Santosh Kumar Rout, Dhenkanal V. Principal CIT-2, Bhubaneswar

ITA 111/CTK/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5297 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 03-04-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Section: 263

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAV AN KUMAR GADALE, JM ./ ITA NO. 111 / CTK /20 1 6 ( / ASSESSMENT YEAR : 20 1 1 - 20 1 2 ) SRI SANTOSH KUMAR ROU T, PROP - SATYASAI INDUSTRY, KORIAN, BY PASS ROAD, DHENKANAL VS. PR.CIT - 2, BHUBANESWAR ./ ./ PAN/GIR NO. : A G T PR 2262 E ( / APPELLANT ) .. ( / RESPONDENT ) /AS SESSEE BY : SHRI PIYUSHA RANJAN MISH RA, AR /REVENUE BY : SHRI PIYUSH KOLHE, CIT DR / DATE OF HEARING : 26 / 1 2 /201 7 / DATE OF PRONOUNCEMENT 27 / 1 2 /201 7 / O R D E R PER SHRI PAV AN KUMAR GADALE, JM : TH E ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF PR. CIT - 2 , BHUBANESWAR , DATED 11.02.2016 , PASSED U/S. 263 OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 201 1 - 201 2 , WHEREIN THE ADDITIONAL GROUND RAISED BY ASSESSEE IS AS UNDER : - 2. THAT, THE RESPONDENT COMMITTED MANIFEST ERROR IN LAW AND IN FACTS IN APPLYING SC.194H OF THE I.T.ACT. READ WITH SC.40(A)(IA) OF THE I.T.ACT. WHEN THE FACTS AND CIRCUMSTANCES OF THE CASE DOES NOT JUSTIFY FOR ACTION U/S.40(A)(IA). 3. THAT THE ORDER DTD.11.02.2016 PASSED BY THE LD. PRINCIPAL COMMISSIONER OF INCOME TAX, APPEAL - 2, BHUBANESWAR U/S.263 OF I.T.ACT IS ILLEGAL AND ARBITRARY AS IT HAS BEEN PASSED IN ABSENCE OF THE POSTULATION OF THE ACT, U/S.263 OF I.T.ACT. 2. FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN BUSINESS OF TRACTOR SALES AND S ERVICES AND FILED ITS RETURN FOR ASSESSMENT YEAR 2011 - 2012 ELECTRONICALLY ON 05.12.2011 SHOWING TOTAL INCOME OF RS.9,69,070/ - , WHICH WAS PROCESSED U/S.143(1) OF THE ACT. THEREAFTER THE AO FRAMED THE ASSESSMENT MAKING VARIOUS ADDITIONS. ITA N O. 111 /CTK/201 6 2 3. THE PR.CIT ON EXA MINATION OF RECORDS, FOUND THAT THE ASSESSMENT ORDER PASSED U/S.143(3) OF THE ACT IS ERRONEOUS AND PREJUDICIAL TO THE INTEREST OF REVENUE. THEREFORE, THE CIT SET ASIDE THE ASSESSMENT ORDER AND RESTORED BACK TO THE FILE OF AO WITH A DIRECTION TO EXAMINE THE FACTS AND COMPLETE THE REMEDIAL ACTION AS THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 194H OF THE ACT. 4. LD. AR SUBMITTED THAT THE ORDER PASSED BY THE PR.CIT U/S.263 OF THE I.T.ACT. IS ILLEGAL AS IT HAS BEEN PASSED IN ABSENCE OF THE POSTULATION O F THE ACT U/S.263 OF THE ACT. 5. LD. DR RELIED ON THE ORDERS OF LOWER AUTHORITIES. 6 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA FACIE, WE FIND THAT THE PR. CIT RESTORED BACK THE ASSESSMENT ORDER TO THE FILE OF AO WITH A DIR ECTION TO EXAMINE THE FACTS AND COMPLETE THE REMEDIAL ACTION AS THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 194H OF THE ACT BECAUSE THE ASSESSEE HAS NOT DEDUCTED TAX ON THE COMMISSION/INCENTIVE PAYMENT. WE DO NOT FIND ANY ERROR TO INTERFERE WITH TH E ORDER OF PR. CIT AND ACCORDINGLY, THE GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS DISMISSED. O RDER PRONOUNCED IN THE OPEN COURT ON THIS 27 / 12 / 201 7 . SD/ - ( N. S. SAINI ) SD/ - ( PA V AN KUMAR GADA LE ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER CUTTACK ; DATED 27 / 1 2 /201 7 . . / PKM , SENIOR PRIVATE SECRETARY ITA N O. 111 /CTK/201 6 3 / COPY OF THE ORDER FORWARDED TO : / BY ORDER, ( SENIOR PRIVATE SECRETARY ) , / ITAT, CUTTACK 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ( ) / THE CIT(A), 4. / CIT 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//