Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 291 - AT - Income TaxAddition u/s 68 - bogus LTCG - information had been received by the Investigation Wing, Chandigarh, from the Directorate of Income Tax(Investigation)- Kolkata about large scale tax evasion in the form of Bogus Long Term Capital Gain claimed by various beneficiaries of the Om Sons Group - Use of penny stocks being sold/purchased to facilitate these transactions, which included the assessee also - assessee contended that the said amount had been disclosed in the hands of M/s Rohit Traders, a partnership firm of the group and in which the assessee was a partner, before the Settlement Commission and taxes duly paid thereon - HELD THAT:- As perused the contents of the statement of facts filed before the Settlement Commission in the case of M/s Rohit Traders and find merit in the contention of the assessee. Undoubtedly the impugned long term capital gain of the assessee alongwith the facilitation charges thereon, stand categorically surrendered as undisclosed income of M/s Rohit Traders,before the Settlement Commission. The Revenue has not controverted the said fact. The impugned income having been categorically taxed as undisclosed income of the assessees firm, we fail to understand why it should be taxed in the hands of the assessee also, which would only result in taxing the same income twice. The observation of the Hon’ ble Settlement Commission on which the Revenue has relied for dismissing assessee's claim, that they refrain from making any comment in respect of claim of utilization of additional income of M/s Rohit Traders in the hands of partners, in our view, only serves the limited purpose of the Commission refraining from commenting on assessee's which were not there before them. This observation, we find, does not negate the admitted and undisputed fact of surrender of the impugned capital gains of the assessee in the hands of M/s Rohit Traders. We direct the deletion of addition made on account of Long Term Capital Gains and expenditure incurred on account of the same in the hands of the assessee - Decided in favour of assessee. Disallowance of deduction on account of interest paid on housing loan u/s 24, and repayment of the principal amount of housing loan & deduction on account of interest earned on saving bank account u/s 80C & 80 TTA respectively - claim denied to the assessee for the reason that the necessary documentary evidences were not filed - HELD THAT:- A perusal of the copy of the sale deed of the said property shows that it was purchased in the joint name of the assessee and her husband. The ledger accounts of the housing loan and the assessees capital account in the firm, M/ s Rohit Traders,at P. B 39 - 41 show that loan was being repaid by her, including interest. All these documents were there before the lower authorities and no infirmity has been pointed out in them. Even before us the Ld.DR was unable to point out any discrepancy in the said documents. What emerges therefore as fact is that the assessee was co- owner of property on which housing loan taken was being repaid by her. This fact is corroborated by the bank certificate placed before us at P. B 38, certifying home loan to be in the name of the assessee along-with her husband. The contention of the Revenue that the assessee had failed to establish its claim of deduction on account of repayment of housing loan and interest thereon, merits no consideration. The voluminous evidences filed by the assessee, as stated above, clearly evidence her claim. And all the above documents were there before the lower authorities, who we find have conveniently ignored the same, placing entire thrust on the interest certificate issued by the bank for rejecting the assessee's claim. We hold that the assessee had duly evidenced its claim for deduction u/s 24 of interest on housing loan and u/s 80C of repayment of housing loan - AO is accordingly directed to allow the aforesaid claims to the assessee. Deduction u/s 80 TTA relating to interest earned on saving denied for lack of evidence - Undoubtedly the assessee has claimed deduction of savings bank interest which has been shown as income of the assessee. This income returned is not disputed by the Revenue, therefore, we fail to understand the logic for denial of deduction of the same income. Accordingly we allow the claim of the assessee to deduction u/s 80 TTA of the Act of interest earned on savings bank account.
|