Shri Rajesh A. Boricha, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1(3), RAJKOT-GUJARAT

ITA 115/RJT/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0068 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 7 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 15-11-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 31-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SONTAKKE
• Assessee Lawyers: DM RINDANI
• Keywords: Question of law
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH , RAJKOT BEFORE: SHRI RAJPAL YADAV, JUDICIAL MEMBER AND S H RI AMARJIT SINGH , ACCOUNTANT MEMBER [CONDUCTED THROUGH E - COURT AT AHMEDABAD] SHRI RAJESH A BORICHA, MANDEEP CHAMBERS, KUWADAVA ROAD, OPP. BANK OF INDIA, RAJKOT PAN: AGMPB7158E (APPELLANT) VS THE ITO, WARD - 1(3), RAJKOT (RESPONDENT) REVENUE BY : S H RI ARVIND SONTAKKE , D . R. ASSESSEE BY: S H RI D.M. RINDANI , A.R. DATE OF HEARING : 15 - 1 1 - 2 016 DATE OF PRONOUNCEMENT : 25 - 11 - 2 016 / ORDER P ER : AMARJIT SINGH, ACCOUNTANT MEMBER : - THI S ASSESSEE S APPEAL FOR A.Y. 2009 - 10 , AR ISES FROM ORDER OF THE CIT(A) - I, RAJKOT DATED 21 - 01 - 2015 IN APPEAL NO. CIT(A) - I / RJT/0261/11 - 12 , CONFIRMING DISALLOWANCE OF RS. 20,10,093/ - , IN I T A NO . 115 / RJT /20 15 A SSESSMENT YEAR 200 9 - 10 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 2 PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. ASSESSEE IS ENGAGED IN THE BUSINESS OF TRANSPORTATION. DURING THE COURSE OF ASSESSMENT PROCEEDINGS ON VERIFICATION OF TRUCK EXPENSES, THE ASSESSING OFFICER NOTICED THAT ASSESSE HA S PAID PAYMENT TO THE AMOUNT OF RS. 20,10,093/ - AS TRUCK FREIGHT EXPENSES TO THE VARIOUS PERSONS MORE THAN RS . 5000 0 / - IN THE YEAR UNDER CONSIDERATION AS PER THE DETAILS GIVEN ON PAGE 2 AND 3 OF THE ASSESSMENT ORDER WHICH IS REPRODUCED AS UNDER: - '2. DURI NG THE COURSE OF ASSESSMENT PROCEEDINGS IT HAS BEEN NOTICED THAT Y OU HAVE DEBITED RS. 62,91,393/ - AS TRUCK FREIGHT EXPENSES AND ON FURTHER VERIFICATION OF THE LIST OF TRUCK FREIGHT EXPENSES IT IS NOTICED THAT TRUCKS HAVE BEEN PAID MORE THAN RS. 50,000/ - IN THE YEAR CONSIDERATION: SHRI KRISHNA KRUPA ROADWAYS SH RAJESH A BORICHA TRUCK BHADA EXPENSES S. NO. SR. NO. OF VOUCHER S DATE TRUCK NO. AMOUNT IN RUPEES TRUCK WISE AGGREGATE AMOU NT 1. 76 25/05/2008 GF1AT9533 14500 2. 194 17/08/2008 GF1AT9533 12400 3. 297 13/11/2008 GF1AT9533 15000 4. 425 14/02/2009 GF1AT9533 15000 56900 5 48 6/5/2008 GJ1A28138 15000 6. 150 17/07/2008 GJ1A28138 20800 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 3 7 2 05 28/08/2008 GJ1A2 8138 10000 8. 376 24/12/2008 GJ1A2 8138 10000 55800 9. 26 21/04/2008 GJ1AT9533 18500 10 58 14/05/2008 GJ1AT9533 15000 11 96 8/6/2008 GJ1AT9533 15800 12 212 3/9/2008 GJ1AT9533 16500 13 22 6 14/09/2008 GJ1AT9533 16500 14 327 25/11/2008 GJ1AT9533 2458 84758 15 243 28/09/2008 GJ1AZ8138 10000 16 311 21/11/2008 GJ1AZ8138 12650 17. 