Pandhrinath Jagannath Nere, Nashik V. Income-tax Officer, Ward - 2 (3), Nashik

ITA 1380/PUN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3012 (ITAT-PUNE)
• Duration Of Justice: 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-03-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 16-09-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: ARISES OUT OF PASSED
• Keywords: Non-deduction of tax
• Section: 40(a)(ia); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE SHRI R.S. SYAL, VICE PRESIDENT . / ITA NO.1380/PUN/2019 / ASSESSMENT YEAR : 2013-14 PANDHRINATH JAGANNATH NERE, 13-14, BALAJI VIHAR APARTMENT, ASHOK STAMBH, NASHIK, MAHARASHTRA 422 001 PAN : ACVPN7479B VS. ITO, WARD-2(3), NASHIK (APPELLANT) (RESPONDENT) / ORDER PER R.S.SYAL, VP : THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER PASSED BY THE CIT(A)-2, NASHIK ON 01-07-2019 IN RELATION TO THE ASSESSMENT YEAR 2013-14. 2. THIS APPEAL IS TIME-BARRED BY 03 DAYS. THE ASSESSEE HAS FILED A LETTER DATED 14-01-2020 EXPLAINING THE REASONS WHICH LED TO THE LATE FILING OF THE APPEAL. I AM SATISFIED WITH SUCH REASONS. THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED FOR HEARING ON MERITS. APPELLANT BY SHRI PRAMOD SHINGTE RESPONDENT BY SHRI RAJEEV RANJAN DATE OF HEARING 13-03-2020 DATE OF PRONOUNCEMENT 13-03-2020 ITA NO.1380/PUN/2019 PANDHRINATH J. NERE 2 3. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE UPHOLDING OF THE DISALLOWANCE MADE U/S.40(A)(IA) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT) FO R NON-DEDUCTION OF TAX AT SOURCE FROM INTEREST PAID TO CREDIT COOPERATIVE SOCIETY. 4. BRIEFLY, THE FACTS OF THE CASE, ARE THAT THE ASSESSING OFFICER (AO) OBSERVED THAT THE ASSESSEE PAID INTEREST OF RS.5,17,129/- ON LOANS TAKEN FROM R.K. SIDDHIVINAYAKA PATSANSTHA WITHOUT DEDUCTION OF TAX AT SOURCE. INVOKING THE PROVISIONS OF SECTION 194A, REQUIRING THE ASSESSEE TO DED UCT TAX AT SOURCE FROM INTEREST PAYMENT, THE AO HELD THAT HAVING NOT DEDUCTED TAX AT SOURCE, THE ASSESSEE INVITED DISALLOWANCE U/S.40(A)(IA) OF THE ACT. HE, THEREFORE, MADE THE DISALLOWA NCE OF RS.5,17,129/-. THE LD. CIT(A) NOTICED THAT SIDDHIVINAYA K COOPERATIVE CREDIT SOCIETY LTD. (SUCCESSOR R.K. SIDDHIVINAYAKA PATSANSTHA) IS ENGAGED IN PROVIDING CREDIT FACILITIES TO ITS MEMBERS AND HENCE, NOT CARRYING ON ANY BUSINESS OF BANKING SO AS TO REQUIRE NON-DEDUCTION OF TAX AT SOURCE U/S.194A(3)(III)(A) OF THE ACT. HE UPHELD THE ASSESSMENT ORDER ON THE GROUND THAT THE ASSESSEE COULD NO T FURNISH ANY EVIDENCE OF SIDDHIVINAYAK COOPERATIVE CREDIT ITA NO.1380/PUN/2019 PANDHRINATH J. NERE 3 SOCIETY HAVING CLAIMED DEDUCTION U/S.80P OF THE ACT. THE ASSESSEE IS AGGRIEVED BY THE DECISION. 5. HAVING HEARD BOTH THE SIDES AND GONE THROUGH THE RELEVANT MATERIAL ON RECORD, IT IS SEEN THAT THE LD. CIT(A) HA S DECIDED THE ISSUE AGAINST THE ASSESSEE BY SPECIFICALLY NOTING AT PARA 5.2 OF HIS ORDER THAT HIS PREDECESSOR HAD DECIDE D SIMILAR ISSUE IN FAVOUR OF THE ASSESSEE FOR THE A.Y. 2010 -11. I HAVE GONE THROUGH THE COPY OF THE ORDER PASSED BY THE CIT(A) FOR THE ASSESSMENT YEAR 2010-11 DELETING THE DISALLOWANCE MADE BY THE AO U/S.40(A)(IA) OF THE ACT ON IDENTICAL FACTS. IN REACHING THIS CONCLUSION, THE LD. CIT(A) F OR THE EARLIER YEAR RELIED ON THE ORDER OF HIS PREDECESSOR F OR THE ASSESSMENT YEAR 2009-10 IN WHICH AGAIN THE SIMILAR DISALLOWANCE WAS DELETED. A COPY OF SUCH AN EARLIER ORDER HAS ALSO BEEN PLACED ON RECORD. THE LD. AR SUBMITTED THAT THE DEPARTMENT HAS ACCEPTED THE ORDERS PASSED BY THE CIT(A) FOR THE ASSESSMENT YEARS 2009-10 AND 2010-11. IN VIEW OF THE FACT THAT SIMILAR ISSUE HAS ALREADY BEEN DECIDED REPEATEDLY BY THE LD. CIT(A) IN FAVOUR OF THE ASSESSEE WHICH ORDERS H AVE BEEN ACCEPTED BY THE DEPARTMENT, IN MY VIEW, THERE WAS NO OCCASION FOR THE LD. CIT(A) IN THE IMPUGNED ORDER TO DEPA RT ITA NO.1380/PUN/2019 PANDHRINATH J. NERE 4 FROM THE EARLIER CONSISTENT VIEW WITHOUT THERE BEING ANY CHANGE IN FACTS OR LAW QUA THE ISSUE. I, THEREFORE, REVERSE THE IMPUGNED ORDER ON THIS ISSUE AND ORDER TO DELETE THE DISALLOWANCE U/S. 40(A)(IA) OF THE ACT. 6. IN THE RESULT, THE APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 13 TH MARCH, 2020. SD/- (R.S.SYAL) / VICE PRESIDENT PUNE; DATED : 13 TH MARCH, 2020 / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT; 2. / THE RESPONDENT; 3. ( ) / THE CIT (APPEALS)-2, NASHIK 4. THE PR.CIT-2, NASHIK 5. , , SMC / DR SMC, ITAT, PUNE; 6. / GUARD FILE. // TRUE COPY // / BY ORDER, // TRUE COPY // SENIOR PRIVATE SECRETARY , / ITAT, PUNE ITA NO.1380/PUN/2019 PANDHRINATH J. NERE 5 DATE 1. DRAFT DICTATED ON 13-03-2020 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 13-03-2020 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. *