M/s. Shree Shyamjee Constructions Private Limited, Bagdehi V. ITO (TDS), Sambalpur

ITA 215/CTK/2023

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2874 (ITAT-CUTTACK)
• Duration Of Justice: 10 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 29-01-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 05-06-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M.K.KEDIA
• Keywords: Cost of acquisition; TDS
• Section: 194C

Judgement Text

आयकर अऩीऱीय अधधकरण, कटक न्यायऩीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER आयकर अऩीऱ सं/ITA No.215/C TK/2023 (ननधाारण वषा / Asses s m ent Year : 2017-2018) Shree Shyamji Constructions Pvt. Ltd., Main Road, Bagdehi, District : Jharsuguda-768220 Vs Income Tax Officer(TDS), Sambalpur PAN No. :AAJCS 0480 J (अऩीऱाथी /Appellant) .. (प्रत्यथी / Respondent) ननधााररती की ओर से /Assessee by : Shri M.K.Kedia, AR राजस्व की ओर से /Revenue by : Shri S.C.Mohanty, Sr. DR स ु नवाई की तारीख / Date of Hearing : 23/04/2024 घोषणा की तारीख/Date of Pronouncement : 23/04/2024 आदेश / O R D E R Per Bench : This is an appeal filed by the assessee against the order dated 07.04.2023, passed by the CIT(A)-2, Bhubaneswar in DIN & Document No.ITBA/APL/S/91/2023-24/1051928453(1) for the assessment year 2017-2018 2. It was submitted by the ld. AR that the assessee is in construction business has purchased cement and bricks from OCL India Ltd. and Shivkashi Enterprises, respectively. It was submitted that the purchases were on FOR sales meaning that the bill, purchase cost included the cost of transportation. It was the submission that for the purpose of billing the supplier had shown freight separately but the assessee has paid consolidated amount for the purchase of the material. The assessee has not undertaken the transportation of the cement or bricks on its own. It ITA No.215/CTK/2023 2 was the submission that the AO on the ground that the assessee has shown the transportation cost as per the bills separately in its account, had held that the assessee had not deducted TDS as per the provisions of Section 194C of the Act and consequently levied a liability u/s.201 of the Act. It was the submission that this liability was upheld by the ld. CIT(A). Ld. AR placed before us a copies of the bill for the purchases, which are as follows :- ITA No.215/CTK/2023 3 3. It was the submission that the bills specifically showed that the inclusive term for the sales was freight paid (FOR) sales. It was the submission that the assessee has not paid any separate transportation charges. 4. In reply, ld. Sr. DR submitted that the assessee has shown the transportation charges separately in its books of accounts and, therefore, the assessee should have deducted TDS on such transportation charges u/s.194C of the Act. 5. We have considered the rival submissions. A perusal of the invoice cum dispatch challan, extracted above, clearly shows that the inclusive terms for the sale of the cement was clearly FOR sales. In FOR sales, the ITA No.215/CTK/2023 4 transportation cost is also included in the cost of the material sold. Just because the seller has separated the freight charges from the selling price in its bill for the purpose of computing VAT and Entry Tax as also Excise Duty, it cannot be held that the assessee has paid transportation cost separately. A perusal of the ledger of the assessee also shows that consolidated payments have been made by the assessee. This being so, we are of the view that the assessee is not liable for deduction of TDS u/s.194C of the Act on the said transportation charges. Thus, the levy of liability u/s.201 of the Act and interest u/s.201(1A) of the Act as made by the AO and as confirmed by the ld. CIT(A) stands deleted. 6. In the result, appeal of the assessee is allowed. Order dictated and pronounced in the open court on 23/04/2024. Sd/- (MANISH AGARWAL) Sd/- (GEORGE MATHAN) ऱेखा सदस्य/ ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 23/04/2024 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनतलऱपऩ अग्रेपषत/Copy of the Order forwarded to : आदेशान ु सार/ BY ORDER, (Assistant Registrar) आयकर अऩीऱीय अधधकरण, कटक/ITAT, Cuttack 1. अऩीऱाथी / The Appellant- Shree Shyamji Constructions Pvt. Ltd., Main Road, Bagdehi, District : Jharsuguda-768220 2. प्रत्यथी / The Respondent- Income Tax Officer(TDS), Sambalpur 3. आयकर आय ु क्त(अऩीऱ) / The CIT(A), 4. आयकर आय ु क्त / CIT 5. ववभागीय प्रतततनधध, आयकर अऩीऱीय अधधकरण, कटक / DR, ITAT, Cuttack 6. गार्ड पाईऱ / Guard file. सत्यावऩत प्रतत //True Copy//