Ryatar Sahakari Sakkare Karkhane Niyamit, Mudhol V. The Income Tax Officer, Ward- 2, Bagalkot

ITA 1544/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0210 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 24-06-2020
• Assessment Year: 2012-2013
• Appeal Filed On: 26-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUZAFFAR HUSSAIN
• Keywords: Opportunity of being heard; Non compliance; TDS; Set aside
• Section: 40(a)(ia); 194C; 194J; 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ES : B , BANGALORE BEFORE SHRI N.V.VASUDEVAN, VICE PRESIDENT AND SHRI B.R.BASK A RAN, ACCOUNTANT MEMBER ITA NO . 1544 (BANG)/ 20 19 ( ASSESSMENT YEAR : 20 1 2 - 13 ) M/S RYATAR SAHKARI SAKKARE KARKHANE NIYAMIT, RANNNANAGAR, TIMMAPUR, TQ. MUDHOL, DIST. BAGALKOT PAN NO. A A AAR0428E APPELLANT VS THE INCOME T AX OFFICER , WARD - 2 , NAVANAGAR, BAGALKOT RESPONDENT APPELLANT BY : NONE REVENUE BY : SH RI MUZAFFAR HUSSAIN, CIT DA TE OF HEARING : 24 - 0 6 - 20 20 DATE OF PRONOUNCEMENT : 24 - 06 - 2020 O R D E R PER B.R.BASKARAN, AM THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 19 - 03 - 2019 PASSED BY LD CIT(A), HUBBALI AND IT RELATES TO THE ASSESSMENT YEAR 2012 - 13. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF LD CIT(A) IN CONFIRMING THE DISA LLOWANCE MADE U/S 40(A)(IA) OF THE ACT, 1961. 2. NONE APPEARED ON BEHALF OF THE ASSESSEE, EVEN THOUGH THE NOTICE OF HEARING SENT TO THE ASSESSEE BY REGISTERED POST WAS DULY ITA NO. 1544( BANG/20 19 2 ACKNOWLEDGED. HENCE WE PROCEED TO DISPOSE OF THE APPEAL EX - PARTE, WITHOUT THE PRESENCE OF THE ASSESSEE. 3. WE HEARD LD D.R AND PERUSED THE RECORD. THE ASSESSEE IS A C O - OPERATIVE SOCIETY AND IS ENGAGED IN THE BUSINESS OF MANUFACTURE OF SUGAR. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO NOTICED THAT THE ASSESSEE HAS MADE FOLLOWING PAYMENTS WITHOUT DEDUCTING TAX AT SOURCE: - A) NON COMPLIANCE OF TDS U/S 194C PAYME NT TO CONTRACTORS 1 PAYMENTS TO H ARVESTING C ONTRACTOR 4,67,20,236 2 PAYMENTS TO H ARVESTING C ONTRACTOR 15,98,878 3 TRANSPORT CONTRACTORS BILL PAYMENTS 6,19,75,561 4 TRANSPORT CONTRACTORS BILL PAYMENTS 17,10,960 11,20,05,635 B. NON COMPLIANCE OF TDS U/S 194J PROFESSIONAL CHARGES 1 LEGAL & CONSULTATION CHARGES 2,27,1520 22,71,520 TOTAL PAYMENTS MADE WITHOUT MAKING TDS(A+B) 11,42,77,155 ON BEING QUESTIONED, THE ASSESSEE FURNISHED ITS REPLY, WHICH HAS BEEN EXTRACTED BY THE AO AT PAGE 3 OF THE ASSESSMENT ORDER. HOWEVER, THE AO DISALLOWED THE ABOVE SAID PAYMENTS AGGREGATING TO RS.11.42 CRORES U/S 40(A)(IA) OF THE ACT BY OBSERVING THAT THE ASSESSEE DID NOT DEDUCT TAX AT SOU RCE FROM THE ABOVE SAID PAYMENTS. 4. THE ASSESSEE CHALLENGED THE ABOVE SAID ADDITION BY FILING APPEAL BEFORE LD CIT(A). WHEN THE NOTICE OF HEARING WAS SENT BY LD CIT(A) TO THE ASSESSEE, IT TOOK ADJOURNMENTS FROM TIME TO TIME ON THE REASONING THAT AN IDE NTICAL ISSUE IS PENDING BEFORE THE HONBLE SUPREME COURT. HENCE THE LD CIT(A) DISPOSED OF THE ITA NO. 1544( BANG/20 19 3 APPEAL EX - PARTE, CONFIRMING THE DISALLOWANCE MADE BY THE AO. AGGRIEVED, THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL. 5. THE LD D.R SUPPORTED THE OR DER PASSED BY TAX AUTHORITIES. HOWEVER, ON A PERUSAL OF THE ORDER PASSED BY LD CIT(A), WE NOTICE THAT THE FIRST APPELLATE AUTHORITY HAS PASSED THE ORDER EX - PARTE. SIMILARLY, ON PERUSAL OF THE ASSESSMENT ORDER, WE NOTICE THAT THE ASSESSING OFFICER DID NOT ADDRESS ANY OF THE EXPLANATIONS FURNISHED BY THE ASSESSEE, EVEN THOUGH HE HAS EXTRACTED GIST OF EXPLANATIONS IN THE ASSESSMENT ORDER AND THE LETTER DATED 11.08.2014 FURNISHED BY THE ASSESSEE TO THE AO WAS MADE PART OF ASSESSMENT ORDER. 6. UNDER THESE S ET OF FACTS, THE B ENCH PROPOSED TO RESTORE THE ISSUE TO THE FILE OF ASSESSING OFFICER FOR EXAMINING THE ISSUE AFRESH. THE LD D.R ALSO ACCEPTED TO THE SAME. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY LD CIT(A) AND RESTORE THE IMPUGNED ISSUE TO THE FILE OF THE AO FOR EXAMINING IT AFRESH BY DULY CONSIDERING AND ALSO ADDRESSING THE EXPLANATIONS FURNISHED BY THE ASSESSEE. WE ALSO MAKE IT CLEAR THAT THE ASSESSEE SHOULD BE GIVEN ADEQUATE OPPORTUNITY OF BEING HEARD. AFTER HEARING THE ASSESSEE, THE AO MAY TAK E APPROPRIATE DECISION IN ACCORDANCE WITH LAW. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER P RONOUNCED ON 24 - 06 - 2020 . SD/ - S D/ - (N.V.VASUDEVAN) (B.R.BASKARAN) VICE PRESIDENT ACCOUNTA NT MEMBER DATED: 24 - 06 - 2020 * AM ITA NO. 1544( BANG/20 19 4 C OPY OF THE ORDER FORWARDED TO: 1.APPELLANT; 2.RESPONDENT; 3.CIT; 4.CIT(A); 5. DR 6 .GUARD FILE BY ORDER ASST. REGISTRAR