Gouttham Reddy, Kottayam v. ITO, Kottayam

MA 1/COCH/2012 | 2006-2007
Pronouncement Date: 29-03-2012 | Result: Allowed

Appeal Details

RSA Number 121924 RSA 2012
Assessee PAN AGBPR7855F
Bench Cochin
Appeal Number MA 1/COCH/2012
Duration Of Justice 3 month(s)
Appellant Gouttham Reddy, Kottayam
Respondent ITO, Kottayam
Appeal Type Miscellaneous Application
Pronouncement Date 29-03-2012
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 29-03-2012
Assessment Year 2006-2007
Appeal Filed On 29-12-2011
Judgment Text
1 MA NO.01/COCH/2012 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKARA N(AM) M.A. 01/COCH/2012 (ARISING OUT OF I.TA NO. 418/COCH/2010) (ASSESSMENT YEAR 2006-07) SHRI GOUTHAM REDDY VS ITO WD.2 MANASAROVAR KOTTAYAM K.K. ROAD KOTTAYAM PAN : AGBPR7855F (APPLICANT) (RESPONDENT) APPLICANT BY : SHRI R KRISHNAN RESPONDENT BY : SHRI T.J. VINCENT DATE OF HEARING : 09-03-2012 DATE OF PRONOUNCEMENT : 29-03-2012 O R D E R PER N.R.S. GANESAN (JM) THE ASSESSEE FILED THE PRESENT MISCELLANEOUS APPLI CATION ON THE GROUND THAT THERE IS AN ERROR IN THE ORDER DATED 31-10-2011 PASSED BY THIS TRIBUNAL. 2. SHRI R KRISHNAN THE LD.REPRESENTATIVE FOR THE AS SESSEE SUBMITTED THAT WHILE DISPOSING OF THE APPEAL THIS TRIBUNAL HAS NOT CONSIDERED GROUND NO.2 RAISED BY THE ASSESSEE. ACCORDING TO THE LD.REPRESENTATIV E THE CIRCULAR ISSUED BY CBDT PERTAINING TO OLD LAW WHEN THERE WAS NO PRECONDITIO N THAT THE PAYMENT OF LIC PREMIUM ETC SHOULD BE OUT OF THE INCOME CHARGEABLE TO TAX. ACCORDING TO THE 2 MA NO.01/COCH/2012 LD.REPRESENTATIVE THE LAW APPLICABLE FOR THE ASSES SMENT YEAR UNDER CONSIDERATION IS THAT THERE IS NO PRE REQUIREMENT THAT THE INCOME SHOULD BE CHARGEABLE UNDER THE INCOME-TAX ACT FROM WHICH THE LIC PREMIUM WAS P AID. SINCE THE GROUND WAS NOT DISPOSED OF WITH REGARD TO APPLICABILITY OF LAW FOR THE YEAR UNDER CONSIDERATION ACCORDING TO THE LD.REPRESENTATIVE AN ERROR HAS CREPT IN THE CONCLUSION REACHED BY THIS TRIBUNAL. THEREFORE TH E ORDER NEEDS TO BE RECALLED FOR THE PURPOSE OF CONSIDERING THE LAW APPLICABLE F OR THE YEAR UNDER CONSIDERATION. 3. ON THE CONTRARY SHRI T.J. VINCENT THE LD.DR SU BMITTED THAT THERE IS NO ERROR IN THE ORDER OF THIS TRIBUNAL. THIS TRIBUNAL AFTER CONSIDERING THE FACTS OF THE CASE FOUND THAT THE LIC PREMIUM WAS NOT PAID BY THE ASSESSEE FROM THE INCOME CHARGEABLE TO TAX. UNLESS AND UNTIL IT IS ESTABLIS HED THAT THE PAYMENT WAS MADE FROM THE INCOME CHARGEABLE TO TAX THE ASSESSEE CAN NOT CLAIM ANY DEDUCTION TOWARDS PAYMENT OF LIC PREMIUM. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE ASSESSMENT Y EAR UNDER CONSIDERATION IS 2006-07. SECTION 80C WAS INSERTED BY FINANCE ACT 2 005 WITH EFFECT FROM 01-04- 2006. THIS NEWLY INTRODUCED SECTION 80C IS APPLICA BLE FOR THE YEARL UNDER CONSIDERATION. IN THE NEWLY INTRODUCED SECTION 80C THE CRUCIAL WORDS TOTAL INCOME WHICH IS CHARGEABLE TO TAX DO NOT FIND PLAC E. THIS NEWLY INTRODUCED PROVISION WHICH IS APPLICABLE FOR THE YEAR UNDER CO NSIDERATION WAS NOT TAKEN NOTE OF BY THE TRIBUNAL WHILE DISPOSING OF THE ASSESSEE S APPEAL. THEREFORE AN ERROR HAS CREPT IN THE CONCLUSION REACHED BY THE TRIBUNAL . THE ASSESSEE HAS SPECIFICALLY RAISED THESE POINTS IN GROUND NO.2. THEREFORE FOR THE EFFECTIVE DISPOSAL OF GROUND NO.2 THE ORDER OF THIS TRIBUNAL DATED 31-10-2 011 NEEDS TO BE RECALLED. THIS TRIBUNAL IS OF THE OPINION THAT THE NON CONSID ERATION OF THE NEWLY INTRODUCED 3 MA NO.01/COCH/2012 PROVISIONS OF SECTION 80-C IS AN ERROR WITHIN THE ME ANING OF SECTION 254(2) OF THE INCOME-TAX ACT. THEREFORE FOR THE EFFECTIVE DISPOS AL OF THE APPEAL THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ORDER OF THE TRIBUNAL DATED 31-10-2011 NEEDS TO BE RECALLED AND THE APPEAL HAS TO BE HEARD WITH REGARD TO THE APPLICABILITY OF THE CORRECT LAW FOR THE YEAR UNDER CONSIDERATION. ACCORDINGLY THE ORDER OF THE TRIBUNAL DATED 31-10-2011 IS RECALLED AN D THE ASSESSEES APPEAL IN ITA NO.418/COCH/2010 STANDS RESTORED ON THE FILE OF THIS TRIBUNAL. THE REGISTRY IS DIRECTED TO POST THE APPEAL FOR FRESH HEARING ON 14 -05-2012. 5. IN THE RESULT THE MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 29 TH DAY OF MARCH 2012. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN DT : 29 TH MARCH 2012 PK/- COPY TO: 1. SRI GOUTHAM REDDY MANASAROVAR K.K. ROAD KOTTAYAM 2. ITO WD.2 KOTTAYAM 3. THE COMMISSIONER OF INCOME-TAX(A)-IV KOCHI 4. THE COMMISSIONER OF INCOME-TAX KOTTAYAM 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR INCOME-TAX APPELLATE TRIBUNAL COCHIN BENCH