Income Tax Appellate Tribunal - Chandigarh
Anjula Goel , Parwanoo vs Dcit, Cc-Ii, Chandigarh on 12 March, 2021
आयकर अपील य अ धकरण, च डीगढ़ यायपीठ "ए", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'A', CHANDIGARH
ी संजय गग , याय क सद य एवं ीमती अ नपण
ू ा गु%ता, लेखा सद य
BEFORE: SHRI SANJAY GARG, JUDICAL MEMBER
AND SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER
आयकर अपील सं./ ITA Nos.1174 & 1175/Chd/2019
नधा रण वष /Assessment Years : 2015-16 & 2016-17
Anjula Goel, बनाम The D.C.I.T.,
Plot No.29, Sector 1, Circle-II,
Parwanoo, Chandigarh.
Himachal Pradesh.
थायी लेखा सं./PAN NO: AARPG6041Q
अपीलाथ /Appellant यथ /Respondent
नधा रती क ओर से/Assessee by : S/Shri Ashwani Kumar, CA,
Aditya Kumar, CA
Bhavesh Jindal, CA
राज व क ओर से/ Revenue by : Smt.C.Chandrakanta, CIT DR
सन
ु वाई क तार$ख/Date of Hearing : 10.03.2021
उदघोषणा क तार$ख/Date of Pronouncement: 12.03.2021
(Virtual Court)
आदे श/Order
Per Annapurna Gupta, Accountant Member :
Th e a bo ve a p p e a l s r e l a te to th e sa me a sse ssee a nd ha v e be e n p r e fe rr e d b y h e r a g a inst se p a r a te or de r s of t he C om mis si on e r of I nc ome Ta x ( Ap p e a l ) -3, Gu r ga on (h e re i n a fte r re fer r e d to as CI T( A )) b oth d a te d 07 .0 6 .2 0 1 9 ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 2 of 18 re la t in g to a ss e ss me n t ye a r s 2 0 15 -1 6 a nd 2 01 6 -1 7 re spe c ti ve l y, p as se d u/s 1 5 3A ( 1) ( b ) r .w . s. 1 4 3 (3 ) of t he I nc ome Ta x Act , 19 6 1 ( h e re i na f te r r e fe r re d to a s ' Act '.
2. I t w a s c ommon g r oun d th a t th e i ss ue s i nv ol ve d i n b oth the a p pe a l s we re ide n ti ca l , t he re fore , the y we re tak e n u p toge t he r for he ar i ng a nd a r e bei n g d is p ose d o ff b y th is com mon a n d c on s oli d a te d or de r .
We sh a ll b e ta ki n g up f ir s t t h e a p pe a l of t he a sse sse e i n IT A N o .1 17 4/C h d / 2 01 9 f or a ss e ssm e n t y e a r 20 15 -1 6.
3. B r i e f fa c ts re l a ting to the c a se ar e t ha t a se a rch a n d se i z ure ope r a ti on u /s 13 2 ( 1) of th e A ct w a s ca r ri e d o ut on 10 -0 3 -2 0 16 o n the b us ine s s a n d r e s ide n ti a l p re mi se s of M/s Om S on s G r oup o f c a se s , wh i ch i ncl u de d the a ss e s see . I n re sp on se t o no tice i ss ue d u /s 1 5 3 A of the Ac t, the a ss e ssee fi le d re tu r n de cl ar i ng i nco me o f R s. 6 ,4 3 , 63 0 /-a f te r c la imi ng de du cti on u/s 80C of th e Ac t of Rs . 1 ,6 0 , 00 0 /-. Su bs e q ue nt ly a sse ssme nt w a s fra me d ma k in g th e f oll ow i ng a dd i ti ons /d is a ll o w a n ce s :
1) a ll e ge d bo gus long t e r m ca p i ta l ga i ns u /s 6 8 of the A ct Rs. 1 7 ,19 9 8 9 /-
2) C om mis si on p a i d f or th e a bo ve a c com mod a ti on e nt ry Rs. 1 ,3 4 ,0 27 /-
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 3 of 18
3) De ni a l of d e d uc ti on of in te r e s t p a id on hou si ng loa n u /s 2 4 of th e Ac t Rs. 2 ,0 0 ,0 0 0 /-
4) de ni a l o f de d uc ti on c la i me d u/s 8 0 C of t he A ct Rs. 1, 6 0 ,0 0 0 /-
4. Th e a s se s se e w e nt i n a p pe a l b e for e t he Ld .C I T(A ) w ho up he ld a ll the ad d i ti ons ma d e a n d d is mis se d th e a ppe a l of the a s se s se e .
