M/s. Arts & Crafts Valley, New Delhi V. DCIT, New Delhi

CO 347/DEL/2011

• Counselvise Citation: [2011] 122 COUNSELVISE.COM (IT) 6735 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 23 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 09-12-2011
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-12-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 17-10-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: Y S KAKKAR
• Assessee Lawyers: V S CHAUHAN; DR P K RUSTOGI
• Section: 194C

Judgement Text

ITA NO. 4362/DEL/2011 & CO NO. 347/DEL/2011 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH A NEW DELHI BEFORE SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO. 4362/DEL/2011 A.Y. : 2006-07 DCIT, CIRCLE - 30(1), DRUM SHAPE BUILDING, NEW DELHI VS. M/S ARTS & CRAFTS VALLEY, 272, GARHIYA STREET, MATIA MAHAL, JAMA MASJID, DELHI (PAN/GIR NO. : AAGFA4438G) AND C.O. NO. 347/DEL/2011 (IN ITA NO. 4362 /DEL/2011) A.Y. 2006-07 M/S ARTS & CRAFTS VALLEY, VS. DCIT, CIRCLE 30(1), 272, MATIA MAHAL, GARHYA STREET, ROOM NO. 106, JAMA MASJID, DRUM SHAPE BUILDING, DELHI 110 006 NEW DELHI - 110002 (PAN/GIR NO. : AAGFA4438G) M/S RASTOGI & DONALD, 19C, DDA FLATS, MASJID MOTH-I, GREATER KAILASH-III, NEW DELHI 110 048 (APPELLANT ) (APPELLANT ) (APPELLANT ) (APPELLANT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) (RESPONDENT ) ASSEESSEE BY : DR. P.K. RUSTOGI & V.S. CHAUHAN DEPARTMENT BY : MS. Y.S. KAKKAR, SR. D.R. ORDER ORDER ORDER ORDER PER PER PER PER SHAMIM YAHYA : AM SHAMIM YAHYA : AM SHAMIM YAHYA : AM SHAMIM YAHYA : AM THIS APPEAL BY THE REVENUE AND CROSS OBJECTION BY T HE ASSESSEE EMANATE OUT OF ORDER OF THE LD. COMMISSIONER OF INCO ME TAX (APPEALS) DATED 07.7.2011 PERTAINING TO ASSESSMENT YEAR 2006-0 7. ITA NO. 4362/DEL/2011 & CO NO. 347/DEL/2011 2 REVENUES APPEAL 2. THE ISSUE RAISED IS THAT LD. COMMISSIONER OF INCOM E TAX (APPEALS) ERRED IN DELETING THE ADDITION OF ` 60,10 ,143/- IN RESPECT OF JOB CHARGES PAID WITHOUT DEDUCTION OF TAX AT SOURCE. 3. IN THIS CASE ASSESSING OFFICER NOTED THAT ASSES SEE HAS CLAIMED JOB CHARGES OF ` 12294850/- IN THE PROFIT AND LOSS ACCOUNT. ASSESSEE WAS ASKED TO FURNISH THE DETAILS OF TDS IN THIS REG ARD. THE PERUSAL OF THE DETAILS SHOWED THAT TDS HAS BEEN DEDUCTED ON A N AMOUNT OF ` 62,84,707/- WHEREAS TOTAL PAYMENT BY THE ASSESSEE I S ` 1,22,94,849/-. FROM THIS ASSESSING OFFICER INFERRED THAT TDS HAS NOT BEEN DEDUCTED ON THE AMOUNT OF ` 60,10,143/-. ASSESSING OFFICER HELD THAT NO EXPLANATION WAS GIVEN IN THIS REGARD. HENCE, A SUM OF ` 60,10,143/- WAS DISALLOWED AND ADDED TO THE TAXABLE INCOME OF TH E ASSESSEE. 4. BEFORE THE LD. COMMISSIONER OF INCOME TAX (APPEALS) ASSESSEE SUBMITTED THAT ASSESSEE WAS NOT GIVEN SUFFICIENT TI ME AND OPPORTUNITY DURING THE COURSE OF ASSESSMENT TO SUBMIT ALL THE DE TAILS. IT WAS FURTHER SUBMITTED THAT ASSESSING OFFICER WAS NOT JUSTIFIED IN MAKING THE DISALLOWANCE AS THE TDS WAS NOT MADE AS PAYMENTS WERE BELOW ` 20,000/.- PER BILL AND ` 50,000/- PER ANNUM. IT WA S FURTHER SUBMITTED THAT JOB WORK WAS DONE FROM LARGE NUMBER OF PEOPLE AN D WHO WERE BASICALLY LABORERS AND HAVE NO TAXABLE INCOME. CONSIDERING THE ABOVE, LD. COMMISSIONER OF INCOME TAX (APPEALS) HELD THAT HE FOUND MERIT IN THE SUBMISSION OF THE ASSESSEE THAT PROVISIO N OF TDS U/S 194C WERE NOT APPLICABLE AS THERE WERE LARGE NUMBER OF PA RTIES WHO WERE ITA NO. 4362/DEL/2011 & CO NO. 347/DEL/2011 3 SMALL LABORERS AND THE PAYMENTS WERE MADE BELOW AMOUNT OF ` 50,000/- PER ANNUM. ACCORDINGLY, LD. COMMISSIONER O F INCOME TAX (APPEALS) DELETED THE ADDITION. 5. AGAINST THE ABOVE ORDER THE REVENUE IS IN APPEAL BEFORE US. 6. WE HAVE HEARD BOTH THE COUNSEL AND PERUSED THE R ECORDS. WE FIND THAT IN THIS CASE LD. COMMISSIONER OF INCOME TA X (APPEALS) HAS ACCEPTED THE SUBMISSION OF THE ASSESSEE THAT TDS WAS NOT DEDUCTED AS THE PAYMENTS WERE MADE TO A LARGE NUMBER OF PARTIES WHO WERE SMALL LABORERS AND HAD NO TAXABLE INCOME. IT WAS FURTHER SUBMITTED THAT EACH PAYMENT WAS BELOW ` 20,000/- PER BILL AND ` 50,000/- PER ANNUM. IN THESE CIRCUMSTANCES, PROVISIONS OF TDS U/S 194C ARE CLEARLY NOT APPLICABLE. HENCE, WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IN T HIS REGARD, HENCE, WE UPHOLD THE SAME. IN THE RESULT, THIS APPEAL BY THE REVENUE STANDS DISMISSED. 7. IN THE CROSS OBJECTION, THE ASSESSEE HAS SUPPOR TED THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS). SINCE WE HAVE ALREADY UPHELD THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X (APPEALS) IN THE REVENUES APPEAL ABOVE, THE CROSS OBJECTION FIL ED BY THE ASSESSEE HAS BECOME INFRUCTUOUS AND ACCORDINGLY, STANDS DISMIS SED AS SUCH. ITA NO. 4362/DEL/2011 & CO NO. 347/DEL/2011 4 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE AND CROSS OBJECTION FILED BY THE ASSESSEE STAND DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09/12/2011. SD/ SD/ SD/ SD/- -- - SD/ SD/ SD/ SD/- -- - [ [[ [R.P. TOLANI] R.P. TOLANI] R.P. TOLANI] R.P. TOLANI] (SHAMIM YAHYA) (SHAMIM YAHYA) (SHAMIM YAHYA) (SHAMIM YAHYA) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER DATE 09/12/2011 SRB COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: COPY FORWARDED TO: - -- - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT TRUE COPY BY ORDER, DEPUTY REGISTRAR, ITAT, DELHI BENCHES