M/s. Satish D.Patel, Baroda V. The Income tax Officer,Ward-5(1), Baroda

ITA 2122/AHD/2010

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72959 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 7 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 31-01-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 22-06-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K C MATHEWS
• Assessee Lawyers: SURENDA MODIANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER M/S SATISH D.PATEL 30, VINOD VATIKA, WAGHODIA ROAD, BARODA PAN: AAVFS4682D (APPELLANT) VS INCOME-TAX OFFICER, WARD 5(1), BARODA (RESPONDENT) REVENUE BY: SRI K.C.MATHEWS, SR.D.R. ASSESSEE BY: SRI SURENDA MODIANI, A. R. DATE OF HEARING : 31-01-2014 DATE OF PRONOUNCEMENT : 31-01-20 14 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-V BARODA DATED 05-04-2010. ITA NO. 2122/AHD/2010 ASSESSMENT YEAR 2007-08 I.T.A NO.2122/AHD/2010 A.Y. 2007-8 PAGE N O M/S SATISH D. PATEL VS. ITO 2 2. AT THE TIME OF HEARING ALL GROUNDS EXCEPT THE FO LLOWING WERE NOT PRESSED. 2. THE LD. CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF RS. 18,77,345/- OUT OF EXPENDITURE ON LABOUR PAYMENTS T O INDIVIDUALS TOWARDS WAGES, FROM WHICH TAX WAS NOT DEDUCTED AT S OURCE, BY APPLYING PROVISIONS OF SECTION 40(A)(IA). 3. DURING THE ASSESSMENT PROCEEDINGS AO FOUND THAT ASSESSEE HAS MADE LABOUR PAYMENTS AMOUNTING TO RS. 18,77,345/- TO 13 PERSONS WITHOUT DEDUCTING TDS. THE ASSESSEES PLEA BEFORE THE AO W AS THAT THESE PAYMENTS WERE IN THE NATURE OF SALARIES AND HENCE THE SECTIO N APPLICABLE FOR DEDUCTION OF TAX AT SOURCE WAS SECTION 192 AND NOT SECTION 19 4C AND THEREFORE DISALLOWANCE U/S 40(A)(IA) CANNOT BE MADE IN THIS C ASE. HOWEVER THIS SUBMISSION WAS NOT ACCEPTABLE TO THE AO IN THE ABSE NCE OF ATTENDANCE REGISTER, FORM NO. 6, PF DEDUCTION ETC AND ADDITION OF RS. 18,77,345/- WAS MADE BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA ) OF THE ACT. 4. BEFORE LD. CIT(A) ASSESSEE PLACED RELIANCE ON TH E DECISION OF JAIPUR BENCH OF ITAT IN THE CASE OF JAIPUR VIDHYUT VITHRAN VS. CIT WHEREIN IT WAS HELD THAT DISALLOWANCE U/S. 40(A)(IA) WAS NOT APPLI CABLE IN CASE OF AMOUNTS WHICH WERE PAID DURING THE YEAR. LD. CIT(A) HOWEVE R CONFIRMED THIS ACTION OF AO. 5. BEFORE US ASSESSEE DID NOT RELY ON THE DECISION OF JAIPUR BENCH IN THE CASE OF JAIPUR VIDHYUT VITHRAN VS. CIT IN VIEW OF C ONTRARY DECISION OF JURISDICTIONAL HIGH COURT. HE ONLY RELIED ON THE SUBMISSIONS MADE BEFORE AO. SINCE A PLAIN SUBMISSION WAS MADE THAT THE PAY MENTS MADE TO THE LABOURERS WERE IN THE NATURE OF SALARIES AND NO DOC UMENT/EVIDENCE IN SUPPORT OF SUCH SUBMISSION WAS PLACED ON RECORD, WE ARE NOT INCLINED TO ACCEPT THIS I.T.A NO.2122/AHD/2010 A.Y. 2007-8 PAGE N O M/S SATISH D. PATEL VS. ITO 3 SUBMISSION AND THE ORDER PASSED BY LOWER AUTHORITIE S ON THE ISSUE ARE HEREBY UPHELD. 6. IN THE RESULT, ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 31/01/2014 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,