SUDHIR VISHWANATH SHINDE,DHULE vs. INCOME TAX OFFICER, WARD -2, DHULE

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ITA 497/PUN/2021Status: DisposedITAT Pune11 August 2022AY 2016-174 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that as per Section 207(2) of the Income-tax Act, a senior citizen without income chargeable under the head 'Profits and Gains of Business or Profession' is exempt from paying advance tax. Since the assessee met these conditions, the levy of interest under Sections 234B and 234C was set aside.

What were the facts?

The assessee, a senior citizen, had a loss in business but substantial capital gains and income from other sources. The Assessing Officer made additions only to capital gains and other sources, not business income. The assessee argued that as a senior citizen with no business income, advance tax and related interest were not leviable.

What were the issues?

Whether a senior citizen with no business income, but with other taxable income, is liable for advance tax and consequently interest under Sections 234B and 234C.

Which sections of the Income-tax Act were involved?

Section 207,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, ‘A’ BENCH, PUNE

For Respondent: Shri M.G. Jasnani

ORDER

PER PARTHA SARATHI CHAUDHURY, JM :

1.

This appeal preferred by the assessee emanates from the order of the ld. CIT(A) - National Faceless Appeal Centre (NFAC), Delhi dated 13-08-2021 for A.Y. 2016-17 on the following grounds of appeal.

“1. CIT(A) erred in holding that the assessee being a senior citizen having no chargeable that means table positive income from business was still liable for the payment of the advance tax though specifically exempted u/s 207(2) of the I.T. Act and thus further erred in holding that the interest u/s 234B and 234C is leviable. The interest levied u/s 234B and 234C should be deleted fully.

2. CIT(A) should have considered the provision for the exemption of the payment of advance tax as per section 207(2) reasonably and in favour of the assessee (CIT – Gwalior Rayon Silk Mfg. Cl. Ltd. (1992) 196 ITR 149 (SC).

3. CIT (A) erred in ignoring the fact thast the composite phase ‘income chargeable under the head profits and gains of business or profession’ is to be interpreted and when the resultant positive income is there then only the payment of the advance tax is liable to be made. He also erred in ignoring the situation that the loss can never be subjected to any tax payment under the Income-tax Act under any circumstances.”

2.

At the time of hearing, none appeared for the assessee. The submissions of the ld. D.R were recorded and the case was heard on merits. In this case, the issue was that the assessee being a senior citizen had suffered a loss in his business but there was substantial capital gain and income from other sources. When we perused the assessment order, the A.O., in the intimation issued u/s 142(1) of the Income-tax Act, 1961 (“the Act” for short)

Sudhir Vishwanath Shinde A.Y. 2016-17 has not made any addition on income from business. The additions made are from income from capital gain and income from other sources.

3.

Before the ld. CIT(A) the assessee has contended that since he is a senior citizen and was not having any business income, therefore, no interest u/s 234B and 234C of the Act was leviable. In this regard, we find that section 207 of the Act, specifically section 207 clause (2) provides that the provision shall not apply to a person who is a senior citizen and who does not have any income chargeable under the head “Profits and Gains of Business or Profession”.

4.

We have already examined that in the assessment order, the A.O has only made additions with respect to income from capital gain and income from other sources but there is no income from business and profession. It is also admitted that the assessee is a senior citizen. Therefore, as per section 207 clause (2) we set aside the findings of the ld. CIT(A) and allow the appeal of the assessee.

5.

In the result, assessee‟s appeal is allowed.

Order pronounced in the open Court on this 11th ____ August 2022.

Sd/- sd/- (R.S. SYAL) (PARTHA SARATHI CHAUDHURY) VICE PRESIDENT JUDICIAL MEMBER Pune; Dated, this 11th day of July 2022 Ankam

Sudhir Vishwanath Shinde A.Y. 2016-17 Copy of the Order forwarded to :

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