Income Tax Appellate Tribunal - Patna
Bangali Singh(Huf), Patna vs Acit, Circle-4, Patna on 16 January, 2023
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010
A.Ys. 2000-2001 to 2005-2006
(in ITA Nos. 118 to 123/PAT/2009)
Bengali Singh (HUF)
IN THE INCOME TAX APPELLATE TRIBUNAL,
KOLKATA-PATNA 'e-COURT', KOLKATA
[Virtual Court Hearing]
Before Shri Rajpal Yadav, Vice-President (KZ)
&
Shri Rajesh Kumar, Accountant Member
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010
Assessment Years: 2000-2001 to 2005-2006
(in I.T.A. Nos. 118 to123/PAT/2009)
Bengali Singh (HUF),...............................Applicant
Sumitra Sadan, Boring Canal Road,
Patna
[PAN:ADLPS7912F]
-Vs.-
Assistant Commissioner of Income Tax,....Respondent
Circle-4, Patna
Appearances by:
Shri Umakant Tiwar ti, Advocate, appeared on behalf of
the assessee
Shri Rupesh Agrawal, Sr. D.R., appeared on behalf of the
Revenue
Date of concluding the hearing : January 03, 2023
Date of pronouncing the order : January 16, 2023
O R D E R
Per Rajpal Yadav, Vice-President (KZ):-
The present six Miscellaneous Applications are directed at the instance of assessee pointing out apparent error in the order of the Tribunal dated 20th September, 2010 passed in ITA Nos. 118 to 123/PAT/2009 for Assessment Years 2000-01 to 2005-06.1
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF)
2. The ld. Counsel for the assessee seeks an adjournment. However, we reject this prayer because these Miscellaneous Applications are pending in the Tribunal more than 10 years. The first assessment year involved is 2000-01, i.e. more than 22 years old.
3. With the assistance of ld. D.R., we have gone through the record carefully and proceed to decide these Miscellaneous Applications on merit. A perusal of the Tribunal's order would indicate that two substantial issues have been adjudicated by the Tribunal, namely -
(a) whether any partition of HUF had taken place or not and if taken place and a claim under section 171 was made that then without following the procedure under section 171(2), the assessment order is void ab initio;
(b) What should be the fair rental value for determining the house property income in the hand of HUF.
4. On both these issues, the Tribunal has passed a detailed speaking order and the finding reads as under:-
" 6 . Gr o und N o s. 3 a nd 4 t ak en b y t h e a s s e s s e e i n a l l t he ap p e al s a r e id e n t i c a l l y w or d ed. T h ey r e ad s a s un d e r : -
3. F or t ha t t he I d C I T ( A) ha s e r r e d in co nf ir m i ng t h e a ss e s sm ent a s H U F m e r e ly by f ol l ow i ng t he t r ib un a l ' s or d er f or t h e e a r l i e r y e a r s 2 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) w i t h o ut con si d e r in g t ha t t he principles of r e s j u di c at a w er e n o t a pp l i c ab l e d u l y r a i s e d a l s o b ef or e h im an d d et a i l ed s u b m i ssi o n s w e r e m a de i n t hi s r e g a r d wh i ch h ave bee n com p le t e ly i g n or e d by him.
4. F or t ha t t he I d C I T (A) h a s a l s o f a i l e d t o a pp r e ci a t e t h a t t h e a ss e ssm e nt or d e r pa s s e d b y t he A. O i n t he st a t us of H U F w it h o u t f i r st p a ss i ng a n or der o n th e cla i m u / s 17 1 b y f ol l ow i ng t h e p r o ced ur e u/ s 1 7 1 (2 ) i s v o i d a b in i t i o a n d sh o u l d h a ve b ee n a n n ul l e d .
7 . P er us a l of t he a sse s sm en t o r der s sho w t h a t t h e a s s e s s e e w as a s s e s se d in th e sta t u s of H U F f ro m a s se s s me nt y e a r 19 9 1- 92 t o a s s e s sm e nt ye a r 1 9 9 9- 2 0 0 0. Th e a s s e s s e e co nt e s t e d t he a c t i on o f t he A s se s s i n g O f f i c er i n a s se s si n g t h e a s s e s s e e i n t h e st at u s o f H U F i n a l l t h e a f or e sa i d a s se s s m e n t ye ar s, n a m e l y, a s s e s sm e nt y ea r 1 9 9 1- 92 t o 1 9 9 9 - 2 00 0, be f or e t hi s T r ib u n a l .
T h e T r i b un a l, b y it s or d e r i n I T A N o. 1 85 - 19 3/ P AT /2 00 4 da t e d co nf ir m e d t h e a c t io n of t he A s se s si n g O f f i c e r i n a s s e s s i n g t he a s s e s se e i n t h e s t a t u s of H U F i n A Y 1 99 1- 92 t o 19 99 - 2 0 0 0 . T he a s s e s se e t he r ea f t er f i l ed M i sce l l a n e ou s A p p l i ca t io n s u /s 2 5 4 (2 ) b ef or e t h i s T r i b un a l se ek i ng r e ct if i ca t io n of t he a f o r e s a id or d e r p a s se d by t h i s T r ib u na l d at e d T he M i s c e l l a n e o u s Ap p l i c a t io n s so f i l e d by t h e a s s e ss e e w e re a l so r e j e ct e d. Th e a s s e s s e e cha l l e nge d t h e o r de r of t h i s T r ib u na l be f or e t he H o n bI e H . i g1 r C o ur t u pon w h i ch t h e H on 'b le H ig h cou r t c o nf i r m e d th e or d e r o f t h i s Tr i b un a l in conf ir m i ng t h e a ct i on of t h e As s e s s i n g Of f i c e r I n a s s e ss i ng t h e a s se ss e e i n t he s t a t u s of H U F. I t i s th u s q u i t e cl ea r th a t th e s t a t us of t h e a s s e s s e e a s H U F a s ad o pt e d b y t he Ass e s si n g O f f i cer i n a s s e s s m e n t y e a r s 1 9 91 - 9 2 to 1 9 9 9 - 2 00 0 s ta n d s co nf ir m ed n ot on l y by t h i s Tr ib u na l b u t a. l s o b y t h e H on 'b l e H ig h C o ur t .
8. Fo l l ow ing t h e o r d er o f t h i s Tr ib un a l f or a s s e s s m e n t y e a r s 1 9 9 1 -
9 2 t o 20 0 0 a s c o n f ir m e d b y t h e H o n' b le H i g h C our t , t h e Asse s si n g O f f i cer h a s n ow a sse s se d t h e a s s e s s e e in t h e s t a t u s o f H U F i n a l l t h e a ss e ssm e n t y ear s u n de r ap p e a l . Ag g r i e v e d by th e a f or e s a i d or d er , t he a sse sse e f i le d a p p e a l b e f or e t h e I d. C I T ( A ) u p on w h i c h th e I d. C I T ( A) ha s c o nf i r m e d t h e c t i o n of t h e Asse s si n g O f f i ce r in a sse ssi n g t h e a ss e s s e e i n t h e s t a t u s of U F w i th t h e f o l l ow i n g o b ser vat i o n s: -
"I h av e c a r e f ul ly con s i d e r e d t he f a ct s of t h e ca s e a nd t h e sub m i ss i o n s m a de o n b e ha l f of t h e a pp e l la nt . I f i n d t ha t t h e ab o v e i s sue h a s b e e n d e c i de d b y t h e H o n' b le I TA T Pa t na B en ch , P a t na i n it ' s or d e r d at e d 2 8 . 2. 2 00 6 in I T A N o. 1 8 5 to 1 9 3 /Pa t /2 00 4 f or A. V s. 19 91 - 9 2 . t o 19 99 - 20 00 , i n t h e ap p e l l a n t ' s ow n ca s e, a g a in st t h e a pp e l l a nt w h e r e i n t h e Ho n 'b l e I T AT , a f ter c on s i d e r i ng a l l t h e f a c t s of th e ca s e , i n th e sa id or d e r h a s h e l d as un de r : -
" W h i l e co m i ng t o t h e co n cl usi o n t ha t t h e l a n d a n d t h e b ui ld i ng a ct ua l ly b e l ong ed t o t he a s s e s s e e H U F , w e ha v e t ak en in to con si d er a t i o n t he f a c t t ha t t he l a n d w a s p ur c ha sed o u t o f th e f u nd of a s s e s s e e H U F a n d t he b ui l d i n g w a s co n st r u c t e d t h er e on w it h t h e lo a n f un d m a de a va i l a b l e t o i t by t h e l e s s e e / t e na n t s t o 3 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) suc h b u i l d i n g . W e a l so f i nd th a t s uc h l o an a dva n c e d b y te n a n t s w a s a d j u st e d b y t he m a g a i n s t pa y m e n t of r e n t a nd, t h e r ef o r e, i t i s a n a ke d f a c t f r om t h e pe r us a l of re co r d t h at t h e al l eg e d eig ht co- o w n e r s ha v e ne i t h e r m a d e a n y i n ve s t m e n t o ut of t h e ir in d i v i d ua l s o u r c e nor ha s r ep a i d t h e so- c a l l ed l oa n o u t of t h e i r i n d i vi d u a l f u n d a s n o e vi de n ce ha s be e n f ur n i s he d b y t he a ss e s s e e i n r eg a r d t o t h e ab o v e i n v e st m e n t a nd r e pa y m e n t of l oa n by t h e i n di v i d ua l c o- ow n e r s.
W e ha ve a l s o t a k e n i n t o con s i d e r a t io n t h e f a ct t ha t t h e r e h a s b ee n no p a r t i t io n of s uc h H U F pr o pe r t y a m ong st it s m e m b er s a n d it ha s on l y b e e n c l a i m e d t ha t a l l t he e i g h t m e m b e r s o f t h e f a m i ly w e r e e q u a l c o- ow n er s o f su ch la n d a nd b u i l d in g . S i n c e t h e r e ha s b ee n n o pa r t it i o n of s uch l a n d an d b u i l d i ng w h i c h h a s b ee n h e l d t o b e t h e p r o p er t y of HU F , i n s uc h ca s e m e r e p h y si ca l d i v i s i o n of t h e i n c o me w it h o ut p hy s i c a l d i vi s i o n o f t he p r o p e r t y pr od u ci ng t h e i n c o m e c a n n o t b e a cc e p t e d. W e, t he r e f or e, i n v i e w of t h e a b ov e f a c t a nd t her e w a s n ot a pa r t it i on a nd d i s r up t i o n of s u c h p r o pe r t y b e l ong i ng t o t he a sse s s e e H U F, th e sa m e ha s r i g h t ly be e n ta xed by t h e AO i n t he h a nd s of t he a ss e ss e e HU F . W h i l e com i n g t o su c h c on c l u s i o n , w e f in d s up p o r t f r o m th e j ud g m e nt of t h e H on ' b le Al l a h a b a d H ig h C o ur t i n t h e ca se of C I T V s. M e e r a P r e m s un de r , H U F r e p or t e d i n 2 8 0 I T R 3 6 0 w he r e i n i t w a s h e l d t ha t i n c a se of H U F p r op e r t y , p hy s i c a l d i vi s i o n of in co m e w i th o ut a ph y s i c a l di v i s i o n of p r o pe r t y w a s n ot p e r m i ssi b l e . I n v ie w o f t h e a b o v e d i sc us s i o n, we ar e un ab le to a g re e with t he sub m i s si o n of t h e L d . AR t ha t t h e r e n t f r om t he a b o v e b ui ld i ng w a s t o be t a xe d i n t h e h a n d s of i nd i v i d u a l c o- ow n er s a nd no t in t h e h an d s of a s s e s s e e H U F a n d t he r ef or e , i n o ur c on s i d er e d o p in i o n , t h e L d. C I T ( A ) w a s j ust if i e d i n u ph o ld i ng t h e a ct io n of AO i n t a x i ng suc h i n co m e i n t h e h a nd s of a ss e s se e H U F "
I t i s f ur t h er o b s er v e d t ha t t h e a pp e l la nt f il e d m i s ce l l a n e ou s a p p l i c a t io n s n o s. 7 2 t o 7 9 /P a t / 2 0 06 b ef or e th e H on ' b le I TA T, Pat n a c la i m i ng t h at t h e r e a r e se v e r a l l ega l m i s t ak e s i n t h e or d e r of t h e Tr i b u n a l d at e d 2 8 . 2. 2 0 0 6 i n I T A N o s. 1 8 5 t o 19 3 / P a t /2 0 06 ( s up r a ) a nd t h at s uc h m i st a ke s d ea lt w it h t he i s s ue a s t o w h e t he r t h e pr op e r t y i n co m e of S u m it r a Sa d a n w a s r i g h t ly t ax ed in t h e han d s of t h e H U F a n d no t i n t he ha n ds of t he in d i v i d ua l co- ow ner s. I n th i s r e g ar d, t he H o n 'b l e I T AT vid e it ' s o r d er da t e d . 19 . 4 . 200 7 w h i le d i sm i s si n g t he sa i d m i sce l l a ne o us a p p l i c a t i o n s ha s he l d a s un d e r : -
" W e h a v e h e a r d b ot h t he p ar t i e s a n d p e r us e d t he r e co r d s of t h e Tr i b una l ca r e f u l ly . W e f i n d t ha t t h e T r i b una l in t h e im p ug n e d o r d e r ha s c o nsi d e r ed a l l t he r e l e va nt s u b m i s s i o n s m ad e b y t he a s se s s e e a nd ha s c o m e t o a r e a s o n e d c o ncl u si o n. T h e app e l la nt h a s n ot be e n a b le t o p o i nt o u t a ny a pp a r en t m i s t ak e i n t h e or d e r w h i c h co ul d b e r e ct i f i e d u / s 25 4 ( 2 ) of 4 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) t he Act . W ha t it i s s e ek i n g i s r e v i e w of t h e T r ib una l ' s or d er , w h i ch i s n o t p e r m i s s i b l e . I n t hi s vi ew of t he m a t te r , we d o n o t f in d a ny m er i t i n t h e M i sce l l a n e ou s A p p l i c a t i o n s f i l e d b y th e a sse ss e e a n d d i sm i s s t h e sa m e . "
Re s p e c t f u l ly f o l l ow i n g the de c i s i on s of t he j ur i sdi ct i o na l T r i bu n a l a s a b o ve , t he g r ou nd s N o. 5 a nd 6 r a i s e d by t h e a p p e l l a nt a r e r e j e ct e d a nd t he e s t i m a t e of g r o ss r e nt a t Rs. 20 , 7 9 , 7 10 /- by t he A s s e s s i ng O f f i c e r i s up h e l d. "
9 . Ag g r ie v e d b y t he a f or e sa i d or d e r of t h e C I T ( A ), t h e a s s e s s e e i s now i n a p pe a l b ef or e t h i s T r i b un a l. I n s up por t of t he a f o r e s a i d g r o un d s of a pp e a l s, it w a s st a t e d t ha t a f r e sh p e t i t i on un d e r se c t i on 1 71 ( 2 ) d uly s ig ne d b y S h r i S h a i l e s h K u m a r , o n e of t h e m e m b er s of t h e H U F, w as f i le d b e f o r e th e A s s e s s i ng Of f i c e r o n 3 . 1 2. 2 0 0 7 t og e t h e r w i t h M e m or a n d u m o f F am i l y S e t t le m e n t d at e d 10 . 4. 2 00 1 r e l e va nt t o a sse s sm e n t ye ar 2 0 0 2- 0 3. I n sup por t of t h e a f or e sa id cl a im , a f f i d a v i t d a te d 9 . 1 0. 2 009 of Shr i Sh i ke sh Jh a w a s f i l ed w h i ch r ea d s a s u nd e r : -
"I S H I K ES H JH A a g e d a b ou t 40 y ea r s, s o n of S h r i K a i la s h C han d r a J ha r e s i de nt of G r a nd C h a n d r a Ap a r t m e n t, F r a s e r Roa d , Pa t na 8 00 0 01 d o h er e by s o le m n ly a f f ir m a s f o l l ow s: 1 . I a m co un se l of B e ng al i S in g h ( H U F ). I h a v e b e e n a p p e a r i ng be f or e t h e As se s s i ng Of f i ce r i n th e ca s e of B e n ga l i S ing h ( H U F ) i n c o u r s e o f p r o c e ed i ng und e r se c t i on 14 7/ 14 8 f o r th e a s se ss m e nt y e a r s 200 0- 01 t o 2 0 05 - 0 6.
2 . Tha t o n 3. 1 2, 2 00 7 a pet i t i on un d e r s e c t i on 17 1 ( 2 ) of t h e I nco m e - ta x A ct , 19 6 1 w a s f i l ed be f o r e t h e A s s e s s i n g O f f i c er f or t h e a f or e sa i d y e a r s.
I SH I K ESH JH A d o he r e by ver i f y t h a t t h e c on t e nt s of pa r a s 1 to 2 a r e t r ue t h e b e st o f m y k n ow le d g e a n d b e l i e f .
Sd/-
D a t ed : 9. 1 0. 09 D ep o n e nt . "
10. I t i s e v i d e n t f r om t h e a b ov e t h a t w ha t w a s a v e r r e d in t he sa i d af f i da vi t w a s t h at a pet it i o n u/ s 1 7 1 (2 ) w a s f i l e d be f or e th e AO o n 3 .1 2. 20 0 7 w i t h o ut g i vi n g a ny o t he r d e t a i l. T h e s a id af f i da v i t w a s s o ug h t t o be i m pr o v e d b y f i l i n g a n ot he r af f i da v i t d a t e d 2 2. 2 . 2 0 10 of Shr i S h ik e s h J h a , w h i c h r e a d s a s un d er : -
"I S HI K ES H J H A ag e d a bo ut 4 0 y ea r s, son of Sh r i Ka i la s h C h a n dr a Jh a r e s i d e n t of G r a nd C h an dr a Ap ar t m e nt , F r a s e r R oad , P a t n a 8 00 0 0 1 d o h er e b y so l em n ly a f f ir m a s f o l lo w s:
" 1. T ha t I a m c ou n s e l of B e ng a l i S i n g h ( H U F ). I n co nn e ct i on with his a sse ssm e n t p r o c e e d i ng s u/s 1 47 /1 48 f o r t h e As se ss m e nt y e a r s 2 00 0- 0 1 to 2 0 05- 0 6 I ha d a p p ea r e d o n i t s b eh a l f b e f or e t h e A s s i s t a n t C om m i s si o n er of I n co m e t a x, C ir c l e- I V, P a t n a f r om t i m e t o t i m e.5
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) 2 . Tha t o n 3 . 1 2 . 20 07 I ha d p er s o na l l y a p pe a r e d b e f or e t h e A. O , S r i D ur g a D ut t , in co n ne ct i o n w it h t h e a f or e s a id a ss e ss m e nt p r o c ee d i ng s a nd ha d fi l e d b e f or e h i m t h e p et i t i on s 1 7 1 ( 2 ) of th e I . T . Act f o r t h e a f o r e s a i d y e a r s w h i ch w e r e a l l d ul y s i g n e d by on e of i t s m e m b e r s S r i Sha i l e s h Ku m a r . A z e r ox c o p y of t h e m e m or a n d u m of f a m i ly se t t l em e n t d a t ed 1 0, 4. 20 0 1 r e l e v a n t t o A. Y 200 2- 0 3 a n d o nw a r d s w a s a l s o f i l ed a lon g w i t h t h e sa id p et i t i on, As t h e s e p e ti t i on s w e r e no t f i l e d i n t he R e c e ip t Se ct i o n b u t w er e g i ve n d i r e ct ly t o th e A . O no Ack now l e d g e m e nt r e ce ip t t he r e f or w a s g r a nt e d.
3 . Tha t a ga i n s t t h e a s s e ssm e nt or d e r s u/ s 1 4 7 f or t h e af or e s a i d ye a r s I h ad f i l ed t h e a p p e a l s on h i s b e ha lf be f or e t h e C I T ( A ) - I I , P a t na a nd h a d a l s o a p pe a r e d be f or e h im a lo ng w i t h S r i K. N . Ja i n , S r . A d v o c a t e f r o m ti m e to t im e.
4 . I Sh i k e sh Jh a d o he r e by v er if y a n d a f f ir m t h a t t h e c o nt en t s of Pa r a s 1 t o 3 ab o ve ar e t r ue t o my k n ow l e d g e .
Sh i k e s h Jh a 22.02.2010"
1 1. On t h e st r e n g t h of t h e a v er m e n t s m a de b y Sh r i Sh i ke s h J h a i n th e a f or e sa i d a f f id av i t s, it w a s con te n de d t ha t p e t it i on un d e r se c t i on 1 7 1 ( 2) w a s f il e d b e f o r e t he A s s e s s i ng O f f i c e r o n 3 . 1 2. 2 0 0 7 f or a sse s s m en t yea r s 2 00 0- 0 1 t o 20 05 - 0 6 a n d th e r ef or e th e Ass e s si n g Of f i cer o ug ht t o h a v e di s p o s e d of t he af or e s a i d pe t it i on f i le d b e f o r e h i m u nd e r s e c t i o n 17 1( 2 ) be f o r e p a s si n g t h e i m p ug ne d a s se s sm en t or d e r i n t he s ta t u s of H U F. He s ub m it t e d t ha t t h e e a r l i e r or d er of t h e T r ib un a l w o u l d n o t ho l d g oo d f or t he y e a r s u nd er a pp ea l f or t h e r e a s o n t h a t t he a s s e s se e ha d f i l ed a f r e sh p et i t i o n u n d e r s e c t i on 1 7 1 ( 2 ) o n 3 . 1 2. 2 0 0 7 .
1 2. I n r epl y , t h e I d . S ta n di n g C o u ns e l f or th e D e pa r t m e n t sub m it t e d t h at t h e r e w a s no e vi de n ce t o s ub s ta n t ia t e t h e c l a i m o f th e a s se ss e e t ha t a pet i t i on u nd e r s e c t i on 1 71 ( 2 ) w a s f i l e d b ef or e t he A s s e s si ng O f f i ce r o n 3 . 1 2 . 20 1 7 . He f u r t he r sub m it t e d t ha t t h er e i s n o m e n t io n a b ou t a ny s uc h p e t i t io n e i t he r i n t h e a sse s sm en t or der or i n t h e or d e r o f th e I d . C I T ( A ) o r i n t h e sub m i ss i on s f i le d by t he a s s e s s e e be f o r e t h e Asse s si n g O f f i c er or t h e C I T( A^ ? » ~I f i- r e bu t t a l of t h e a f f id a v i t , th e A s se ss i n g O f f i ce r h a s a l so f i l ed c o u n te r - af f id a v i t d e ny i n g th e r e ce ip t of t h e a f o r e sa i d p e t i t i o n o n 3 . 1 2 . 2 00 7.
13. W e ha v e hea r d b ot h t he p ar t ie s. I t i s n o t i n di s p ut e th a t t h i s T r ib u na l ha s u p he l d t he a c t io n of t h e As s e s s i n g Of f i c e r in a s s e s si n g t h e a sse s s ee i n t h e st a t u s of H U F in a s s e s s m e n t y e ar s 1 9 91- 92 t o 19 9 9 -2 00 0 . Th e a f o r e sa i d or d e r of t he T r ib u na l h a s si nce b ee n conf ir m e d by th e H o n ' b l e H i g h C o ur t. T h e ca se of t h e a ss e sse e no w i s th a t a f r e s h pe t i t io n un d e r se c t i on 1 7 1 ( 2) w a s f il e d b e f o r e t he A s s e s s i ng O f f i c e r o n 3 . 1 2. 2 0 0 7 a n d th er e f or e t h e Asse s si n g O f f i ce r o ug h t t o h a v e d i sp o se d of t h e a f o r e s a id p et i t i on b ef or e p a s s i ng t he i mp u g n e d a s s e s sm e nt or der in t he st a t u s o l H U F , T he i d. S t a n d in g C o un se l f or t h e D ep a r t m e n t ser i ou sl y c o nt e st s t h e a f o r e s a i d sub m i ss i o n m a de by t he a ss e ss e e a n d s ub m i t s t h at n o s u c h p et i t i on w a s f i l ed b e f or e t h e A s se s si n g O f f i c e r .
6M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) 1 4. W hi l e Shr i S h ik e s h J ha ha s f i l e d a f f id a v i t t o a v e r t h a t h e h a d sub m it t e d t he p e t it i on p er s o n a l ly on 3 . 1 2. 2 0 0 7 be f or e t h e Asse s si n g O f f i ce r , t h e Asse ssi n g O f f i ce r h a s a l s o f i le d c o u n t e r - af f i da v i t d e ny in g t h e r e ce i p t of t h e sa id p e t i t i on . I n or d e r t o r ea ch a c o n cl u si o n a s t o w he t h er t h e sa i d P e t i to n wa s a t a l l f i le d b e f or e t h e Ass e s s i ng O f f i ce r on 3 . 1 2. 20 07 , w e h a v e t o l o ok at t h e s u r r o u nd i n g c i r c u m sta n c e s .
1 5. I t i s e v id e n t f r o m t h e f ir st a f f i d a vi t t ha t w ha t h a s b e e n a v e r r e d i s t h a t - a p et i t io n u/ s 1 7 1 ( 2 ) w a s f i l e d b e f or e t he A O o n 3 . 1 2. 2 0 0 7 w i t h o ut g i vi ng a ny ot h e r d et a i l . I t i s i n t he s e c on d af f i da v i t I n t h e se c on d a f f id a v i t d a t e d 2 2. 2 . 20 1 0 of S hr i Shi ke s h J ha i n w h i c h it i s a v e r r e d t h a t ( i ) pe t i t i on u / s 1 71 ( 2) w a s f i l e d by S hr i S h i k e sh Jha per so na l l y be f or e t he As s e s s i n g Of f i c e r o n 3 . 12 . 20 0 7 ; a n d ( i i ) t h e sa i d pe t i t i o n w a s f i l e d to g e t he r w i t h m e m or a nd u m of family s e t t le me n t d a t e d 1 0. 4. 2 0 0 1 .
16. T h e a ss e s se e ha s a l so f i l e d a c opy of pe t it i o n da t e d 3 . 1 2. 2 . 0 0 7 , w h i ch, acc o r d i n g t o t h e a s s e s s e e , w a s s ub m it t e d b ef or e t h e AC I T. Th e sa i d pe t it i o n i s i d e nt i c a l f or al l t he a s s e s sm e nt y e ar s u nd er ap pe a l a n d r ea d s a s u nde r : -
"T o T h e A. C . I . T C ir c l e- 4, Pa t n a.
. S ir , RE. A /Y 2 0 00 - 01 of B EN G A LI S I N G H ( H U F ) P e t it i o n u / s 1 71 ( 2 ) 1 . I n co m p l i a n ce t o y o ur n ot i ce u /s 14 8 w e h a v e f i le d t h e r et ur n on 30 . 1 1 . 07 sh ow i ng t h e t ot a l in c o me a s "N i l " a s t h e s a i d H U F w a s a l r ea d y di sr u pt ed on 1. 4 . 8 9 a s e v i de n c e d b y a m e m or a nd um d a t e d 2 1. 4 . 89 (C o py of t h e s a m e i s a lr e a d y o n r e c o r d s of t h e A. Y 19 98 - 9 9 ) .
2 . U nde r le g a l a dv i ce a nd t o a vo i d a ny f u t ur e c o m p l i c a t i o n s an d / or p r ot r a c t e d l it ig a t i on s, a f o r m a l pe t i t i on u / s 1 7 1 (2 ) i s a l s o b e i n g f i l ed .
3 . I t m a y b e st a t ed t ha t a s t h e p r i n c i p l e s o f r e s j ud i c a t a a r e no t a p p l i c a bl e i n t a x p r o ce e d i ng s, n e c e s s a ry e n q u ir i e s u / s 171 ( 2 ) m ay k i nd ly b e m a d e a n d t h e p a r t it i o n of th e H U F be r e c o r d ed a s cl a i m e d abo ve a nd t h er e a f t e r a s s e s s m e n t of t h e HU F be m a d e at N I L b y a c c e pt in g t h e s a i d r e t ur n.
4 . I t m ay a l so b e st at ed th at in p ur s u a n c e of t h e sa i d p ar t it i o n th e se pa r a t e d m e m b er s h a v e a lr e ad y f i l e d t h e ir r e s p e c t i v e r et ur ns a s b a ck a s on 1 3. 7 . 20 00 /1 5 . 9. 2 00 0 in r e s p e c t of th e i n co me d er i v e d by t h e m f r o m t h e p a r t i t i on e d p r o pe r ty "S U MI TR A S A D AN " a s a f or e s a id .
5 . I f a n y fu r t her i nf or m a t io n b e r e q uir e d k i n d l y le t u s kn ow f o r th e ne ed f ul.
Da t e d 3 . 1 2. 07.
Yo ur s f a i t hf u l ly , Sd/-
7M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) Sha i l e sh K u m a r ( A m e m be r ) "
1 7. I t i s q u i t e e vi de n t on ba r e pe r usa l of th e a f or e sa i d p e t it i o n th a t w h at w a s m e n t i o ne d in t he p et i t io n r e p or t e d ly s ub m it t e d b ef or e t h e Ass e ssi n g Of f i c er o n 3. 1 2. 2 0 0 7 w a s th a t a f or m al p et i t i on un d er se ct i o n 1 7 1 (2 ) w a s b e i ng f i l e d s e p a r a t e l y . I t i s th e r ef or e q u i t e c l ea r th a t t he a f or e s a i d l e t t e r d a t e d 3. 1 2. 2 0 0 7 w a s s i m p ly a n in t i m a t i on t o th e Ass e s s i n g O f f i c e r th a t f o r m al p et i t i on un de r se ct i o n 1 7 1( 2 ) w as b e in g f i l e d . I n ot h e r w or d s, th e a f or e s a i d p e t i t i o n i t s e lf i s n o t a p e t i t i o n u/ s 1 71 (2 ) . T he a s s e s se e h a s no t f i l ed cop i e s of f or m a l pe t i t i on u / s 1 7 1 (2 ) , w h i c h, a cc or d ing t o t h e c on t e nt s of t h e sa i d pe t i t i on, w a s b e in g f i le d se p a r a t e ly . T he a ver m en t m ad e by S h r i S h ik e s h J ha i n h i s af f i da v i t da t e d 2 2 . 2. 2 01 0 t ha t p e t it i o n un d e r s e c t io n 1 7. 1 (2 ) w a s f i l ed bef or e t h e A sse s s i ng O f f i ce r i s t h u s n ot s u b s t a n t i a t e d b y h i s ow n a ve r m e nt s. An ot he r i m p or t an t po i nt , t ha t e m e r g e s f r om t h e af o r e sa id l e t t er d a te d 3. 1 2. 2 00 7 r e p or t e d ly f i l e d by th e a ss e ss e e b e f o r e t he A sse s s i n g Of f i c e r i s t h a t t he c l a i m und er se ct i on 17 1 (2 ) w a s so ug h t t o b e s u pp o r t e d on t he b a s i s o f Me m or a n d um da t e d 21. 4. 19 89 . T he af o r e sa i d pe t i t i on /l e t t e r r ep or t e d ly f i le d o n 3 . 12 . 20 07 b ef or e t h e A s s e s s i ng O f f i c e r d oe s no t s h ow th a t t he r e w a s a ny M e m or a n d um of F am i l y S e t t le m e n t d at e d 10. 4 . 2 0 0 1 a s st at e d i n t h e s e c on d a f f id a v i t of S hr i Shi ke s h J ha . T h e a f f i da v i t f i l ed b y S hr i S h i ke s h J h a i s t h u s no t c on s i st en t w i th w h at i s st a t ed in t h e le t t e r d at e d 3. 12. 2 01 7 r ep or t e d ly f i l ed b y S hr i S hi k e sh J h a b e f or e t h e A s s e s s i n g Of f i c e r .
18. With prejudice to what has been stated above, the affidavit filed by Shri Shikesh Jha is not supported by any evidence or material to corroborate the averments made therein. The assessee has not filed any acknowledgement/receipt issued by the Department in token of its having received the petition reportedly filed by the assessee under section 171(2)/ Secondly, the case of the assessee was not listed for hearing before the Assessing Officer on 3.12.2007. What the assessing officer had done on 3.12.2007 was to issue a notice under section 143(2) and not to f0069 the case on 3.12.2007. It is therefore not clear as to what was the occasion that led the assessee to approach the assessing officer on 3.12.2007. Thirdly the entire assessment order does not mention anything about such a petition having been filed. The submissions made by the assessee before the assessing officer also do not contain any such reference about the aforesaid petition. Fourthly the submissions made before the CIT(A) also do not mention anything about the submission of the aforesaid petition before the assessing officer. Fifthly, the entire order of the ld. CIT(A) is completely silent on this aspect. Sixthly, the assessing officer has denied receipt of the said petition on 3.12.2007 in his affidavit filed before us. In this view of the matter, the submission made by the assessee that a petition under section 171(2) was filed before the assessing officer on 3.12.2007 is not borne out or corroborated by any material or evidence. The plea of the assessee inthis behalf therefore fails. What was pleaded in the letter dated 3.12.2007 reportedly filed before the assessing officer was that the HUF of the assessee was disrupted on 1.4.89 which was evidenced by a Memorandum dated 21.4.1989. Since the aforesaid Memorandum was considered by this Tribunal and it was after consideration t4hereof that the claim of the assessee was rejected. In this view of the matter, the order passed by the ld. CIT(A) confirming the action of the assessing officer in assessing the assessee in the status of HUF is upheld. Grounds Nos. 3 & 4 taken by the assessee in all the appeals are dismissed.
19. Ground No. 5 taken by the assessee in all the appeals reads as under:-8
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) 5 . F or t h a t t he I d C I T ( A ) i s n ot j ust if i e d in c o nf i r m i ng t h e ar b i t r ar y a nd 5. i l l e g a l e st i m at e of t h e i n c o m e f r o m h o u se p r o pe r ty a s m ad e by t he A. O a n d th at t o o w it h o ut g i v i n g a n y r ea so n s f or t he s a m e . H e h a s f a i le d t o a p pr e c i a t e t h a t t he e st i m at e of t he A LV m a d e by h i m f or e v e r y y e a r w a s n ot o n l y co nt r a r y t o s e c 2 2 of t he A ct b ut i n f a c t he h a d e v e n ig n or e d th e m a t e r i a l s a va i la b l e bef o r e h i m in th e f or m of r e t ur n s f i l e d b y t h e co- ow n er s i n a l l t h e y ea r s un d e r a p p e a l (a s w a s u s e d b y h im i n A. Y 2 00 0 - 0 1 ).
