ACIT 2(3), MUMBAI V. THE RAVALGAON SUGAR FARM LTD, MUMBAI

ITA 1046/MUM/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 2490 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2010-2011
• Appeal Filed On: 14-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHWAS JADHAV

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH D, MUMBAI BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.1046/M/2014 ASSESSMENT YEAR: 2010-11 ACIT 2(3), R.NO.552, 5 TH FLOOR, AAYAKAR BHAVAN, M.K. ROAD, MUMBAI - 400020 VS. M/S. THE RAVALGAON SUGAR FARM LTD., 52, 5 TH FLOOR, MAKER TOWER F, CUFFE PARADE, MUMBAI 400 005 PAN: AAACT1511G (APPELLANT) (RESPONDENT) PRESENT FOR: ASSESSEE BY : SHRI JAYESH DADIA, A.R. REVENUE BY : SHRI VISHWAS JADHAV, D.R. DATE OF HEARING : 23.11.2015 DATE OF PRONOUNCEMENT : 23.11.2015 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVEN UE AGAINST THE ORDER DATED 25.11.2013 OF THE COMMISSIONER OF INCOME TAX (APPEALS) [HEREINAFTER REFERRED TO AS THE CIT(A)] RELEVANT TO ASSESSMENT Y EAR 2010-11. 2. THE REVENUE IS AGGRIEVED BY THE ACTION OF THE LD . CIT(A) IN DELETING THE DISALLOWANCE OF RS.2074497/- MADE BY THE ASSESSING OFFICER (HEREINAFTER REFERRED TO AS THE AO) UNDER SECTION 40(A)(IA) OF T HE INCOME TAX ACT ON ACCOUNT OF NON DEDUCTION OF TDS ON TRANSPORT CHARGE S PAID BY THE ASSESSEE. 3. WE HAVE HEARD THE RIVAL CONTENTIONS AND HAVE ALS O GONE THROUGH THE RECORDS. THE ASSESSEE IS A SUGAR FACTORY. SUGARCAN E PRICES HAVE BEEN FIXED BY THE GOVERNMENT AND THE ASSESSEE HAS TO PAY THE SAME TO THE FARMERS. THE ITA NO.1046/M/2014 M/S. THE RAVALGAON SUGAR FARM LTD. 2 FARMERS HAVE TO BRING THE SUGARCANE TO THE FACTORY AND THE PRICE FIXED/PAID BY THE ASSESSEE FACTORY INCLUDES TRANSPORTATION CHARGE S ALSO. THE PAYMENT OF TRANSPORTATION CHARGES IS THE LIABILITY OF THE FARM ER. HOWEVER, FOR THE SAKE OF CONVENIENCE, AT THE INSTRUCTIONS OF THE FARMERS, TH E PAYMENT WAS MADE BY THE ASSESSEE DIRECTLY TO THE TRANSPORTER WHICH WAS IN F ACT INCLUDED IN THE PRICE OF SUGARCANE PURCHASED BY THE ASSESSEE FROM THE FARMER S. 4. THE LD. CIT(A), AFTER GOING THROUGH THE RECORD O F THE CASE, HAS HELD THAT THE ASSESSEE HAD NO LIABILITY TO PAY ANY TRANSPORTA TION CHARGES RATHER THE SUGARCANE WAS RECEIVED BY THE ASSESSEE AT ITS FACTO RY PREMISES AND THE AMOUNT PAID BY THE ASSESSEE ON BEHALF OF THE FARMERS TO TH E TRANSPORTER, IN FACT, WAS PART OF THE SALE CONSIDERATION PAID BY THE ASSESSEE FOR THE SUGARCANE BROUGHT BY THE FARMERS TO ITS PREMISES. HE, THEREFORE, HAS HE LD THAT IT WAS NOT THE LIABILITY OF THE ASSESSEE TO PAY ANY TRANSPORTATION CHARGES A ND HENCE THERE WAS NO QUESTION OF DEDUCTION OF TDS. HE HAS, THEREFORE, D ELETED THE DISALLOWANCE MADE BY THE AO UNDER SECTION 40(A)(IA) OF THE ACT. WE DO NOT FIND ANY INFIRMITY IN THE WELL REASONED ORDER OF THE LD. CIT (A) AND THE SAME IS THEREFORE UPHELD. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS THER EFORE HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23.11.2015. SD/- SD/- (ASHWANI TANEJA) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 23.11.2015. * KISHORE, SR. P.S. ITA NO.1046/M/2014 M/S. THE RAVALGAON SUGAR FARM LTD. 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT (A) CONCERNED, MUMBAI THE DR CONCERNED BENCH //TRUE COPY// [ BY ORD ER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.