M/s. Veena Sales Corporation, Nagpur V. Income Tax Officer Ward-4(4), Nagpur

ITA 156/NAG/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3874 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 4 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 14-11-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ABHAY MARATHE; DR M BHUSARI
• Assessee Lawyers: M MANI

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR , BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI D.KARUNA KAR RAO , A M ITA NO. 156 / N AG / 20 1 1 ( ASSESSMENT YEAR :2007 - 2008 ) M/S VEENA SALES CORPORATION, SHOP NO.69/70, RAJAT PLAZA NO.1, OPP. UNION BANK OF INDIA, GHAT ROAD, NAGPUR - 18 VS. ITO WARD - 4(4), NAGPUR. PAN/GIR NO. : A ADFV 0126 B ( APPELLANT ) .. ( RESPONDENT ) /ASSESSEE BY : MR. M. MANI /REVENUE BY : MR. ABHAY MARATHE & DR. M.BHUSARI DATE OF HEARING : 4 TH MARCH ., 201 3 DATE OF PRONOUNCEMENT : 3 RD APRIL ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH E ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER DATED 24 - 8 - 2011 OF LEANED C IT(A) - I I , NAGPUR (MAHARASHTRA) RELA TING TO THE ASSESSMENT YEAR 200 7 - 0 8 , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI. 2 . THE ASSESSEE IS OBJECTING IN CONFIRMING THE ADDITION OF RS. 74, 609/ - MADE BY THE AO UNDER SECTION 40 (A) (IA) OF THE ACT. ITA NO. 156 /20 1 1 2 3 . THE AO NOT ICED THAT THE ASSESSEE HAS NOT DEDUCTED TDS ON THE AMOUNT OF RS. 6,84, 622/ - PAID TO UNSECURED LENDERS. THE AO ALSO NOTED THAT THE ASSESSEE HAS PAID INTEREST TO EIGHT PARTIES AMOUNTING TO RS. 74,609/ - WITHOUT DEDUCTING THE TAX AT SOURCE. THEREFORE, FORM 15G W AS FILED BEFORE THE AO LAND IT WAS STATED THAT ALL THE EIGHT PARTIES REQUESTED THAT NOT TO DEDUCT TAX AT SOURCE SINCE THEY HAVE ISSUED FORM 15G. HOWEVER, THE AO REJECTED THE CONTENTION OF THE ASSESSEE BY OBSERVING THAT THESE FORMS SHOULD HAVE BEEN FILED TO THE OFFICE OF THE CHIEF COMMISSIONER OR THE COMMISSIONER OF INCOME TAX AS PROVIDED UNDER THE PROVISION OF LAW. ACCORDINGLY, HE MADE AN ADDITION OF RS. 74, 609/ - UNDER SECTION 40(A)(IA) . 4 . BEING AGGRIEVED WITH THE ORDER OF THE AO, ASSESSEE PREFERRED AN AP PEAL BEFORE THE LEARNED CIT(A) , WHEREBY THE LEARNED CIT(A) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER . 5 . AFTER CONSIDERING THE SUBMISSION, WE FOUND THAT THE ASSESSEE DESERVES TO SUCCEED IN ITS APPEAL. UNDISPUTEDLY, THE FORM 15G HAS BEEN FILED. IN CASE OF RAJESH KUMAR GAR (2011) TIOL 530 , THE CALCUTTA BENCH BY FOLLOWING THE DECISION OF MUMBAI BENCH IN CASE OF VIPIN P. MEHTA VS. ITO, PASSED IN ITA NO. 3317/MUM/2010, VIDE ORDER DATED 20 - 5 - 2011 AND ALSO IN THE CASE OF VANTHAI KHANTHAI MANKAD VS. DCIT, ( OSD), PASSED IN ITA NO. 2228/AHD./2009, VIDE ORDER DATED 29 - 4 - 2011 , ALLOWED THE APPEAL OF THE ASSESSEE BY OBSERVING THAT SINCE THE ASSESSEE HAS FILED COPY OF FORM 15 J , THEREFORE, THE ASSESSEE HAS NOT COMMITTED ANY DEFAULT IN NOT DEDUCTING ITA NO. 156 /20 1 1 3 TDS ON THE INTERES T. FORM 15G WAS OBTAINED BY THE ASSESSEE AND THAT WAS FILED BEFORE THE AO. NOT FILING BEFORE THE CHIEF COMMISSIONER, IS A TECHNICAL AND V E NIAL DEFECT, WHICH SHOULD NOT COME INTO THE WAY OF JUSTICE. THEREFORE, WE HOLD THAT SINCE FORM 15G WAS FILED BY THE A SSESSEE, ACCORDINGLY, THE ASSESSEE HAS NOT COMMITTED ANY DEFAULT IN NOT DEDUCTING THE TAX AT SOURCE. ACCORDINGLY, THE ADDITION MADE IN VIEW OF THE PROVISION OF SECTION 40(A) (IA) OF THE ACT OF RS. 74,609/ - IS HEREBY DELETED. 6 . RESULTANTLY , APPEAL OF THE AS SESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 3 RD DAY OF AP R .201 3 . 201 3 SD/ - SD/ - ( ) ( D.KARUNAKAR RAO ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 0 3 / 0 4 / 201 3 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / T HE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , MUMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE CO PY// / BY ORDER, ( ASSTT. REGISTRAR) / ITAT, MUMBAI