Case Law Details
Sh. Nandkishore Bhikamchand Rathi Vs ITO (ITAT Nagpur)
The assessment order passed by disallowing an amount of Rs.5,18,596/- on the ground that the assesse has not followed the provision of Section 194A r.w.s. 40(a)(ia) of Income Tax Act, 1961.
ITAT find both the CIT(A) and the AO have not examined as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs. 1,64,130/- while computing the income in her return filed on 29.03.2013 and whether she has paid the tax due on the income declared by her in the return or not in terms of second proviso to Section 40 (i))(ia) R/w first proviso to Section 201(1) of the Act.
Therefore, ITAT inclined to remand the matter to the file of Ld. AO to examine as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs.1,64,130/- while computing the income in her return filed on 29.03.2013 and has paid the tax due on the income declared by her in the return, on examination of the same, the AO is directed to decide the issue in accordance with law.
FULL TEXT OF THE ORDER OF ITAT NAGPUR
This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals)-1, Nagpur, [“Ld. CIT(A)”, for short], dated 16/12/2016 for Assessment Year 2012-13.
2. The assesse has raised only sole ground of appeal:
“1. On the facts and in the circumstances of the case the learned CIT(A) erred in confirming addition of Rs.1,64,130/- made by the AO u/s 40(a)(ia) of Income Tax Act, 1961.
2. Any other ground that may be raised at the time of hearing of the Appeal.
3. On perusal of the order sheet, it is found that on previous two occasions i.e., on 27/04/2022 and 01/06/2022, the assessee neither appeared in person nor represented by any Counsel. Today when the matter is called; an adjournment application has been moved by the Authorized Representative on the ground that, the Senior Counsel appearing for the Assessee in the matter is out of station for a period of one month. On going through the appeal, other records and looking into the issue involved therein, we deem it proper to deny the adjournment and to decide the appeal on merit on hearing the Ld. AR and the Ld. Departmental Representative (“DR” for short).
4. The brief facts of the case are that, the Assessee filed return of income on 26/09/2012 declaring total income of Rs.12,94,686/- and the same was processed u/s 143(1) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’). The case was selected for scrutiny. A fresh notice u/s 142(1) along with the questionnaire was issued on 11.08.2014. In response to the notice, the assesse has been represented by his Authorized Representative in the assessment proceedings.
5. The assessment order came to be passed on 31/12/2014 by disallowing an amount of Rs.5,18,596/- on the ground that the assesse has not followed the provision of Section 194A r.w.s. 40(a)(ia) of Income Tax Act, 1961.
6. Aggrieved by the assessment order dated 31.12.2014, the assesse has preferred the appeal before the Ld. CIT(A) and the Ld. CIT(A) partly allowed the appeal on 14/12/2016 by sustaining the addition of Rs.1,64,130/-. Aggrieved by the order dated 14/12/2016, the Assessee has preferred the present Appeal on the grounds mentioned above.
7. We have heard both the parties, perused the materials on record and gave our thoughtful consideration. The assessment order came to be passed by disallowing sum of Rs.5,18,596/-. In the Appeal before the CIT (A), the Ld. CIT (A) while allowing the Appeal in part, confirmed an addition of Rs.1,64,130/- in the case of one Smt. Kamlabai B. Rathi, who has paid interest of Rs.1,64,130/-on the ground that, the Assessee has not followed the provision u/s 194A r.w.s.40(a)(ia) of the Act. The contention of the Assessee that, the said Smt. Kamlabai B. Rathi has filed her return of income on 29.03.2013 declaring total income of Rs.4,65,120/- and the Form No. 15G/15H has been received stating that her income is below taxable limits, has been fund not been acceptable by the Ld. CIT(A).
8. We find both the CIT(A) and the AO have not examined as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs. 1,64,130/- while computing the income in her return filed on 29.03.2013 and whether she has paid the tax due on the income declared by her in the return or not in terms of second proviso to Section 40 (i))(ia) R/w first proviso to Section 201(1) of the Act.
9. Therefore, we are inclined to remand the matter to the file of Ld. AO to examine as to whether or not Smt. Kamalabai B. Rathi has taken into account of the income of interest received from the assessee of Rs.1,64,130/- while computing the income in her return filed on 29.03.2013 and has paid the tax due on the income declared by her in the return, on examination of the same, the AO is directed to decide the issue in accordance with law.
10. Accordingly, we allow the Assessee’s Grounds of Appeal for statistical purposes and remand the matter to the file of the AO for fresh adjudication in terms of above discussion. Needless to state that, the Assessee shall be provided with opportunity of being heard and to produce any documents in support of the claim.
11. In result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on this 7th Day of June, 2022.
