Mohasin Mollah, Howrah V. ITO, Ward - 46(2), Kolkata, Kolkata

CO 24/KOL/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6233 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 19 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 02-06-2011
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 02-06-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 13-04-2011
• Court: TRIBUNAL
• Department Lawyers: GOLAM KUDDUS
• Assessee Lawyers: S K MALAKAR

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 383/KOL/2011 %& '(/ ASSESSMENT YEAR : 2006-07 (*+ / APPELLANT ) I.T.O., WARD-46(2), KOLKATA - % - - VERSUS - . (-.*+/ RESPONDENT ) MOHASIN MOLLAH, KOLKATA (PAN: AIOPM 4438 N) / 01 / 01 / 01 / 01 /C.O. NO.24/KOL2011 $ $ $ $ / A/O ITA NO . 383/KOL/2011 %& '(/ ASSESSMENT YEAR : 2006-07 (*+ / APPELLANT ) MOHASIN MOLLAH, KOLKATA (PAN: AIOPM 4438 N) - % - - VERSUS - . (-.*+/ RESPONDENT ) I.T.O., WARD-46(2), KOLKATA *+ 2 3 '/ FOR THE APPELLANT: SHRI S.K.MALAKAR -.*+ 2 3 '/ FOR THE RESPONDENT: SHRI GOLAM KUDDUS '4 / ORDER 567 567 567 567 PER BENCH THE APPEAL FILED BY THE REVENUE AND THE CROSS OBJE CTION FILED BY THE ASSESSEE ARE AGAINST THE ORDER DATED 16.12.2010 OF THE CIT( A)-XXX, KOLKATA PERTAINING TO A.YR. 2006-07. 2 2. THE ONLY ISSUE RAISED BY THE REVENUE IS TH AT THE DELETION OF DISALLOWANCE MADE BY THE LD. A.O. U/S 40(A)(IA) OF THE IT ACT. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE A O WHILE DOING THE SCRUTINY ASSESSMENT NOTICED THAT DURING THE ASSESSMENT PROCEEDINGS THE EXPENDITURE OF RS.80,35,270/- WAS DEBITED UNDER THE HEAD OF CONTRACT JOB WORK. THE AO IS OF THE VIEW THAT THE APPELLANT WAS LIABLE TO DEDUCT TAX ON THE SAID AMOUNT. AND AS THE APPELLANT HAS FAILED TO DO SO, THE AO DISALLOWED THE ENTIRE EXPENDITURE IN VIEW OF THE PROVISIONS OF SECTION 40(A)(IA). 3.1. ON APPEAL THE LD. CIT(A) AFTER TAKING INTO CONSIDERATION THE VARIOUS SUBMISSIONS HAS DELETED THE SAME BY OBSERVING AS UNDER :- 4. THE LD. AR OF THE APPELLANT HAS ASSAILED THE IM PUGNED ORDER IN HIS WRITTEN SUBMISSION, WHICH IS BY AND LARGE SAME AS THE GROUN D OF APPEAL. THE SUBMISSION OF THE AR OF THE APPELLANT HAS BEEN CONS IDERED IN THE LIGHT OF THE MATERIALS PLACED BEFORE ME AND THE CASE LAWS REFERR ED TO. THE APPELLANT IS AN INDIVIDUAL AND HAD ENGAGED LABOURERS FOR JARI AND E MBROIDERY WORK ON SAREES. HE MADE PAYMENT TO THE LABOURERS FOR THE SAID JOB W ORKS. IT IS QUITE OBVIOUS FROM THE ACT THAT AN INDIVIDUAL WAS NOT REQUIRED TO DEDUCT TAX AT SOURCE ON PAYMENTS TO INDIVIDUAL LABOURERS, PRIOR TO INSERTIO N OF SECTION 194C(1)(K) WITH EFFECT FROM 01/06/2007. THUS, THE APPELLANT BEING I NDIVIDUAL WAS NOT LIABLE TO DEDUCT TAX AT SOURCE ON PAYMENT TO THE LABOURERS IN THE ASSESSMENT YEAR IN QUESTION. UNDER THE CIRCUMSTANCES, I DO NOT FIND AN Y MERIT IN THE ADDITION MADE BY THE AO AND THE SAME IS THEREFORE, DELETED. THE A PPELLANT GETS RELIEF OF RS.80,35,270/-. 3.2. AGGRIEVED BY THIS THE REVENUE IS IN APPE AL BEFORE US. 4. THE LD. DR THOUGH RELIED ON THE ORDERS OF THE AO COULD NOT CONTRADICT THE FINDINGS OF THE LD. CIT(A). ON THE OTHER HAND, THE LD. AR STRONGLY RELYING ON THE ORDERS OF THE LD. CIT(A) CONTENDED THAT THE ACTION OF THE LD. CIT(A) MAY BE UPHELD. 5. HAVING HEARD THE RIVAL SUBMISSIONS AND PER USED THE MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT THAT THE ASSESS EE IS AN INDIVIDUAL AND IN SO FAR AS THE PROVISIONS OF SECTION 194C(1) IS CONCERNED THE AMENDMENT MADE BY THE FINANCE ACT, 2007 W.E.F. 01.06.2007 STATES THAT SECTION 194 C(1) IS APPLICABLE TO THE INDIVIDUAL ASSESSES ONLY FROM 01.06.2007. SINCE THE ASSESSMEN T YEAR INVOLVED IN THIS APPEAL IS 2006-07 WE FIND NO INFIRMITY IN THE ORDERS OF THE L D. CIT(A) WHICH IS IN CONFORMITY 3 WITH THE PROVISIONS OF IT ACT. THEREFORE, WE CONFIR M THE SAME AND DISMISS THE REVENUES APPEAL. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. 7. IN THE CROSS OBJECTION THE ASSESSEE HAS SUPPORT ED THE ORDER OF THE LD. CIT(A). SINCE WE HAVE DISMISSED THE REVENUES APPEAL THE CR OSS OBJECTION WHICH IS IN SUPPORT OF THE ORDER OF LD.CIT(A) WILL BECOME INFRUCTUOUS A ND THE SAME IS DISMISSED AS SUCH. 8. IN THE RESULT THE APPEAL OF THE REVENUE AND THE CROSS OBJECTION OF THE ASSESSEE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 02.06.2011. SD/- SD/- MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 02.06.2011 '4 2 -0 8'0'9- COPY OF THE ORDER FORWARDED TO: 1. MOHASIN MOLLAH, VILL.BELDUBI (NORTH), P.O.BELDUBI, P.S.PANCHLA, HOWRAH- 711322. 2 THE I.T.O., WARD-46(2), KOLKATA 3. THE CIT, 4. THE CIT(A)-XXX, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA .0 -/ TRUE COPY, '4%>/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)