ACIT Non Corporate Range 13, CHENNAI V. Kellen Construction, CHENNAI

ITA 1889/CHNY/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4324 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-02-2019
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 07-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: R SRIDEVI
• Keywords: TDS
• Section: 2; 40(a)(ia)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I T.A. NO. 1889/CHNY/2018 / ASSESSMENT YEAR :2012-13 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 13, CHENNAI 600 034. VS. M/S. KELLEN CONSTRUCTION, PLOT NO. 03, FLAT NO. S1 SAI NIVAS, 2 ND CROSS STREET, BHARATH NAGAR, MADIPAKKAM, CHENNAI 600 078. [PAN:AAKFK6579L] ( /APPELLANT ) ( / RESPONDENT) / APPELLANT BY : SHRI AR.V. SREENIVASAN, JCIT / RESPONDENT BY : MS. R. SRIDEVI, C.A. / DATE OF HEARING : 23.01.2019 /DATE OF PRONOUNCEMENT : 12.02.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) 14, CHENNAI DATED 28.02.2018 RELEVANT TO THE ASSESSMENT YEAR 2012-13. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE REVENUE IS THAT THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION MADE UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. I.T.A. NO. 1889/CHNY/18 2 2. AT THE OUTSET, THE LD. DR VEHEMENTLY ARGUED THAT THE LD. CIT(A) HAS ERRONEOUSLY STATED THAT THE ASSESSING OFFICER DISALLOWED THE ENTIRE PAYMENT WITHOUT GIVING AN OPPORTUNITY TO THE ASSESSEE. AFTER ISSUING VARIOUS NOTICES AND BY CONSIDERING THE CLARIFICATION WITH REGARD TO THE COMPLIANCE OF TDS PROVISIONS FURNISHED BY THE AR OF THE ASSESSEE ON 23.03.2015, THE ASSESSMENT WAS CONCLUDED AND THUS, PLEADED FOR RESTORING THE ASSESSMENT ORDER. 3. ON THE OTHER HAND, THE LD. COUNSEL FOR THE ASSESSEE STRONGLY SUPPORTED THE ORDER PASSED BY THE LD. CIT(A). 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. IT IS EVIDENT FROM THE ASSESSMENT ORDER THAT THE ASSESSING OFFICER HAS NOT REFERRED TO ANY SPECIFIC TDS PROVISIONS WHILE MAKING DISALLOWANCE UNDER SECTION 40(A)(IA) OF THE ACT. EVEN THOUGH THE ASSESSING OFFICER ISSUED STATUTORY NOTICES, THERE IS NO EVIDENCE FROM THE ASSESSMENT ORDER THAT THE ASSESSING OFFICER HAS GIVEN SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE BEFORE CONCLUSION OF THE ASSESSMENT. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO ADJUDICATE THE ISSUE AFTER GIVING SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE AND PASS SPEAKING ORDER IN ACCORDANCE WITH LAW. I.T.A. NO. 1889/CHNY/18 3 5. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 12 TH FEBRUARY, 2019 AT CHENNAI. SD/- SD/- (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 12.02.2019 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.