Satish Ishwardas Agrawal, Solapur V. Assistant Commissioner of Income-tax, Circle - 1, Solapur

ITA 1282/PUN/2019

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 0800 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 20-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 143(3); 40(a)(ia); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.1282/PUN/2019 नधा रण वष / Assessment Year : 2007-08 Satish Ishwardas Agrawal, 132, Railway Lines, Chandani Chowk, New Tirhegaon, Solapur – 413 001, Maharashtra. PAN : AAQPA5926K Vs. ACIT, Circle-1, Solapur (Appellant) (Respondent) आदेश / ORDER PER S.S. GODARA, JM : This assessee’s appeal for AY 2007-08 arises against the CIT(A)-9, Pune’s order dated 23-05-2019 passed in case No. CIT(A),Pune-9/10226/2017-18/30 involving proceedings under Section 143(3) of the Income Tax Act, 1961 in short the Act. Heard both the parties. Case file perused. 2. Coming to the assessee’s first and foremost substantive ground that both the lower authorities have erred in law and on facts in invoking section 40(a)(ia) disallowance of Rs.16,62,422/-, it transpires during the course of hearing that the same pertains to his freight and transportation charges in wholesale activity. Both the lower authorities held him to have made contractual payments to transporters requiring TDS Appellant by Smt. Deepa Khare Respondent by Shri Arvind Desai Date of hearing 26-05-2022 Date of pronouncement 30-05-2022 ITA No. 1282/PUN/2019 Satish I. Agrawal 2 deduction u/s.194C of the Act. The Revenue also vehemently contended that even an oral agreement is suffice to attract the foregoing TDS deduction provision. It also concluded by the hon’ble apex court’s recent decision in Shree Chaudhary Transport Co. Vs. ITO - 2020 SCC Online 610 (SC) in support of the impugned disallowance. 3. I have given my thoughtful consideration to the pleadings and find no merit in the Revenue’ stand. There would be hardly any dispute in contractual payment u/s.194C indeed attracts TDS deduction subject to all the terms and conditions therein. The vexed question herein is that of contractual relation between the assessee and the payees herein. The latter are found to have only transported assessee’s goods without having undertaken any contractual liability demurrage etc. That being the case, I quote Bhail Bulk Carriers Vs. ITO in ITA No.3536/Mum/2011, dated 07-03-2012 that Section 194C itself does not apply in the given facts and circumstances. The impugned disallowance stands deleted thereby. The assessee succeeds in his instant former substantive ground. 4. Next comes similar 40(a)(ia) disallowance on assessee’s advertisement expenses of Rs.1,44,020/-. He first of all contended to have only claimed an amount of Rs.42,308/- wherein no payment exceeding the statutory limit of Rs.20,000/- had been made to the payee(s) concerned. I am of the view that the same requires AO’s factual verification and ITA No. 1282/PUN/2019 Satish I. Agrawal 3 fresh adjudication. I order accordingly. This latter substantive ground is set aside to the Assessing Officer accordingly. No other ground has been pressed. 5. This assessee’ appeal is partly allowed in above terms. Order pronounced in the Open Court on 30 th May, 2022. Sd/- (S.S.GODARA) JUDICIAL MEMBER प ु णे Pune; दनांक Dated : 30 th May, 2022 Satish आदेश क त ल प अ े षत / Copy of the Order is forwarded to : 1. अपीलाथ / The Appellant; 2. यथ / The Respondent; 3. 4. 5. The CIT(A)-9, Pune The Pr.CIT-6, Pune वभागीय त न ध, आयकर अपील!य अ धकरण, प ु णे “SMC” / DR ‘SMC’, ITAT, Pune; 6. गाड फाईल / Guard file. आदेशान ु सार/ BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune ITA No. 1282/PUN/2019 Satish I. Agrawal 4 Date 1. Draft dictated on 26-05-2022 Sr.PS 2. Draft placed before author 30-05-2022 Sr.PS 3. Draft proposed & placed before the second member -- JM 4. Draft discussed/approved by Second Member. -- JM 5. Approved Draft comes to the Sr.PS/PS Sr.PS 6. Kept for pronouncement on Sr.PS 7. Date of uploading order Sr.PS 8. File sent to the Bench Clerk Sr.PS 9. Date on which file goes to the Head Clerk 10. Date on which file goes to the A.R. 11. Date of dispatch of Order.