386 2/1/2009 GJ1AZ8138 13925 18. 418 8/2/2009 GJ1AZ8138 18000 19. 429 18/02/2009 GJ1AZ8138 13680 68255 20. 44 4/5/2008 GJ3AT101 10080 21. 78 27/05/2008 GJ3AT101 14500 22. 119 22/06/2008 GJ3AT101 13000 23. 126 28/06/2008 GJ3AT101 10400 24. 161 25/07/2008 GJ3AT101 10500 25. 242 28/09/2008 GJ3AT101 12720 71200 26. 38 30/04/2008 GJ3AT1448 19000 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 4 27. 57 13/05/2008 GJ3AT1448 16950 28. 79 28/05/2008 GJ3AT1448 1 1 600 29. 142 11/7/2008 GJ3AT1448 10000 30. 313 22/11/ 2008 GJ3AT1448 19500 31. 344 4/12/2008 GJ3AT1448 18000 95050 32 160 24/07/2008 GJ3AT3100 15000 33 190 16/08/2008 GJ3AT3100 17885 34. 197 20/08/2008 GJ3AT3100 12400 35 322 25/11/2008 GJ3AT3100 19000 36 347 5/12/2008 GJ3AT3100 16000 37. 435 22/02/2009 GJ3AT3100 12500 92785 38. 80 28/05/2008 GJ3AT3800 10000 39. 118 21/06/208 GJ3AT3800 8000 40. 153 20/07/2008 GJ3AT3800 13200 41. 257 12/10/2008 GJ3AT3800 11000 42. 341 2/12/2008 GJ3AT3800 15000 43. 444 3/3/2009 GJ3AT3800 12000 69200 44. 345 4/12/2008 GJ3AT3810 1 15000 45. 30 26/04/2008 GJ3AT4700 10600 46. 288 6/11/2008 GJ3AT4700 19500 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 5 47. 305 20/11/2008 GJ3AT4700 17000 48. 348 5/12/2008 GJ3AT47 00 16500 49. 431 19/02/2009 GJ3AT4700 1 5000 50. 468 25/03/2009 GJ3AT4700 1 1600 90200 51. 169 1/8/2008 GJ3AT4991 18000 52. 221 11/9/2008 GJ3AT4991 18000 53. 234 20/09/2008 GJ3AT4991 18200 54200 54. 173 3/8/2008 GJ3AT509 15760 55. 204 28/08/2008 GJ3AT509 18752 56. 218 9/9/2008 GJ3AT509 15000 57. 371 19/12/2008 GJ3AT509 13000 62512 58. 62 05/2008 GJ3AT510 10000 59. 98 9/6/2008 GJ 3 ATS10 10000 60. 127 28/06/2008 GJ3A T510 10000 61. 301 J6/N/2008 GJ3AT510 11120 62. 349 5/12/2008 GJ3AT510 10892 52012 63. 83 29/05/2008 GJ3AT512 7600 64. 179 7/8/2008 GJ3AT512 11050 65. 198 20/08/2008 GJ3AT512 12400 66. 358 9/JJ2/2008 GJ3AT512 14400 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 6 67. 361 11/12/2008 GJ3AT512 12000 57450 68. 110 16/06/2008 GJ3AT9533 16500 69. 187 _J2/8/2008 GJ3AT9533 16500 70. 278 27/10/2008 GJ3AT9533 18000 51000 71 258 12/10/2008 GJ3V9584 11000 72 285 5/11/2008 GJ 3V9584 18000 73 298 14/11/2008 GJ3V9584 12000 74 351 6/12/2008 GJ3V9584 17500 75 464 21/03/2009 GJ3V9584 12000 70500 76 6 4/4/2008 GJ3W7300 16000 77. 34 29/04/2008 GJ3W7300 19000 78. 47 5/5/2008 GJ3W7300 1200 0 79. 56 12/5/2008 GJ3W7300 15500 80. 75 24/05/2008 GJ3W7300 10000 81. 130 1/7/2008 GJ3W7300 16400 82. 189 15/08/2008 GJ3W7300 16800 83. 213 4/9/2008 GJ3W7300 17000 84. 252 7/10/2008 GJ3W7300 16500 85. 316 25/11/2008 GJ3W7300 19000 86. 354 7/12/2008 GJ3W7300 14500 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 7 87. 387 2/1/2009 GJ3W7300 10000 88. 446 5/3/2009 GJ3W7300 17000 199700 89, 18 14/04/2008 GJ3W7861 15000 90. 170 1/8/2008 GJ3W7861 5400 91. 339 1/ 12/2008 GJ3W7861 19500 92. 377 25/12/2008 GJ3W7861 19000 93. 421 11/2/2009 GJ3W7861 12000 94. 455 14/03/2009 GJ3W7861 16500 87400 95. 124 27/06/2008 GJ3W7941 15000 96. 182 9/8/2008 GJ3W7941 19000 97. 286 5/11/ 2008 GJ3W7941 17605 98. 355 8/12/2008 GJ3W7941 19000 99. 463 21/03/2009 GJ3W7941 12000 82605 100. 157 23/07/2008 GJ3W7942 18000 101. 323 25/11/2008 GJ3W7942 19500 102. 451 10/3/2009 GJ3W7942 16000 53500 103. 94 7/6/2008 GJ3W8379 12000 104. 125 27/06/2008 GJ3W8379 6800 105. 152 19/07/2008 GJ3W8379 15000 106. 174 04/0 8/2008 GJ3W8379 12000 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 8 107. 326 25/11/ 2008 GJ3W8379 18500 108. 335 29/11/2008 GJ3W8379 19000 109. 352 6/12/2008 GJ3W8379 16000 110 364 14/12/2008 GJ3W8379 13000 112300 111 166 30/07/2008 GJ3W8400 15000 112 203 27/08/2008 GJ3W8400 15800 113 219 9/9/2008 GJ3W8400 7100 114. 325 25/11/2008 GJ3W8400 19000 115. 411 31/01/2009 GJ3W8400 10000 116. 432 20/02/2009 GJ3W8400 16000 82900 117. 37 30/04/2008 GJ3W8472 10000 118. 108 15/06/2008 GJ3W8472 18050 119. 289 7/11/2008 GJ3W8472 13000 120. 405 25/01/2009 GJ3W8472 11200 52250 1 21. 49 7/5/2008 GJ3W8667 12080 122. 40 30/04/2008 GJ3W8687 18368 123. 141 11/7/2008 GJ3W8687 14000 124. 209 31/08/2008 GJ3W8687 12000 125. 291 8/11/2008 GJ3W8687 12400 126. 360 11/12/2008 GJ3W8687 12000 80848 I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 9 127. 5 3/4/2008 GJUV1365 11000 128. 195 18/08/2008 GJUV1365 8000 129. 220 10/9/2008 GJUV1365 17280 130. 295 11/11/2008 GJUV1365 11000 131. 338 1/12/2008 GJUV1365 15000 62280 132. 176 5/8/2008 MHO4H5032 16000 133. 254 10/10/2008 MH04H5032 10000 134. 259 13/10/2008 MHO4H5032 17000 135. 333 29/11/2008 MH04H5032 18800 136. 382 29/12/2008 MH04H5032 10000 137. 394 17/01/2009 MH04H5032 14800 86600 138. 50 7/5/2008 MHOUDK7876 10000 139. 82 29/05/2008 MHOUDK7876 19000 140. 168 1/8/2008 MHOUDK7876 19500 141. 183 9/_8/2008 MHOUDK7876 18600 67100 142. 91 4/6/2008 MHOUH5032 20500 143. 151 18/07/2008 MHOUH5032 16800 144. 164 28/07/2008 M HOUH5032 15500 145. 240 26/09/2008 MHOUH5032 10000 62800 TOTAL 20,10,093/ - I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 10 IN THIS REGARD, YOU ARE REQUESTED TO SHOW CAUSE AS WHY EXPENSES OF RS.20,10,093/ - MADE TOWARDS TRUCK FREIGHT EXPENSES SHOULD NOT BE ADDED BACK TO YOUR TOTAL INCOME FOR THE VIOLATION OF I) OF THE ACT. APART FROM ABOVE, YOU HAVE PAID R S. 20,800/ - TO THE PERSON/ OWNER OF TRUCK NO. GJ1A2 8138 ON 17/07/2008 I.E. ON A SINGLE DAY \ N VIOLATION OF PROVISION OF SECTION 40 A (3) OF THE IT ACT. THIS ALSO ATTRACTS PROVIS ION OF SECTION 40A(3) OF THE IT ACT. YOU ARE REQUESTED TO EXPLAIN AS WHY THE EXPENSES OF RS.20,800/ - SHOULD NOT BE DISALLOWED U/S 40A(3) OF THE IT ACT AND ADDED BACK TO YOUR TOTAL INCOME FOR THE VIOLATION OF THE PROVISIONS OF THIS SECTION.' 3. IN ADDITION TO THE PAYMENT OF RS. 50 , 00 0 / - DURING THE YEARS TO THE PERSONS AS STATED ABOVE THE ASSESSEE HAD ALSO PAID RS . 20 ,8 00/ - TO THE PERSONS MENTIONED ABOVE. 4. THE REPLY OF THE ASSESSEE THAT HE JUST HIRE THE VEHICLES ON BEHALF OF HIS CUSTOMERS AND HE G ET COMMI SSION HAS NOT CONVINCED THE ASSESSING OFFICER. THE ASSESSING OFFICER HAD NOTICED THAT THE PAYMENT TO THE TRUCK OWNERS , PERSON WERE DIREC T LY MADE THROUGH THE ASSESSEE. THE ASSESSING OFFICER FOUND T HAT THE ASSESSSEE HAD VIOLATED THE PROVISIONS OF SEC. 194 OF THE ACT , THEREFORE , HE MADE DISALLOWANCE OF RS . 20,1 0,093/ - U/S. 40(A)(IA) OF THE A CT. 5. AGGRIEVED AGAINST THE ORDER OF THE ASSESSING OFFICER, THE A SSSESSEE HAS MADE APPEAL BEFORE THE LD. COMMISSIONER OF INCOME TAX(A). THE LD. COMMISSIONER OF INCOM E TAX(A) HAS SUSTAINED THE ORDER OF THE ASSESSING OFFICER STATING THAT IN THE CASE OF THE ASSESSEE FOR THE ASSESSMENT YEAR 2007 - 08, THE HON BLE ITAT AHMEDABAD VIDE I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 11 ORDER DATED 13 - 09 - 2003 HAS TAKEN ADVERSE VIEW A ND THE CASE WAS DECIDED AGAINST THE ASSESSEEE . 6. DURING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US, THE LD. A.R. STATED THAT HE HAS FILED FORM NO. 8 AS PER RULE 16 READ WITH SECTION 158A(1) OF THE ACT MAKING DECLARATION UNDER SECTION 158A(1) OF THE ACT CLAIMING THAT IDENTICAL QUESTION OF LAW IS PENDING BEFORE THE HIGH COURT. THE FORM NO. 8 FILED BY THE ASSESSEE IS REPRODUCED AS UNDER: - FORM NO. 8 [SEE RULE 16] DECLARATION UNDER SECTION 158A(1) OF THE INCOME - TAX ACT, 1961 TO BE MADE BY AN ASSESSEE CLAIMING THAT IDENTICAL QUESTION OF LAW IS PENDI NG BEFORE THE HIGH COURT OR THE SUPREME COURT I, SHRI RAJESH BORICHA, SON OF SHRI AYDANBHAI BORICHA BEING INDIVIDUAL DO HEREBY DECLARE: 1. THAT THE FOLLOWING QUESTION(S) OF LAW (A) WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE, THE INCOME TAX APPEL LATE TRIBUNAL WAS RIGHT IN LAW AND IN HOLDING THAT THE APPELLANT, IN - SPITE OF BEING A MERE TRANSPORT COMMISSION AGENT, WAS REQUIRED TO DEDUCT TAX AT SOURCE OUT OF PAYMENTS MADE TO TRUCK OWNERS/DRIVERS UNDER SECTION 194C(2) OF THE ACT AND THEREBY INVOKING P ROVISIONS OF SECTION 40(A)(IA) FOR MAKING DISALLOWANCE OF RS.80,41,529/ - ? IS PENDING IN MY CASE BEFORE THE HIGH COURT ON A APPEAL UNDER SECTION 256/260A IN RESPECT OF THE ASSESSMENT YEAR 2007 - 08 ** A COPY OF THE STATEMENT OF THE CASE AND THE QUESTION(S) O F LAW REFERRED TO THE HIGH COURT IS ENCLOSED. A COPY OF THE JUDGMENT OF THE HIGH COURT AND GROUNDS OF APPEAL TO THE SUPREME COURT IS/ARE ENCLOSED. I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 12 2. THAT THE SAID QUESTION(S) OF LAW IS IDENTICAL WITH THE QUESTION(S) OF LAW ARISING IN MY CASE IN RESPECT O F THE ASSESSMENT YEAR 2009 - 10 WHICH IS PENDING BEFORE THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT. 3. THAT IF THE INCOME TAX APPELLATE