Anupam Industries Ltd., Anand V. The Addl.CIT, TDS Range, Baroda

ITA 2160/AHD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 94552 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-10-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 24-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PRADIPKUMAR MAJUMDAR
• Keywords: Reasonable cause
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD SMC BENCH AHMEDABAD BEFORE SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER. ITA. NO. 2160/AHD/2014 (ASSESSMENT YEAR:2008-09) ANUPAM INDUSTRIES LIMITED, 138, GIDC, VITHAL UDHYOGNAGAR, ANAND - 388121 APPELLA NT VS. ADDL. CIT (TDS), BARODA RESPONDENT PAN: AABCA9602Q / BY ASSESSEE : SHRI SANJAY R. SHAH, A.R. / BY REVENUE : SHRI PRADIP KUMAR MAJUMDAR, D.R. /DATE OF HEARING : 15.10.2015 /DATE OF PRONOUNCEMENT :21.10.2015 ORDER PER S. S. GODARA, JUDICIAL MEMBER THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2008-09, ARISES FROM ORDER OF THE CIT(APPEALS)-V, BARODA, DATED 06. 03.2014 PASSED IN APPEAL NO. CAB(A)-V/148/13-14, IN PROCEED INGS U/S.271C OF THE INCOME TAX ACT, 1961, HEREAFTER TH E ACT. ITA NO.2160/AHD/2014 (ANUPAM INDUSTRIES LTD. VS. AD DL. CIT) A.Y. 2008-09 - 2 - 2. THE ASSESSEES SOLE SUBSTANTIVE GROUND CHALLENGE S THE LOWER APPELLATE ORDER PARTLY UPHOLDING SECTION 271C PENAL TY FROM RS.2,19,650/- TO THAT OF RS.1,43,596/-. FACTS OF T HE CASE ARE IN A NARROW COMPASS. THE ASSESSEE MADE PAYMENTS TO INDI VIDUALS, HUF ETC. U/S.94C OF THE ACT WITHOUT CALCULATING SUR -CHARGE ON THE TAX RELEVANT TO THE IMPUGNED ASSESSMENT YEAR. THIS RESULTING IN SHORT DEDUCTION IN QUESTION OF RS.2,19,650/-. T HE ASSESSING OFFICER IN ORDER DATED 25.09.2012 IMPOSED THE IMPUG NED PENALTY OF RS.2,19,650/- BEING THE AMOUNT EQUAL TO THE AMOU NT OF SHORT DEDUCTION IN CALCULATED SUR-CHARGE APPLICABLE FOR F .Y. 2007-08. 3. THE ASSESSEE PREFERRED APPEAL. THE CIT(A) UPHOL DS THE ASSESSING OFFICERS ACTION TO THE EXTENT OF ACTUAL SHORT DEDUCTION OF TAX AT RS.1,43,596/- THEREBY GRANTING RELIEF OF RS.76,054/- REPRESENTING INTEREST CHARGEABLE U/S.201 (1A) OF TH E ACT. 4. WE HAVE HEARD BOTH THE PARTIES. THE ASSESSEE RE FERS TO SECTION 194C (1)(I) & (II) PRESCRIBING THE DEDUCTIO N IN QUESTION @ 1% IN CASE OF PAYMENT BEING MADE OR CREDIT BEING GI VEN TO AN INDIVIDUAL OR AN HUF AND @ 2% IN CASE OF THAT BEING MADE OR CREDIT BEING GIVEN TO A PERSON OTHER THAN AN INDIVI DUAL OR AN HUF. IT SUBMITS THAT THE ASSESSEE HAD DULY DEDUCTE D TDS BY FOLLOWING THESE RATES AS PER APPROPRIATE CASES AND DID NOT CALCULATE THE RELEVANT SUR-CHARGE IN CALCULATING TH E SAME. THE ASSESSEE ACCORDINGLY ARGUES THAT ITS EXPLANATION RI GHT FROM DAY ONE REPRESENTS REASONABLE CAUSE FOR NOT LEVYING THE IMPUGNED PENALTY U/S.271C OF THE ACT. THE REVENUE STRONGLY SUPPORTS THE IMPUGNED PENALTY UNDER CHALLENGE. WE HAVE GIVEN OU R THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS. THE RE IS NO DISPUTE ITA NO.2160/AHD/2014 (ANUPAM INDUSTRIES LTD. VS. AD DL. CIT) A.Y. 2008-09 - 3 - ABOUT THE FACT OF ASSESSEE HAVING DEDUCTED TDS AT T HE ABOVE STATED PRESCRIBED RATE U/S.194C. IT DID NOT CALCUL ATE SUR-CHARGE THERE UPON. WE ARE OF THE OPINION IN THESE FACTS T HAT THE ASSESSEE HAS BEEN ABLE TO TENDER REASONABLE CAUSE F OR NOT LEVYING THE IMPUGNED PENALTY ARISING FROM ALLEGED SHORT DED UCTION OF TDS. WE ACCORDINGLY ACCEPT ASSESSEES ARGUMENTS AN D DELETE THE IMPUGNED PENALTY. 5. THIS ASSESSEES APPEAL IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON THIS THE 21 ST DAY OF OCTOBER, 2015. SD/- SD/- (ANIL CHATURVEDI) (S. S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD: DATED 21/10/2015 TRUE COPY S.K.SINHA / COPY OF ORDER FORWARDED TO:- / REVENUE 2 / ASSESSEE ! / CONCERNED CIT 4 !- / CIT (A) ( )* + ,--. . /0 / DR, ITAT, AHMEDABAD 1 + 23 4 5 / GUARD FILE. BY ORDER / . // . /0