5. Ag gr i e ve d b y th e sa me the a s se sse e ha s come u p i n a pp e a l be fo re u s r a is in g th e f ol l owin g gr oun d s:
"1. That order passed u/s 250(6) of the Income Tax Act, 1961 by the learned Commissioner of Income Tax (Appeals)-3, Gurgaon is against law and facts on the file in as much as he was not justified to uphold the addition of Rs.17,19,989/- on account of long term capital gain and Rs.1,34,027/- on account of alleged expenditure in connection with long term capital gain.
2. That the Ld.CIT(A) was not justified to uphold the addition particularly in view of the fact that no incriminating material was found during the course of search.
3. That the Ld.CIT (A) was further not justified to consider the revised return field by the appellant after the search which was in fact an invalid return.
4. That no statement of the assessee was recorded u/s 132(4) Income Tax Act, 1961 and the Ld.CIT (A) has relied on irrelevant material for confirming the addition.
5. That the Ld.CIT (A) was not justified in not taking into account the offer of additional income by the group of concerns before the Hon'ble Income Tax Statement Commission during proceeding u/s 245D(4) in their cases.
6. That on the facts & circumstances of the case, the Ld. CIT{A) was not justified in confirming the ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 4 of 18 disallowance of Rs. 2,00,000/- claimed u/s 24 of the Income Tax Act, 1 9 6 1 .
7. That on the facts & circumstances of the case, the Ld. CIT(A) has erred in confirming the disallowance of Rs.1,60,000/- on account of deduction u/s. 80C for Rs. 1,50,000/-and Rs.10,000/- u/s.80TTA of the Income Tax Act ,1961.
8. That the appellant craves leave to add, amend or delete any of the grounds of appeal before the same is heard & disposed off."
6. G r oun d N os. 2 , 3 a nd 4 r a i se d b y the a sse s see we re not pr e sse d be f ore us a n d th e sa m e a re th e ref or e tr e a te d as di smi ss e d .
7. Vi s-à -vi s th e groun d N os. 1 a n d 5 ,th e s a me it w a s poi n te d out, re lat e t o t he a d d iti on ma d e u/s 6 8 o f the A ct on a ccou nt of Lo ng Te r m C a pi ta l G a i ns tre a te d a s b ogu s, a moun ti ng to R s .1 7 ,1 9 ,9 8 9 /- a n d t he a l l e ge d e xpe nd i ture in cu rr e d in c onn e c tio n w i th th e sa me a mo un ti ng to Rs. 1, 3 4 ,0 2 7 /.
8. Brief f a cts re la tin g to th e i ssue a re th a t dur i ng a sse ssme nt pr ocee d i n gs the A O not e d tha t in f or ma tio n h a d be e n re ce i ve d b y th e I nve s tig a ti on Wi n g, C h a nd i ga r h, f r o m the Di re c tor a te of I n come Ta x(I nv e st ig a tio n) -Kolk a ta a b out la r ge s ca le t a x e va si on i n th e for m o f B ogu s L on g Te r m C a pi ta l G a i n cla ime d b y v a ri ous b e ne f i ci a r ie s o f t he O m ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 5 of 18 Son s G r oup t hr ou gh the us e of p e n ny sto c ks b e i ng sol d /pu r ch a se d to f a ci l ita t e th e se tr a ns a ction s, wh i ch in cl ud e d the a sse ssee a l so . Th a t the a mo un t had been re ce i ve d o n sa le of sh a re s i n th e pe n ny s tock i .e M/s C re ss a nd a S ol uti on s Li mit e d . The AO n ote d th a t t he I nve s tig a ti on Win g Ko lk a ta ha d c a r ri e d o ut Su rvey op e r a ti on u/s 13 3 A of th e A ct in ca s e of M / s Ma n u Sto ck B r ok i ng Pv t. Ltd . o n 19 . 0 4. 