TRIBUNAL AGREES TO APPLY TO THE CASE REFERRED TO IN PARAGRAPH 2 ABOVE THE FINAL DECISION ON THE QUESTION OF LAW IN THE CAS E REFERRED TO IN PARAGRAPH 1 ABOVE, ** I/THE ASSESSEE MENTIONED IN PARAGRAPHS 1 AND 2 ABOVE, SHALL NOT RAISE THE SAID QUESTION(S) OF LAW IN THE CASE REFERRED TO IN PARAGRAPH 2 ABOVE IN APPEAL BEFORE ANY APPELLATE AUTHORITY OR FOR A REFERENCE BEFORE THE HIG H COURT UNDER SECTION 256 OR THE SUPREME COURT UNDER SECTION 257 OR IN APPEAL BEFORE THE SUPREME COURT UNDER SECTION 261. SIGNATURE OF THE DECLARANT SD/ - PERMANENT ACCOUNT NO. AGMPB7158E ADDRESS OF THE ASSESSEE MANDEEP CHEMBER, KUVADVA ROA D,OPP. BANK OF INDIA RAJKOT. VERIFICATION I, SHRI RAIESHKUMAR AYDANBHAI BORICHA, DO HEREBY DECLARE THAT TO THE BEST OF MY KNOWLEDGE AND BELIEF WHAT IS STATED ABOVE IS CORRECT, COMPLETE AND IS TRULY STATED .'I FURTHER DECLARE THAT I AM MAKING THE DECLARATI ON IN MY CAPACITY AS INDIVIDUAL AND THAT I AM COMPETENT TO MAKE THIS DECLARATION AND VERIFY IT. VERIFIED TODAY THE 14 TH NOVEMBER, 2016. PLACE: RAJKOT SD/ - SIGNATURE OF THE DECLARANT NOTES : 1. THE DECLARATION SHOULD BE IN DUPLICATE WHEN IT IS FURNISHED TO THE DEPUTY COMMISSIONER (APPEALS) OR THE COMMISSIONER (APPEALS) AND IN TRIPLICATE WHEN IT IS FURNISHED TO THE APPELLATE TRIBUNAL. 2.* MENTION THE CAPACITY IN WHICH THE DECLARATION IS MADE. 3. **DEL ETE WHICHEVER IS NOT APPLICABLE. I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 13 4. ***MENTION THE DESIGNATION OF THE OFFICER OR AUTHORITY TO WHOM OR TO WHICH THE DECLARATION IS FURNISHED. 5. GIVE COMPLETE POSTAL ADDRESS. WHERE THE DECLARANT IS NOT THE ASSESSEE, ALSO GIVE THE COMPLETE POSTAL ADDRESS OF THE ASSESSEE. 7. THE COPY OF THE SAME WAS ALSO PRO VIDED TO THE LD. D.R. AND LD. D.R. HAS NOT RAISED ANY OBJECTION TO THE ABOVE STATED DECLARATION MADE BY THE ASSESSEE AS PER RULE 16 R.W.S. 158A(1) OF THE ACT. 8. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. IN VIEW OF THE ABOVE STATED DECLARATION ON FORM NO. 8 AS PER RULE 16 READ WITH SECTION 158A(1) OF THE ACT FILED BY THE ASSESSEE, W E CONSIDERED TO SET ASIDE THE MATTER TO THE FILE OF A SSESSING O FFICER TO DECIDE IT ACCORDING TO T HE DECISION OF THE HON BLE HIGH COURT OF GUJARAT TO BE DELIVERED IN THE CASE OF THE ASSESSEE ON ADJUDICATION OF IDENTICAL ISSUE PENDING BEFORE FOR ADJUDICATION BEFORE HON BLE HIGH COURT OF GUJARAT AS PER DECLARATION FILED BY THE ASSESSEE AS MENTIONED S UPRA PERTAINING TO A SSESSMENT Y EAR 2007 - 08. ORDER PR ONOUNCED IN THE OPEN C OUR T ON 25 - 11 - 201 6 SD/ - SD/ - (RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 25 /11 /2016 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT I.T.A NO. 115/RJT /20 15 A.Y. 2009 - 10 PAGE NO SHRI RAJESH A BORICHA VS. ITO 14 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER, ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, RAJKOT