2022 (2) TMI 1321

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....ssatisfied by the order passed by Hon'ble Commissioner of Income Tax-1 Baroda u/s 143(1) of the Act dated 21.06.2019, presents this appeal against the order on the following amongst other grounds: 1. The order passed by the Hon'ble CIT(A)-1 is bad in law, contrary to legal pronouncement and same be quashed. The addition confirmed by the Hon'ble CIT{A) are unwarranted and unjustified. It be held so now and addition made to be deleted. 2. The Hon'ble CIT(A), has wrongly concluded that the appellant has failed to avail an opportunity as per notice u/s 250(4) / 251(1A) of the act. The appellant has submitted detailed explanation to the notice submitted with the office of the Hon'ble CIT(A)-1, Baroda on 13.0....

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....dify any of the above grounds before hearing." 3. Briefly stated, the facts of the case are that the assessee is a senior citizen deriving income from salary, income from other sources and income from share from partnership firm. The assessee filed return of income on 28- 07-2016 declaring total income at Rs. 3,54,86,370/-. In the return of income filed, he did not have income chargeable under the "head profit or gains from business and profession", for the captioned year. The assessee was served with intimation u/s. 143(1) of the Act passed by CPC, Bangalore with interest u/s. 234B and 234C of the Act resulting into a demand of Rs. 5,64,130/- against which the assessee filed a appeal with CIT(Appeals). 4. During the course of appella....

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....34B and 234C being consequential and mandatory has been correctly charged by CPC for non-compliance of advance tax provisions. The ld. CIT(A) placed reliance on the decision of the Supreme Court in CIT vs. M.M. Ghaswala which is to the effect that charging of interest is mandatory in order to compensate loss of revenue. Accordingly, the appeal of the assessee was dismissed. 5. Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before us. The assessee before us submitted that it is an undisputed fact that the assessee is a senior citizen of over 60 year of age. The assessee took us through page 1 of the paper book filed on 06-10-2021 wherein he pointed out that the assessee has filed return of income declaring "income fro....

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....ome. The ld. Departmental Representative relied upon the observations made by the ld. CIT (A) in the appellate order. 6. We have heard the rival contentions and perused the material available on record. It is the claim of the assessee that in the year under consideration, the assessee did not have any income chargeable under the head " profits and gains of business and profession" and further he is a senior citizen of more than 60 years old and hence squarely covered by the provisions of section 207 of the Act. Section 207 of the Act is reproduced below for ready reference. "207. (1) Tax shall be payable in advance during any financial year, in accordance with the provisions of sections 208 to 219 (both inclusive), in respect of....

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.... the year under consideration shows the assessee had no income which is chargeable under the head "profits and gains" of business and profession. On a perusal of the order of the ld. CIT(A), we see that he has not brought on record any cogent material to demonstrate that the assessee is earning income from business or profession and is not drawing salary from these concerns on which TDS has been deducted u/s. 192 of the Act. The ld. CIT(A) has primarily relied on the understanding that since the assessee himself is a managing director of the company in which he is having control, he is not entitled to earn salary from the said company and the income so earned from the company bears the character " business and professional income". However,....