 DIRECTED THAT SEIZED AMOUNT OF ` 1.65 CRORES AND SUBSEQUENT PAYMENT OF ` 31 LAKHS BE FIRST GIVEN CREDIT AS ADVANCE PAYMENT OF TAX AND INTEREST UNDER SECTIONS 234A AND 234B WILL BE CHARG ED ONLY AFTER THAT CREDIT IS EFFECT AND ALLOWED THE AP PEAL. THEREAFTER THE ASSESSEE FILED APPEAL ASSAILING THE ORDER OF ASSESSING OFFICER BEFORE THE CIT(A). 4 ITA NOS.736 TO 741/MDS/2015 THEREAFTER ON 31.03.2013 APPEALS OF THE ASSESSEE WERE DISMISSED BY THE CIT(A) ON THE GROUND THAT THE ASSESSEE HAS FAILED TO SHOW ANY SUFFICIENT CAUSE FO R FILING THE APPEALS WITH THE DELAY OF 922 DAYS. AGA INST THE ORDER OF CIT(A) THE ASSESSEE FILED SECOND APPEAL BEFORE THE TRIBUNAL CHALLENGING THE LEVY OF INTEREST UNDER SECTION 234A AND 234B OF THE ACT. TH E TRIBUNAL VIDE ORDER IN ITA NOS 2062 TO 2067 /MDS/2013 FOR ASSESSMENT YEARS 2002-03 TO 2007-08 REMITTED THE MATTER BACK TO CIT(A) AND DIRECTED TO DECIDE THE APPEALS ON MERITS. 3. AS PER THE DIRECTIONS OF THE TRIBUNAL THE COMMISSI ONER OF INCOME TAX (APPEALS) DECIDED THE APPEALS ON MERI TS ON THE ISSUE OF THE PERIOD FROM WHICH INTEREST IS TO B E CHARGED UNDER SECTION 234A AND 23B I.E. WHETHER FROM THE DA TE OF DETERMINATION OF TOTAL INCOME UNDER SECTION 143(1) OR FROM THE DATE OF ISSUE OF NOTICE UNDER SECTION 153C TO T HE DATE OF COMPLETION OF ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 153C OF THE ACT. THE COMMISSIONER OF INCOME TAX (APPEALS) FOLLOWING THE DECISION OF CO-ORDINATE BEN CH OF THE 5 ITA NOS.736 TO 741/MDS/2015 TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS (SUPR A) DIRECTED THE ASSESSING OFFICER TO RECOMPUTE CHARGEA BLE INTEREST UNDER SECTION 234A AND 234B OF THE ACT AS PER THE DECISION IN THE CASE OF ACIT VS. V.N.DEVADOSS(SUPRA ) AGAINST WHICH THE REVENUE IS IN APPEAL BEFORE US. 4. DEPARTMENTAL REPRESENTATIVE VEHEMENTLY PLACES RELIANCE ON THE ORDER OF THE ASSESSING OFFICER. REF ERRING TO GROUND NO.2.3 OF THE GROUNDS OF APPEAL DEPARTMENTA L REPRESENTATIVE SUBMITS THAT THE DECISION IN THE CA SE OF ACIT VS. V.N.DEVADOSS(SUPRA) RELIED ON BY THE COMMISSI ONER OF INCOME TAX (APPEALS) IN ALLOWING THE APPEAL OF THE ASSESSEE HAS BEEN STAYED BY THE JURISDICTIONAL HIGH COURT BY ORDER DATED 26.11.2014 IN M.P.NOS. 2 TO 5 OF 2014 IN TCA NOS.821 TO 824 OF 2014. 5. COUNSEL FOR THE ASSESSEE RELIES ON THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND THE DECISI ON OF THE TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS(S UPRA) AND SUBMITS THAT THE ISSUE IN ALL THESE APPEALS IS SQUARELY COVERED BY THE DECISION AND THUS PRAYS FOR SUSTAINI NG THE 6 ITA NOS.736 TO 741/MDS/2015 ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) A ND DIRECT THE ASSESSING OFFICER TO FOLLOW THE DECISION IN THE CASE OF ACIT VS. V.N.DEVADOSS (SUPRA). 