The DCIT, Circle-9, Ahmedabad V. M/s. Ajit Associations, Ahmedabad

ITA 1528/AHD/2011

• Counselvise Citation: 152820514 RSA 2011
• Duration Of Justice: 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2007-2008
• Appeal Filed On: 30-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , . .!'#$, % & BEFORE SHRI MUKUL KR.SHRAWAT, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ./ I.T.A. NO.1528/AHD/2011 ( ( ) ( ) ( ) ( ) / / / / ASSESSMENT YEAR : 2007-08) THE DCIT CIR-9 AHMEDABAD ( ( ( ( / VS. M/S.AJIT ASSOCIATIONS AJIT MILL COMPOUND OPP. MANIAR TAILOR RAKHIAL AHMEDABAD * % ./+, ./ PAN/GIR NO. :AALFA 5049 A ( *- / // / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPELLANT BY : SHRI VINOD TANWANI, SR.D.R. ./*- 1 0 / RESPONDENT BY : -NONE- (2 1 3% / / / / DATE OF HEARING : 18/11/2011 4') 1 3% / DATE OF PRONOUNCEMENT : 25-11-2011 5 / O R D E R PER SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF LEARNED CIT(APPEALS)-XV AHMEDABAD DATED 25/03/2011 AND THE ONLY GROUND IS IN RESPECT OF DE LETION OF PENALTY OF RS.7,11,761/- LEVIED U/S.271(1)(C) OF THE I.T.ACT. 2. FACTS IN BRIEF AS EMERGED FROM THE CORRESPONDING PENALTY ORDER PASSED U/S.271(1)(C) DATED 21/06/2010 AND THE ASSE SSMENT ORDER PASSED ITA NO.1528/AHD /2011 DCIT VS. M/S. AJIT ASSOCIATIONS ASST.YEAR - 2007-08 - 2 - U/S.153(3) OF THE I.T. ACT, 1961 DATED 29/12/2009 WERE THAT CERTAIN DISALLOWANCES WERE MADE; REPRODUCED BELOW:- I) DISALLOWED U/S.40(A)(IA) OF THE IT ACT : RS.10,10,488/- 2.1. THE APPELLANT HAS CONTESTED THAT THERE WAS NO CONCEALMENT AND THOSE DISALLOWANCES WERE MAINLY DUE TO DIFFERENCE O F OPINION, HOWEVER, REQUISITE DETAILS WERE ALREADY FURNISHED DURING THE COURSE OF PROCEEDINGS. THE ASSESSING OFFICER WAS NOT CONVINCED AND LEVIED THE IMPUGNED PENALTY OF RS.7,11,761/-. THE MATTER WAS CARRIED B EFORE THE FIRST APPELLATE AUTHORITY AND AFTER HEARING SUBMISSIONS, THE LEARNED CIT(APPEALS) HAS HELD AS UNDER:- 4. AFTER GOING THROUGH RIVAL SUBMISSIONS IT IS SEE N THAT THE TDS HAD BEEN DEPOSITED IN GOVERNMENT ACCOUNT ON 7.4.200 7 INSTEAD OF 31.3.2007 WITH REFERENCE TO PAYMENTS MADE TO VARIOU S SUB- CONTRACTORS TOTALLING TO RS.19,75,000. THEREFORE I N MY VIEW IMPOSING PENALTY U/S.271(1)(C) IS NOT CALLED FOR AT ALL BECAUSE THERE IS ONLY A TECHNICAL LAPSE ON THE PART OF THE APPELLANT. WITH REFERENCE TO NON-DEDUCTION OF TDS OF RS.1,39,5 63 I DO NOT FIND ANY WILLFUL CONCEALMENT OR FURNISHING OF INACC URATE PARTICULARS OR ANY MENS REA ON THE PART OF THE APPE LLANT. THEREFORE THE AO IS DIRECTED TO DELETE THE PENALTY IMPOSED U/S.271(1)(C). 3. ON THE DATE OF HEARING, NO ONE WAS PRESENT FROM THE SIDE OF THE RESPONDENT-ASSESSEE, HOWEVER, WE HAVE PROCEEDED EX-PARTE CONSIDERING THE SMALLNESS OF THE ISSUE INVOLVED QUA THE ASSESSE E, NEVERTHELESS, AFTER HEARING LD.DR WHO HAS PLACED RELIANCE ON THE ORDERS OF THE REVENUE AUTHORITIES. ITA NO.1528/AHD /2011 DCIT VS. M/S. AJIT ASSOCIATIONS ASST.YEAR - 2007-08 - 3 - 4. FROM THE ASSESSMENT ORDER AS WELL AS FROM THE P ENALTY ORDER, IT IS CLEAR THAT THE DETAILS IN RESPECT OF THE NAME OF TH E CONTRACTORS, AMOUNTS PAID AND THE TDS DEDUCTED AS WELL AS THE DATE OF D EPOSITS WERE DULY FURNISHED, HOWEVER THE EXPENDITURE WAS DISALLOWED O NLY ON THE GROUND THAT THE DEDUCTED AMOUNT WAS NOT PAID TO THE GOVER NMENT ACCOUNT BY A SPECIFIED DATE. IT WAS ALSO NOT IN DISPUTE THAT TH E MOUNTS SO DEDUCTED WAS DEPOSITED IN THE SUBSEQUENT MONTHS OF APRIL-2007. ON THOSE FACTS, THE LEARNED CIT(APPEALS), IN OUR OPINION, HAVE CORRECTL Y HELD THAT THERE WAS NO INCIDENCE OF CONCEALMENT OF INCOME SINCE THE GEN UINENESS OF THE PAYMENT WAS NOT IN DOUBT AND THE EXPENDITURE IN QUE STION WAS OTHERWISE ALLOWABLE, BUT BECAUSE OF THE DELAYED DEPOSIT IT WA S DISALLOWED. IN OUR CONSIDERED VIEW, EITHER IN THE CASE OF DELAYED DEPO SIT OR IN THE CASE OF NON-DEDUCTION OF TDS THERE WAS NO ALLEGATION OF THE REVENUE OF FURNISHING OF INACCURATE PARTICULARS. THE ISSUE OF DEDUCTION OF TDS WAS CONTENTIOUS IN NATURE AS IT WAS ARGUED BEFORE THE A UTHORITIES BELOW, THEREFORE TOTALITY OF THE CIRCUMSTANCES DEMAND TO A FFIRM THE VIEW TAKEN BY THE LEARNED CIT(APPEALS). THUS, THIS GROUND OF THE REVENUE IS HEREBY DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. SD/- SD/- ( A.K. GARODIA ) ( MUKUL KR. SHRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEM BER AHMEDABAD; DATED 25 / 11 /2011 63..(, .(../ T.C. NAIR, SR. PS ITA NO.1528/AHD /2011 DCIT VS. M/S. AJIT ASSOCIATIONS ASST.YEAR - 2007-08 - 4 - 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7) 5 1 .7 8 7)/ COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 9 / CONCERNED CIT 4. 9() / THE CIT(A)-XV, AHMEDABAD 5. 7 >> >/ // / + + + + ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD 1. DATE OF DICTATION..21.11.11 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER 21.11.11 OTHER MEMBER 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR.P. S./P.S.. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE D ICTATING MEMBER FOR PRONOUNCEMENT 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR.P .S./P.S 25.11.11 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK 25.11.11 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT RE GISTRAR FOR SIGNATURE ON THE ORDER.. 9. DATE OF DESPATCH OF THE ORDER