Smt. Pritamkaur Jogindersingh Salooja, Nashik V. Asst. comm. of Income-tax, Circle-II, Nashik

ITA 1428/PUN/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6771 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 8 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 18-12-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 16-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S N PURANIK MR RAJIB JAIN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO.1428/PN/2011 (ASSESSMENT YEAR : 2008-09) SMT. PRITAMKAUR JOGINDERSINGH SALOOJA, M/S HOTEL DARSHAN, BYTCO POINT, JAIL ROAD CORNER, NASHIK ROAD, NASHIK 422 101. PAN : AFFPS8927Q . APPELLANT VS. ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE- II, NASHIK. . RESPONDENT ASSESSEE BY : MR. S. N. PURANIK DEPARTMENT BY : MR. RAJIB JAIN DATE OF HEARING : 02-07-2014 DATE OF PRONOUNCEMENT : 25-07-2014 ORDER PER G. S. PANNU, AM THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AG AINST AN ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-II, NASHIK DATED 15.09.2011 WHICH, IN TURN, HAS ARISEN FROM AN ORDER DATED 22.1 1.2010 PASSED BY THE ASSESSING OFFICER U/S 143(3) OF THE INCOME-TAX ACT, 1961 (IN SHORT THE ACT) PERTAINING TO THE ASSESSMENT YEAR 2008-09. 2. IN THIS APPEAL, THE SOLITARY ISSUE RAISED BY THE ASSESSEE IS WITH REGARD TO DENIAL OF CREDIT FOR TAX COLLECTED AT SOURCE (TCS) AMOUNTING TO RS.36,256/-. 3. IN BRIEF, THE RELEVANT FACTS ARE THAT APPELLANT IS AN INDIVIDUAL DERIVING INCOME FROM LODGING BUSINESS AND RENTALS. A RESTAU RANT ALONG WITH FOREIGN LIQUOR BAR OWNED BY THE ASSESSEE WAS GIVEN ON LEASE TO ONE M/S SUNNY CATERERS. M/S SUNNY CATERERS IS RUNNING THE RESTAU RANT WITH FOREIGN LIQUOR BAR AS PER AN AGREEMENT WHEREBY ASSESSEE RECEIVES A FIX ED MONTHLY RENT OF RS.7,000/-. IN THE COURSE OF RUNNING THE LIQUOR BA R, THE LESSEE, M/S SUNNY ITA NO.1428/PN/2011 A.Y. : 2008-09 CATERERS MAKES PURCHASES OF LIQUOR. IN TERMS OF SE CTION 206C OF THE ACT, TCS IS COLLECTED BY THE VENDORS ON PURCHASES OF FOREIGN LIQUOR EFFECTED BY M/S SUNNY CATERERS. THE CERTIFICATE FOR THE TCS COLLEC TED BY THE VENDOR ON PURCHASE OF FOREIGN LIQUOR EFFECTED BY M/S SUNNY CA TERERS WAS ISSUED IN THE NAME OF THE ASSESSEE, AS THE LIQUOR BAR LICENSE WAS IN THE NAME OF THE ASSESSEE. THE PAYMENT FOR TCS WAS INDEED MADE BY T HE LESSEE, AS THE PURCHASES WERE EFFECTED BY IT. ACCORDINGLY, THE LE SSEE I.E. M/S SUNNY CATERERS, DEBITED THE ACCOUNT OF THE ASSESSEE WITH THE AMOUNT OF TCS AND THE RELEVANT TCS CERTIFICATE WAS HANDED-OVER TO THE ASS ESSEE. IN HER RETURN OF INCOME, ASSESSEE CLAIMED CREDIT FOR THE TCS CERTIFI CATE AMOUNTING TO RS.36,256/-. THE ASSESSING OFFICER AS WELL AS THE CIT(A) HAVE DENIED THE CREDIT ON THE GROUND THAT THE CORRESPONDING LIQUOR PURCHASES WERE NOT ACCOUNTED FOR BY THE ASSESSEE, AS THE SAME WERE BEI NG ACCOUNTED FOR BY THE LICENSEE, M/S SUNNY CATERERS. HENCE, THE ASSESSEE IS IN APPEAL BEFORE US. 4. NO DOUBT, THE PAYMENT FOR THE PURCHASES HAVE BEE N MADE BY M/S SUNNY CATERERS, WHO IS ALSO DECLARING THE RELEVANT INCOME THEREOF FROM RUNNING OF LIQUOR BAR. THE ASSESSEE IS BEING PAID A MONTHLY RENT OF RS.7,000/- ONLY. SO HOWEVER, ON A COMBINED READING OF SECTION 206C OF THE ACT AND RULE 37-I(I) OF THE INCOME TAX RULES, 1962, IT IS QUITE CLEAR THAT THE TAX COLLECTED AND PAID TO CENTRAL GOVERNMENT BY THE VENDERS OF TH E LIQUOR IN QUESTION, IS DEEMED TO BE PAYMENT OF TAX ON BEHALF OF THE PERSON FROM WHOM THE AMOUNT IS COLLECTED. IT IS FURTHER PRESCRIBED THAT CREDIT FOR SUCH TAX SHALL BE GIVEN TO THE PERSON FROM WHOM SUCH TAX HAS BEEN COLLECTED. IN T HE PRESENT CASE, IT IS NOT IN DISPUTE THAT THE IMPUGNED AMOUNT OF TCS HAS BEEN COLLECTED AS PER LAW. HAVING REGARD TO THE PECULIAR FACTS OF THE CASE NOT ED ABOVE, THE TCS CERTIFICATE IS IN THE NAME OF ASSESSEE. IN OUR CON SIDERED OPINION, GOING BY THE SUBSTANTIVE PROVISIONS OF LAW, THE CREDIT FOR THE I MPUGNED TCS CANNOT BE DENIED TO THE ASSESSEE. WE, THEREFORE, DIRECT THE ASSESSING OFFICER TO ALLOW ITA NO.1428/PN/2011 A.Y. : 2008-09 THE CREDIT FOR THE TCS OF RS.36,256/- TO THE ASSESS EE. THUS, ON THIS ASPECT ASSESSEE SUCCEEDS. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 TH JULY, 2014. SD/- SD/- (SHAILENDRA KUMAR YADAV) (G . S. PANNU) JUDICIAL MEMBER ACCOUNT ANT MEMBER PUNE, DATED : 25 TH JULY, 2014. SUJEET COPY OF THE ORDER IS FORWARDED TO : - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT(A)-II, NASHIK; 4) THE CIT-II, NASHIK; 5) THE DR A BENCH, I.T.A.T., PUNE; 6) GUARD FILE. BY ORDER //TRUE COPY// SR. PRIVATE SECRETARY I.T.A.T., PUNE