Principal Commissioner Of Income Tax 2 v. Judgement

IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED : 14.06.2019 CORAM : THE HONOURABLE MR.JUSTICE T.S.SIVAGNANAMandTHE HONOURABLE MRS.JUSTICE V.BHAVANI SUBBAROYAN Tax Case Nos.416 & 417 of 2018 Principal Commissioner of Income Tax 2,No.63, Race Course Road, Coimbatore. ...Appellant in both the Appeals -vs- Smt.S.Venkateswari,Prop:Sri Balamurugan Agencies,No.18, New Bus Stand Complex,Kovai Main Road, Perundurai – 638 052. ...Respondent inboth the Appeals Tax Case Appeals under Section 260-A of the Income TaxAct, 1961, directed against the common order passed by theIncome Tax Appellate Tribunal, Madras “A” Bench, in I.T.ANos.2723/Mds/2016, 3144/Mds/2016 dated 27.07.2017 for theassessment years 2013-14, and against the order of theCommissioner of Income Tax(Appeals)-3, Coimbatore dated31/08/2016 made in ITA.NO.8/16-17 and against the order of theAssistant Commissioner of Income Tax, Circle-2, Erode, dated28/03/2016, made in PAN.NO. . For appellant :Mr.T.R.Senthil Kumar, SSCassisted by Mrs.K.G.Usha Rani(in both the appeals) JUDGEMENT [Judgement of the Court was made by T.S.Sivagnanam, J.] These Tax Case Appeals by the Revenue filed under Section260-A of the Income Tax Act, 1961, ('the Act' for brevity) aredirected against the common order passed by the Income TaxAppellateTribunal,Madras“A”Bench,inI.T.ANos.2723/Mds/2016, 3144/Mds/2016 dated 27.07.2017 for theassessment years 2013-14. https://hcservices.ecourts.gov.in/hcservices/ 2. T.C.A.No.416 of 2018 has been filed raising thefollowing substantial questions of law;“Whether the ITAT was justified in holding that themother of the assessee had the capacity to giftRs.5,05,000/- when there is no evidence on record toprove the source of income of mother of theassessee?” 3. T.C.A.No.417 of 2018 has been filed raising thefollowing substantial questions of law;“(i)Whether the ITAT was right in confirming theorder of CITA be observing that the PAN werefurnished except in respect of payments made to theextent of Rs.44,30,887/-, when, in fact, none of thePAN were furnished by the assessee, thus rendering aperverse order?(ii) Whether the ITAT was justified inconfirming the order of CITA without appreciatingthat the provisions of Section 194 C(6) require thatTDS shall not be made on furnishing of PAN to theprayer and that it did not envisage that TDS shallnot be made when the payee has a PAN and that thereis a mammoth difference between 'having a PAN and'not furnishing a PAN'?(iii) Whether the ITAT was justified inconfirming the order of the CITA when the CITA heldthat details furnished in appellate proceedings canbe treated as sufficient compliance withoutproviding an opportunity of being heard to the AOunder Rule 46A?” 3. We have heard MrT.R.Senthil Kumar, learned SeniorStanding Counsel for the Revenue in both the appeals andcarefully perused the orders passed by the Commissioner ofIncome Tax (Appeals) and the Tribunal. 4. With regard to T.C.A.No.416 of 2018, the Tribunal hasgranted relief to the assessee and we concur with the followingfinding rendered by the Tribunal and there can be no secondopinion on the views expressed by the Tribunal more particularlyin paragraph 7 of the order passed by the Tribunal which isquoted herein; 3. We have heard MrT.R.Senthil Kumar, learned SeniorStanding Counsel for the Revenue in both the appeals andcarefully perused the orders passed by the Commissioner ofIncome Tax (Appeals) and the Tribunal. 4. With regard to T.C.A.No.416 of 2018, the Tribunal hasgranted relief to the assessee and we concur with the followingfinding rendered by the Tribunal and there can be no secondopinion on the views expressed by the Tribunal more particularlyin paragraph 7 of the order passed by the Tribunal which isquoted herein; “7. The assessee's mother appears to be housewife.She has to take care of household expenses. Wheneverreceived money from husband or son for householdexpenses, Indian ladies use to save part of themoney and whenever the husband or son urgently needssome money, the ladies use to give the same out oftheir