Income-tax Officer, V. Sinnar Taluka Sahakari Dudh Utpadak and Prakriya Sangh Maryadit, Nashik

ITA 1393/PUN/2015

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 7242 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 26-10-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: R P DAWARE
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 13 93 /P U N/20 1 5 / ASSESSMENT YEAR : 20 11 - 1 2 THE INCOME TAX OFFICER, WARD 1(3), NASHIK . / APPELLANT VS. SINNAR TALUKA SAHAKARI DUDH UTPADAK AND PRAKRIYA SANGH MARYADIT, SAHAKAR BHAVAN, SHIVAJI CHOWK, SINNAR. . / RESPONDENT PAN: AADAS3474Q / APPELLANT BY : S HRI ACHAL SHARMA, ADDL.CIT / RESPONDENT BY : S HRI R.P. DAWARE / DATE OF HEARING : 31 . 10 .2017 / DATE OF PRONOUNCEMENT: 31 . 1 0.2017 / ORDER PER SUSHMA CHOWLA, JM: THE APPEAL FILED BY THE REVENUE IS AGAINST ORDER OF CIT(A) - 1 , NASHIK , DATED 0 6 . 0 8 .201 5 RELATING TO ASSESSMENT YEAR 20 11 - 1 2 AGAINST ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT 1961 (IN SHORT THE ACT). 2 . THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) - 1, NASHIK WAS JUSTIFIED IN DELETING THE ADDITION OF RS.1,29,95,702/ - MADE U/S 40(A)(IA) OF THE INCOME TAX ACT, 1961 AS THE ASSESSEE MADE COMMISSION PAYMENTS WITHOUT DEDUCTING TDS AS PER THE PROVISIONS OF SECTION 194H OF THE INCOME TAX ACT, 1961. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) - 1, NASHIK WAS JUSTIFIED TO HOLD THAT THE RELATION OF THE ASSESSEE AND OTHER MILK SOCIETIES ARE PRINCIPAL TO PRINCIPAL BASIS, INSTEAD IT WAS 2 ITA NO.1393/PUN/2015 PRINCIPAL TO AGENT BASIS, WHILE DEALING COMMISSION PAYMENT TO OTHER SOCIETIES. 3. THE APPELLANT PRAYS THAT THE ORDER OF THE ASSESSING OFFICER MAY BE RESTORED. 4. THE APPELLANT PRAYS TO ADDUCE SUCH FURTHER EVIDENCE TO SUBSTANTIATE HIS CASE. 3. THE ISSUE RAISED IN THE APPEAL FILED BY THE REVENUE IS AGAINST DELETION OF ADDITION MADE UNDER SECTION 40(A)(IA) OF THE ACT AT RS.1,29,95,702/ - . 4. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE WAS FEDERAL MILK SOCIETY. THE ASSESSEE HAD DECLARED NIL RETURN OF INCOME. THE ASSESSING OFFICER DURING THE COURSE OF ASSESSMENT P ROCEEDINGS NOTED THAT THE ASSESSEE HAD ENTERED INTO TRANSACTIONS WITH TWO PRIMARY MILK SOCIETIES TO WHOM IT HAD PAID COMMISSION. HOWEVER, NO TAXES WERE DEDUCTED UNDER SECTION 194H OF THE ACT AND CONSEQUENTLY, COMMISSION WAS DISALLOWED AT RS.1.29 CRORES. 5. THE CIT(A) REFERRED TO THE ORDER OF TRIBUNAL IN ASSESSEES OWN CASE IN ITA NO.1553/PN/2013 ALONG WITH CO NO.65/PN/2014, RELATING TO ASSESSMENT YEAR 2009 - 10 , ORDER DATED 28.05.2014 AND OBSERVED THAT THE GROUNDS OF APPEAL RELATING TO NON DEDUCTION OF TA X AT SOURCE UNDER SECTION 194H OF THE ACT ARE IDENTICAL WITH THE GROUNDS OF APPEAL RAISED IN ASSESSMENT YEAR 2009 - 10. THE CIT(A) HAS REFERRED TO THE RELEVANT PARA OF THE ORDER OF TRIBUNAL AND REPRODUCED THE SAME AT PAGES 4 AND 5 OF APPELLATE ORDER AND ALL OWED THE CLAIM OF ASSESSEE. 6. THE REVENUE IS IN APPEAL AGAINST THE ORDER OF CIT(A). 7. SHRI ACHAL SHARMA, ADDL. CIT APPEARED ON BEHALF OF THE REVENUE AND SHRI R.P. DAWARE APPEARED ON BEHALF OF THE ASSESSEE AND PUT FORWARD THEIR CONTENTIONS. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ISSUE ARISING IN THE PRESENT APPEAL IS THE DISALLOWANCE MADE IN THE HANDS OF ASSESSEE 3 ITA NO.1393/PUN/2015 FOR NON DEDUCTION OF TAX AT SOURCE UNDER SECTION 194H OF THE ACT, IN VIEW OF THE PROVISIONS OF SECTION 40 (A)(IA) OF THE ACT. THE TRIBUNAL IN ASSESSEES OWN CASE RELATING TO ASSESSMENT YEAR 2009 - 10 (SUPRA) AND IN ITA NO.1706/PN/2014, RELATING TO ASSESSMENT YEAR 2010 - 11, ORDER DATED 04.05.2016 HAS ALLOWED IDENTICAL CLAIM. THE RELEVANT FINDINGS OF THE TRIBUNAL ARE REPRODUCED AT PAGES 4 AND 5 OF THE APPELLATE ORDER, WHICH ARE BEING REFERRED TO BUT ARE NOT BEING REPRODUCED FOR THE SAKE OF BREVITY. THE ASSESSEE HAS FILED COPIES OF THE ORDERS OF TRIBUNAL BOTH FOR ASSESSMENT YEARS 2009 - 10 AND 2010 - 11 , WHICH ARE PLA CED ON RECORD. IN VIEW OF THE SAME, WE FIND NO MERIT IN THE ISSUE RAISED BY THE REVENUE AND FOLLOWING THE RATIO LAID DOWN BY THE TRIBUNAL IN ASSESSEES OWN CASE IN EARLIER YEARS, WE DISMISS THE GROUNDS OF APPEAL RAISED BY THE REVENUE. 9 . IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. ORDER PRONOUNCED ON THIS 3 1 S T DAY OF OCTO BER , 201 7 . SD/ - SD/ - (ANIL CHATURVEDI) (SUSHMA CHOWLA) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 3 1 S T OCTO BER , 201 7 . G G C C V V S S R R / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELLANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - 1 , NASHIK ; 4. THE PR. C IT - 1 , NASHIK ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE. / BY ORDER , // TRUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE