SDS CARGO SOLUTIONS P.LTD, CHENNAI V. ITO CORPORATE WARD-6(1), CHENNAI

ITA 2083/CHNY/2019

AI Insights

The case involves SDS Cargo Solutions Pvt. Ltd., a company engaged in clearing and forwarding agency services, which appealed against the order of the Principal Commissioner of Income Tax-6, Chennai. The appeal was directed against the revision of the assessment order for the assessment year 2014-15 under section 263 of the Income-tax Act, 1961. The original assessment had made certain additions regarding disallowance of CFS charges for non-deduction of TDS under section 194C. The PCIT later found that the AO had not adequately investigated the CFS charges, leading to the setting aside of the assessment order. The Tribunal, after hearing the Departmental Representative and considering the materials on record, dismissed the appeal, agreeing with the PCIT's decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 134782 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 8 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 11-07-2019
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 263; 143(3); 40(a)(ia); 194C

Judgement Text

आयकर अपीलीय अिधकरण, ‘ए’ ᭠यायपीठ, चे᳖ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘A’ BENCH, CHENNAI ᮰ी महावीर ᳲसह, उपा᭟यᭃ एवं एवं ᮰ी मंजुनाथ. जी, लेखा सद᭭य के समᭃ BEFORE SHRI MAHAVIR SINGH, HON’BLE VICE PRESIDENT AND SHRI MANJUNATHA. G, HON’BLE ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 2083/Chny/2019 िनधाᭅरण वषᭅ / Assessment Year: 2014-15 SDS Cargo Solutions Pvt. Ltd., No. 8/114, Flat No. 03, 1 st Floor, Old Trunk Road, Pallavaram, Chennai – 600 043. [PAN: AAPCS-2368-P] v. The Income Tax Officer, Corporate Ward -6(1), Chennai. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : None ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri. R Mohan Reddy, CIT सुनवाई कᳱ तारीख/Date of Hearing : 10.04.2023 घोषणा कᳱ तारीख/Date of Pronouncement : 10.04.2023 आदेश /O R D E R PER MANJUNATHA. G, ACCOUNTANT MEMBER: This appeal filed by the assessee is directed against the order of Principal Commissioner of Income Tax-6, Chennai, passed u/s. 263 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) dated 05.03.2019 and pertains to assessment year 2014-15. 2. The brief facts of the case are that, the assessee is in the business of clearing and forwarding agency service, filed its :-2-: ITA. No:2083/Chny/2019 return of income for the assessment year 2014-15 on 26.05.2015, admitting total income of Rs. 77,930/-. The assessment has been completed u/s. 143(3) of the Act, on 30.12.2016 and determined total income of Rs. 2,31,064/-, by making additions towards disallowance u/s. 40(a)(ia) of the Act for Rs. 1,43,376/- towards CFS charges for non-deduction of TDS u/s. 194C of the Act. The case has been subsequently taken up for revision proceedings and show cause notice u/s. 263 of the Act, dated 28.01.2019 was issued and served on the assessee. In the said show cause notice, the PCIT was of the opinion that the assessment order passed by the AO is erroneous in so far as it is prejudicial to the interest of the revenue, because the AO failed to carry out required enquiries he ought to have been carried out on the issue of CFS charges paid to Continental Warehousing Corporation and thus, rejected arguments of the assessee and set aside the assessment order in terms of provisions of section 263 of the Act. Aggrieved by the CIT(A) order, the assessee is in appeal before us. 3. None appeared for the assessee. We have heard the ld. DR and considered relevant materials available on record. We find that the PCIT had given a categorical finding that the AO has not carried out any enquiries on the issue of CFS charges paid to :-3-: ITA. No:2083/Chny/2019 Continental Warehousing Corporation in light of relevant provisions of the Act which render the assessment order to be erroneous and prejudicial to the interest of the revenue. The assessee neither appeared nor filed any details to justify its case and argue that the assessment order passed by the AO on the issue of TDS on CFS charges paid to Continental Warehousing Corporation does not come under the provisions of section 194C of the Act and consequently, payment cannot be disallowed u/s. 40(a)(ia) of the Act. Therefore, we are of the considered view that there is no error in the reasons given by the PCIT to invoke his jurisdiction u/s. 263 of the Act and set aside the assessment order and thus, we are inclined to uphold the findings of the ld. PCIT and dismiss appeal filed by the assessee. 4. In the result, appeal filed by the assessee is dismissed. Order pronounced in the Open court on 10 th April, 2023 at Chennai. Sd/- (महावीर ᳲसह ) (MAHAVIR SINGH) पा᭟यᭃ /Vice President Sd/- (मंजुनाथ. जी) (MANJUNATHA. G) लेखासद᭭य/Accountant Member चे᳖ई/Chennai, ᳰदनांक/Dated: 10 th April, 2023 JPV आदेश की Ůितिलिप अŤेिषत/Copy to: 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकर आयुƅ (अपील)/CIT(A) 4. आयकर आयुƅ/CIT 5. िवभागीय Ůितिनिध/DR 6. गाडŊ फाईल/GF n