Commercial Carriers Pvt. Ltd., Jamshepur V. ACIT, Circle-1(1), Jamshepur

ITA 192/RAN/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 2508 (ITAT-RANCHI)
• Duration Of Justice: 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 22-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: INDERJEET SINGH
• Keywords: TDS
• Section: 143(3); 40(a)(ia); 201; 192

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI BENCH, RANCHI BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND DR. A.L. SAINI, ACCOUNTANT MEMBER ITA NO. 192 / RAN / 201 9 ASSESSMENT YEAR :2010-11 M/S COMMERCIAL CARRIERS (P) LTD., WARE HOUSE NO.3, LAL BABA TUBE COMPLEX, FOUNDRY ROAD, BARMAMINES, JAMEHEDPUR, JHARKHANJA- 831007 [ PAN NO. AAACC 6949 F ] V/S . ACIT, CIRCLE-1(1), JAMEHEDPUR /APPELLANT .. / RESPONDENT /BY APPELLANT SHRI DEVESH PODDAR, ADVOCATE /BY RESPONDENT SHRI INDERJEET SINGH, CIT-DR /DATE OF HEARING 04-03-2020 /DATE OF PRONOUNCEMENT 04-03-2020 / O R D E R PER BENCH (ORAL):- THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2010-11 ARISES AGAINST THE COMMISSIONER OF INCOME TAX (APPEALS)-JAMSHEDPUR S ORDER DATED 04.02.2019 PASSED IN CASE NO.566/JSR/2017-18 INVOLV ING PROCEEDINGS U/S 143(3) R.W.S. 147 OF THE INCOME TAX ACT, 1961; IN S HORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED 2. LEARNED COUNSEL REPRESENTING ASSESSEE SUBMITS TH AT HE DOES NOT WISH TO PRESS FOR ASSESSEES FORMER LEGAL GROUND CHALLEN GING VALIDITY OF RE-OPENING PROCEEDINGS U/S 147 OF THE ACT. ITA NO.192/RAN/2019 A.Y. 2010-11 M/S COMMERCIAL CARRIERS (P) LTD. VS. ACIT CIR.1(1), JSR PAGE 2 3. COMING TO MERITS, WE NOTICE THAT THE ASSESSEES LATER SUBSTANTIVE GROUND SEEKS TO DELETE U/S 40(A)(IA) DISALLOWANCE O F HIRE CHARGES PAID TO VARIOUS TRACKERS / TRANSPORT OPERATORS WITHOUT DED UCTING TDS. THIS DISALLOWANCE SUM IN DISPUTE INVOLVES FIGURE OF RS.3 ,34,60,529/-. THERE IS NO DISPUTE THAT THE ASSESSEE HAS INDEED NOT DEDUCTED T DS ON THE SAID PAYMENTS. THE REVENUES AS PER BOTH THE LOWER AUTHO RITIES DETAILED DISCUSSION THAT THE ASSESSEE OUGHT TO HAVE DEDUCTED TDS SINCE THE IMPUGNED HIRE CHARGES ARE IN THE NATURE OF SEC. 194 C CONTRACTUAL PAYMENTS. WE SEE NO REASON TO EXPRESS OUR CONCURRENCE WITH TH E IMPUGNED DISALLOWANCE. THE FACT REMAINS THAT THERE IS NO MAT ERIAL ON RECORD SUGGESTING ANY ORAL OR WRITTEN AGREEMENT BETWEEN THE ASSESSEE AND ITS PAYEES ALSO THAT THE ANY CONTRACTUAL LIABILITY OF TRANSPORTATION OF GOODS OF UNDERTAKEN AT THIS TAXPAYERS BEHEST. WE DRAW SUPPORT FROM HON'BLE CAL CUTTA HIGH COURTS IN COMMISSIONER OF INCOME TAX VS. M/S STUMM INDIA ITAT NO. 127 OF 2019 DATED 16.08.2010 TO THIS EFFECT. 4. LEARNED CIT-DR AT THIS STAGE INVITED OUR ATTENTI ON TO ASSESSMENT FINDINGS THAT THE ASSESSEES TOTAL HIRE CHARGES PAY MENTS READ A FIGURE OF RS.5,88,65,729/- OUT OF WHICH IT HAD DEDUCTED TDS @ 1% ONLY QUA RS.2,54,05,200/- THEREBY NOT COMPLYING WITH THE SE C.194C INVOLVING THE BALANCE SUM IN ISSUE. AND ALSO THAT THE ASSESSEE HA D NOT PLACED FORM 15J BEFORE THE COMMISSIONER. WE SEE NO MERIT IN EITHER OF THESE SUBMISSIONS IT IS CRYSTAL CLEAR FROM A PERUSAL OF THE CASE FILE THAT THIS ASSESSEE HAS SUCCEEDED ON THE VERY ISSUE INVOLVED IN PRECEDING ASSESSMENT YEAR 2009-10 AS THE LEARNED CO-ORDINATE BENCHS ORDER FORMS PART OF THE CASE FILE PAGES 75 TO 86 OF THE PAPER BOOK. COUPLED WITH THIS, HONBLE CALCUTTA HIGH COURTS JUDGMENT COMMISSIONER OF INCOME TAX VS. M/S S.K. TEKRIWAL (2014) 361 ITR 432 (CAL) HOLDS THAT THE IMPUGNED DISALLOWANCE PROVISION U/S. 40(A)(IA) OF THE ACT DOES NOT COME INTO PLAY IN CASE OF AN ASSESSEES PARTIAL DEFAULT IN DEDUCTING TDS. WE ARE OF THE VIEW IN THESE FACTS THAT BOTH THE LOW ER AUTHORITIES HAVE ERRED IN DISALLOWING ASSESSEES HIRE CHARGES PAYMENTS OF RS. 33,460,529/-. THE SAME ITA NO.192/RAN/2019 A.Y. 2010-11 M/S COMMERCIAL CARRIERS (P) LTD. VS. ACIT CIR.1(1), JSR PAGE 3 IS DIRECTED TO BE DELETED. NECESSARY COMPUTATION IN CLUDING THAT OF INTEREST SHALL FOLLOW AS PER LAW. 5. THIS ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT AT T HE CLOSE OF HEARING ON WEDNESDAY, 4 TH MARCH 2020 SD/- SD/- ( ) ('# ) (DR. A.L. SAINI) (S.S.GODARA) (ACCOUNTANT MEMBER) (JUDICIAL MEMBER) RANCHI, *DKP SR.P.S $- 04 / 03 /20 20 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-M/S COMMERCIAL CARRIERS (P) LTD., WARE H OUSE NO.3, LAL BABA TUBE COMPLEX, FOUNDRY ROAD, BARMAMINES, JAMSHEDPUR-831007 2. /RESPONDENT-ACIT, CIR-1(1), JAMSHEDPUR 3. / 2 / CONCERNED CIT RANCHI 4. 2- / CIT (A) RANCHI 5. 5 ##/, /, / DR, ITAT, RANCHI 6. ; / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR.PS, (ON TOUR), RANCHI