Assistant Commissioner of Income Tax Circle-2(1), Hubli V. M/s Shri Prabhulingewhwar Sugars and Chemicals Ltd , Dharwad

ITA 1237/BANG/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1079 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-09-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 01-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J M GANGADHAR
• Assessee Lawyers: S UMA VENKATESAN
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, B ENGALURU BEFORE S HRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI ANIL KUMAR GARODIA , ACCOUNTANT MEMBER I TA NO. 1236 / BANG/2 0 1 7 (ASSESSMENT YEAR: 2011 - 12 ) ASSISTANT COMMISSIONER OF INCOME - TAX , CIRCLE 2(1), HUBLI. VS. APPELLANT SHRI PRABHULINGESHWAR SUGARS AND CHEMICALS LTD. OPP. K.C. PARK, DHARWAD. PAN: AACCS 78964 B RESPONDENT APPELLANT BY : SHRI J.M.GANGADHAR, ADVOCATE. RESPONDENT BY : SMT.S. UMAVENKATESAN, CIT(DR) DATE O F HEARING : 18/07/2018 DATE OF PRONOUNCEMENT : 14 /09/2018 O R D E R PER ANIL KUMAR GARODIA , JM: THIS APPEAL IS FILED BY THE REVENUE WHICH IS DIRECTED AGAINST THE ORDER OF THE LD.CIT(A), HUBLI, DATED 28/02/2017 FOR THE ASSESSMENT YEAR 2011 - 12. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER: ITA NO . 1237 /BANG/20 PAGE 2 OF 4 3. THE LD.DR OF THE REVENUE SUPPORTED THE ASSESSMENT ORDER WHEREAS THE LD.AR OF THE ASSESSEE SUPPORTED THE ORDER OF THE LD.CIT(A). HE ALSO SUBMITTED THAT THE LD.CIT(A) HAS DECIDED THIS ISSUE IN FA VOUR OF THE ASSESSEE BY FOLLOWING THE TRIBUNAL ORDER IN ASSESSEE S OWN CASE FOR AY 2010 - 11 IN ITA NO.182/PNJ/2014 DATED 7/7/2015. THEREAFTER, HE SUBMITTED THAT THE ISSUE WAS AGITATED BY THE REVENUE BEFORE THE HON BLE HIGH COURT OF KARNATAKA FOR TWO ASSESS MENT YEARS VIZ., 2010 - 11 AND 2012 - 13. HE SUBMITTED A COPY OF THIS JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT IN INCOME - TAX APPEAL NO.100070/2016 AND INCOME - TAX APPEAL NO.10027/2015 DATED 20/11/2017. OUR ATTENTION WAS DRAWN TO PARA.12 OF TH IS JUDGMENT. IT WAS POINTED OUT THAT AS PER THE JUDGMENT , IT WAS HELD BY THE HON BLE KARNATAKA HIGH COURT THAT IN RESPECT OF PURCHASE ORDERS RAISED BY THE ASSESSEE FROM THE MANUFACTURERS FOR GUNNY BAGS WITH CERTAIN SPECIFICATION WITHOUT SUPPLYING ANY MATERIAL BY THE ASSESSEE TO THE MANUFACTU RE. THE WORKS CONTRACT AND SECTION 194C OF THE IT ACT IS NOT APPLICABLE. IT WAS SUBMITTED THAT IN THE PRESENT CASE ALSO FACTS ARE IDENTICAL. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS. WE REPRODUCE PARAS.14 AND 15 OF THE ORDER OF THE LD.CIT(A) FOR READY RE FERENCE BECAUSE THE ISSUE IN DISPUTE IS DECIDED BY THE LD.CIT(A) AS PER THESE PARAGRAPHS OF HIS ORDER: ITA NO . 1237 /BANG/20 PAGE 3 OF 4 THEREAFTER WE ALSO REPRODUCE PARA.12 OF THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT IN ASSESSEE S OWN CASE FOR AY 2010 - 11 AND 2012 - 13. THE SAME READS AS UNDER: 12.THE ASSESSEE IS PLACING PURCHASE ORDERS ON THE MANUFACTURERS FOR GUNNY BAGS WITH CERTAIN SPECIFICATIONS. THOUGH THE MANUFACTURER HAS MANUFACTURED THE REQUIRED QUALITY AND QUANTITY OF THE PACKING MATERIAL PURSUANT TO THE SAID PURCHASE ORDERS PLACE D BY THE ASSESSEE, NO MATERIAL BEING SUPPLIED BY THE ASSESSEE, THE SAID WORK WOULD NOT FALL WITHIN THE AMBIT OF CLAUSE - (IV) OF THE EXPLANATION TO SECTION 194C OF THE ACT AS WORKS CONTRACT. 6. WE FIND THAT THE ISSUE IN DISPUTE IS SQUARELY COVERED IN FAVOUR OF THE ASSESSEE BY THE TRIBUNAL ORDERS AS WELL AS THE JUDGMENT OF THE HON BLE KARNATAKA HIGH COURT IN ASSESSEE S OWN CASE FOR ASSESSMENT YEARS 2010 - 11 AND 2012 - 13. NO DIFFERENCE IN FACTS COULD BE POINTED OUT BY THE LD.DR OF THE REVENUE. HENCE, WE DECLINE TO INTERFERE WITH THE ORDER OF THE LD.CIT(A). 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 14 TH SEPTEMBER, 2018 S D/ - SD/ - (SUNIL KUMAR YADAV) (A.K. GARODIA) JUDICIA L MEMBER ACCOUNTANT MEMBER PLACE : BENGALURU. D A T E D : 14 /0 9 /2018 SRINIVASULU, SPS ITA NO . 1237 /BANG/20 PAGE 4 OF 4 C OPY TO : 1 APPELLANT 2 RESPONDENT 3 CIT(A) 4 CIT 5 DR, ITAT, BANGALORE. 6 GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY INCOME - TAX APPELLATE TRIBUNAL BANGALORE