The KTM Jewellery Limited, Coimbatore V. DCIT, Coimbatore

ITA 1001/CHNY/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9862 (ITAT-CHENNAI)
• Duration Of Justice: 4 year(s) 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 24-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T VASUDEVAN
• Keywords: Assessment record; TDS
• Section: 40(a)(ia); 22

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , , $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ ITA NO.1001/CHNY/2017 /ASSESSMENT YEAR: 2012-13 M/S. THE KTM JEWELLERY LTD., VIVAGAA BUILDING, 636, OPPANAKARA STREET, COIMBATORE 641 001. [PAN: AABCK 7104P] VS. THE ASST. COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE-2, COIMBATORE. ( /APPELLANT) ( &'( /RESPONDENT) ( / APPELLANT BY : MR. T. VASUDEVAN, ADVOCATE &'( /RESPONDENT BY : MR. SURESH PERIASAMY, JCIT /DATE OF HEARING : 15.07.2021 / DATE OF PRONOUNCEMENT : 22.07.2021 / O R D E R PER SHRI V. DURGA RAO, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-1, COIMBATORE IN APPEAL NO.129/15-16 DATED 28.02.2017 RELEVANT TO TH E ASSESSMENT YEAR 2012-13. 2. THE ONLY ISSUE INVOLVED IN THIS APPEAL IN RESPE CT OF DISALLOWANCE MADE U/S. 40(A)(IA) OF THE INCOME TAX ACT, 1961 (HE REAFTER THE ACT). IN THE ASSESSMENT ORDER, THE A.O HAS NOTED THAT ON PER USAL OF THE I.T.A NO.1001/CHNY/2017 :- 2 -: ASSESSMENT RECORDS, IT IS SEEN THAT THE ASSESSEE HA S DEBITED AN AMOUNT OF RS. 49,20,688/- IN THE PROFIT AND LOSS AC COUNT TOWARDS ASSESSEES SHARE OF COMMON EXPENSES. DURING THE COU RSE OF ASSESSMENT PROCEEDINGS, THE A.O HAS ASKED THE ASSES SEE TO PRODUCE PROOF OF HAVING DEDUCTED TAXES AT SOURCE ON THE EXP ENDITURE INCURRED. THE ASSESSEE HAS SUBMITTED BEFORE THE A.O THAT THE TDS HAS BEEN DEDUCTED BY SISTER CONCERNS AND THIS WAS ONLY A REI MBURSEMENT. HOWEVER, THE ASSESSEE HAS NOT FILED ANY DETAIL BEFO RE THE A.O. ACCORDINGLY, THE A.O HAS DISALLOWED THE CLAIM U/S. 40(A)(IA) OF THE ACT OF RS. 49,20,688/-. ON APPEAL, THE LD. CIT(A) CONF IRMED THE ORDER OF THE A.O. 3. ON APPEAL BEFORE US, THE LD. COUNSEL FOR THE ASS ESSEE HAS FILED A PAPER BOOK CONSISTING OF 21 PAGES POINTED OUT THAT THE TDS DEDUCTED BY THE SISTER CONCERNS AND SUBMITTED THAT THESE DET AILS ALREADY FILED BEFORE THE LD. CIT(A) AND THE LD. CIT(A) WITHOUT CO NSIDERING THE SAME CONFIRMED THE ORDER OF THE A.O AND SUBMITTED THAT T HE ISSUE MAY BE REMITTED BACK TO THE A.O. 4. ON THE OTHER HAND, THE LD. D.R HAS NOT RAISED AN Y OBJECTION TO REMIT THE MATTER BACK TO THE A.O. 5. WE HAVE HEARD BOTH THE SIDES THROUGH VIDEO CONFE RENCING, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS I.T.A NO.1001/CHNY/2017 :- 3 -: OF THE AUTHORITIES BELOW. IN THIS CASE, THE ASSESS EE HAS NOT FILED TDS AS DEDUCTED BY THE SISTER CONCERNS BEFORE THE A.O. HE HAS ONLY FILED DETAILS BEFORE THE LD. CIT(A). THE LD. CIT(A) WITHO UT CONSIDERING THE DETAILS IN RESPECT OF TDS, CONFIRMED THE ORDER OF T HE A.O. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES OF THE CASE, WE ARE O F THE OPINION THAT ONE MORE OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSE E TO SUBSTANTIATE ITS CASE BEFORE THE A.O. ACCORDINGLY, WE SET ASID E THE ORDER PASSED BY THE LD. CIT(A) AND REMIT THE MATTER BACK TO THE FIL E OF A.O AND DIRECT THE A.O TO CONSIDER THE DETAILS FILED BY THE ASSESSEE I N RESPECT OF TDS DEDUCTED BY SISTER CONCERNS AND PASS FRESH ASSESSME NT DE NOVO IN ACCORDANCE WITH LAW. ACCORDINGLY, THIS APPEAL IS A LLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 22 ND JULY, 2021 IN CHENNAI. SD/ - SD/ - ( ) (G. MANJUNATHA) /ACCOUNTANT MEMBER ( ) (V. DURGA RAO) /JUDICIAL MEMBER /CHENNAI, /DATED: 22 ND JULY, 2021 . EDN, SR. P.S /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF