ASSISTANT COMMISSIONER OF INCOME TAX, BHUBANESWAR V. KRUPASINDHU GAHAN, TALCHER TOWN

ITA 441/CTK/2024

AI Insights

The case involves an appeal by the revenue against the order of the CIT(A), which pertained to the assessment year 2016-2017. The core issue was the disallowance of transport payments made by the assessee, Krupasindhu Gahan, a transport contractor, on the grounds of non-production of requisite forms under section 194C(7) of the Income Tax Act. The CIT(A) had earlier ruled in favor of the assessee, citing compliance with section 194C(6) and referencing decisions from other ITAT benches which supported the independence of sections 194C(6) and 194C(7). The revenue contested this interpretation, arguing for the interdependence of the sections and the necessity of filing forms as a statutory requirement.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 47131 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2025
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Other Referred Cases: Soma Rani Ghosh Vs. DCIT, Mr. Mohammed Suhail Vs. ITA
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY KUMAR
• Assessee Lawyers: K.K.BAJORIA

Judgement Text

" आयकर अपीलीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK श्री जाजज माथन, न्याययक सदस्य एवं श्री राजेश क ुमार, लेखा सदस्य क े समक्ष । (THROUGH VIRTUAL HEARING) BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER आयकर अपील सं/ITA No.441/CTK/2024 (नििाारण वर्ा / Assessment Year : 2016-2017) DCIT, Central Circle-1, Bhubaneswar Vs Krupasindhu Gahan, Angarua Near LIC Office, Talcher Town, Talcher-759107 PAN No. :AGKPG 8590 M (अपीलार्थी /Appellant) .. (प्रत्यर्थी / Respondent) नििााररती की ओर से /Assessee by : Shri K.K.Bajoria, FCA राजस्व की ओर से /Revenue by : Shri Sanjay Kumar, CIT-DR सुनवाई की तारीख / Date of Hearing : 08/04/2025 घोषणा की तारीख/Date of Pronouncement : 08/04/2025 आदेश / O R D E R Per Bench : This is an appeal filed by the revenue against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 30.08.2024, passed in ITBA/APL/S/250/2024-25/1068162509(1) for the assessment year 2016-2017. 2. Shri K.K.Bajoria, FCA appeared on behalf of the assessee. Shri Sanjay Kumar, ld CIT DR represented on behalf of the revenue. 3. It was submitted by ld CIT DR that the assessee is a transport contractor. It was the submission that the assessee had collected the requisite details from the vehicle operators as required u/s.194C(6) of the Act. It was the submission that the Assessing Officer disallowed the transport payments on the ground that the assessee had not produced the said forms before the concerned authorities in the time prescribed ITA No.441/CTK/2024 2 under the Act as provided in Section 194C(7) of the Act. It was the submission that the forms were available before the Assessing Officer as also before the ld CIT(A) and the ld CIT(A) after considering the fact that the forms were available as required under section 194C(6) of the Act, relied upon the decision of the Co-ordinate Bench of Kolkata Bench in the case of Soma Rani Ghosh Vs. DCIT, passed in ITA No.1420/KOL/2015 and the decision of the ITAT Hyderabad Bench of the Tribunal in the case of Mr. Mohammed Suhail in ITA No.1536/Hyd/2014, to hold that the provisions of section 194C(6) of the Act are independent of the provisions of section 194C(7) of the Act and once the requisite forms u/s.194C(6) have been obtained and the same are produced before the Assessing Officer, no disallowance u/s.40(a)(ia) of the Act is called for. It was the submission of the ld. CIT-DR that the provisions of Section 194(C)(6) & 194(C)(7) of the Act are interdependent and the requirement of filing the form before the authorities below was a statutory requirement. It was the submission that the order of the ld.CIT(A) is liable to be reversed. 4. In reply, ld AR submitted that the ld CIT(A) has followed the judicial discipline in following the decisions of both the co-ordinate Benches of the Tribunal i.e the decision of Kolkata Benches in the case of Soma Rani Ghosh(supra) and Hyderabad Benches in the case of Mr. Mohammed Suhail (spra). It was the submission that as the ld CIT(A) has followed the judicial discipline, no interference in the order of the ld CIT(A) is called for. 5. We have considered the rival submissions. A perusal of the order of the ld CIT(A) in para 4.6 of his order clearly shows that the ld CIT(A) ITA No.441/CTK/2024 3 has followed the judicial discipline in following the decisions of ITAT Kolkata Benches in the case of Soma Rani Ghosh(supra) and ITAT Hyderabad Benches in the case of Mohd Suhail (supra). wherein, the coordinate benches of the Tribunal have clearly taken a view that the provisions of section 194C(6) of the Act are independent of section 194C(7) of the Act and just because there is violation of provisions of section 194C(7) of the Act, the disallowance u/s.40(a)(ia) of the Act does not arise, if the assessee complies the provisions of section 194C(6) of the Act. 6. Further, a perusal of order of ld CIT(A) in para 4.7 clearly shows that the ld CIT(A) has categorically admitted that the Assessing Officer has clearly recorded that the declaration of the vehicle owners have been submitted. Thus, there is no dispute to the fact as allegation made by the ld. CIT-DR in regard to the compliance of provisions of section 194C(6) of the Act. This being so, as it is noticed that the ld CIT(A) has followed the judicial discipline in following the decisions of the Co-ordinate Benches of the Tribunal and the revenue has not been able to point out any error in the findings of facts arrived at by the ld CIT(A), we find no reason to interfere with the order of the ld CIT(A). Accordingly, we uphold the order of the ld CIT(A) and dismiss the grounds of appeal of the revenue. ITA No.441/CTK/2024 4 7. In the result, appeal of the revenue stands dismissed. Order dictated and pronounced in the open court on 08/04/2025. Sd/- (राजेश क ुमार) (RAJESH KUMAR) Sd/- (जाजज माथन) (GEORGE MATHAN) लेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER ददनाांक Dated 08/04/2025 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतललपप अग्रेपर्त/Copy of the Order forwarded to : आदेशािुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अधिकरण, कटक/ITAT, Cuttack 1. अपीलाथी / The Appellant- 2. प्रत्यथी / The Respondent- 3. आयकर आयुक्त(अपील) / The CIT(A), 4. आयकर आयुक्त / CIT 5. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 6. गार्ज फाईल / Guard file. सत्यापपत प्रयत //True Copy// "