Narayan Dass (Deceased) through legal heir Son Manoj Kumar, Kaithal V. ITO, Kaithal

ITA 181/DEL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 7350 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 05-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJOG KAPOOR
• Assessee Lawyers: SANJAY SINGLA
• Section: 234B; 40(a)(ia); 263

Judgement Text

1 , , IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI ! ! ! ! BEFORE MS. SUSHMA CHOWLA, VICE PRESIDENT # ## # / ITA NO.181/DEL/2018 $ $ $ $ $ $ $ $ / ASSESSMENT YEAR 2007-08 NARAYAN DASS (DECEASED), THROUGH LEGAL HEIR SON MANOJ KUMAR, PERMIL GOEL, ADVOCATE #234, SECTOR-20, HUDA, KAITHAL, HARYANA PAN-AFEPD5989C .......... %& /APPELLANT VS ITO, WARD-1, KAITHAL . '(%& / RESPONDENT %&)*+ / APPELLANT BY : SH. SANJAY SINGLA, ADVOCATE '(%&)*+ / RESPONDENT BY : SH. SANJOG KAPOOR, SR. DR ),-. / DATE OF HEARING : 02.12.2019 /0 ),-. / DATE OF PRONOUNCEMENT: 29.01.2020 / ORDER PER SUSHMA CHOWLA, VP THE PRESENT APPEAL FILED BY ASSESSEE IS AGAINST ORD ER OF CIT(A), KARNAL DATED 15.12.2017 RELATING TO ASSESSMENT YEAR 2007-08 AGAINST ORDER PASSED UNDER SECTION 143(3)/263 OF THE ACT. 2. THE LIMITED ISSUE WHICH IS RAISED IN THE PRESENT APPEAL IS AGAINST THE ADDITION OF RS. 18,21,221/- BY INVOKING THE PRO VISIONS OF SECTION 40(A)(IA) OF THE ACT. ITA NO.181/DEL/2018 2 3. BRIEFLY IN THE FACTS OF THE CASE, THE COMMISSION ER INVOKED HIS JURISDICTION UNDER SECTION 263 OF THE ACT AND VIDE ORDER DATED 13.03.2012 NOTED THAT THE ASSESSEE HAD PAID A SUM OF RS. 18,21 ,221/- AS COMMISSION TO DIFFERENT PARTIES. HE WAS OF THE VIEW THAT SINCE THE COMMISSION EXCEEDED PRESCRIBED LIMIT, THERE WAS REQ UIREMENT TO DEDUCT TAX AT SOURCE UNDER SECTION 194H OF THE ACT AND SIN CE THE ASSESSEE HAD NOT DEDUCTED TAX AT SOURCE, THE SAID AMOUNTS WERE D ISALLOWABLE IN THE HANDS OF THE ASSESSEE. THE PLEA OF THE ASSESSEE THA T THE PAYMENTS WERE BELOW RS. 2,500/- WAS NOTED AND THE MATTER WAS REMA NDED TO THE AO TO CARRY OUT NECESSARY ENQUIRIES IN THIS REGARD. THE A SSESSEE FURNISHED THE DETAILS OF COMMISSION PAID TO VARIOUS PERSONS AND T HE DETAILS WERE FURNISHED ON 123 PAGES. HOWEVER, THE SAME WERE NOT ACCEPTED AND ADDITION WAS MADE IN THE HANDS OF THE ASSESSEE WHIC H WAS UPHELD BY THE CIT(A). THE ASSESSEE IS IN APPEAL AGAINST THE SAME. 4. ON THE PERUSAL OF RECORD AND AFTER HEARING BOTH THE AUTHORIZED REPRESENTATIVES, WE FIND THAT THE ALLEGED COMMISSIO N TOTALING RS. 18,21,221/- HAD BEEN PAID TO DIFFERENT PARTIES AND THE DETAILS WERE FURNISHED AT PAGES TOTALING 123. THE PERUSAL OF THE DETAILS REFLECTS THE PAYMENTS BEING MADE TO DIFFERENT PERSONS AND NONE O F THE PAYMENT WAS MORE THAN RS. 2,500/-. THE REQUIREMENT OF SECTION 1 94H OF THE ACT IS WHERE COMMISSION IS PAID EXCEEDING RS. 2,500/-, THE N THERE IS REQUIREMENT FOR TAX DEDUCTION AT SOURCE. HOWEVER, I N THE ABSENCE OF THE SAME, THE ASSESSEE CANNOT BE HELD LIABLE FOR TAX DE DUCTION AT SOURCE. ACCORDINGLY, WE DELETE THE AFORESAID ADDITION OF RS . 18,21,221/-. THE GROUND OF APPEAL RAISED BY THE ASSESSEE IN THIS REG ARD IS THUS ALLOWED. ITA NO.181/DEL/2018 3 5. THE NEXT GROUND OF APPEAL REGARDING CHARGING OF INTEREST UNDER SECTION 234B OF THE ACT IS CONSEQUENTIAL AND HENCE THE SAME IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JANUARY 2020. SD/- (SUSHMA CHOWLA) ! ! ! ! / VICE PRESIDENT / ' DATED : 29 TH JANUARY, 2020 SH +1)',23+2,4 COPY OF THE ORDER IS FORWARDED TO : 1. %& / THE APPELLANT 2. '(%& / THE RESPONDENT 3. 5 6 7 / THE CIT(A) 4. 8 5 / THE PR. CIT 5. 6. 29:', / DR, ITAT, DELHI :;$<4 GUARD FILE. +1 +1 +1 +1 / BY ORDER , (2,', // TRUE COPY // >?@A , ASSISTANT REGISTRAR, ITAT, DELHI ITA NO.181/DEL/2018 4 DRAFT DICTATED 28.01.2020 DRAFT PLACED BEFORE AUTHOR .01.2020 APPROVED DRAFT COMES TO THE SR.PS/PS ORDER SIGNED AND PRONOUNCED ON .01.2020 FILE SENT TO THE BENCH CLERK .01.2020 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER. DATE OF UPLOADING ON THE WEBSITE .01.2020