ITO, Ward-9(2), Hyderabad V. Sri Rajender Kumar Agarwal, Hyderabad

ITA 1222/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66490 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 09-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIDISHA KALRA
• Assessee Lawyers: SARANG SHAH
• Section: 40A(3); 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1222/HYD/2012 A.Y. 2007-08 THE INCOME TAX OFFICER WARD-9(2) HYDERABAD VS. SRI RAJENDER KUMAR AGARWAL HYDERABAD PAN: ABFPA5377G APPELLANT RESPONDENT APPELLANT BY: SMT. VIDISHA KALRA RESPONDENT BY: SRI SARANG SHAH DATE OF HEARING: 20.11.2012 DATE OF PRONOUNCEMENT: 20.11.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-VI, HYDERABAD DATED 25.5.2012 FOR ASSESSMENT YEARS 2007-08. 2. THE REVENUE RAISED THE GROUND IN THIS APPEAL THAT T HE CIT(A) IS ERRED IN DELETING THE DISALLOWANCE OF COMMISSION OF RS. 11,33,320 ON ACCOUNT OF NON-COMPLIANCE WITH THE PROVISIONS OF SE CTION 40(A)(IA) OF THE INCOME-TAX ACT, 1961 IN REMITTING THE TDS WITHIN TH E DUE DATE. 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL AND PROPRIETOR OF M/S. SRI CHIMMANLAL PAPER MILLS CARRY ING ON BUSINESS IN MANUFACTURING OF PAPER. FOR A.Y. 2007-08, THE ASSE SSEE FILED A RETURN OF INCOME ON 26.10.2007 DECLARING INCOME OF RS. 1,67,9 09. THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S. 143(3) OF THE ACT MAKING DISALLOWANCE U/S. 40(A)(IA) AT RS. 11,33,320 AND U/ S. 40A(3) OF THE ACT AT RS. 1,55,077 THEREBY DETERMINING THE TOTAL INCOME A T RS. 14,56,310. ON APPEAL, THOUGH THE CIT(A) CONFIRMED THE ADDITION U/ S. 40A(3), SHE DELETED THE ADDITION MADE U/S. 40(A)(IA) ON THE REASON THAT THE ASSESSEE IS AN INDIVIDUAL AND SECTION 194H DOES NOT APPLY TO HIM I N NORMAL COURSE. AS PER PROFIT AND LOSS A/C. FOR A.Y. 2006-07 FILED ALO NG WITH RETURN OF ITA NO. 1222/HYD/2012 SRI RAJENDER KUMAR AGARWAL ===================== 2 INCOME, THE TURNOVER WAS LESS THAN RS. 40 LAKHS. T HE ASSESSEE IS, THEREFORE, NOT LIABLE TO DEDUCT TAX EVEN UNDER THE SECOND PROVISO TO SECTION 194H OF THE ACT. BEING SO, PROVISIONS OF S ECTION 40(A)(IA) ARE NOT APPLICABLE TO THE ASSESSEE'S CASE. AGAINST THIS TH E REVENUE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. THE DR IS NOT ABLE TO SHOW ANY MATERIAL THAT THE TU RNOVER FOR A.Y. 2006- 07 IS MORE THAN RS. 40 LAKHS AND THE EVIDENCE FILED BY THE ASSESSEE BEFORE US SHOWS THAT THE TURNOVER OF THE ASSESSEE FOR A.Y. 2006-07 IS LESS THAN RS. 40 LAKHS. BEING SO, IN OUR OPINION, THE CIT(A) HAS TAKEN CORRECT VIEW AND DOES NOT CALL FOR ANY INTERFERENCE. THE ACTION OF THE CIT(A) IS CONFIRMED. 5. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 20 TH NOVEMBER, 2012. SD/ - (ASHA VIJAYARAGHAVAN) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 20 TH NOVEMBER, 2012 COPY FORWARDED TO: 1. THE INCOME TAX OFFICER, WARD - 9(2), 2 ND FLOOR, D - BLOCK, IT TOWERS, AC GUARDS, HYDERABAD. 2. SRI RAJENDER KUMAR AGARWAL, PROP. M/S. SRI CHIMMANL AL PAPER MILLS, 22-5-484/5, PANJESHAH, HYDERABAD. 3. THE CIT(A) - VI, HYDERABAD. 4. THE CIT - V I , HYDERABAD. 5. THE DR A BENCH, ITAT, HYDERABAD. TPRAO