ITAT BANGALORE BENCH ‘A’
M.J. Ramani
Versus
Deputy Commissioner of Income-tax
N. BARATHVAJA SANKAR, VICE-PRESIDENT
AND N.V. Vasudevan, JUDICIAL MEMBER
IT Appeal Nos. 383 & 384 (Bang.) of 2012
[ASSESSMENT YEARS 2008-09 & 2009-10]
Date of Pronouncement – 31.01.2013
ORDER
1. These are appeals by the assessee against the common order dated 03.10.2011 of the CIT(Appeals)-VI, Bangalore relating to assessment years 2008-09 & 2009-10.
2. The grounds of appeal raised by the assessee in both the appeals are identical. For the sake of easy reference, the grounds of appeal in ITA No. 383/Bang/2012 is given below:-
“1. On the facts and in the circumstances of the case, the learned Commissioner of Income-tax (Appeals) ought to have appreciated that the amount and also the Fixed Deposit seized at the time of search was more than adequate for appropriation towards tax on the income declared for the relevant year and the appellant having filed declaration to this effect vide letter date 31.10.2008 much anterior to the date of issuance of notice, the interest u/ss. 234A, 234B and 234C of the Act were not leviable in the section 153A proceedings.
2. On the facts the learned Commissioner (A) ought to have appreciated that the return for the relevant year became due u/s. 153A of the Act only after the service of the notice on 6th October 2009 and by the time the appellant’s application for appropriation of the seized amount being available there was no tax due in pursuance of the notice to visit the appellant with the levy of interest u/ss.234A, 234B and 234C of the Act and consequently he ought to have deleted the interest levied u/ss.234A, 234B and 234C of the Act in the assessment made u/s. 153A of the Act.
3. The learned Commissioner (A) ought to have followed the judgments cited by the appellant which supported the appellant’s case fully and refrained from upholding the part of the levy u/ss. 234A, 234B and 234C of the Act.
4. Without prejudice, the interest levied is excessive, arbitrary and unreasonable and ought to be reduced substantially.
5. For these and other grounds that may be urged at the time of hearing of the appeal the appellant prays that the appeal may be allowed.”
3. The facts giving rise to the present appeals by the assessee are as follows. The assessee is an individual. He belongs to the Venkatesha Education Society group of Bangalore. There was a search carried out by the revenue u/s. 132 of the Act on 16.09.2008 in the case of Venkatesha Education Society group as well as the assessee. In the course of search at the residence of the Assessee, cash amounting to Rs.33,22,000 and fixed deposits worth Rs.1,29,95,913 were found and seized by the Authorized Officer who conducted the search. On 31.10.2008, the assessee gave a letter to the Dy. Director of Income-tax (Investigation), Unit-II(1), Bangalore [“DDIT”for short], requesting him to foreclose the fixed deposits and adjust the proceeds towards the tax liability.
4. In view of the provisions of section 153A of the Act, notice for assessment years 2008-09 and 2009-10 were issued by the AO requiring the assessee to file a return of income on or before 05.11.2009. The assessee filed return of income for the A.Y. 2008-09 only on 29.04.2010. As far as A.Y. 2009-10 is concerned, it was not part of the block period and therefore return of income ought to have been filed by the assessee for that year on or before 31.07.2009, which is the due date as per the provisions of section 139(1) of the Act. The return of income for AY 09-10 was also filed only on 29.4.2010. The assessment u/s.153A of the Act for both the AYs were completed on 30.11.2010. The AO levied u/ss. 234A, 234B & 234C of the Act as follows:-
(Amount in Rs.)