2 01 5 , w he re i n sta te me n t of S h ri Rit e sh Ja i n wa s re cor de d in w hi ch he s ta te d th a t Sh r i A ji t Tu l si a n a n d Sh r i D ee pa k P a tw a r i w e re t he pr omo te r s of M /s C re san d a Sol ut ion s Ltd a nd t he y we re i nv olv e d i n p ro vi di n g e n tr ie s on the b a si s of commi ss ion . D ur in g the co ur se of se a r ch , t he fa ct s w i th r e g a rd to b og us L TC G w e re con fr on te d to t he a sse sse e . Al l th e p e r s ons of th e gr ou p a ut hor i ze d Sh r i Su ni l Goe l f or g iv in g r e p l y w ith re spe ct to th e Long Te rm C a p i ta l Ga i n s s how n f r om th e s cr i p t, M /s C r e se n d a S ol uti on s. Du r in g th e cou rs e of se a r ch o pe r a ti on, sta te men t of Sh r i Su shi l Go e l S /o S hr i O m P r a k a sh G oe l w a s re cor d e d u/s 13 2 ( 4) of t he Ac t, wh e re in he a d mi tte d tha t h e a n d his fa mi ly me mbe r s ha d re ce ive d b ogus ca p i ta l g a in s f ro m M /s Sma r t C h a mp I T & I nf r a P . Lt d. w hi c h w a s now me r ge d w i th M /s C r e ss a nd a S olu ti ons Ltd . I n t he s ta te me nt , a d mis si on wa s ma d e of una cc oun te d i nc ome to the tu ne of R s. 4. 2 0 cr or e s o n a c cou nt o f Lon g Te r m C a p i ta l G a i ns i n t h e n a me s ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 6 of 18 of S h. G oe l a nd h is fa mi l y me mb e r s i n cl ud i ng t he a s se s se e , Smt. A nj u la G oe l f or re spe c ti ve ye a r s. Th e a bo ve su r r e nde r wa s con f ir me d b y o the r fa mi l y he a d s of the gr oup name ly Sh r i R a ke sh G oe l a n d Sh r i U me sh G oe l d ur i ng the co ur se of the ir sta te me n t r e cor de d u/s 1 3 2 (4 ) of th e A ct on 12 . 03 . 2 01 6 and 07 . 04 . 2 01 6 d ur i ng th e oper a ti on of pr oh i bi tor y or d er a t th e off i ce of M /s O m So n s gr ou p a t Pa r w a n oo. Th e r e a f te r , the a sse ss ee offe re d the Lon g Te r m C a pi ta l G a i n of Rs . 21 , 9 3, 3 7 1/- fr om tr a d in g in t hi s scr i p a s he r 'I n come f r om ot he r sou r ce s' i n the re vi se d r e tu r n of in come f i le d on 2 8 .0 3 .2 0 1 6 and p a id ta xe s th e re on . How e ve r , the a s se s se e d i d n ot di sc lo se t hi s i n come of R s. 21 , 93 , 3 71 /- in t he re tu r n fi le d on 1 4 .0 8 . 20 1 7 i n r e sp on se to noti ce u /s 153A of th e A ct. A cc or di n gl y th e AO ma d e a dd i ti on of th e sa me to th e in co me o f the a s se sse e.
9. Ag gr i e ve d b y the s a me the a sse ss ee ca rr ie d the ma tte r be fore the C I T( A ) w ho d is mis se d a ll t he con te n tion s o f t he a sse sse e a nd uph e l d the or de r of t he A O. 10 . B e f ore us, t he Ld .C ou ns e l f or the a s se s se e c onten de d tha t th e sa i d a mou nt ha d be e n d is cl ose d i n the h a nd s of M /s R ohi t Tra d e rs , a p a r tn e r sh ip f ir m of th e g roup a n d i n wh i ch the a sse ss ee w a s a pa r tne r , be f ore the S e ttle me nt ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 7 of 18 C om mis si on a nd ta x e s d u ly p a id th e re on. O ur a tten tio n w a s dr a w n to Paper B ook pa g e N o.23 -3 4 b e in g the cop y of sta te me n t of f act s f i le d be f ore the H on 'b le I nc ome Ta x Se t tle me n t C o mmis si on, N e w D e lhi , in th e ca se of M /s Roh it Tr a d e r s fo r a sse ss me nt ye a r s 2 010 -1 1 to 20 1 6 -1 7 a nd the a cce pt a nce o f the s a me b y the Se ttle me n t commi ssi on v ide its or d e r u/s 2 4 5A ( 4) of th e A ct, r e le va n t p or ti on of wh i ch wa s p l a ce d be f or e us at P.B 48 -5 0 . O ur a tte nti on w as sp e ci f ic a ll y d r a wn to p a p e r bo ok p a ge no 2 7 ,p oint in g out the re fr om the spe c i fi c s ur re n de r ma d e o n a c cou nt of Long Te r m C a p i ta l G a in s on sh