ITO,Ward-1(3), Kolkata, Kolkata V. M/s. Violet Commercial(P)Ltd, Kolkata

ITA 1055/KOL/2012

• Counselvise Citation: 105523514 RSA 2012
• Duration Of Justice: 2 year(s) 1 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 25-08-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 16-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

I.T.A. NO. 1055/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 1 OF 4 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI SHAMIM YAHYA (ACCOUNTANT MEMBER), AND SHRI GEORGE MATHAN (JUDICIAL MEMBER) I.T.A. NO. 1055/KOL./ 2012 ASSESSMENT YEAR : 2008-2009 INCOME TAX OFFICER,................................ ......APPELLANT WARD-1(3), KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, 4 TH FLOOR, KOLKATA-700 069 -VS.- M/S. VIOLET COMMERCIAL PVT. LTD.,.................. ...........RESPONDENT 28, PAIKPARA, RAJA MANINDRA ROAD, KOLKATA-700 037 [PAN : AACCV 0278 L] APPEARANCES BY: SHRI DAVID Z. CHOWNGTHU, ADDL. CIT, SR. D.R., FOR T HE DEPARTMENT SHRI SUBHASH AGARWAL, ADVOCATE, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : AUGUST 29, 2014 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 10, 2014 O R D E R PER GEORGE MATHAN: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-I, KOLKATA IN APPEAL NO. 383/CIT(A)-I/WD-1(3)/10-11 DATED 30.04.2012 FOR THE ASSESSMENT YEAR 2008-09. 2. SHRI DAVID Z. CHOWNGTHU, ADDL. CIT, SR. D.R., RE PRESENTED ON BEHALF OF THE REVENUE AND SHRI SUBHASH AGARWAL, ADVOCATE, REPRESENTED ON BEHALF OF THE ASSESSEE. I.T.A. NO. 1055/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 2 OF 4 3. IN THE REVENUES APPEAL, REVENUE HAS RAISED THE FOLLOWING GROUNDS:- (1) THAT THE LD. CIT(A)ERRED IN LAW AS WELL AS ON F ACTS OF THE CASE IN DELETING THE ADDITION MADE BY THE ASSES SING OFFICER TO THE TOTAL INCOME A SUM OF RS.1,82,93,92, 313/- ON ACCOUNT OF NON-DEDUCTION OF TDS ON CURRENT LIABI LITIES U/S 40(A)(IA) OF THE INCOME TAX ACT, 1961. (2) THAT THE LD. CIT(A) ERRED IN LAW BY DELETING TH E DISALLOWANCE MADE U/S 40(A)(IA) RELYING ON FRESH EVIDENCE IN VIOLATION OF RULE 46A OF THE INCOME TAX RULES, 1962. 4. AT THE TIME OF HEARING, IT WAS THE SUBMISSION BY THE LD. SR. D.R. THAT THE LD. CIT(APPEALS) HAD DELETED THE ADDITION ON TH E GROUND THAT THE ADDITION MADE BY THE ASSESSING OFFICER ON ACCOUNT O F NON-DEDUCTION OF TDS IN RESPECT OF THE PAYMENTS MADE TO FIVE PERSONS . IT WAS THE SUBMISSION THAT THE LD. CIT(APPEALS) HAD DELETED TH E ADDITION BY HOLDING THAT NIL DEDUCTION OF TDS IN RESPECT OF THE FIVE PE RSONS HAD BEEN PROVIDED BY THE ITO, WARD-59(3), KOLKATA. IT WAS THE SUBMISS ION THAT THE CERTIFICATE BY THE ITO, WARD-59(3) WAS NOT PRODUCED BEFORE THE ASSESSING OFFICER. IT WAS THE SUBMISSION THAT FRESH EVIDENCE HAD BEEN CONSIDERED BY THE LD. CIT(APPEALS). 