I.T.O.-17(2)(1), MUMBAI V. IRFAN MUBARAK SHAIKH, MUMBAI

ITA 1694/MUM/2011

• Counselvise Citation: 169419914 RSA 2011
• Duration Of Justice: 2 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: I
• Assessment Year: 2006-2007
• Appeal Filed On: 01-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V R PATIL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH I , MUMBAI BEFORE SHRI R.C. SHARMA , ACCOUNTANT MEMBER AND SHRI SANJAY GARG , JUDICIAL MEMBER ITA NO. 1694/M/2011 ASSESSMENT YEAR: 2006 - 07 I.T.O. 17(2)(1), R.NO.216, 2 ND FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI 400 0 1 2 VS. SHRI IRFAN MUBARAK SHEIKH 31 ST , DYANESHWARI, R.A. KIDWAI ROAD, SEWREE WADALA, MUMBAI 400 031 PAN: AAZPS3346L (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SH RI V.R. PATIL, D.R. DATE OF HEARING : 08.01. 201 4 DATE OF PRONOUNCEMENT : 08.01.2014 O R D E R PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) DATED 31.12.10 RELEVANT TO ASSESSMENT YEAR 2006 - 07. THE REVENUE THROUGH THIS APPEAL HAS CONTESTED THE DELETION OF THE DISALLOWANCE OF RS.13,62,906/ - MADE BY THE AO ON ACCOUNT OF NON DEDUCTION OF TDS ON THE PROFESSIONAL FEES AGAINST THE CLAIM OF THE ASSESSEE THAT THE SAME PERTAINED TO SALARY P AYMENT TO HIS EMPLOYEES. 2. DESPITE NOTICE, THE ASSESSEE FAILED TO PUT IN APPEARANCE, HENCE, WE PROCEED TO DECIDE THE SAME ON MERITS. 3. WE HAVE HEARD THE LD. DEPARTMENTAL R EPRESENTATIVE AND ALSO HAVE GONE THROUGH THE RECORD. IT MAY BE OBSERVED THA T THE AO HAD MADE TWO ADDITIONS UNDER SECTION 40(IA) OF THE INCOME TAX ACT, FIRSTLY OF RS.15,06,819/ - ON ACCOUNT OF ITA NO.1694/M/2011 SHRI IRFAN MUBARAK SHEIKH 2 PROFESSIONAL FEES PAID WITHOUT DEDUCTION OF TDS AND THE SECOND OF RS. 35,24,235/ - ON ACCOUNT OF PAYMENT MADE TO THE CONTRACTORS WITHOUT DEDUC TION OF TDS. 4 . THE LD. CIT(A) AFTER HEARING THE LD. REPRESENTATIVE OF THE ASSESSEE AND AFTER GOING THROUGH THE RECORD OBSERVED THAT OUT OF THE TOTAL DISALLOWANCE OF RS.15,06,819/ - ON ACCOUNT OF PAYMENT MADE AS PROFESSIONAL FEES BY THE AO , THE PAYMENT O F RS.1,14,968/ - MADE TO ONE MR. RAMAKANT MEHETE WAS EXCEEDING THE TAXABLE LIMIT FOR REQUIRING DEDUCTION OF TDS WHEREAS OUT OF THE REMAINING AMOUNT , SMALL PAYMENTS WERE MADE TO 54 EMPLOYEES OF THE ASSESSEE ENGAGED IN TECHNICAL WORK. NONE OF THE ABOVE SAID PAYMENTS MADE , EXCEEDED THE TAXABLE LIMIT REQUIRING DEDUCTION OF TDS. HE THEREFORE RESTRICTED THE DISALLOWANCE OUT OF THE SAID AMOUNT OF RS.15,06,819/ - TO THE SUM OF RS.1,14,968/ - ACCORDINGLY. THE LD. CIT(A) AFTER GOING THROUGH THE RECORD ALSO CONFIRMED THE DISALLOWANCE OF RS.34,06,806/ - ON ACCOUNT OF PAYMENT MADE TO CONTRACTORS. A PERUSAL OF THE ORDER OF THE LD. CIT(A) REVEALS THAT ONLY A MEAGER DISALLOWANCE HAD BEEN DELETED BY THE LD. CIT(A) , WHICH THE ASSESSEE HA D ESTABLISHED NOT TO BE ELIGIBLE FOR D EDUCTION OF TDS , WHEREAS THE DISALLOWANCE FOR THE REMAINING SUBSTANTIAL AMOUNT HAS BEEN CONFIRMED BY THE LD. CIT(A). WE DO NOT FIND ANY INFIRMITY IN THE WELL REASONED ORDER OF THE LD. CIT(A). 5 . ACCORDINGLY, THERE IS NO MERIT IN THE APPEAL OF THE REVEN UE AND THE SAME IS HEREBY DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 08.01 .201 4 . SD/ - SD/ - ( R.C. SHARMA ) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER MUMBAI, DATED: 08.01. 201 4 . * KISHORE ITA NO.1694/M/2011 SHRI IRFAN MUBARAK SHEIKH 3 COPY TO: THE APPELLANT THE RESPONDENT THE CIT, CONCERNED, MUMBAI THE CIT ( A) CONCERNED, MUMBAI THE DR C BENCH //TRUE COPY// [ BY ORDER DY/ASSTT. REGISTRAR, ITAT, MUMBAI.