a re s, re tur n e d b y the a sse s see M/s An ju la G oe l, cl a imin g th e s a me a s e xe mp t u /s 1 0 ( 3 8 ) of t he Act . I t w a s p oi n te d ou t th a t i t h ad b ee n a d mi tte d b e f ore t he Hon 'b l e Se ttle me nt C om mis si on tha t the sa me re p r e se nte d onl y a c com mod a t i on e n tr y ob ta ined by the a s se s se e p a r tne r, bu t t he fu nd s h a d b ee n p r ov ide d by the fi r m ou t of i ts un di sc lo se d i nc ome w hi ch w a s thus b e i n g su rre nde re d. The con te n ts of the sa me a r e re p r od uce d he re u n de r :
" 1) AM OU N TS A D VA N CE D T O P AR T N ER D ur in g th e c ou rse of A/Y s 2 0 1 4 -1 5 , M s. An j il a Goe l, a P ar tn e r o f th e Ap pel l an t F ir m, wh i le f ilin g h er in c o me ta x r e tu rn , d ecl ared e x emp t in co me u / s 1 0 (3 8 ) , on ac co u n t of " L on g T erm Ca p i ta l G a in s" o n sh are s in th e f ol lo wi n g man n er: -
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 8 of 18 Ass essm en t Am oun t (R s ) Ye ar 2 0 14 - 15 3 1 ,8 0 ,8 5 7 /-
2 0 15 - 16 1 7 ,8 9 ,9 8 9 /-
Tot a l 4 9 ,7 0 ,8 4 6 /-
Fac t of th e ma tte r i s th at th e a bov e-men ti on ed in co me merel y re pr e sen ts acc o m mod a ti on en tr ie s ob ta in ed b y th e s a id p ar tn er . H o wever, al l th e f un d s requ ired f or ob tain in g th ese en tr ie s wa s prov id ed b y th e a p pl ic an t f irm to i ts P a r tn er and al so re pre sen ts u n di scl o se d in co me earn ed b y i t.
As su ch , th e ap pl ic an t f irm is of f erin g th e a bove - me n ti on ed a mou n t of Rs.4 9 , 7 0, 8 4 6 /- a s ad d i ti o n al in c o me vid e th e pre sen t S t, of F ac ts. Al so , an a mou n t @ 2 % of Rs.4 9 ,7 0 , 8 46 /- i.e .. Rs.9 9 , 41 7 /- to war d s f acil i ta tio n ch arge s is al so be in g su rren d ere d a s ad d iti on al in co me v id e th e pre sen t S ta te men t of F ac ts. "
11 . Th e Ld. C ou ns e l for th e a ss es see c on te n de d tha t a pp l ic a ti on f or se tt le me n t i n t he c a se of M/s Roh i t Tr a d e r s ha d b ee n a cce p te d b y t he Se ttleme n t C om mi ss io n vi d e i ts or de r p a sse d u / s 2 4 5 A( 4 ) of th e A ct, t he re fore , cl e a r l y t he imp ug ne d Lon g Te r m C a p i ta l G a i n s a ll e ge d ly re la t in g to t he a sse sse e ha d a l re a d y st ood d i scl os e d a n d ta xe d i n the h a nd s of M /s R ohi t Tr a d e r s a n d, th e re for e , the sa me c oul d not b e ta xe d a ga i n in t he h a nd s of t he a sse s see . 12 . Th e Ld . D R, on th e othe r h a nd , re l ie d u p on the ord e r of the Ld . C I T( A) s ta ti ng t ha t th e H on' ble S e ttle me nt com mi ssi on h a d n ot a cce pte d the p le a i n the cas e of M/s Rohi t Tr a d e r s t ha t t he s our c e h a vi ng b e e n ta xe d i n i ts ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 9 of 18 ha n ds , the p a rtne rs be n ot ta xed on the sa me a ga i n. O ut a tte n ti on w a s d ra w n to the fi n din gs of t he Ld . C I T( A) as un de r :
Further, the Hon'ble ITSC in their order in this group cases has made following observations at page 318 of the order.-
"it is noted that in the cases of M/s Om Sons Steels Pvt Ltd, M/s Om Sons Enterprises Pvt Ltd Radhika Traders and Rohit Traders the applicants have claimed that the additional income offered to tax in these cases has been utilized for certain investment/expenditure by other entries. We refrain from making any comment in respire of such claim of utilization in the hands of entities who have not filed application u/s 245D(1) of the Act and not covered in this order.".
