ACIT Cir - 2,Midnapore., Midnapore V. M/s Radhanath Bhunja &Sons., Paschim Medinipur

ITA 1883/KOL/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92021 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 5 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2015
• Appeal Filed By: Department
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 21-12-2012
• Court: TRIBUNAL
• Department Lawyers: K L KANAK
• Keywords: Reassessment proceedings
• Section: 194C; 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOLKATA [BEFORE SHRI P. K. BANSAL, AM & SHRI MAHAVIR SINGH, JM ] I.T.A NO. 18 83 /KOL/201 2 ASSESSMENT YEAR : 200 6 - 0 7 ASSISTANT COMMISSIONER OF INCOME - TAX, VS. M/S. RADHANATH BHUNIA & SONS CIRCLE - 2, MIDNAPORE (PAN:AA IFR1540E ) ( APPELLANT ) ( RESPONDENT ) DATE OF HEARING: 27 .0 5 .2015 DATE OF PRONOUNCEMENT: 11 . 0 6 . 2015 FOR THE APPELLANT : S HRI K. L. KANAK, SR. DR FOR THE RESPONDENT : SHRI S OMNATH GHOSH, ADVOCAT E ORDER PER SHRI MAHAVIR SINGH, JM: THIS APPEAL BY REVENUE IS ARISING OUT OF ORDER OF CIT (A) - XXXVI , KOLKATA , IN APPEAL NO . 332 / CIT(A) - XXXVI/KOL/CIR - 2,MID/11 - 12/1433 DATED 30 . 1 0 .201 2 . ASSESSMENT WAS FRAMED BY D CIT, CIR - 2, MIDNAPORE , U/S. 147/ 14 3 (3) OF THE INCOME - TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT ) FOR ASSESSMENT YEAR 200 6 - 0 7 VIDE HIS ORDER DATED 2 0 .1 2 .20 11 . 2. THE ONLY ISSUE IN THIS APPEAL OF REVENUE IS AGAINST THE ORDER OF CIT(A) DELETING THE DISALLOWANCE OF TRUCK HIRE CHARGES AMOUNTING TO RS.24,06,172/ - FOR NON - DEDUCTION OF TDS U/S. 194C OF THE ACT BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. FOR THIS, REVENUE HAS RAISED FOLLOWING GROUND: THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JU STIFIED IN DELETING THE ADDITION OF RS.24,06,172/ - MADE U/S. 40(A)(IA) BY HOLDING THAT ONLY AMOUNT PAYABLE AS ON THE CLOSING DATE OF PREVIOUS YEAR WERE INADMISSIBLE. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) WAS NOT JUSTIFIED IN HOLDING THAT THE PROVISIONS OF SECTION 40(A)(IA) COULD NOT BE INVOKED TO DISALLOW EXPENDITURE WHICH HAS BEEN ACTUALLY PAID DURING THE PREVIOUS YEAR. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE SHRI SOMNATH GHOSH, ADVOCATE MADE A MENTION AND HAS TA KEN US TO PARA 5 OF CIT(A) S ORDER WHEREIN THE REOPENING IS QUASHED. THE RELEVANT PORTION OF PARA 5 READS AS UNDER: 5. IN VIEW OF THE FOREGOING, I HAVE THE CONSIDERED OPINION THAT THE VERY BASIS OF REOPENING PROCEEDINGS SUFFERS FROM ILLEGALITY. AO HAS MISERABLY FAILED TO RECORD THE REASONS RECORDED FOR REOPENING BY MENTIONING, INTER ALIA, THAT AUDIT SCRUTINY REVEALED 2 ITA NO. 18 83 /K/201 2 RADHANATH BHUNIA & SONS AY 200 6 - 0 7 . PROVING THEREBY THAT THE CASE WAS REOPENED AT THE INSTANCE OF REVENUE AUDIT WHICH IS NOT LEGAL AND MADE BEYOND JURISDICTION AND AUT HORITY OF THE AO. WHEN A QUERY WAS PUT TO LD. COUNSEL SHRI GHOSH, WHETHER THE REOPENING WAS THE ISSUE BEFORE CIT(A), HE DREW OUR ATTENTION TO THE GROUNDS RAISED BEFORE CIT(A) VIDE GROUND NO. 3 REPRODUCED IN THE CIT(A) S ORDER AT PAGE 1, WHICH READS AS UN DER: 3. WITHOUT PREJUDICE TO THE ABOVE GROUNDS, THE PROCEEDINGS INITIATED U/S. 147 OF THE I. T. ACT, 1961 AND ORDER PASSED IN CONSEQUENCE THERETO ARE BAD IN LAW AND ON FACTS AND CIRCUMSTANCES OF THE CASE. LD. COUNSEL FOR THE ASSESSEE STATED THAT THE REVENUE HAS NOT CHALLENGED THE QUASHING OF REOPENING/REASSESSMENT PROCEEDINGS BY CIT(A). ON THIS, WE TURNED TO LD. SR. DR AND ASKED HIM WHETHER THE REVENUE HAS CHALLENGED THE REOPENING? HE CATEGORICALLY STATED THAT FROM THE GROUND IT IS CLEAR THAT IT IS NOT CHALLENGED. 4 . WE HAVE HEARD RIVAL SUBMISSIONS AND GONE THROUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. WE FIND THAT THE REVENUE HAS NOT CHALLENGED THE QUASHING OF REASSESSMENT PROCEEDINGS BY CIT(A) AND ONCE QUASHING OF REASSESSMENT PROCEEDING IS ACCEPTED BY CIT(A) NOTHING SURVIVES. ACCORDINGLY, APPEAL OF REVENUE IS DISMISSED. 5 . IN THE RESULT, APPEAL OF REVENUE IS DISMISSED. 6 . ORDER IS PRONOUNCED IN THE OPEN COURT ON 11.06.2015 . SD/ - SD/ - ( P. K. BANSAL ) (MAHAVIR SINGH) ACCOUNTANT MEMB E R J UDICIAL MEMBER DATED : 11TH JUNE , 201 5 JD.(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1 . A PPELLANT ACIT, CIR - 2, MIDNAPORE . 2 RESPONDENT M/S. RADHANATH BHUNIA & SONS, VILL & PO KHUKURDAHA, GHATAL, VIA PANSKURA, DIST PASCHIM MEDINIPUR, WB . 3 . THE CIT (A), KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA / TRUE COPY, BY ORDER, ASSTT. REGISTRAR .