Sri Krishnapackaging, Kancheepuram V. ACIT Non Corp. Circle 22(1), CHENNAI

ITA 2142/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6546 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 16-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: M RAZZACK
• Keywords: TDS
• Section: 143(3); 148

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , ! ' # ' $ . ! &' , ( ) BEFORE SHRI INTURI RAMA RAO , ACCOUNT ANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ ITA NO.2142/CHNY/2018 ( * +* /ASSESSMENT YEAR: 2012-13 M/S. SRI KRISHNA PACKAGING, NO.143-MIG, NH-1, VALLAL KUMANAN STREET, MARIMALAI NAGAR, KANCHIPURAM DIST. 603 209. [PAN: AAVFS 5335D] VS. ASST. COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE-22, CHENNAI. ( ,- /APPELLANT) ( ./,- /RESPONDENT) ,- 0 1 / APPELLANT BY : SHRI M. RAZZACK, FCA ./,- 0 1 /RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT ' 0 2 /DATE OF HEARING : 11.02.2019 34+ 0 2 /DATE OF PRONOUNCEMENT : 25.02.2019 5 / O R D E R PER INTURI RAMA RAO, ACCOUNTANT MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) -10, CHENNAI (HEREINAFTER CALLED AS CIT(A)) DATED 29.05.2018 F OR THE ASSESSMENT YEAR (AY) 2012-13. 2. THE APPELLANT RAISED THE FOLLOWING GROUNDS OF AP PEAL: 1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOM E-TAX (APPEALS)- 10, CHENNAI IN PAN AAVFS5335D FOR THE ASSESSMENT YEAR 2012/13 DATED 29-05-2018 IS AGAINST LAW, WEIGHT OF EVIDENCE AND PROBABILITIES OF THE CASE. ITA NO.2142/CHNY/2018 :- 2 -: 2. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI IS WRONG IN CONFIRMING THE ADDITIONS MADE BY THE ASSES SING OFFICER TO THE EXTENT OF RS.16,24,752/ WITH REGARD TO CREDIT FROM M/S. BYD ELECTRONICS INDIA PVT LTD. 3. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI IS WRONG IN NOT ACCEPTING THE SUBMISSIONS MADE BY THE APPELLANT WITH REFERENCE TO THE M/S. BYD ELECTRONICS INDIA PVT LTD . 4. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI HAS NOT CONSIDERED THE SUBMISSIONS OF THE APPELLANT WITH REGARD TO THE CREDIT FROM M/S.BYD ELECTRONICS INDIA P LTD OF RS.1 6,24,752/-. NEITHER THE BOOKS OF ACCOUNTS OF THE APPELLANT NOR THE BANK STATEMENTS REFLECT THE ENTRY FOR RS.16,24,752/-. 5. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI HAS NOT CONSIDERED THE SUBMISSIONS OF THE APPELLANT STATING THAT THE CONTRACT FOR SUPPLY OF MAN POWER SERVICES HAD ENDED ON 09-11-2011. 6. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI HAS NOT CONSIDERED THE SUBMISSIONS OF THE APPELLANT THAT NO INVOICE WAS RAISED FOR RS.16,24,752/-. 7. THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) -10, CHENNAI HAS WRONGLY GIVEN WEIGHTAGE TO THE OBSERVATIONS OF THE LEARNED ASSESSING OFFICER WHO HAS COMPLETED THE ASSESSMENT IGNORING THE FACTS OF THE CASE AND EVIDENCES ON RECORD. 8. THE APPELLANT SUBMITS THAT INADVERTENT EXCESS CL AIM OF TDS CANNOT FORM THE BASIS FOR ASSESSING THE INCOME RELATING TO THE TDS SINCE NO BILL HAS BEEN RAISED AND NO MONEY HAS BEEN RECEIVED . 9. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR WITHDRAW ALL OR ANY OF THE GROUNDS OF APPEAL HEREIN AND TO SUBMIT S UCH STATEMENTS, DOCUMENTS AND PAPERS AS MAY BE CONSIDERED NECESSARY EITHER AT OR BEFORE THE HEARING OF THE APPEAL. WHEREFORE THE APPELLANT PRAYS THAT THE ORDERS MAY B E PASSED TO DELETE THE ADDITION OF RS.16,24,752/-AND GRANT RELI EF AS PRAYED FOR IN THE GROUNDS OF APPEAL SUPRA AND RENDER JUSTICE. 3. THE BRIEF FACTS OF THE CASE ARE AS UNDER: THE APPELLANT IS A FIRM ENGAGED IN THE BUSINESS OF PROVIDING THE MANPOWER SERVICES. THE RETURN OF INCOME FOR THE ASS ESSMENT YEAR 2012- 13 WAS FILED ON 30.09.2012 DECLARING TOTAL INCOME O F RS.10,81,330/-. ITA NO.2142/CHNY/2018 :- 3 -: AGAINST THE SAID RETURN OF INCOME, THE ASSESSMENT W AS ORIGINALLY COMPLETED U/S. 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT) VIDE ORDER DATED 24.03.2014 AT A TOTAL INCOME OF RS . 14,01,530/. SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED BY ISSUIN G NOTICE U/S. 148 OF THE ACT DATED 25.11.2016 AND THE ASSESSMENT WAS COMPLETED VIDE ORDER DATED 26.12.2017 AT A TOTAL INCOME OF RS. 36, 85,657/-. WHILE DOING SO, THE AO MADE ADDITION OF RS. 6,00,422/- UNDER CA NTEEN AND OTHER RECOVERY AND ADDITION ON ACCOUNT OF AMOUNT ALLEGED TO HAVE BEEN RECEIVED FROM BYD ELECTRONICS INDIA (P.) LTD. OF RS . 16,24,752/- BASED ON THE TDS CREDIT AS PER FORM-26AS. 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE LD. CIT(A), WHO VIDE IMPUGNED ORDER HAD DELETED THE ADDITION IN RES PECT OF CANTEEN AND OTHER RECOVERIES OF RS. 6,00,422/-. HOWEVER, HE CO NFIRMED THE ADDITION MADE BY THE AO WITH REGARD TO THE AMOUNT ALLEGED TO HAVE BEEN RECEIVED FROM BYD ELECTRONICS INDIA (P) LTD. BEING AGGRIEVED, THE APPELLANT IS IN APPEAL BEFORE US IN THE PRESENT APP EAL. 5. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE ADDITION OF RS. 16,24,752/- WAS MADE BY THE AO BASED ON THE TDS CREDIT AVAILABLE AS PER THE INFORMATION CON TAINING IN FORM NO.26- AS ISSUED BY THE INCOME-TAX DEPARTMENT. BUT, THE CO NTENTION OF THE APPELLANT IS THAT IT NEITHER THE INVOICE WAS RAISED NOR WAS RENDERED ANY ITA NO.2142/CHNY/2018 :- 4 -: SERVICES TO BYD ELECTRONICS INDIA (P) LTD. THE SAI D COMPANY HAD WRONGLY CREDITED TDS TO HIS ACCOUNT AND THEREFORE, NO ADDITION SHOULD BE MADE SIMPLY BASED ON THE TDS CREDIT AVAILABLE AS PE R FORM 26-AS WITHOUT CROSS VERIFICATION WITH THE PAYER. WE FIND MERIT IN THE SUBMISSION OF THE ASSESSEE AND ACCORDINGLY, WE REMIT THE ISSUE BACK TO THE FILE OF AO WITH A DIRECTION TO CROSS VERIFY THE TRANSACTION WITH BYD ELECTRONIC INDIA (P) LTD. AND IN CASE IT IS FOUND ON VERIFICAT ION THAT NO SERVICES ARE RENDERED BY THE ASSESSEE AND THE TDS CREDIT WAS GIV EN WRONGLY TO DELETE THE ADDITION ON THAT SCORE. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 25 TH DAY OF FEBRUARY, 2019 IN CHENNAI. SD/- SD/- ( . ) (DUVVURU RL REDDY) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER /CHENNAI, 6 /DATED: 25 TH FEBRUARY, 2019. EDN, SR. P.S 5 0 .(278 98+2 /COPY TO: 1. ,- /APPELLANT 4. ' :2 /CIT 2. ./,- /RESPONDENT 5. 8;< .(2( /DR 3. ' :2 ( )/CIT(A) 6. <'* = /GF