Thus, the contention of the appellant that no amount can be added to income when source has already been taxed with regard to undisclosed income M/s Radhika Traders cannot be accepted in view of the Hon'ble ITSC's order discussed above.
Further, the cognizance of revised return filed declaring LTG as its income and payment of taxes cannot be ignored. There is no provision of the Act which prohibits the AO from doing so. The second proviso to section 153A(l]of the Act only prohibits the AO to pass any assessment after search with respect to pending assessment and the AO is empowered to issue notice u/s 153A to assess or reassess the total income of six assessment year in which such search was conducted or requisition was made.
Further, reliance is placed on the case of CIT vs Sun Engg Works Ltd 198 ITR 297(SC), wherein the Hon'ble Apex Court has held that the proceedings u/s 147 are for the benefit of the revenue and not for benefit of the assessee. Applying the same principle, proceedings u/s 153A cannot be construed to be for the benefit of assessee, so as to file a return on reduced income, by excluding income which has already been shown in the return filed suo moto and taxes paid on the said income, as in the case of the appellant.
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 10 of 18 The surrender offered on behalf of the appellant has in fact been incorporated in the return filed by the appellant after recording of statement.
With regard to addition on account of bogus entries with regard to LTCG on penny stocks, the AO has discussed the issue in detail in the assessment order and hence not reiterated.
In view of the above discussion, addition of Rs. 21,93,371/- on account of LTCG in the case of appellant is confirmed. As similar, issue is involved in the case of appellant for AY 2015-16 and Smt. Anjula Goel for AY 2015-16, the addition made in these cases is also confirmed.
13 . W e h a ve he a r d both t he p a r tie s . W e h a ve a l so pe ruse d the d oc ume n ts r e fe r re d to be fo re u s. Th e con te n ti on of t he Ld. C ou ns e l f or t he a s se s se e is tha t th e i mp ugn e d cap i ta l ga in s h a d a lr e a d y b ee n su r r e n de re d in the ha n ds of M /s Rohi t Tra d e rs , a p a r tne r sh ip f i rm of th e a s se s se e , b e f ore the Se t tle me n t C ommis si on w hi ch stood a cc e p te d . Th a t th e re fore the re w a s n o q uest ion of ta xi n g i t a ga i n in the h and s of t he a sse sse e .
14 . W e h a ve pe r use d th e c on te n ts o f t he sta te me n t of f a cts fi le d be f ore t he S e ttle me nt C ommi ss ion i n th e ca se of M/s Rohi t Tr a d e r s an d fi n d me r it i n the con te nti on of t he Ld. C ou ns e l f or th e a sse ssee . U n doub te dl y the i mp ug ne d lo ng te r m ca p i ta l gain of th e a ss e ssee of Rs. 1 7, 8 9 ,9 8 9 /- a lon gw i th the f a ci li ta ti on ch a r ge s th e re on , sta n d ca te g or ic a ll y sur r e nde re d as und i scl os e d i n come of M/s Rohi t Tr a de r s ,b e f ore the Se ttl e me n t C ommi s si on . The ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 11 of 18 Re ve nue ha s no t c ontr ov e r te d the s a id f a ct . Th e imp u gne d in come h a vi n g be e n ca te gor i ca lly t a xe d as un d is cl ose d in come o f th e a ss e s see s fi r m, w e f a i l to u nd e rs tan d w h y it sho ul d be ta xe d in the h a nd s of t he a sse ssee als o, w h i ch wo ul d on ly r e s ul t in t a xi ng th e same i nc ome tw ic e . 15 . Th e ob se r va ti on of the H on' bl e Se ttle me nt C ommi s si on on w h ic h t he Rev e nue h a s re lie d f or d is mis si ng a sse sse e s cl a im, t ha t th e y r e fr a i n f r om ma k i ng a n y c o m me n t i n r e s p e ct of cl a im of ut ili za t ion of a dd i ti on a l in come of M/s Roh it Tr a d e r s i n the ha nd s of p a r tne r s, i n our v ie w , onl y se r ves the li mi te d p urp ose of t he Com mi ssi on r e fr a i n in g f ro m com me n ti ng on as se s se e s w hi ch we re n ot t he re be for e the m. Th i s ob se r va ti on , w e fi nd , d oe s not ne ga te th e a d mi tte d a n d un di sp u te d fa c t of su r r e nde r of the i mp ug ne d ca pi ta l ga i ns of th e a s se sse e in the h a nd s of M/s R ohi t Tr a d e r s . 16 . I n vie w of th e a b ov e , we d ir e c t the de le t ion of a d di ti on ma de on a c co u nt of Lon g Te r m C a p i ta l G a i ns and e xpe n d itu re in cur re d on a c cou nt of th e sa me in t he h a nd s of the a s se sse e a mou nti n g to Rs. 1 7, 1 9, 9 8 9/- and Rs. 1, 3 4 ,0 2 7 /- re sp e c tive l y. Gr ound of a p pe a l N os. 1 a n d 5 ra i se d b y the a s se sse e , the re fore , sta n d a l l ow e d .
