SUNIL SRICHAND KARARA, NAVI MUMBAI V. ITO 22(3)(4), NAVI MUMBAI

ITA 1216/MUM/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2328 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 7 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: E
• Next Hearing Date: 09-08-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 24-02-2014
• Court: TRIBUNAL
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL E BENCH, MUMBAI BEFORE SHRI B.R. BASKARAN (AM) & RAMLAL NEGI (JM) I.T.A. NO. 1216 /MUM/20 14 (ASSESSMENT YEAR 20 09 - 10 ) SHRI SUNIL SRICHAND KARARA F - 53, APMC MARKET VASHI, NAVI MUMBAI PIN - 400 705. VS. ITO 22(3)(4) VASHI NAVI MUMBAI. ( APPELLANT ) ( RESPONDENT ) PAN NO . APZPK3923J ASSESSEE BY NONE DEPARTMENT BY S HRI NITIN WAGHMODE DATE OF HEARING 20 .10 . 201 6 DATE OF PRONOUNCEMENT 20 . 10 . 201 6 O R D E R PER B.R. BASKARAN (AM) : - THE APPEAL FILED BY TH E ASSESSEE CHALLENGING THE ORDER DATED 2.11.2014 PASSED BY THE LEARNED CIT(A) - 33, MUMBAI AND IT RELATES TO A.Y. 2009 - 10. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE AND NOTICE OF HEARING SENT BY RPAD ON THE LAST OCCASION HAS BEEN RETURNED BACK WITH THE NOT ING LEFT. SINCE THE ASSESSEE HAS FILED THIS APPEAL WAY BACK IN FEBRUARY 2014, WE PREFER TO DISPOSE OF THIS APPEAL EX - PARTE, WITHOUT PRESENCE OF THE ASSESSEE. T HE ASSESSEE I S CONTESTING THE DECISION RENDERED BY THE LEARNED CIT(A) ON THE FOLLOWING ISSUES : - A) DISALLOWANCE MADE U/S. 40(A)(IA) OF THE ACT B) DISALLOWANCE MADE U/S. 40A(3) OF THE ACT 3. WE HEARD LEARNED DEPARTMENTAL REPRESENTATIVE AND PERUSED THE RECORD. THE FIRST ISSUE RELATES TO DISALLOWANCE MADE U/S. 40(A)(IA) OF THE ACT. THE ASSESSEE HAD CLAI MED A SUM OF ` 4,68,205 / - AS CLEARING AND FORWARDING EXPENSES. THE ASSESSEE DID NOT DEDUCT TAX AT SOURCE FROM THE SAID PAYMENT. SHRI SUNIL SRICHAND KARARA 2 HENCE, THE ASSESSING OFFICER DISALLOWED THE ABOVE SAID CLAIM U/S 40(A)(IA) OF THE ACT . THE LEARNED CIT(A) GRANTED RELIEF OF ` 49 ,534/ - AND CONFIRMED THE DISALLOWANCE OF ` 4,27,141/ - AS THE ASSESSEE DID NOT FURNISH DOCUMENTARY EVIDENCE IN SUPPORT OF THE BILLS RAISED BY C&F AGENT. 4. BEFORE US ALSO THE ASSESSEE HAS NOT FURNISH ED ANY MATERIAL TO PROVE THAT THE PAYMENT MADE TO C&F AG ENT WAS NOT ATTRACTED BY TDS PROVISION S . UNDER THESE SET OF FACTS, WE HAVE NO OTHER OPTION BUT TO CONFIRM THE ORDER PASSED BY THE LEARNED CIT(A) ON THIS ISSUE. 5. NEXT ISSUE RELATES TO DISALLOWANCE OF ` 3,60,000/ - MADE U/S. 40A(3) OF THE ACT. THE ASSESSEE HAD PURCHASED TOMATO ES ON VARIOUS DATES FROM M/S. GOPI GIRNAR, NASHIK. OUT OF THE PAYMENT MADE TO THE ABOVE SAID PARTY, A SUM OF ` 3,60,000/ - WAS PAID BY WAY OF CASH IN VIOLATIONS OF PROVISIONS OF SEC. 40A(3) OF THE ACT . WHEN QUESTIONED, THE ASSESSEE SUBM ITTED THAT MR. GOPI GIRNAR IS A CULTIVATOR OF TOMATOES HENCE PAYMENT MADE TO HIM IS COVER ED UNDER EX CEP TION GIVEN UNDER RULE 6DD OF THE I.T. RULES. THOUGH THE ASSESSEE FURNISHED 7/12 EXTRACT IN SUPPORT OF THE LAND HELD IN THE JOINT NAME OF GOPINATH VISHNUP ANT KHODE AND AMBADAS VISHUPANT KHODE, THE LEARNED CIT(A) TOOK THE VIEW THAT 7/12 EXTRACT ALONE DOES NOT PROVE THAT MR. GOPI GIRNAR IS A CULTIVATOR OF AGRICULTURE PRODUCE. THE LEARN ED CIT(A) ALSO OBSERVED THAT A FARMER NORMALLY WOULD NOT SELL GOODS ON CRED IT. ACCORDINGLY HE REJECTED THE CONTENTION S OF THE ASSESSEE AND CONFIRMED THE DISALLOWANCE MADE U/S. 40A(3) OF THE ACT. 6. BEFORE US ALSO ASSESSEE DID NOT FURNISH ANY EVIDENCE TO PROVE THAT THE PAYMENT OF ` 3,60,000/ - MADE BY WAY OF CASH IS COVERED EXCEPTION PROVIDED UNDER RULE 6DD OF THE I.T. RULES BY CONTROVERTING THE OBSERVATIONS MADE BY LD CIT(A) . HENCE, WE HAVE NO OTHER OPTION BUT TO CONFIRM THE ORDER PASSED BY THE LEARNED CIT(A). 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS D ISMISSED. SHRI SUNIL SRICHAND KARARA 3 ORDER HAS BE EN PRONOUNCED IN THE COURT ON 20 . 10 .2016 SD/ - SD/ - (RAMLAL NEGI ) (B.R.BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; DATED : 20 / 10 / 20 1 6 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// ( DY./ASSTT. REGISTRAR) PS ITAT, MUMBAI