savings. This saving habit of housewives inShe has to take care of household expenses. Wheneverreceived money from husband or son for householdexpenses, Indian ladies use to save part of themoney and whenever the husband or son urgently needssome money, the ladies use to give the same out oftheir savings. This saving habit of housewives in https://hcservices.ecourts.gov.in/hcservices/ this Country, more particularly, in Southern part ofthe Country, cannot be ignored by the AssessingOfficer. When the assessee's mother claims that shesaved money given for household expenses and filedan affidavit before the Assessing Officer, thisTribunal is of the considered opinion that the claimof the assessee's mother cannot be brushed aside solightly without examining it. The assessment yearunder consideration is 2013-14. Even a mason orconstruction worker is receiving salary of Rs.400/-to 500/- per day. In this economic situation, thereis no reason to doubt the capacity of the assessee'smother to give Rs.5,05,000/- to the assessee.Therefore, this Tribunal is of the consideredopinion that all the ingredients which are necessaryfor proving the gift were established by theassessee. Therefore, the CITA is not justified inconfirming the addition. Accordingly, the orders ofthe lower authorities are set aside and the additionof Rs.5,05,000/- made by the Assessing Officer isdeleted.” 5. The Revenue has not made out any ground to assail theabove finding more particularly the question raised before uscannot be recorded as substantial question of law and henceT.C.A.No.416 of 2018 is dismissed as there is no substantialquestion of law arising for consideration. 6. In T.C.A.No.417 of 2018, though three substantialquestions of law have been raised, all pertaining to therestriction of the disallowance as made by the Commissioner ofIncome Tax (Appeals), the arguments advanced by Mr.T.R.SenthilKumar, learned Senior Standing Counsel for the Revenue revealsaround manner in which Commissioner of Income Tax (Appeals)examined issue and it is being faulted on the ground that theCommissioner of Income Tax (Appeals) should have examined theTransporters recorded statements etc. This submission cannot becanvassed in an appeal filed under Section 260-A of the Act, asthey cannot be recorded as substantial questions of law. 7. We have perused the order passed by the Commissioner ofIncome Tax (Appeals) who has granted partial relief to theassessee and he has recorded specific finding that the additionmade by the Assessing Officer on the freight charges to the tuneof Rs.3,26,15,735/- on the reason that no evidence is notsustainable and assessee maintained books of accounts and thereare clear entries of details of freight expenses and accordinglydisallowance for non deduction of tax was restricted toRs.44,30,887/-. 7. We have perused the order passed by the Commissioner ofIncome Tax (Appeals) who has granted partial relief to theassessee and he has recorded specific finding that the additionmade by the Assessing Officer on the freight charges to the tuneof Rs.3,26,15,735/- on the reason that no evidence is notsustainable and assessee maintained books of accounts and thereare clear entries of details of freight expenses and accordinglydisallowance for non deduction of tax was restricted toRs.44,30,887/-. 8. In this appeal, we cannot be called upon to re-examinethe facts, entries in the books of accounts etc., which havebeen found to be justifiable by the Commissioner of Income Tax(Appeals) and affirmed by the Tribunal. Hence, We are of theview that no substantial questions of law arises forconsideration in T.C.A.No.417 of 2018 and accordingly dismissed. 9. In the result, the Tax Case Appeals are dismissed. Nocosts. Sd/- Assistant Registrar(CS V)//True Copy// Sub Assistant RegistrarTo1.The Income Tax Appellate Tribunal, Madras “A” Bench,Chennai.2.The Commissoner of Income Tax,(Appeal)-3,Coimbatore.3.The Assistant Commissoner of Income Tax,Circle-2, Erode.4.The Principal Commissioner of Income Tax 2,63, Race Couse Road, Coimbatore.Tax Case No.416 & 417 of 2018br(co)nr 13/08/2019