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 12 of 18 17 . G r oun d N os .6 a n d 7 r a i se d b y t he a sse s see b e f or e us re la te to c la i m of de du cti on on a c cou nt o f i nte rest pa i d on hou si ng l oa n u/s 24 of the A ct of Rs .2 , 00 , 0 00 /-, and re p a yme n t of th e pr i nc ip a l a mou nt of ho usi n g l oa n of Rs. 1, 5 0 ,0 0 0 /- & de du cti on on a ccoun t of i nte r e st e a r ne d on sa vi n g bank a cc oun t of Rs .1 0 ,0 0 0 /- u /s 80C & 8 0 TTA re spe c ti ve l y. The sa me , we fi n d, w e re de n ie d to the a sse ssee for the r e a son th a t th e n e ce s sar y do cume nt a ry e vi de nce s we re not f ile d .
18 . Ld .C o un se l f or t he a sse s see c onte nde d th a t vi s a vi s de du cti on c la i med of i nte re st p a id on h ous in g loa n u/s 2 4 of the A ct a nd r e p a y me nt of h ou si ng l oa n u/s 8 0 C of t he Act , b oth the a uth or it ie s be l ow ha d fa i l e d to a p p re ci a te t he a sse sse e 's co nte nt ion th a t the hous e w a s j oin tl y o wn e d b y the a s se s se e w ith he r h us ba n d a nd the l oa n a l so h a d b e e n joi n tly ta k e n , b ut the i nte re st ce rtif i ca te ha d be e n i ss ue d by the ba n k in th e n a me of the fi r st ow n e r , i.e th e hus ba nd of the a sse s see . He con te n de d th a t it h a d a ls o be en p oi nte d out th a t th e loa n in st a ll me n ts a n d i n te re s t we re a l so b e i ng pa i d by th e as se s see . Th a t all t he se f a cts had been con si ste ntl y i gn or e d b y the a u th or iti e s be l ow a nd d e d u cti on de nie d me re ly be c a use a s pe r i nte re st ce r t if ic a te loa n w a s sa n cti one d to th e hu sb a n d of t he a sse s see . He fu rt he r ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 13 of 18 con te n de d t ha t ev e n a ce r ti fi ca te fr om th e con ce rn e d b a nk, i. e SBI h a d bee n fi l e d , cl a r if yi ng t ha t th e le a se wa s in t he joi n t n a me of th e a ss e ssee a n d her h us b a nd . 19 . Th e Ld .C ou ns e l fo r t he a sse ssee c ont e n de d be for e us tha t a ll th e n e ce ss a ry e vi de n ce s h a d be e n fi l e d both b e fore the AO a nd e ven th e a p pe ll a te a ut hor i ti e s. He d r e w ou r a tte n ti on to t he fol l ow in g do cume nts f il e d i n the P a p e r B o ok a s u n de r:
1. Cop y of c ompu ta ti on c h ar t in su p por t of d ed u ction u/ s 2 4 . 8 0 C an d 80 T T A of th e In c o me T ax Ac t, 19 6 1 .
2. Ban k c er tif ic a te i n su p por t of h ous in g l o an b y the ap pel l an t a s c o- o wn e r f il ed bef ore the l d. C IT (A ) vide su b mi s sion s da ted 2 5 .0 1 . 20 1 9 .
3. Cop y of h ou sin g l o an sta te men t an d le dge r ac co un t sh o wi n g th e p a y me n t of in tere st an d pr in c i p al amou n t to b an k.
4. Cop y of S al e D eed in su p po r t of th e f act th a t h ou se wa s pu rc h a sed j oin tl y b y th e a p pel l an t an d h er hu sb an d S h .R a ke sh G oel .
20 . H e , the re f ore , ple a de d th a t the i mp ugn e d de d u cti on ha d , th e re f ore , be e n w r on gly de n ie d t o t he a sse s see . 21 . Th e Ld . D R, h ow e ve r , re l ie d on th e or d e r of t he Ld. C I T( A) .