5. IN REPLY, LD. A.R. SUBMITTED THAT CERTIFICATES U NDER SECTION 197 WERE BEFORE THE ASSESSING OFFICER AND REMAND REPORT HAD ALSO BEEN OBTAINED FROM THE ASSESSING OFFICER. LD. A.R. DREW OUR ATTEN TION TO THE NIL DEDUCTION OF TDS CERTIFICATES ISSUED UNDER SECTION 197(1) TO THE FIVE PERSONS AT PAGES 6, 7, 8, 9 & 10 OF THE PAPER BOOK. LD. A.R. FURTHER DREW OUR ATTENTION TO THE REMAND REPORT AS ALSO THE REPL Y OF THE OFFICER CONCERNED, WHO HAD ISSUED THE CERTIFICATE UNDER SEC TION 197(1) AT PAGES 11 & 12 OF THE PAPER BOOK. IT WAS THE SUBMISSION TH AT THE CERTIFICATES HAD BEEN PRODUCED BEFORE THE ASSESSING OFFICER. IT WAS THE SUBMISSION THAT THE ORDER OF THE LD. CIT(APPEALS) WAS LIABLE TO BE CONFIRMED. I.T.A. NO. 1055/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 3 OF 4 6. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PERU SAL OF THE LETTER OF THE ITO(TDS), WARD-59(3) AT PAGE 11 AS ALSO THE REP LY GIVEN BY THE ERSTWHILE OFFICER, WHO HAD ISSUED 197(1) CERTIFICAT E WHICH WERE FOUND AT PAGES 11 & 12 AS ALSO THE LETTER WRITTEN BY THE ITO (TDS), WARD-59(3), KOLKATA TO THE CIT(APPEALS) RECEIVED IN THE OFFICE OF THE CIT(APPEALS)-I ON 19.04.2012 FOUND AT PAGE 14 CLEARLY SHOW THAT TH E 197(1) CERTIFICATE HAD BEEN ISSUED BY THE ITO, WARD-59(3) TO THE FIVE ASSESSEES FOR NIL DEDUCTION OF TDS. A PERUSAL OF THE ORDER OF LD. CIT (APPEALS) AT PAGE 4 CLEARLY SHOWS THAT IT IS ONLY AFTER VERIFYING THE V ERACITY OF THE CERTIFICATES ISSUED UNDER SECTION 197(1) BY THE ITO, WARD-59(3), THE LD. CIT(APPEALS) HAD DELETED THE DISALLOWANCE. ON A SPECIFIC DIRECTI ON FROM THE BENCH, LD. A.R. ALSO PRODUCED BEFORE US THE ORIGINAL OF THE SA ID CERTIFICATES ISSUED UNDER SECTION 197(1). IT IS ALSO NOTICED THAT THE C ERTIFICATE ISSUED UNDER SECTION 197(1) WAS BEFORE THE ASSESSING OFFICER IN THE CASE OF THE ASSESSEE IN THE REMAND PROCEEDINGS. THIS IS ALSO EV IDENCED BY THE LETTER OF ITO(TDS), WARD-59(3), KOLKATA, WHICH WAS FOUND A T PAGE 14 OF THE PAPER BOOK. IN THESE CIRCUMSTANCES, WE FIND NO ERRO R IN THE ORDER OF LD. CIT(APPEALS), WHICH CALLS FOR ANY INTERFERENCE. CON SEQUENTLY THE APPEAL FILED BY THE REVENUE STANDS DISMISSED. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 10/09/2014. SD/- SD/- SHAMIM YAHYA GEORGE MATHAN (ACCOUNTANT MEMBER) (JU DICIAL MEMBER) KOLKATA, THE 10 TH DAY OF SEPTEMBER, 2014 I.T.A. NO. 1055/KOL./2012 ASSESSMENT YEAR: 2008-2009 PAGE 4 OF 4 COPIES TO : (1) INCOME TAX OFFICER, WARD-1(3), KOLKATA, P-7, CHOWRINGHEE SQUARE, AAYAKAR BHAWAN, 4 TH FLOOR, KOLKATA-700 069 (2) M/S. VIOLET COMMERCIAL PVT. LTD. 28, PAIKPARA, RAJA MANINDRA ROAD, KOLKATA-700 037 (3) COMMISSIONER OF INCOME-TAX (APPEALS) (4) COMMISSIONER OF INCOME TAX (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.