20. P er us a l of t he a s se s sm en t or d er a n d t h e or de r pa s s e d by t h e I d. CI T ( A) s h ow s t ha t t h e As s e ss i ng O f f i c e r h a d g i v e n s p e c if i c o p p or t un it y to m a ke sub m i s si on s with regard to the a s s e s sm e nt of in c o me f r o m h o us e p r o pe r ty . T he As s e s s i n g Of f i c e r h a d ca l l e d f or d et a i l s of r e nt r e c e i v e d i n r e s p e c t of t he i m p u g ne d pr op er t y t og e t h e r w it h co pie s of a g r e e m e n t e n te r e d i nt o w it h t he t e nan t s. T h e a s se sse e h ow e v e r c h o s e t o ig n or e th e a f or e sa id n ot i c e. T he a sse s se e d i d n ot f ur n i s h a ny i nf or m a t io n a s so l i c i t ed by th e A ss e s s i n g O f f i ce r . I t i s i n t h i s b a c k gr o un d th a t t h e A sse s si n g O f f i c e r a s s e s s e d t h e r e n t al i n co m e a cc o r d i ng t o t h e b e st of h i s j u d g m e nt . W h i l e d o i ng s o, he ha s g o ne b y t he a mo un t o f t ot a l gr o s s r e n t sh ow n by t he c o -
o w n er s.
21. O n a p pe a l , t he I d . C I T (A ) h a s con f i r m e d t h e a c t io n of t h e Ass e s s i n g O f f i c er f or w a n t of r e le va nt de t a i l s f r om t h e a s s e s s e e .
22. I n sup p or t o f a p p e a l , t he I d co un s e l f or th e a s s e s s e e h a s f i le d co m p a r a t i v e st a t e m e nt sh ow i ng t h e a m o un t of r e n t a c t ua l l y r e c e i v ed b y t h e c o- ow n er s a n d t h e a m o un t a s a s s e s s e d b y t he Ass e s s i n g O f f i c er . Th e sa id co m p ar at i v e st a te me n t r e a d s a s un d e r : -
" B EN G A LI S I N G H ( H U F ) C O MP A R AT I V E S TA T EM EN T O F A. L. V A S RE TU RN ED B Y S EP AR A T ED M EM B ER S O F T H E HU F ( A G G R E G A T E ) AN D AS ASS ESSE D B Y A. O A S SE S S M E NT A N NU A L LE T TI N G V A L UE A s s e ss m e n t A s sh o w n by s ep ar at ed A s a s s es s ed Y e ar M e mb er s 2 0 0 0- 0 1 2 0 ,7 9 ,7 10 2 0 , 7 9 ,7 1 0 2 0 0 1- 0 2 2 0 ,9 7 ,6 60 2 1 , 8 3 ,6 9 5 2 0 0 2- 0 3 1 6 ,1 3 ,7 45 2 2 , 9 2 ,7 8 8 0 2 0 0 3- 0 4 7 ,9 3 , 7 0 8 2 4 , 0 7 ,5 2 4 2 0 0 4- 0 5 3 ,9 4 , 9 0 8 2 5 , 2 7 ,9 0 0 2 0 0 5- 0 6 3 ,1 9 , 9 9 6 2 6 , 5 4 ,2 9 5 9 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) 2 3 . T he I d c o u ns e l f o r t he a s s e s s e e s ubm it te d t ha t t he am o u n t i n g of a n n u a l le t t i n g v a l ue as as se s se d by t he As s e ss i n g O ff ic e r w a s t he s a m e as s h o w n by t he c o- o w ne rs . Ho w ev er , t he a nnu a l le tt i n g v al ue a s a s s e s s e d by t h e Ass es s i ng Of f ic e r w as s u bs t a nt i a l l y h i g he r t h a n t h e o ne s h o w n by t he c o- o w ner s i n as s e s s m e nt y e a rs 200 1- 02 t o 2 00 5- 0 6. H e a ls o f i le d a st at e m e nt s ho w i n g t h e te n a nt s f ro m w h o m t he r e nt w a s re c e iv ed in d i ff e re n t a s s e s s m e nt ye a rs w h ic h re a ds as unde r: -
BENGALI SINGH (HUF) St at e m e nt s h o w in g te n a nt s f ro m w ho m re nt wa s re c e iv e d in d i ff e re n t a s s e s s m e nt ye a rs sf- S I . Na me 2000-01 2001-02 2002-03 2003 -04 2004-05 2005 -06 No 1 TISCO 2 ,9 9 , 1 7 8 3 ,4 1 , 9 2 8 3 ,1 3 , 4 3 4
2. Press I n f o r m a t i o n 1 ,7 2 , 2 2 0 1 ,4 7 , 6 0 0 1 ,7 2 , 2 0 0 1 ,4 7 , 6 0 0 49,200 Bureau (Go vt. of india) 3 Maurya M o t o r s 3 ,6 0 , 0 0 0 3 ,6 0 ; 0 0 0 3 ,6 0 , 0 0 0 3 ,0 0 , 0 0 0 (Phooltas) 4 CAN ARA 1 2 ,4 8 , 1 1 2 1 2 ,4 8 , 1 1 2 7 ,6 8 , 1 1 1 3 ,4 5 , 7 0 8 3 ,4 5 , 7 0 8 BANK 5 LG I NDIA LIMI TED 3 ,1 9 , 9 9 6 TOTAL 2 0 ,7 9 , 5 1 0 2 0 ,9 7 , 6 6 0 1 6 ,1 3 , 7 4 5 7 ,9 3 , 3 0 8 3 ,9 4 , 9 0 8 3 ,1 9 , 9 9 6 Date of f i l i n g 2 0 ,2 . 2 0 0 1 1 3 .7 . 2 0 0 1 2 3 .8 . . 2 0 0 2 1 3 .1 0 . 2 0 0 3 8 .1 0 . 2 0 0 4 3 0 .7 . 2 0 0 5 re turn s b y me mbe rs 24 . I n re p ly , t he I d . St a nd i n g C o u ns e l f o r t h e De pa rt m e nt s ubm it te d t hat t he a fo re s a i d e v i de nc e s ho u l d n o t be a dm i t te d a s it w a s no t f i le d be f o re t he As se s s i n g O f f ic e r o r t he I d. C I T (A ) i n s p i te of spe cif ic o p p or t u ni t ie s g iv e n t o h im i n t h is be h a lf .