22 . W e ha ve he a rd both th e p a r tie s . The a s se s se e ha s b e en de nie d de d uc ti on u /s 2 4 a n d se c ti on 8 0 C of the Act, of the ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 14 of 18 in te re st p a i d o n h ous in g l oa n & r e pa y me n t of hou si ng loa n , for t he re a s on tha t th e i n te re s t cer ti fi ca t e me nti ons the l oan sa n cti one d to the hu sb a n d of th e a ss e ssee . 23 . U nd i sp u te d i s the f a ct tha t th e re si de nt ia l p r op e r ty a ga i nst w hi ch th e s a id de d uct ion s we re c la ime d was H. N O .1 0 6 3, Se c tor -4 Pa n ch k ul a . Thi s i s e vi d e n t f r om the comp uta tio n o f i n come for the i m pu gn e d ye a r fi le d b e f ore us a nd the s a id fac t fi nd s me nti on i n th e a sse ssme n t or de r a ls o. A p e r us a l of the c op y o f the s a le de e d of th e sa id pr op e r t y, p la ce d b e fo re u s a t P.B 4 2-4 7 , s how s th a t it w a s pu r ch a se d in th e j oi nt na me of th e a s se s see and he r hu sb a nd . Th e l e d ge r a c cou nts of t he h ous in g loa n a nd t he a sse sse e s c a p it a l a c cou nt i n the fi rm, M / s Roh i t Tr a d e r s ,at P. B 3 9 -4 1 sh ow tha t lo a n wa s be in g r e pa i d b y he r , i n cl ud i ng in te re st. Al l thes e d ocu me n ts we re t he re be fo re the lowe r a uth or it ie s a nd no i nf ir mi ty h a s be e n p oi n te d out i n th e m. Eve n be f ore u s the Ld .D R w a s un a bl e to p oi nt out a ny di sc r e p a nc y i n th e sa i d do cume nt s. W h a t e me r ges th e re fore a s fa c t is tha t t he a s se s se e w as co -ow ne r of pro pe r ty on wh i ch ho usi n g l oa n ta k e n w a s b e ing r e p a id by h e r . Thi s f a ct is co rr ob or a te d b y the b a n k ce rtif i ca te p la ce d be for e us at P. B 3 8 , c e r ti fyin g h ome l oa n to b e i n t he name of t he a sse sse e a lo ngw ith h e r hu sb a nd .
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 15 of 18 24 . I n vie w of th e sa me , th e c ont en tio n of th e Re ve n ue tha t the a sse s see ha d f a i le d to e sta b l is h i ts cl a i m of de du cti on on a c cou nt of re p a yme n t of h ous in g l oa n a n d in te re st the re o n, me r i ts n o con s i d e r a ti on . Th e v ol umi n ous e vi de n ce s f ile d b y th e a s se s se e, a s s ta te d a b ove , c le a r ly e vi de n ce he r c la im. An d a ll th e ab ov e d oc ume n ts we re there be fore t he l owe r a u th or iti e s , w h o w e fi nd h a ve c onv e n ie nt ly ign or e d the sa me , p la ci ng e nti r e th r ust o n th e i nte re st ce r ti f ic a te i ssu ed by t he b a n k for r e je cti n g the a s se sse es cl a im.
25 . C on si d e r i ng the e n ti re f a ct s a nd ci rc ums t a nc e s a lon gw i th t he e vi de nce s f i le d, w e hol d tha t t he a s se sse es ha d d u ly e v i de nce d i ts c la i m f or de du cti on u /s 24 of i nte re st on h ous in g l oa n o f Rs .2 ,0 0 , 00 0 /- a n d u /s 8 0 C of r e p a yme nt of h ous in g l oa n of Rs. 1 ,5 0 ,0 0 0 / - . The AO is a c cor d i ng ly di r e c te d t o a l l ow t he a f ore sa i d c la ims to th e a sse ssee . 26 . As for th e cl a im of d e du cti on u/s 8 0 TTA of the A ct re la t in g to in te re st e a r ne d on sa v in g, t he sa me w a s a l so de nie d f or l a ck of e v id e n ce . B ut t he Ld. C ou n s e l for t he a sse sse e p oin te d ou t tha t w h ile the in te re st e a r ne d on sa vi n gs ba n k r e tur ne d b y the a ss e ssee sta n d s a cce pte d a s suc h, ( r e fle c te d in th e co mpu ta ti on of i nc ome a t P . B 35 -3 7 ) ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 16 of 18 the de d u cti on cla i me d on a c cou nt of th e sa me h a s b e e n de nie d .
27 . W e fi nd me r i t i n th e c on te n ti on of th e Ld. C ou ns e l f or the a s se s see . U nd ou b te d l y t he a sse ssee h as cl a ime d de du cti on of s a ving s b a n k i nte re st w hi c h h a s b ee n s how n a s in come of t he a s se s se e . Th is i nc ome re tu r ne d is not di sp u te d b y th e R e ve nue , th e re for e , we f a il to un de r sta nd the l ogi c fo r de n ia l of d e d uc ti on of th e sa me i nc ome . 28 . Ac cor d i ng ly we a l low th e cl a im of th e a sse ssee to de du cti on u /s 80 TTA of th e Act of i nte re s t e a r ne d on sa vi n gs b a nk a ccou nt .
29 . I n v ie w of the ab ove , t he AO i s di r e c te d to a ll ow t he cl a im o f th e a s ses se e u /s 2 4 of R s. 2, 0 0 ,0 0 0 /-, u /s 8 0 C of Rs. 1 , 5 0, 0 00 /- a n d u/s 8 0 TTA o f th e Act of Rs. 1 0 , 00 0 /-. Gr ou nd N o.6 a nd 7 st a nd a ll ow e d a cc or di n gl y. 30 . G r oun d N o. 8 r a i se d b y t he a sses see i s ge ne r a l and , the re fo re , nee d s to a d ju d ic a ti on.
Th e a p p e a l of t he a sse ssee th e re fore st a nd s p a rt ly a ll ow e d .
ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 17 of 18 We n ow t a ke up the a pp e a l of the a sse ssee f or a sse s sm e nt ye a r 20 16 -1 7 in IT A N o. 1 1 75 /C hd /2 01 9. Th e gr ou nd s r a is e d b y the a sse ssee re a d a s un de r :-
"1. That of the Ld.CIT(A) is against the facts of the case & is bad in law as no incriminating material related to the additions made was found during the course of search.
2. That on the facts & circumstances of the case, the Ld. CIT{A) was not justified in confirming the disallowance of Rs. 2,00,000/- claimed u/s 24 of the Income Tax Act, 1 9 6 1 .
3. That on the facts & circumstances of the case, the Ld. CIT(A) has erred in confirming the disallowance of Rs.152756/- on account of deduction u/s. 80C for Rs.1,50,000/- and Rs.2756/- u/s 80TTA of the Income Tax Act ,1961.
4. That the appellant craves leave to add, amend or delete any of the grounds of appeal before the same is heard & disposed off."
31 . G r oun d N o.1 r a i se d b y t he a sse ss ee i n thi s a p pe a l w a s not p r e sse d a n d i s th e re f ore d ismi sse d a s n ot p r e s se d. 32 . G r oun d N o. 4 r a is e d b y t he a ssess ee in t hi s a ppe a l i s ge ne r a l i n n a ture a n d h e nce , nee ds n o a d ju di c a tio n. 33 . I n re s pe ct o f g ro un d N os. 2 a nd 3 r a i se d b y the a sse ssee in th i s a p p e a l , i t w a s com m on g ro un d b e twee n the p ar ties tha t th e i s s u e s i n t h i s g r o u n d i s s i m i l a r t o t h e i s s u e s i n ground Nos.6 & 7 raised by the assessee in its appeal in I TA No. 1174/Chd/2019 dealt with by us above. The findings given therein at paras 17 to 29 of our order ITA Nos.1174 & 1175/Chd/2019 A.Ys. 2015-16 & 2016-17 Page 18 of 18 above shall apply to these grounds also mutatis mutandis. Ground Nos. 2 & 3 raised by the assessee, therefore, stand allowed.
The appeal of the assessee is therefore partly allowed.
34 . I n the re su lt , b ot h the a b ove a pp e a l s of t he asse ssee a re p a r tl y a ll owed .
Or d e r pr on ou nced o n 12 . 0 3. 2 0 21 .
Sd/- Sd/-
(SANJAY GARG) (ANNAPURNA GUPTA)
या*यक सद य/ Judicial Member लेखा सद य/ Accountant
Member
Dated: 12th March, 2021
*रती*
आदे श क त*ल+प अ,े+षत/ Copy of the order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent
3. आयकर आयु-त/ CIT
4. आयकर आयु-त (अपील)/ The CIT(A)
5. +वभागीय त न0ध, आयकर अपील$य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar