Trident Leather , Kolkata V. DCIT, Circle - 54, Kolkata , Kolkata

ITA 1360/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6711 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 22-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RADHESHYAM
• Section: 40(a)(ia); 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA SMC BENCH, KOLKATA (BEFORE SRI S.S. GODARA, JUDICIAL ME MBER) ITA NO. 1360/KOL/2018 ASSESSMENT YEAR: 2009-10 TRIDENT LEATHER.......................... ................APPELLANT 66, SYED AMIR ALI AVENUE KOLKATA 700 019 [PAN : AABFT 8941 N] VS. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-54, KOLKA TA.........................RESPONDENT APPEARANCES BY: SHRI SUBASH AGARWAL, ADVOCATE, APPEARED ON BEHALF OF THE ASSESSEE . SHRI RADHE SHYAM, CIT D/R. APPEARING ON BEHALF OF THE REVE NUE. DATE OF CONCLUDING THE HEARING : DECEMBER 31 ST , 2018 DATE OF PRONOUNCING THE ORDER : JANUARY 2 3 , 2019 ORDER PER S.S. GODARA, JM :- 1. THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-1 0 ARISES AGAINST COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLKATAS ORDER DATED 17/05/2018 PASSED IN CASE NO. 459/CIT(A)-17/KOL/15-16, INVOLVING PROC EEDINGS U/S 143(3)/147 IN ASSESSMENT ORDER DT. 11/02/2016, OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 1.1. HEARD BOTH PARTIES. CASE FILES PERUSED. 2. I NOTICE AT THE OUTSET THAT THE ASSESSEES REVIS ED GROUNDS OF APPEAL CHALLENGE BOTH THE RE-OPENING AS WELL AS THE LOWER AUTHORITIES ACT ION DISALLOWING ITS LABOUR CHARGES/WAGES CHARGES OF RS.4,83,212/- AND FABRICAT ION CHARGES OF RS.3,45,000/-. THERE IS NO DISPUTE THAT THE ASSESSING OFFICER HAD FRAMED REGULAR ASSESSMENT IN QUESTION ON 21/12/2011. HE THEREAFTER FORMED REASONS TO BELIEVE THAT ASSESSEES TAXABLE INCOME LIABLE TO BE ASSESSED HAD ESCAPED ASSESSMENT ON ACC OUNT OF NON-DEDUCTION OF TDS INVITING SECTION 40(A)(IA) DISALLOWANCE. HE ISSUED 148 NOTICE DT. 18/07/2014, I.E. AFTER THE EXPIRY OF FOUR YEARS FROM THE END OF RELEVANT A SSESSMENT YEAR. LEARNED CIT D/R FAILS TO DISPUTE THAT THE ASSESSING OFFICER HAD NOWHERE R ECORDED IN HIS REOPENING REASONS THAT THE ASSESSEE HAD NOT DISCLOSED ALL MATERIAL RE LEVANT FACTS FULLY AND TRULY THEREBY 2 ITA NO. 1360/KOL/2018 ASSESSMENT YEAR: 2009-10 TRIDENT LEATHER GIVING RISE TO THE IMPUGNED REASSESSMENT. HE RATHER RELIES UPON THE ASSESSEES NOTINGS TO BELIEVE THAT THE PAYMENTS IN QUESTION ATTRACTED TDS DEDUCTION. I QUOTE HONBLE BOMBAY HIGH COURTS DECISION IN THIS HINDUSTAN LEVER LTD. V. R.B. WADKAR [2004] 268 ITR 339 (BOMBAY) AND FIND NO REASON TO ACCEPT REVENUES INSTANT ARGUMENT AS IT STILL FAILS TO PROVE FROM THE CASE RECORDS THAT THE ASSESSEES DIS CLOSURE MADE WAS EITHER NOT COMPLETE OR NOT TRUE. I THEREFORE HOLD WITH THE ASS ESSEES CASE IS SQUARELY FALLS IN FIRST PROVISO TO SECTION 147 OF THE ACT. MORESO, IN VIEW OF THE FACT THAT BOTH THE LOWER AUTHORITIES HAVE FAILED TO INDICATE AS TO IN WHAT M ANNER THE IMPUGNED DEDUCTION ATTRACTED TDS DEDUCTION SO AS TO INVITE SECTION 40( A)(IA) DISALLOWANCE. THE ASSESSEE SUCCEEDS ON ITS FIRST LEGAL GROUND THEREFORE. ITS L ATER TWO SUBSTANTIVE GROUNDS ON MERITS ARE RENDERED INFRUCTUOUS. 3. THIS ASSESSEES APPEAL IS ALLOWED. KOLKATA, THE 23 DAY OF JANUARY, 2019. SD/- [S.S. GODARA] JUDICIAL MEMBER DATED : 23.01.2019 {SC SPS} COPY OF THE ORDER FORWARDED TO: 1. TRIDENT LEATHER 66, SYED AMIR ALI AVENUE KOLKATA 700 019 2. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-54, KO LKATA 3. CIT(A)- 4. CIT- , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE CO PY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES