Deputy Commissioner of Income Tax Circle-2(1), Mysore V. M/s Travel Parkz , Mysore

ITA 1960/BANG/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4150 (ITAT-BANGALORE)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2019
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 07-06-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: H N KHINCHA
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ES B , BANGALORE BEFORE SHRI N.V.VASUDEVAN, VP & SHRI B.R.BASKARAN, AM ITA NO. 1960 / BANG /201 8 : ASST.YEAR 2012 - 2013 THE DY.COMMISSIONER OF INCOME - TAX, CIRCLE 2( 1 ) MYRURU. VS. M/S.TRAVEL PARKZ APT. NO.S - 2, NO.966/1, CHAMUNDI APARTMENT 1 ST CROSS, LAKSHMIPURAM MYSURU 570 004. PAN : AAFFT4072N . (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI R.N.SID D AP P AJI, ADDL.CIT RESPONDENT BY : SHRI H . N.KHINCHA , CA DATE OF HEARING : 14.02.2019 DATE OF PRONOUNCEMENT : 14 .02.2019 O R D E R PER B.R.BASKARAN, AM : THE APPEAL FILED BY THE REVENUE IS DIRECTED AGAINST THE ORDER DATED 28.02.2018 PASSED BY LEARNED CIT(A), MYSORE AND IT RELATES TO THE ASSESSMENT YEAR 2012 - 2013 . THE REVENUE IS AGGRIEVED BY THE DECISION OF THE LEARNED CIT(A) IN SETTIN G ASIDE THE ADDITION MADE UNDER SECTION 40(A)(IA) OF THE ACT TO THE FILE OF THE ASSESSING OFFICER IN VIOLATION OF THE PROVISIONS OF SECTION 251(1)(A) OF THE ACT. 2. WE HAVE HEARD THE PARTIES AND PERUSED THE REC ORD. THE ASSESSEE IS A TRAVEL AGENT ENGAGED IN THE BUSINESS OF ARRANGING VEHICLES FOR CUSTOMERS, BOOKING OF AIR / RAILWAY / BUS TICKETS AND SUCH OTHER ALLIED BUSINESS ACTIVITIES. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A.O. ASKED THE ITA NO. 1960 / BANG /201 8 . M/S.TRAVEL PARKZ . 2 ASSESSEE TO F URNISH THE DETAILS OF TAX DEDUCTED AT SOURCE FROM THE PAYMENTS MADE TO VEHICLE OWNERS. T HE ASSESSING OFFICER , BY MAKING CERTAIN COMPUTATION, DISALLOWED A SUM OF RS.201.80 LAKH U/S 40(A)(IA) OF THE ACT. THE LEARNED CIT(A) , HOWEVER, RESTORED THE ISSUE TO THE FILE OF THE ASSESSING OFFICER WITH THE DIRECTION TO EXAMINE THE ISSUE AFRESH AFTER TAKING INTO CONSIDERATION THE RECONCILIATION STATEMENT SUBMITTED BY THE ASSESSEE. THE REVENUE S CAS E IS THAT THE LEARNED CIT(A) DOES NOT HAVE POWER TO RESTORE THE ISSUE TO THE FILE OF T HE ASSESSING OFFICER AS THE PROVISIONS OF SECTION 251(1)(A) OF THE ACT. 3 . T HE LEARNED DEPARTMENTAL REPRESENTATIVE SUBMITTED THAT THE ORDER PASSED BY THE LEARNED CIT(A) SUFFERS FROM ILLEGALITY AS THE SAME IS IN VIOLATION OF THE PROVISIONS OF SECTION 251(1)(A) OF THE ACT. 4. THE LEARNED AR, HOWEVER, SUBMITTED THAT THE GROUNDS URGED BY THE REVENUE WOULD BECOME INFRUCTUOUS, AS THE ASSESSING OFFICER, IN THE RESTORED PROCEEDINGS, HAS ALREADY DELETED THE IMPUGNED DISALLOWANCE AFTER CONSIDERING THE RECONCILIATION STATEMENT FURNISHED BY THE ASSESSEE. 5. ADMITTEDLY, THE PROVISIONS OF SECTION 251(1)(A) OF THE ACT DO NOT AUTHORIZE THE LEARNED CIT(A) TO SET ASIDE THE MATTER S TO THE FILE OF THE ASSESSING OFFICER. HENCE THE ORDER PASSED BY LD CIT(A) IS VIOLATION OF THE ABOVE SAID PROVISI ONS AND THE SAME IS SET ASIDE. HOWEVER, WE NOTICED THAT THE ASSESSEE HAS FILED A RECONCILIATION STATEMENT FOR THE FIRST TIME BEFORE THE LEARNED CIT(A) AND HENCE, THE SA ME REQUIRE S EXAMINATION AT THE END OF ITA NO. 1960 / BANG /201 8 . M/S.TRAVEL PARKZ . 3 THE ASSESSING OFFICER. ACCORDINGLY, WE ARE OF THE VIEW THAT THIS ISSUE SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING IT AFRESH AFTER CONSIDERING THE RECONCILIATION STATEMENT SUBMITTED BY THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE O RDER PASSED BY THE LEARNED CIT(A) AND RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING IT AFRESH. 6 . IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THIS 14 TH DAY OF FEBRUARY, 2019 . SD/ - SD/ - (N.V.VASUDEVAN) ( B.R.BASKARAN ) VICE - PRESIDENT ACCOUNTANT MEMBER BANGALORE ; DATED : 14 TH FEBRUARY, 2019 . DEVDAS* COPY OF THE ORDER FORWARDED TO : TRUE COPY BY ORDER, (ASSTT. REGISTRAR) ITAT, BANGALORE 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT (A) MYSORE. 4. THE PR. CIT MYSORE . 5. THE DR, ITAT, BANGALORE 6. GUARD FILE.