Shri Suresh Joshi, V. DCIT,

ITA 21/RAN/2014

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0017 (ITAT-RANCHI)
• Duration Of Justice: 2 year(s) 10 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 24-01-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PAL
• Assessee Lawyers: S K PODAR DEVESH PODAR
• Section: 6

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO.21/RAN/2016 ASSESSMENT YEAR : 2008 - 09 M/S. PAL BROADCASTING PVT LTD., MNTHAN, 3 RD STREET, HINDPIRI, RANCHI. VS. DCIT, CIRCLE - 2, RANCHI PAN/GIR NO. AADCP 9628 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI SANJAY PAL , DR DATE OF HEARING : 5/12/ 2016 DATE OF PRONOUNCEMENT : 5/12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 10.12.2015 , FOR THE ASSESSMENT YEAR 2008 - 2009 . 2. THE SOLE GRIEVANCE IN THIS APPEAL IS THAT THE LD CIT(A) IS ERRED IN CONFIRMING THE ADDITION OF RS.5,95,000/ - MADE BY THE ASSESSING OFFICER BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE UNDISPUTED FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER ON EXAMINATION OF BOOKS OF ACCOUNT FOUND THAT EXPENSES 2 ITA NO.21/RAN/2016 ASSESSMENT YEAR :2008 - 09 ON TR ANSMISSION COST AND BROADCASTING EXPENSES OF RS.5,50,000/ - AND CONSULTANCY CHARGES OF RS.45,000/ - WERE SUCH WHICH COULD BE DEFINED AS WORK AS MENTIO NED IN SECTION 194C(IV)(B ) OF THE INCOME TAX ACT, 1961. SINCE THE ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE, HE DISALLOWED THE DEDUCTION FOR THE SAME BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 4. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. LD A.R. SUBMITTED THAT IT WILL BE OBSERVED FROM PAGE 4 OF THE ASSESSMENT ORDER THAT PAYMENT OF RS.5,50,000/ - UNDER THE HEAD TRANSMISSION COST/BROADCASTING EXPENSES AND RS.45,000/ - UNDER THE HAD CONSULTANCY CHARGES WERE DULY MADE DURING THE FINANCIAL YEAR ENDING 31.3.2008 AND NO AMOUNT WAS OUTSTANDING PAYABLE AS AT THE YEAREN D UNDER THOSE HEADS. HENCE, HE SUBMITTED THAT THE ASSESSEE WAS NOT LIABLE TO DEDUCT TDS ON THESE PAYMENTS IN VIEW OF THE DECISION OF HON'BLE ALLAHABAD HIGH COURT CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL ), WHEREIN, IT HAS BEEN HELD THAT FOR DISALLOWING EXPENSES FROM BUSINESS AND PROFESSION ON THE GROUND THAT TAX HAS NOT BEEN DEDUCTED AT SOURCE, THE AMOUNT SHOULD BE PAYABLE AND NOT IT HAS BEEN PAID BY THE END OF THE YEAR. HE FURTHER SUBMITTED THAT THE SLP FILED AGAINST THE JUDGMENT O F HONBLE ALLAHABAD HIGH COURT HAS BEEN DISMISSED BY THE HONBLE SUPREME COURT VIDE JUDGMENT DATED 2.7.2014 IN CC NO.(S) 8068/2014. THEREFORE, IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH 3 ITA NO.21/RAN/2016 ASSESSMENT YEAR :2008 - 09 COURT IN THE CASE OF VICTOR SHIPPING SERVICES (P) LTD (SUPRA), NO DISALLOWANCE U/S.40(A)(IA) WAS WARRANTED IN THE CASE OF THE ASSESSEE. HE SUBMITTED THAT WHERE THERE ARE CONTRARY DECISIONS OF HONBLE HIGH COURTS ON AN ISSUE AND NONE OF WHICH IS HONBLE JURISDICTIONAL HIGH COURT, THEN THE DECISION IN FAVOUR OF THE ASSE SSEE SHOULD BE FOLLOWED IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS.VEGETABLE PRODUCTS LTD., 88 ITR 192 (SC). ). HE ALSO SUBMITTED THAT ITAT RANCHI VIDE ORDER DATED 11.3.2016 IN THE CASE OF M/S. NEW PUNJAB MOTOR TRANSPORT VS ITO (ITA NO.308/RAN/2004 AND ITA NO.309/RAN/20104 FOR A.Y.2010 - 2011 ON SIMILAR FACTS DELETED THE ADDITION MADE U/S.40(A)(IA). 6 . IN THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT THERE IS NO AMOUNTING OUTSTANDING AND PAYABLE AT THE END OF THE YEAR. THEREFORE, I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ALLAHABAD HIGH COUR T IN THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD(SUPRA) DELETE THE DISALLOWANCE OF RS.5,95,000/ - MADE U/S.40(A)(IA) OF TH E ACT AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PR ONOUNCED IN THE OPEN COURT ON 5/12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 5 /12 /2016 4 ITA NO.21/RAN/2016 ASSESSMENT YEAR :2008 - 09 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : M/S. PAL BROADCASTING PVT LTD., MNTHAN, 3 RD STREET, HINDPIRI, RANCHI 2. THE RESPONDENT. DCIT, CIRCLE - 2, RANCHI 3. THE CIT(A) , RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//