ITO, Raichur V. Shri. Durgappa Devaduru, Raichur

ITA 1103/BANG/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 5505 (ITAT-BANGALORE)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-03-2017
• Assessment Year: 2008-2009
• Appeal Filed On: 30-05-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: V SRINIVASAN
• Keywords: Opportunity of being heard

Judgement Text

ITA.1103/BANG/2016 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'C', BANGALORE BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI. S. JAYARAMAN, ACCOUNTANT MEMBER I.T.A NO.1103/BANG/2016 (ASSESSMENT YEAR : 2009-10) INCOME TAX OFFICER, WARD -1. RAICHUR .. APPELLANT V. SHRI. D. DURGAPPA, KPCL CONTRACTOR, 1 ST CROSS, LABOUR COLONY, SHAKTI NAGAR, RAICHUR .. RESPONDENT PAN : AHDPD1846P ASSESSEE BY : SHRI. V. SRINIVASAN, ADVOCATE REVENUE BY : SHRI. M. K. BIJU, JCIT HEARD ON : 17.04.2017 PRONOUNCED ON : 21.04.2017 O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE REVENUE AGAINST AN ORDER OF THE CIT(A), GULBARGA, DT.22.03.2016, FOR THE ASSESSMENT YEAR 20 09-10. 02. THE ASSESSEE, AN INDIVIDUAL, IS A CONTRACTOR. THE ASSESSMENT ORDER PASSED IN HIS CASE FOR A Y. 2008-09 WAS A SUBJECT MATTER OF AN ACTION U/S.263 BY THE CIT, GULBARGA, INTER-ALIA , FOR THE REASON THAT HE MADE PAYMENTS TO 12 PERSONS AT RS.33,84,656/- FOR BUILD ING WORK, LABOUR HIRE AND TRACTOR HIRE, WHICH FELL U/S.194C , AND HENCE WAS LIABLE FOR TDS. THE AO ITA.1103/BANG/2016 PAGE - 2 WHILE COMPLETING THE ASSESSMENT , THE AO HAS NOT DI SALLOWED THE AMOUNT AS REQUIRED U/S.40(A) (IA) , THOUGH THE AUDITOR IN HIS FORM 3CD AUDIT REPORT STATED THAT THE ASSESSEE HAS NOT COMPLIED WITH TDS PROVISIONS. CONSEQUENTLY, THE AO COMPLETED THE ASSESSMENT U/S .143(3) R.W.S.263. WHILE DOING SO, HE DISALLOWED THE AMOUNT PAID TO TH E ABOVE 12 PERSONS AT RS.33,84,656/-. THE MINIMUM /MAXIMUM PAYMENT MADE T O A PERSON WAS RS.1,75,000/- / RS.3,18,000/-, RESPECTIVELY. AGG RIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT (A), GULBARGA. 04. DURING THE APPELLATE PROCEEDINGS, THE ASSESSEE SUBMITTED BEFORE THE CIT (A) THAT THE PAYMENTS MADE TO VARIOUS PERSONS ARE GENUINE, THE PERSONS ARE PETTY WORKERS HAVING INCOME FAR BELOW T HE TAXABLE LIMITS AND THEN SUBMITTED AFFIDAVITS TO THAT EFFECT. THE A SSESSEE FURTHER PRODUCED COPIES OF THE CERTIFICATES OBTAINED FROM THE CHART ERED ACCOUNTANT, CERTIFYING THE PARTIES TO WHOM PAYMENTS MADE WERE PERSONS WHO SE INCOME IS BELOW THE MINIMUM TAXABLE LIMIT. THE CIT (A) ALLOWED THE APPEAL. AGGRIEVED THE REVENUE FILED THIS APPEAL. GROUND NO.2, WHICH IS RE PRODUCED BELOW, IS THE MAIN GROUND : 2. THE LEARNED CIT (A) ERRED IN ADMITTING THE ADDI TIONAL EVIDENCES DURING THE APPELLATE PROCEEDINGS SUCH AS CERTIFICAT E FROM A CHARTERED ACCOUNTANT CERTIFYING THE RETURN OF INCOME, PAYMENT OF TAXES IN RESPECT OF CONTRACTORS ETC., WITHOUT GIVING AN OPPORTUNITY TO THE AO UNDER RULE 46A OF THE IT RULES, 1962. ITA.1103/BANG/2016 PAGE - 3 THE LEARNED DR SUBMITTED THAT THE CIT (A) WITHO UT GIVING ANY OPPORTUNITY OF BEING HEARD TO THE A O, HAD ALLOWED THE APPEAL. 05. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS ON RECORD. ON THE FACTS AND CIRCUMSTANCES OF THE CASE , WE REMIT THIS ISSUE TO THE AO, WHO SHALL EXAMINE THE AFFIDAVITS ETC., AND AFTER GIVING DUE OPPORTUNITY TO THE ASSESSEE SHALL PASS A SPEAKI NG ORDER. 06. IN THE RESULT, THE APPEAL OF THE REVENUE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 21 ST DAY OF APRIL, 2017. SD/- SD/- (SUNIL KUMAR YADAV) (S. JAYARAMAN) JUDICIAL MEMBER A CCOUNTANT MEMBER