Shri Awtar singh, Jamshedpur V. DCIT CIRCLE-3, Jamshedpur

ITA 213/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0016 (ITAT-RANCHI)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 05-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: S K PODAR DEVESH PODAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NOS.213 & 214 /RAN/2015 ASSESSMENT YEAR S : 2007 - 08 & 2009 - 2010 SRI AWTAR SINGH, PROP. AWTAR ROADLINES, NEW KALIMATI ROAD, SAKCHI, JAMSHEDPUR VS. DCIT, CIRCLE - 3, JAMSHEDPUR PAN/GIR NO. AEIPS 1784 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 5/12/ 2016 DATE OF PRONOUNCEMENT : 5/12/ 2016 O R D E R THESE ARE APPEALS FILED BY THE ASSESSEE AGA INST THE CONSOLIDATED ORDER OF CIT(A) - JAMSHEDPUR, DATED 25.4.2016 FOR THE ASSESSMENT YEA RS 2007 - 08 & 2009 - 2010, RESPECTIVELY . 2. IN BOTH THE APPEALS, THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD CIT(A) IS ERRED IN CONFIRMING THE ADDITION OF RS.16,38,716/ - IN A.Y. 2007 - 08 AND RS.10,03,904/ - IN A.Y. 2009 - 2010 UNDER THE HEAD FREIGHT CHARGES FOR NON - DEDUCTION OF TDS U/S.40(A)(IA) OF THE I.T.ACT, 1961. 2 ITA NOS.213 & 214/RAN/2015 ASSESSMENT YEARS :2007 - 08 & 2009 - 2010 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS NOT DEDUCTED TDS FROM THE FREIGHT CHARGES PAID AND, THEREFORE, BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, HE DISALLOWED THE DEDUCTION FOR THE SAME FOR THE YEARS UNDER APPEAL. 4. ON APPEAL, L D CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. LD A.R. OF THE ASSESSEE SUBMITTED THAT THERE WAS NO AMOUNT OUTSTANDING AND PAYABLE UNDER THE HEAD FREIGHT CHARGES IN BOTH THE YEARS UNDER APPEAL. LD A.R. SUBMITTED THAT THE HON'BLE ALLAHABAD HIG H COURT CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL ), HAS 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 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 FILED A 3 ITA NOS.213 & 214/RAN/2015 ASSESSMENT YEARS :2007 - 08 & 2009 - 2010 COPY OF ITAT RANCHI ORDER DATED 11.3.2016 IN THE CASE OF M/S. NEW PUNJAB MOTOR TRANSPORT VS ITO (ITA N O.308/RAN/2004 AND ITA NO.309/RAN/20104 FOR A.Y.2010 - 2011 AND SUBMITTED THAT ON SIMILAR FACTS, THE ADDITION MADE U/S.40(A)(IA) HAS BEEN DELETED. 6 . AFTER CONSIDERING THE RIVAL SUBMISSIONS, ORDERS OF AUTHORITIES BELOW AND PERUSING THE MATERIALS AVAILABLE ON RECORD. 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 COURT IN THE CASE OF CIT VS. VICTOR SH IPPING SERVICES (P) LTD(SUPRA) DELETE THE DISALLOWANCE OF RS.16,38,716/ - IN A.Y. 2007 - 08 AND RS.10,03,904/ - IN A.Y. 2009 - 2010 MADE UNDER THE HEAD FREIGHT CHARGES FOR NON - DEDUCTION OF TDS U/S.40(A)(IA) OF THE I.T.ACT, 1961 - AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE FOR THE ASSESSMENT YEARS UNDER APPEAL 7. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASSESSEE ARE ALLOWED. ORDER PRONOUNCED 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 B.K.PARIDA, SPS 4 ITA NOS.213 & 214/RAN/2015 ASSESSMENT YEARS :2007 - 08 & 2009 - 2010 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SRI AWTAR SINGH, PROP. AWTAR ROADLINES, NEW KALIMATI ROAD, SAKCHI, JAMSHEDPUR 2. THE RESPONDENT: DCIT, CIRCLE - 3, JAMSHEDPUR 3. THE CIT(A) JAMSHEDPUR 4. CIT , JAMSHEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//