Assistant Commissioner Of Income Tax, Circle- 1, Shivamogga V. Smt. Jayalakshmi K T, Shivamogga

ITA 1298/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 4152 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-02-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 20-02-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 06-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: TDS
• Section: 143(3); 194C; 250; 201; 143(2); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES C BENCH: BANGALORE BEFORE SHRI A.K. GARODIA, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 1298 /BANG/201 9 (ASSESSMENT YEAR: 201 2 - 13 ) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, SHIVAMOGGA. .APPELLANT PAN VS. SMT. JAYALAKSHMI K T, SRI KRISHNA TRANSPORT, SAVARKAR NAGAR, SHIVAMOGGA . RESPONDENT. ASSESSEE BY: SHRI RAKESH, C.A. REVENUE BY: S MT. R. PREMI, JCIT (D.R) DATE OF HEARING : 20.02 .20 20 DATE OF PRONOUNCEMENT : 24.02 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE REVENUE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMIS SIONER OF INCOME TAX (APPEALS) BANGALORE PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961 ('THE ACT'). 2. THE REVENUE HAS RAISED THE FALLOWING GROUNDS OF APPEAL AS UNDER : 2 ITA NO. 1298/BANG/2019 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF TRANSPORTATION AND FILED THE RETURN OF INCOME ON 31.03.2013 WIT H TOTAL INCOME OF RS.8,90,500. SUBSEQUENTLY THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE UNDER SECTION 143(2) OF THE ACT WAS ISSUED. IN COMPLIANCE, THE LEARNED AUTHORIZED REPRESENTATIVE APPEARED FROM TIME TO TIME AND SUBMITTED THE DETAILS AND CASE WAS DISCUSSED. THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS DEBITED FREIGHT EXPENSES TO THE PROF IT AND LOSS ACCOUNT AND CALLED FOR THE DETAILS OF TDS MADE ON SUCH PAYMENTS. THE ASSESSEES CONTENTION THAT THE ASSESSEE HAS COLLECTED PAN OF ALL THE PERSONS TO WHOM THE FREIGHT CHARGES HAVE BEEN PAID AS PER SECTION 194C(6) 3 ITA NO. 1298/BANG/2019 OF THE ACT. THE ASSESSEE ALSO FILED A LETTER WITH BREAKUP OF FREIGHT EXPENSES. HOW EVER, THE ASSESSING OFFICER FIN D , THAT THERE IS A VIOLATION OF NON - DEDUCTION OF TDS PROVISION UNDER SECTION 194C OF THE ACT AND DISALLOWED THE FREIGHT EXPENSES FOR NON DEDUCTION OF TDS AGGGERATING TO RS.2,00,54,750 / - AND A S SESSED TOTAL INCOME OF RS.2,09,70,380 / - AND PASSED THE ORDER UNDER SECT ION 143(3) AND 250 OF THE ACT. AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(APPEALS) . WHEREAS THE CIT(APPEALS) CONSIDERED THE GROUN DS OF APPEAL, FINDINGS OF THE ASSESSING OFFICER AND SUBM ISSIONS MADE BY THE ASSESSEE O N THE DISPUTED ISSUE REGAR DING PAYMENT OF FREIGHT CHARGES. FURTHER, THE CIT(APPEALS) RE LIED ON THE JUDICIAL DECISIONS AND GRANTED RELIEF UNDER SEC40(A)(IA) OF THE ACT, A ND PARTLY ALLOWED THE ASSESSEE APPEAL. AGGRIEVED BY THE ORDER OF CIT ( APPEALS), THE REVENUE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LDDR SUBMITTED THAT THE CIT(APPEALS) HAS ERRED IN DELETING TH E DISALLOWANCE UNDER SE CTION 40(A) (IA) OF THE ACT , AS THE JUDICIAL DECISIO N RELIED ON BY THE CIT(APPEALS) ARE CHALLENGED BY THE REVENUE AND FILED SLP BEFORE THE HON'BLE SUPREME COURT . CONTRA, THE LEARNED AUTHORIZED REPRESENTATIVE SUPPORTED THE ORDERS OF CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE MATRIX OF THE DISPUTED ISSUE AS ENVISAGED BY THE LEARNED DEPARTMENTAL REPRESENTATIVE IS IN RESPECT OF CI T(APPEALS) GRANTING RELIEF RELYING ON THE 4 ITA NO. 1298/BANG/2019 DECISION OF JU RISDICTIONAL HIG H COURT , WHICH THE DEPARTMENT HAS CHALLENGED BEFORE THE HON'BLE SUPREME COURT IN SLP. WE FOUND, THE REVENUE HAS RELIED ONLY ON FILING OF SLP BE FORE THE HON'BLE SUPREME COURT. WE CONSIDER IT PROPER TO REFER THE OBSERVATIONS OF THE CIT(APPEALS) AT PAGE 7 PARA 5 A OF THE ORDER AS UNDER : 5 ITA NO. 1298/BANG/2019 THE LD DR COULD NOT CONTROVERT THE OBSERVATIONS OF THE CIT(APPEALS) WITH ANY NEW EVID ENCE OR COGENT MATERIAL. ACCORDINGLY, WE ARE NOT INCLINED TO INTERFERE WITH THE ORDER OF CIT(APPEALS) ON THIS DISPUTED ISSUE AND CONFIRM THE SAME AND DISMISS THE GROUNDS OF APPEAL OF REVENUE. 6. IN THE RESULT, THE REVENUES APPEAL IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. S D / - S D / - (A.K. GARODIA) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 2 4 . 0 2 . 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE