ITO Company Ward 5(3), CHENNAI V. Q Source Global Consulting Pvt. Ltd., CHENNAI

ITA 2062/CHNY/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 5211 (ITAT-CHENNAI)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 24-08-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S NATARAJA
• Assessee Lawyers: S SRIDHAR
• Section: 201(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI , , $ BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NOS. 1260 & 2062/CHNY/2017 / ASSESSMENT YEARS: 2013-14 & 2014-15 INCOME TAX OFFICER, COMPANY WARD -5(3), CHENNAI 600 034. VS. M/S Q. SOURCE GLOBAL CONSULTING PVT. LTD., S-16, THIRU VI KA INDUSTRIAL ESTATE, SIDDARTH, 15 TH MAIN ROAD, GUINDY, CHENNAI 600 028. [PAN: AAACQ 1521H] ( / APPELLANT) ( / RESPONDENT) REVENUE BY : SHRI S. NATARAJA, JCIT ASSESSEE BY : SHRI S. SRIDHAR, ADVOCATE & /DATE OF HEARING : 15.02.2018 & /DATE OF PRONOUNCEMENT : 01.05.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE REVENUE FILED THESE APPEALS AGAINST THE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS) - 3, CHENNAI IN ITA NOS. 18 & 188/16-17/CIT(A)-3 DATED 28.02.2017 AND 30.05.2017, FOR ASSESSMENT YEA RS 2013-14 & 2014-15, RESPECTIVELY. :-2-: ITA NOS.1260 & 2062/CHNY/2017 2. M/S. Q SOURCE GLOBAL CONSULTING PVT. LTD., THE A SSESSEE, IS IN THE BUSINESS OF MAN POWER SUPPLY & CONSULTANCY SERVICES. WHILE MAK ING THE ASSESSMENTS FOR ASSESSMENT YEARS 2013-14 & 2014-15, THE AO FOUND TH AT THE ASSESSEE HAS NOT REMITTED THE EMPLOYEES CONTRIBUTION TOWARDS PF/ESI WITHIN THE DUE DATE UNDER THE RESPECTIVE STATUE, BUT MADE IT WELL WITHIN THE DUE DATE OF FILING THE RETURN U/S. 139(1) OF THE INCOME TAX ACT, 1961. IN VIEW O F THAT, HE DISALLOWED SUCH SUMS U/S. 2(24)(X) R.W. 36(1)(VA). FURTHER, THE AS SESSING OFFICER NOTICED IN ASSESSMENT YEAR 2013-14 THAT THE ASSESSEE HAS REMIT TED RENT WITHOUT DEDUCTING TDS AND HENCE HE DISALLOWED RS. 4,35,368/-. AGGRIE VED, THE ASSESSEE FILED APPEALS BEFORE THE CIT(A). BEFORE THE CIT(A), THE ASSESSEE RELIED THE DECISION OF THE SUPREME COURT, THE DECISIONS OF ITAT AND THE JU RISDICTIONAL HIGH COURT VIZ., 319ITR 306(SC), ACIT VS SHRI KANNIYAN KUMARASWAMY, ITAT, CHENNAI, EXPRESS PUBLICATIONS (MADURAI) LTD VS DCIT, CHENNAI AND CIT VS M/S INDUSTRIAL SECURITY AND INTELLIGENCE INDIA PVT. LTD., HIGH COURT DECISI ON IN (TCA NOS. 585 & 586/2015 & MP NO. 01/2015). FOLLOWING THE ABOVE DECISIONS, THE CIT(A) ALLOWED THE ASSESSEES APPEAL FOR ASSESSMENT YEARS 2013-14 & 20 14-15, RESPECTIVELY. IN RESPECT OF TDS DISALLOWANCE ON THE RENT, THE ASSESS EE PLEADED BEFORE THE CIT(A) THAT THE PAYEES HAVE ADMITTED THE IMPUGNED RENTAL P AYMENTS IN THEIR RETURNS AND PAID THE TAXES. WHEN THE GENUINENESS OF THE EX PENDITURE IS NOT DOUBTED, DISALLOWANCE U/S. 40(A)(IA) CANNOT BE MADE AND IT R ELIED ON THE DECISION OF CIT VS VECTOR SHIPPING SERVICES LTD., (357 ITR 642) (ALLAH ABAD) ETC. THE CIT(A) ALLOWED THE APPEAL. AGGRIEVED AGAINST THE ORDERS O F THE CIT(A), THE REVENUE FILED THESE APPEALS. :-3-: ITA NOS.1260 & 2062/CHNY/2017 4. WE HEARD THE RIVAL SUBMISSIONS. ON THE ISSUE OF DISALLOWANCE ON THE EMPLOYEES CONTRIBUTION TOWARDS PF/ESI, U/S.S 2(24)( X) R.W.S 36(1)(VA) SINCE, THE CIT(A) HAS APPLIED THE JURISDICTIONAL HIGH COURT DE CISION AND THE ITAT DECISIONS, SUPRA, WE DO NOT FIND ANY REASON TO INTERFERE WITH HIS ORDERS AND HENCE THE CORRESPONDING GROUNDS OF THE REVENUE ARE DISMISSED. 5. WITH REGARD TO THE DISALLOWANCE ON RENTAL PAYMEN TS WITHOUT DEDUCTION OF TDS, THE ASSESSEE PLEADED THAT THESE RENTAL PAYMENT S WERE ALREADY ADMITTED AS INCOME BY THE PAYEES AND THEY HAVE PAID THEIR TAXES AND HENCE, THE DISALLOWANCE IS NOT WARRANTED IN ACCORDANCE WITH FI RST PROVISO OF SECTION 201(1) OF THE ACT. WE FIND MERIT IN THE SUBMISSIONS OF TH E ASSESSEE AND HENCE DISMISS THE CORRESPONDING GROUNDS OF THE REVENUE. 6. IN THE RESULT, THE REVENUE APPEALS IN ITA NO. 12 60 & 2062/CHNY/2017 FOR ASSESSMENT YEARS 2013-14 & 2014-15, RESPECTIVELY, A RE DISMISSED. ORDER PRONOUNCED IN TUESDAY, THE 01 ST DAY OF MAY 2018, AT CHENNAI. SD/- ( ) (GEORGE MATHAN) '# /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) # /ACCOUNTANT MEMBER /CHENNAI, + /DATED: 01 ST MAY, 2018 JPV :-4-: ITA NOS.1260 & 2062/CHNY/2017 &-./0/ /COPY TO: 1. 1 / APPELLANT 2. -31 /RESPONDENT 3. 4 ) ( /CIT(A) 4. 4 /CIT 5. /- /DR 6. /GF