Sub-Collector (Revenue) North & Land Acquisition Officer, Pondicherry V. ITO, Pondicherry

ITA 128/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61007 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-04-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 23-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: T BANUSEKAR
• Keywords: Opportunity of being heard
• Section: 201(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : CHENNAI [BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI VIKAS AWASTHY, JUDICIAL MEMBER] I.T.A.NOS.121 TO 128/MDS/2012 ASSESSMENT YEARS : 2005-06 TO 2008-09 SUB-COLLECTOR (REVENUE)NORTH & LAND ACQUISITION OFFICER COLLECTOR OFFICE BUILDING KAMARAJ SALAI PONDICHERRY [PAN CHED06291F ] VS THE INCOME TAX OFFICER TDS WARD PONDICHERRY (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI T.BANUSEKAR, CA RESPONDENT BY : SHRI SHAJI P. JACOB, ADDL. CIT DATE OF HEARING : 16-04-2012 DATE OF PRONOUNCEMENT : 20-04-2012 O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THESE ARE APPEALS FILED BY THE ASSESSE E AGAINST THE CONSOLIDATED ORDER OF THE LD.CIT(A)-IV, CHENNAI, D ATED 8.11.2011, CONFIRMING THE ORDER OF THE ASSESSING OFFICER IN TR EATING THE ASSESSEE IN DEFAULT U/S 201(1) OF THE ACT OF ` 52,25,910/- IN ASSESSMENT YEAR 2005-06, ` 2,70,08,350/- IN ASSESSMENT YEAR 2006-07, ` 9,55,62,745/- IN ASSESSMENT YEAR 2007-08 AND ` 6,80,46,263/- IN ASSESSMENT YEAR 2008-09 AND INTEREST U/S 201(1A) OF THE ACT ON THE SAID AMOUNTS. I.T.A.NOS.121 TO 128/2012 :- 2 -: 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS ARE THAT THE ASSESSEE IS A LAND A CQUISITION OFFICER AND PAID COMPENSATION AMOUNTS TO VARIOUS PERSONS FO R COMPULSORY ACQUISITION OF LAND. THE ASSESSEE WAS OBLIGED AS PER THE PROVISIONS OF SECTION 194LA OF THE ACT TO DEDUCT TAX AT SOURCE IN RESPECT OF COMPENSATIONS PAID FOR NON-AGRICULTURAL LAND WHERE THE AMOUNT OF COMPENSATION EXCEEDED ` 1 LAKH. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE FAILED TO DEDUCT TDS IN RESPECT OF CO MPENSATIONS PAID OF ` 68,40,797/- IN ASSESSMENT YEAR 2005-06, ` 71,26,683/- IN ASSESSMENT YEAR 2006-07, ` 1,97,70,908/- IN ASSESSMENT YEAR 2007-08 AND ` 1,29,84,642/- IN ASSESSMENT YEAR 2008-09. 3. ON APPEAL, THE LD.CIT(A) FOUND THAT THE ASSESSIN G OFFICER INCLUDED COMPENSATION FOR AGRICULTURAL LAND ALSO AN D AFTER CALLING THE REMAND REPORT, THE LD.CIT(A) HELD THAT THE ASSESS EE WAS LIABLE TO DEDUCT TDS U/S 194LA IN RESPECT OF ` 52,25,910/- IN ASSESSMENT YEAR 2005-06, ` 2,70,08,350/- IN ASSESSMENT YEAR 2006-07, ` 9,55,62,745/- IN ASSESSMENT YEAR 2007-08 AND ` 6,80,46,263/- IN ASSESSMENT YEAR 2008-09. 4. THE LD. A.R BEFORE US SUBMITTED THAT THE COMPE NSATIONS WHICH WERE PAID BY THE ASSESSEE WERE ALL IN RESPEC T OF AGRICULTURAL I.T.A.NOS.121 TO 128/2012 :- 3 -: LANDS ONLY AND THEREFORE, THE ASSESSEE WAS NOT LIA BLE TO DEDUCT TAX U/S 194LA OF THE ACT. IN SUPPORT OF HIS CONTENTION , HE FILED A COPY OF CERTIFICATE NO.1017/DRDM/2010/TDS ISSUED BY GOVERNM ENT OF PUDUCHERRY, DEPARTMENT OF REVENUE AND DISASTER MANA GEMENT. 5. THE LD. DR OBJECTED AND SUBMITTED THAT FROM THE A BOVE CERTIFICATE, ONE TO ONE CO-RELATION WITH THE LAND A GAINST WHICH COMPENSATIONS WERE PAID CANNOT BE MADE. 6. IN THE REJOINDER, THE LD. A.R SUBMITTED THAT ONE TO ONE CO- RELATION CAN BE MADE BY EXAMINING THE RELEVANT DOCU MENTS LIKE THE ABOVE MENTIONED CERTIFICATE, CHITTA, ADANGAL, ETC. HE SUBMITTED THAT THESE WERE VOLUMINOUS DOCUMENTS AND WERE IN VERNACU LAR LANGUAGE WHICH HAS TO BE TRANSLATED TO ENGLISH LANGUAGE FOR SUBMISSION BEFORE THE TRIBUNAL AND HENCE, COULD NOT BE PRODUCED. HE PRAYED THAT FOR VERIFICATION OF THE SAME, THE ISSUE CAN BE SET ASID E TO THE FILE OF THE ASSESSING OFFICER. 7. WE FIND THAT THE LD. DR COULD NOT PRODUCE BEFORE US ANY MATERIAL TO SHOW THAT THE COMPENSATION AMOUNTS IN R ESPECT OF WHICH THE ASSESSEE WAS TREATED AS ASSESSEE IN DEFAULT A RE IN RESPECT OF NON-AGRICULTURAL LANDS ONLY. IN THE ABOVE CIRCUMST ANCES, IN OUR CONSIDERED OPINION, IT SHALL BE IN THE INTEREST OF JUSTICE, TO SET ASIDE THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATION AFRESH I.T.A.NOS.121 TO 128/2012 :- 4 -: AFTER PROPER VERIFICATION. THE ASSESSEE IS ALSO D IRECTED TO FILE ALL THE DOCUMENTS ON WHICH IT WISHES TO RELY UPON BEFORE TH E ASSESSING OFFICER AS AND WHEN CALLED FOR BY THE ASSESSING OFF ICER. WE, THEREFORE, SET ASIDE THE ORDERS OF THE LOWER AUTHORITIES AND R ESTORE THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER FOR ADJUDICATI ON AFRESH IN THE LIGHT OF THE DISCUSSION MADE HEREIN ABOVE AFTER ALLOWING REA SONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THUS, ALL THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 8. IN THE RESULT, ALL THE APPEALS OF THE ASSESSEE AR E ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20 -04-2012. SD/- SD/- (VIKAS AWASTHY) JUDICIAL MEMBER (N.S.SAINI) ACCOUNTANT MEMBER DATED: 20 TH APRIL, 2012 RD COPY TO: APPELLANT/RESPONDENT/CIT(A)/CIT/DR