6. HEARD BOTH SIDES. PERUSED ORDERS OF LOWER AUTHOR ITIES AND THE DECISION RELIED ON. THE ISSUE IN ALL THESE APPEALS IS AS TO THE PERIOD FROM WHICH INTEREST IS TO BE CHARG ED UNDER SECTION 234A AND 234B OF THE ACT I.E. WHETHER FROM THE DATE OF DETERMINATION OF TOTAL INCOME UNDER SECTION 143( 1) OR FROM THE DATE OF ISSUE OF NOTICE UNDER SECTION 153C TO T HE DATE OF COMPLETION OF ASSESSMENT UNDER SECTION 143(3) READ WITH SECTION 153C OF THE ACT. THE ASSESSEE IN ALL THESE ASSESSMENT YEARS CONTENDED BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) THAT ASSESSMENTS WERE COMPLETE D UNDER SECTION 153C READ WITH SECTION 143(3) OF THE ACT ON 31.12.2009 THE ASSESSEE PREFERRED APPEALS TO THE COMMISSIONER OF INCOME TAX (APPEALS) TO GRANT PARTI AL RELIEF ON THE ADDITIONS/DISALLOWANCES MADE WHICH WAS ALSO CONFIRMED BY THE TRIBUNAL. THE ASSESSING OFFICER WH ILE GIVING EFFECT TO THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS) LEVIED INTEREST UNDER SECTION 234A AND 23 4B 7 ITA NOS.736 TO 741/MDS/2015 AGAINST WHICH ASSESSEE CONTENDED THAT LEVY WAS AGAI NST THE DIRECTIONS OF THE COMMISSIONER OF INCOME TAX (APPEA LS) AND ALSO NOT IN ACCORDANCE WITH THE LAW LAID DOWN BY TH E TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS(SUPRA). THE COMMISSIONER OF INCOME TAX (APPEALS) CONSIDERING TH E SUBMISSIONS OF THE ASSESSEE FOLLOWING THE DECISION OF THE TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS (SUPR A) DIRECTED THE ASSESSING OFFICER TO RECOMPUTE THE INT EREST CHARGEABLE UNDER SECTION 234A & 234B OF THE ACT OBS ERVING AS UNDER:- 5 . I HAVE CONSIDERED THE FACTS OF THE CASE AND FIND THE ISSUE INVOLVED IN THESE APPEALS TO BE SQUARELY COVERED BY THE DECISION OF THE JURISDICTIONAL ITAT IN THE CASE OF ACIT VS V.N. DEVADOSS (57S0T 67 CHENNAI). THE RELEVANT EXTRACTS OF THE DECISION OF THE HON'BLE ITAT IN THE CASE OF ACIT VS V.N. DEVADOSS 57S0T 67 CHENNAI) IS REPRODUCED BELOW: 'THE SECOND COMMON ISSUE RAISED IN ALL THESE APPEALS IS REGARDING LEVY OF INTEREST U/ S.234A. THE CASE OF THE REVENUE IS THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO CHARGE INTEREST UNDER SECTION 234A FROM THE DATE OF EXPIRY OF THE NOTICE PERIOD. GIVEN IN THE NOTICES UNDER SECTION 153A WITHOUT NOTING THAT CHARGING OF INTEREST UNDER SECTION 234A IS COMPENSATORY AND THAT AS RETURNS OF INCOME WITHIN THE DUE DATE UNDER SECTION 139(1) AND HENCE THE PROVISIONS OF SECTION 234A(L) IS APPLICABLE. IT IS ALSO THE CASE OF THE REVENUE THAT THE COMMISSIONER OF INCOME- TAX (APPEALS) HAS FAILED TO NOTE THAT THE ORDER 8 ITA NOS.736 TO 741/MDS/2015 OF THE INCOME-TAX APPELLATE TRIBUNAL B- BENCH CHENNAI IN THE CASE OF DR. V. JAYAKUMAR VS. ACIT CIRCLE I MADURAI IN ITA NOS.520 TO 529(MDS)/2010 IS NOT APPLICABLE TO THESE CASES SINCE THE FACTS ARE DISTINGUISHABLE. IN THE CASE OF DR. V. JAYAKUMAR THE ASSESSEE HAD PAID TAXES MUCH BEFORE FILING THE RETURN WHEREAS IN THE PRESENT CASES THE ASSESSES HAVE PAID TAXES UNDER SECTION 140A. THE RETURNS OF INCOME FILED BY THE ASSESSEES ON 23-9-2011 CANNOT BE EQUA.TED WITH THE RETURNS OF INCOME REQUIRED TO BE FILED UNDER SECTION 139(1). IT IS THE CASE OF THE REVENUE THAT THE ASSESSES HAVE COMMITTED DEFAULT BOTH UNDER SECTIONS 234A(L) AND 234A(3). IT IS TRUE THAT THE JURISDICTIONAL TRIBUNAL AT CHENNAI IN ITS ORDER RENDERED IN THE CASE OF DR. V. JAYAKUMAR VS ACIT HAS HELD THAT INTEREST IS CHARGEABLE UNDER SECTION 234A FROM THE DATE OF EXPIRY OF THE NOTICE PERIOD GIVEN TO THE ASSESSEE UNDER SECTION 153A. IT IS BECAUSE THE RETURN FILED UNDER SECTION 153A WOULD BE DEEMED TO BE A RETURN OF INCOME UNDER SECTION 139 Q.S PER THE EXPRESS LANGUAGE OF THE PROVISIONS OF SECTION 153A(L)(A) AND THEREFORE THE RETURN OF INCOME FILED UNDER SECTION 153A ALSO IS TO BE PROCESSED UNDER SECTION 143(1) AND THE INCOME DETERMINED THEREOF THESE ARE ALL CONSEQUENCES OF SEARCH CONDUCTED UNDER SECTION 132 AND THE ISSUANCE OF NOTICE UNDER SECTION 153A. ONCE A RECOMPUTATION IN THE ASSESSMENT ORDER UNDER SECTION 153A IS DONE THE INTEREST CHARGEABLE UNDER SECTION 234A WOULD HAVE TO BE RECKONED FROM THE DATE OF DETERMINATION OF INCOME UNDER SECTION 143(1) READ WITH SECTION 153A TO THE DATE OF THE RECOMPUTATION OF INCOME UNDER SECTION 153A READ WITH SECTION 143(3). THIS POSITION IS IN TUNE WITH THE LAW STATED IN SECTION 234A(3). THEREFORE WE FIND THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) IS JUSTIFIED IN HOLDING THAT THE INTEREST UNDER SECTION 234A IS CHARGEABLE FROM THE DATE OF EXPIRY OF THE NOTICE PERIOD GIVEN UNDER SECTION 153A TO THE DATE OF 9 ITA NOS.736 TO 741/MDS/2015 COMPLETING OF ASSESSMENT UNDER SECTION 143(3). THIS ISSUE IS DECIDED IN FAVOUR OF THE ASSESSES. THE NEXT COMMON ISSUE RAISED BY THE REVENUE IN ALL THESE APPEALS IS THAT THE COMMISSIONER OF INCOME-TAX (APPEALS) HAS ERRED IN DIRECTING THE ASSESSING OFFICER TO CHARGE INTEREST UNDER SECTION 234B FROM THE DATE OF DETERMINATION OF INCOME UNDER SECTION 143(1) READ WITH SECTION 139 READ WITH SECTION 153A(L)(A) TO THE DATE OF THE ASSESSMENT ORDER UNDER SECTION 153A READ WITH SECTION 143(3). IT IS TO BE SEEN THAT INTEREST UNDER SECTION 234B IS TO BE LEVIED ONLY ON THE ADDITIONAL TAX LEVIED ON THE ENHANCED INCOME DETERMINED UNDER SECTION 153A READ WITH SECTION 143 AND THEREFORE THE PERIOD OF CHARGE SHOULD BE FROM THE DATE OF DETERMINATION OF THE INCOME U/S.143(1) R.W.S 153A TO THE DETERMINATION OF INCREASED TOTAL INCOME U/S.153A READ WITH SECTION 143(3). FOR THE REASONS ALREADY STATED IN THE CASE OF LEVY OF INTEREST U/S.234A WE HOLD THAT THE DECISION OF THE CIT(A) ON THE QUESTION OF LEVY OF INTEREST U/S.234B IS ALSO JUST AND PROPER. THIS COMMON GROUND IS ALSO REJECTED. 5.2 IT CANNOT BE ASCERTAIN FROM THE ASSESSMENT ORDERS OF THE ASSESSING OFFICER THAT DATE FROM WHICH INTEREST CHARGEABLE TO TAX U/ S.234A AND 2348 WAS LEVIED I.E. FROM THE DATE OF DETERMINATION OF TOTAL INCOME U/S.143 (1) OR FROM THE DATE OF ISSUE OF NOTICE U/S.153A UNTIL THE COMPLETION OF ASSESSMENT U/S.143(3) RWS 153A OF THE ACT. RESPECTFULLY FOLLOWING THE DECISION OF THE JURISDICTIONAL ITAT IN THE CASE OF ACIT VS V.N. DEVADOSS (57 S0T 67 CHENNAI) THE AO IS DIRECTED TO RE-COMPUTE THE CORRECT CHARGEABLE INTEREST UNDER THE PROVISIONS OF SECTION 234A AND 234B OF THE ACT AS PER T HE DECISION OF THE JURISDICTIONAL TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOSS (SUPRA). THE GROUNDS OF APPEAL TAKEN BY APPELLANT IN THIS REGARD ARE THEREFORE ALLOWED FOR STATISTICAL PURPOSES. 