W e hav e h e a r d b o th t he pa r t ie s . I t is a c a s e w he r e s pe c if ic o p p or t u ni t ie s we r e g iv e n b y t he As s e s si n g Of f ic e r t o t he a s s ess e e t o c o me f o rw a r d a n d f i l e ne c e s s a ry e v i de nc e t o f ac il i t at e t he a ss e ss m e n t o f inc o m e f ro m h o us e p r o pe rt y. I t is t he as s e s s ee w ho c ho se no t t o f i le a ny e v id e nc e be f o re th e A ss e s s i ng O ff ic e r. T hi s is co m ple t e de f ile o f t he law f u l a ut h o r it y o f the p ubl i c f u n c t io na r y . The As s e s s ing Of f ice r ha s r ig ht l y t a k e n re nt a l v a l ue s ho w n by th e c o -o w ne rs as le t t ing v a l ue o f t he p r o p e rt y in t h e h a n ds o f t he as s e s s ee . E v e n t he a s s e sse e ag r e es be f o re us t h a t t he a n n u a l le tt ing v a l ue t a ke n by t he As s e ss in g Of f ice r a t R s . 20 , 7 9, 5 1 0 / - w as t he s a m e as s ho w n by t he c o - o w ne r s i n A Y 20 0 0 - 0 1 . I t c a n n ot t he r e f o r e be s a i d t h a t t he a pp ro ac h a do pt e d by t he As s e s s ing Of f ic e r is u nre a s o n a bl e. I n a s s e s s m e nt ye a r 20 01 - 02 it c o nt i n u o u s t o b e t he s a me . I t is i n a s se s s m e nt y e a r 20 02- 03 a nd 10 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) o nw a r d s t h a t t he as s e s s ee h a s re po r t e d de c l i ne i n l et t i n g v a l ue w it ho ut f u r n is hi n g a n y r e le v a nt de ta i l i n s u ppo r t o f de c l i ne i n le t t i n g v al ue . I t is w e l l k n o w n f a c t t h a t le tt i n g v a l ue is i nc re a s ing da y - by - da y . T he re is h a r d l y a ny c a s e w he re t he le t t i n g v a l ue is de c l i ni n g m o nt h a f t e r mo n t h o r y e a r a f t e r ye a r o v e r a pe r i o d o f t hr e e y e a rs . I n t he a b s enc e o f a ny re le v a nt j us t if ic at io n for de c l ine i n le t t i n g v al ue , w e a re no t i n a po s it i o n t o i nt e rf e re w it h t h e o rde r pas s e d b y t he As s es s i ng O f f i ce r . T he o r de r pas s e d by t he As s es s i ng O ff ic e r a nd c o nf i r m e d b y t he I d. C I T ( A ) is t he re f o r e u phe l d. G ro und No. 5 t a ke n by t he as s e s s e e i n a l l t he a p pe a ls is dis m is se d.
26 . T he as s e s s ee ha s a ls o t a ke n a d di t io n a l g r o unds o f a ppe a l i n t his be h alf w hi c h re a d as u n de r: -
1, Fo r t hat t he I d A .O ha s f a i l e d t o g iv e cre d it ( a ) f o r t he T DS m ad e f ro m t he r e n t a l in c o m e a s s e s s e d i n t he a p pe ll a nt ' s ha nds a nd ( b ) a ls o f o r t he ta x e s d i re c t l y pa i d by it s m e m ber s o n t he v e ry s a m e re nt a l i nc o m e s . Thi s am o u n t s t o do uble co l le c t i o n o f t ax i n re s p e c t o f t he v e ry s a m e i n c om e w h ic h is no t pe rm is s i bl e i n l a w . T he A. O s ho u l d be d ire c t ed t o g iv e c r e dit f o r t he a b o ve s a i d pa y m e n t s a g a i ns t the t ax e s de m a n de d by h i m.
2. Fo r t h at t he a ppe l l a n t le a r nt of t h e a bo v e f a c t s o nly f r o m t he de t a i le d wo r k i n g o f t he t ax c a lc u l a t e d by t he A. O o n t he t o t a l i nc o m e a s s e s s e d by hi m a n d f u r n i s he d f o r t he f i r s t t i m e v i de hi s le t t e r no 1 1 9 4 da t e d 10. 11. 2 009 i. e a f t e r t he f il i ng o f t h e se a p pe a ls o n 1 8. 5 . 200 9.
27 . W e h av e he a r d bo t h t he pa r t ie s . The a f o r e sa i d is s ue w a s no t r a is e d e o r e t h e As s e s s i ng O f f ic e r no r t he i d. C I T( A) . I n t his v ie w o f t he m att e r t h e a f o r e s a id is s ue is re s t o re d t o t he f i le o f t he As s ess i ng O f f ic e r f o r a de c is io n i n c o n f o r m i t y w i t h l a w.
28 . G r o u n d N o . 6 t a k e n by t he a s s e s s pp i n a l l t he a p pe a ls re a ds a s u nd e r: -
6. Fo r t h a t t he I d C I T ( A ) h a s f a i le d t o a pp re c i at e t he s u bm is s io ns r e ga r d i ng c h a rg i ng o f i n te r e s t u/ s 2 34A e tc . The r e w as no d is p ut e a t a ll a bo ut t he c ha rg e a b il i t y a s suc h but t he d i s p ute w as as re g a r ds t he c om p ut a t io n a s a ls o t he q u a nt u m o f i nt e re s t c ha r g e d w hi c h w as a r bi t ra r y b u t w h ic h w as no t o nly in ac c or d a nc e w it h l a w but w a s ra t he r c o nt r a ry to l a w.
2 9 . T he a s s e s s ee h a s a ls o t a ke n a ddit i o na l g ro und o f a p pe a l in t his be ha if w h ic h r e a ds a s u nde r : -
3. Fo r t h at f ro m t h e s ai d le t t e r o f t he A. O it is a ls o no t ic e d t h at i nt e re s t h as bee n le v ie d u/s 2 34 A f ro m t he da te o f de f a u l t e nv i s a g e d u/s 139 (1) o f t he Ac t t i ll t he d at e o f t he as s e s s m e nt u/s 14 7 o f t he Ac t i ns t e a d of f ro m t he da t e o f de f a u lt i f a ny , i n f i l i ng t he re t u r n u / s 1 48. Suc h e x c e ss le v y no t o n l y u n a ut ho r is e d, but is r a t he r c o nt r a ry t o t he p ro v is io ns o f s e c 23 4 A. The a fo re s a id le v y f o r t h e p er io d pr io r t o t he da te o f de f a u l t u/s 1 48, if a ny , is il l e g a l a nd i s 11 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) de n ie d b y t he a ppe l la nt . S im i la r ly t he de m a nd m a de u/ s 2 3 4 B is a ls o no t o nly un a ut ho r is e d, but is r at he r c o nt r a r y t o t he p ro v i s io ns t he re o f .
30. In s u p p o r t o f t he g r ou n ds o f a p pe a l, t he a s s e ss ee ha s f i le d w r it t e n s u b m i s s io ns w h i c h re a d a s un de r: -
1 3 . T he A . O h a d d e ma nde d in t e re s t w it ho ut g iv i ng t he w or k i n g t he re o f O n de m a nd . t h e s a m e has no w be e n f u r n is h e d v i de A . O 's le t t e r no 119 4 d at e d 1 0 1 1 09 ( SE E P/ B - P A G E - 3 2 ). F ro m pa r a - 2 t he re o f it is no t ic e d t ha t he has c h a rg e d i nt e re s t U/ s 23 4A ( 1 ) f o r the pe r io d f r o m t he d u e d a te u /s 1 39 ( 1) t i l l t he da t e o f a s s e s sm e nt o r de r p as s e d u / s 1 47 w hi c h , it is re s pe c t f ul l y s ub m it t e d, is w it ho ut t he s a n ct i o n of l a w . A s pe r l a w int e res t c a n be c ha rge d, I f at a l l, o n l y f o r t h e pe r io d o f de f a ult u/ s 14 8 a nd no t f o r t h e pe r io d o f de f a u l t u/s 13 9 as h as be e n do ne . T h e re is t h us o v e r c ha rg e o f int e re s t.
1 4 . O n a p p e a l t h e I d C I T ( A) - I I (o n pa g e - 6 o f hi s o r de r ) ha s c o nf i r m e d t he le v y m e re ly o n t he g ro und t ha t it is " ma nd at o r y a n d s t a tut o r i l y pro v i de d a nd t he A. O h as no d i sc r et io n i n t h i s re g a r d" . H e how e v e r f a i le d t o a pp re c iat e t hat t he le v y of s a i d i n t e re s t f r o m t he due d at e pr o v i de d u/ s 1 3 9 ( 1 ) i n s t e a d o f f ro m t he due da te pr ov i de d u /s 14 8 w as w h o ll y u n a ut ho ris e d a nd c o nt r a r y t o la w . The le v y t o t his ex t e nt w as t h e re f o re de n ie d a s be i ng w it ho ut t he s a nc t io n o f l aw . "
31 . I n re p l y , t he I d . St a n di n g C o u ns e l f o r t he De pa rt m e nt s u bm i t te d t h a t i n t e r e s t h as r i g ht l y be e n c h a r ge d u nde r s e ct i o n 2 3 4 A ( 1 ) re a d w i t h E x pl a n a t io n 1 t he re t o .
32. W e ha v e h e a r d b ot h t he pa r t ie s . Ac c o r d i ng t o s e c t io n 2 34A , w he re re t u r n of i n c o m e f o r a n y a s s e s sm e nt y e a r is f ur nis he d a f t e r d ue da t e o r is no t f u r n is he d, t he a s s e ss ee s ha ll be l ia b le t o p ay s i m p le i n te r e s t at th e p re s c r ibe d r a te . The t e r m " due d a t e " ha s b e e n d e f i n e d i n E x pl a na t io n 1 t o s e c t io n 23 4A ( 1) a s t he d at e s p e c if ie d i n s u b- s e c t io n ( 1 ) o f s e c t io n 1 39. I t is q u i t e a p pa re nt o n b a re pe r us a l o f s e c t io n 23 4A (1 ) r e a d w it h E x p l a na t io n 1 t he re t o t h at t he ra te o f i nt e re s t is c ha rg e d f o r e v e ry mo n t h o r p ar t o f a m o nt h co m pr is e d i n t he pe r i o d c o mm e nc i n g t he d a t e im m e di a t e ly fo l lo w i n g t he due da te a n d, w he re re t u r n is f u r n is he d a f t e r t he du e da t e, e ndi n g o n t he d a le o f f u r n is h i ng o f t he re t u r n. I n t he pre s e nt c as e , t he re t ur n w a s no t f i le d by t he du e d at e s pe c if ie d in s ec t io n 13 9( 1 ) o f t he Ac t . T he re f o re , int e re s t un de r s e c t io n 2 34 A w a s l i a ble t o be c ha rge d f o r e v e r y m o nt h o r pa rt o f m o nt h c o m pr is e d i n t h e pe r iod c o m m e nc i ng on t h e da t e i mm e d i at e ly f o l lo w i ng t he due d a t e a nd e n d i ng o n t h e d at e o n w hic h t he re t ur n w a s f u r n is he d. T h e As s e s s i ng Of f ic e r ha s c ha r g e d i nt e re s t i n a c c or d a nc e w it h t h e a f o r es a i d p ro v is io ns . W e s e e no va l id re as o n t o i n te rf e r e w it h t he o r de r pas s e d by t he As s e ss in g O ff ic e r. G ro u n d No . 6 a n d a d dit i o na l g ro und N o. 3 i n t he a d d it io na l g r o u n ds o f a ppe a l a re t h e re f or e d is m i ss e d.12
M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) 33 . A p pe a l f i le d b y t he a s s e s s e e is pa rt l y a l lo w e d.
O r de r p ro no u nc e d t h ro ug h N o t ic e o n t he N ot ic e B o a r d i n t er m s o f Ru le 3 4 o f t he I nc o m e - t ax ( A ppe l l at e T r i b una l ) R u le s .
S d /-
[ T K S H AR M A] [ D . K . SR I V AST AV A]
JU DI C I AL M E M B E R AC C OU N TAN T M EM B ER
D A TE D: 2 0. 9. 2 01 0"
5. In the application, the assessee has narrated various inference for pointing out the apparent error, but in substance its contention is that the assessee put on the record that an application under section 171 was filed by it demonstrating the partition of HUF and, therefore, Tribunal has erred in rejecting such a plea. Similarly, it has agitated the stand of the Tribunal for accepting the assessment of income of the house property by the ld. Assessing Officer.
6. It is pertinent to observe that the power of rectification under section 254(2) of the Income Tax Act can be exercised only when the mistake which is sought to be rectified is an obvious and patent mistake, which is apparent from the record, and not a mistake, which requires to be established by arguments by a long-drawn process of reasoning on the points on which there could have been conceivably two opinions. The assessee has to devote 10 pages in each of its application to point out an apparent error in the order of the Tribunal. After duly going through the well reasoned order of the Tribunal extracted supra as well as application of the assessee, we are satisfied that in the 13 M.A. Nos. 42, 43, 44, 45, 46 & 47/PAT/2010 A.Ys. 2000-2001 to 2005-2006 (in ITA Nos. 118 to 123/PAT/2009) Bengali Singh (HUF) garb of rectification, an attempt is being made by the assessee to get the Tribunal's order reviewed. Therefore, we do not find any merit in these applications, they are dismissed.
7. In the result, all the Miscellaneous Applications filed by the assessee are dismissed.
Order pronounced in the open Court on 16.01.2023.
Sd/- Sd/-
(Rajesh Kumar) (Rajpal Yadav)
Accountant Member Vice-President
Kolkata, the 16 t h day of January, 2023
Copies to :(1) Bengali Singh (HUF),
Sumitra Sadan, Boring Canal Road,
Patna
(2)Assistant Commissioner of Income Tax, Circle-4, Patna (3) Commissioner of Income Tax (Appeals)-II, Patna, (4) Commissioner of Income Tax- , (5) The Depar tmental Representative (6) Guard File TRUE COPY By order Assistant Registr ar, Income Tax Appellate Tribunal, Kolk ata Benches, Kolkata Laha/Sr. P.S. 14