A.C.I.T Cir - 1, Durgapur, Durgapur V. Abdul Mannan, Durgapur

ITA 2195/KOL/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4542 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-07-2016
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 25-05-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 02-08-2013
• Court: TRIBUNAL
• Assessee Lawyers: MAHEN; LALIT KUMAR AGARWALLA

Judgement Text

I.T.A. NO. 2195/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA A BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A. NO. 2195/KOL/ 2013 ASSESSMENT YEAR: 2006-2007 ASSISTANT COMMISSIONER OF INCOME TAX,.............. ................APPELLANT CIRCLE-1, DURGAPUR, AAYAKAR BHAWAN, CITY CENTRE, DURGAPUR-713 216 -VS.- ABDUL MANNAN,...................................... ..............................RESPONDENT PROP. MANNAN TRADERS, NAIM NAGAR, G.T. ROAD, DURGAPUR-713 203 [PAN : AKFPM 9583 K] APPEARANCES BY: SHRI SALLONG YADEN, ADDL. CIT, SR. D.R., FOR THE DEPARTMENT SHRI LALIT KUMAR AGARWALLA, FCA & SHRI MAHENDRA KUM AR SHAW, FCA, FOR THE ASSESSEE DATE OF CONCLUDING THE HEARING : MAY 25, 2016 DATE OF PRONOUNCING THE ORDER : JULY 8, 2016 O R D E R PER SHRI P.M. JAGTAP :- THIS APPEAL IS PREFERRED BY THE REVENUE AGAINST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), DURGAPUR DATE D 13.05.2013 AND THE SOLITARY ISSUE INVOLVED THEREIN RELATES TO THE DELETION BY THE LD. CIT(APPEALS) OF THE ADDITION OF RS.52,68,286/- MADE BY THE ASSESSING OFFICER BY WAY OF DISALLOWANCE UNDER SECTION 40(A)( IA) OF THE INCOME TAX ACT, 1961. 2. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L, WHO IS ENGAGED IN THE BUSINESS AS A CIVIL CONTRACTOR UNDER THE NAME A ND STYLE OF HIS PROPRIETARY CONCERN M/S. MANNAN TRADERS. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY HIM ON 31.10. 2006 DECLARING TOTAL INCOME OF RS.11,84,740/-. DURING THE COURSE OF ASSE SSMENT PROCEEDINGS, IT I.T.A. NO. 2195/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 2 OF 3 WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSES SEE HAS DEDUCTED TAX AT SOURCE FROM THE PAYMENTS MADE TO THE SUB-CONTRACTOR S DURING THE PERIOD FROM 01.04.2005 TO 28.02.2006 AGGREGATING TO RS.52, 68,286/-, BUT THE TAX SO DEDUCTED WAS PAID IN THE GOVERNMENT ACCOUNT ONLY ON 21.09.2006. HE, THEREFORE, INVOKED THE PROVISIONS OF SECTION 40(A)( IA) AND MADE A DISALLOWANCE OF RS.52,68,286/- SINCE THERE WAS FAIL URE OF THE ASSESSEE TO PAY TAX DEDUCTED AT SOURCE DURING PERIOD FROM 01.04 .2005 TO 28.02.2006 BY 31.03.2006. 3. ON APPEAL, THE LD. CIT(APPEALS) DELETED THE SAID DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(IA) BY RELYING ON THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS.- VIRGIN CREATIONS (ITAT NO. 302 OF 2011 DATED 23.11.2011), WHEREIN IT WAS HELD THAT THE AMENDMENT MADE TO SECTION 40(A)(IA) BY THE FINANCE ACT, 2010 ALLOWING THE PAYMENT OF TDS BY THE DUE DATE OF FILI NG OF RETURN FOR THE RELEVANT YEAR HAS RETROSPECTIVE APPLICATION. AGGRIE VED BY THE ORDER OF THE LD. CIT(APPEALS), THE REVENUE HAS PREFERRED THIS AP PEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS AGREED BY THE LD. REPRESENTATIVES OF BOTH THE SIDES, THE ISSUE INVOLV ED IN THIS APPEAL OF THE REVENUE IS SQUARELY COVERED IN FAVOUR OF THE ASSESS EE BY THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF VIRG IN CREATIONS (SUPRA), WHEREIN IT WAS HELD THAT THE AMENDMENT MADE BY THE FINANCE ACT, 2010 IN THE PROVISIONS OF SECTION 40(A)(A) ALLOWING PAYMENT OF TDS BY THE DUE DATE OF FILING OF RETURN FOR THE RELEVANT YEAR HAS RETROSPECTIVE APPLICATION. IN THE PRESENT CASE, THE TAX DEDUCTED AT SOURCE FRO M THE PAYMENTS MADE TO THE SUB-CONTRACTORS DURING THE PERIOD FROM 01.04 .2005 TO 28.02.2006 WAS PAID BY THE ASSESSEE IN THE GOVERNMENT ACCOUNT ON 21.09.2006, I.E. BEFORE THE DUE DATE OF FILING OF RETURN FOR THE YEA R UNDER CONSIDERATION AND THIS BEING THE UNDISPUTED POSITION, WE FIND NO INFIRMITY IN THE IMPUGNED ORDER OF LD. CIT(APPEALS) DELETING THE DIS ALLOWANCE MADE BY I.T.A. NO. 2195/KOL./2013 ASSESSMENT YEAR: 2006-2007 PAGE 3 OF 3 THE ASSESSING OFFICER UNDER SECTION 40(A)(IA) BY FO LLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE O F VIRGIN CREATIONS (SUPRA). THE SAME IS, THEREFORE, UPHELD AND THIS AP PEAL OF THE REVENUE IS DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 8, 2016. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 8 TH DAY OF JULY, 2016 COPIES TO : (1) ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-1, DURGAPUR, AAYAKAR BHAWAN, CITY CENTRE, DURGAPUR-713 216 (2) SHRI ABDUL MANNAN, PROP. MANNAN TRADERS, NAIM NAGAR, G.T. ROAD, DURGAPUR-713 203 (3) COMMISSIONER OF INCOME-TAX (APPEALS), DURGAPUR (4) COMMISSIONER OF INCOME TAX, KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.