10 ITA NOS.736 TO 741/MDS/2015 7. ON GOING THROUGH THE ORDER OF THE COMMISSIONER O F INCOME TAX (APPEALS) WE DO NOT FIND ANY INFIRMITY I N THE DIRECTIONS OF THE COMMISSIONER OF INCOME TAX (APPEA LS) . THE COMMISSIONER OF INCOME TAX (APPEALS) FOLLOWED T HE CO- ORDINATE BENCH DECISION WHEREIN IT WAS HELD THAT ON CE A RECOMPUTATION IN THE ASSESSMENT ORDER UNDER SECTION 153A IS DONE INTEREST CHARGEABLE UNDER SECTION 234A WOUL D HAVE TO BE RECKONED FROM THE DATE OF DETERMINATION OF INCOM E UNDER SECTION 143(1) READ WITH SECTION 153A OF THE ACT TO THE DATE OF RECOMPUTATION OF INCOME UNDER SECTION 153A READ WITH SECTION 143(3) OF THE ACT. THE TRIBUNAL HELD THAT COMMISSIONER OF INCOME TAX (APPEALS) IS JUSTIFIED I N HOLDING THAT INTEREST UNDER SECTION 234A IS CHARGEABLE FROM THE DATE OF EXPIRY OF THE NOTICE PERIOD GIVEN UNDER SECTION 153A TO THE DATE OF COMPLETING OF ASSESSMENT UNDER SECTION 143( 3). IT WAS FURTHER HELD THAT INTEREST UNDER SECTION 234B I S TO BE LEVIED ONLY ON THE ADDITIONAL TAX LEVIED ON THE ENH ANCED INCOME DETERMINED UNDER SECTION 153A READ WITH SEC TION 143 AND THEREFORE PERIOD OF CHARGE SHOULD BE FROM THE DATE OF DETERMINATION OF INCOME UNDER SECTION 143(1) REA D WITH 11 ITA NOS.736 TO 741/MDS/2015 SECTION 153A TO THE DETERMINATION OF INCREASED TOTA L INCOME UNDER SECTION 153A READ WITH SECTION 143(3) OF THE ACT. 8. WITH REGARD TO THE CONTENTION OF THE REVENUE THA T ORDER OF THE TRIBUNAL IN THE CASE OF ACIT VS. V.N.DEVADOS S(SUPRA) HAS BEEN STAYED BY THE JURISDICTIONAL HIGH COURT BY ORDER DATED 26.11.2014 ON A PERUSAL OF THE SAID ORDER WE SEE THAT THE ISSUE IN THE APPEALS IN WHICH STAY WAS SOUGHT F OR WITH REGARD TO DEDUCTION UNDER SECTION 80IB(10). THE HON BLE HIGH COURT BY ORDER DATED 26.11.2014 IN M.P.NOS.2 TO 5OF 2014 IN TCA NOS. 821 TO 824 OF 2014 HELD AS UNDER:- THESE PETITIONS COMING ON FOR ORDERS UPON PERUSING THE PETITIONS AND THE RESPECTIVE AFFIDAVITS FILED IN SU PPORT THEREOF AND UPON HEARING THE ARGUMENTS OF M/S.SWAMINATHAN ADVOCATES BY MR. K.B.KUMAR STANDING COUNSEL FOR THE PETITIONER IN ALL THE PETI TIONS THE COURT MADE THE FOLLOWING ORDER: HEARD THE LEARNED COUNSEL FOR THE REVENU E. THE OBJECTION RAISED BY THE REVENUE BEFORE THE TRIBUNAL THAT A SEARCH ASSESSEE IS NOT ENTITLED TO CLAIM THE BENE FIT OF SECTION 80IB(10) IF HE DOES NOT CLAIM THE BENEFIT WITHIN THE TIME LIMIT AND THE MANNER PRESCRIBED UNDER SECT ION 139(1) PARTICULARLY WHEN THERE IS A SPECIFIC BAR FO R SUCH A CLAIM UNDER SECTION 80AC HAS BEEN COMPLETELY OVERLOOKED BY THE TRIBUNAL. WE FIND THAT THE TRIBUN AL PRIMA-FACIE HAS BEEN GUIDED BY CLAUSE (A) OF SECTI ON 153A(1) TO HOLD THAT SUCH A BENEFIT COULD BE GRANTE D TO A SEARCH ASSESSEE IN TERMS OF SECTION 139 AFTER ISSU ANCE OF NOTICE UNDER SECTION 153A OF THE I.T.ACT. ON A R EADING OF SECTION 153A(1)(A) WE FIND THAT IT ALSO PRIVIDE S THAT THE PROVISIONS OF THE ACT WILL BE MADE APPLICABLE IF SU CH RETURNS WERE FILLED AS REQUIRED TO BE FURNISHED IN TERMS OF 12 ITA NOS.736 TO 741/MDS/2015 SECTION 139. THE BAR UNDER SECTION 139(1) IN RESPEC T OF A CLAIM UNDER SECTION 80IB SUBJECT TO SECTION 80AC I S A PROVISION OF THE ACT WHICH HAS TO BE COMPLIED WITH WHILE SEEKING SUCH A BENEFIT. THEREFORE WE ARE PRIMA-FAC IE NOT ABLE TO ACCEPT THE REASONING GIVEN BY THE TRIBU NAL IN PARAGRAPH -39 OF THE ORDER WHICH READS AS FOLLOWS:- 39. IN THE PRESENT CASE THE RETURNS WERE FILED BECAUSE OF SECTION 152 SECTION 153A AND CONSEQUENTLY BECAUSE OF SECTION 139. INCOME OF THE ASSESSEE HAD TO BE DECLARED BECAUSE OF THE EVENT OF SEARCH. AT THAT TIME THE ASSESSEES WERE EQUALLY ENTITLED TO CLAIM LAWFUL DEDUCTIONS AVAILAB LE TO THEM. A CLAIM MADE BY AN ASSESSEE CANNOT BE DENIED ONLY ON THE GROUND THAT THE RETURN WAS FILED IN CONSEQUENCE OF SEARCH. IT WAS ALSO STATED BY THE LEARNED COUNSE L FOR THE REVENUE THAT SUCH A FINDING OF THE TRIBUNAL IS DETR IMENTAL TO THE INTEREST OF THE REVENUE AND HAS BEEN RECEIVI NG EFFECT IN OTHER CASES AS SUCH A CLAIM IS NOW MADE BY THE ASSESSEE WHICH THEY FAILED TO CLAIM PRIOR TO SEARCH WITHIN THE TIME LIMIT AND THE MANNER PRESCRIBED BY THE ACT . IN VIEW OF THE ABOVE THERE WILL BE AN ORDER OF INTERI M STAY. NOTICE. 9. ON A PERUSAL OF THE ABOVE ORDER IT IS APPARENT THAT THE ISSUE BEFORE THE HIGH COURT WAS WITH REGARD TO DEDU CTION UNDER SECTION 80IB(10) OF THE ACT IN SEARCH PROCEED INGS AND IN RESPECT OF THAT ISSUE THE ORDER PASSED BY THE TR IBUNAL WAS STAYED BY THE HIGH COURT. WE ALSO NOTICE FROM THE O RDER THAT THE ISSUE REGARDING THE PERIOD FROM WHICH INTEREST HAS TO BE CHARGED UNDER SECTION 234A AND 234B OF THE ACT IS N OT THE SUBJECT MATTER OF APPEAL BEFORE THE HIGH COURT. THU S THE 13 ITA NOS.736 TO 741/MDS/2015 GROUND RAISED BY THE REVENUE STATING THAT ORDER OF THE TRIBUNAL WAS STAYED BY THE HIGH COURT HAS NO RELEVA NCE. 10. THUS THE DIRECTION GIVEN BY THE COMMISSIONER OF INCOME TAX (APPEALS) TO THE ASSESSING OFFICER TO RE COMPUTE THE CORRECT CHARGEABLE INTEREST UNDER THE PROVISION S OF SECTION 234A & 234B AS PER THE DECISION OF THE CO-O RDINATE BENCH OF THE TRIBUNAL IN THE CASE OF ACIT VS. V.N.D EVADOSS (SUPRA) IS UPHELD AND THE GROUNDS RAISED BY THE REV ENUE ARE REJECTED. 11. IN THE RESULT ALL THE APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST JULY 2015. SD/- SD/- ( # ) ( & (# ) ( CHANDRA POOJARI ) ( CHALLA NAGENDRA PRASAD ) * / ACCOUNTANT MEMBER ( * / JUDICIAL MEMBER ( /CHENNAI /DATED 31 ST JULY 2015 SOMU ./ 0/ /COPY TO: 1. APPELLANT 2. RESPONDENT 3. 1 () /CIT(A) 4. 1 /CIT 5. / 5 /DR 6. /GF .