Sri Parashuram D , Bangalore V. Income TAx Officer Ward-3 , Shimoga

ITA 2202/BANG/2017

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6928 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-04-2019
• Assessment Year: 2009-2010
• Appeal Filed On: 17-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIMAL ANAND
• Keywords: Revision of order; Set aside
• Section: 40A(3); 143(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI B.R BASKARAN, ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.2202/BANG/2017 ASSESSMENT YEAR : 2009-10 SHRI PARASHURAM D, CONTRACTOR, GARAGE CAMP, B.R PROJECT, BHADRAVATHI TALUK. PAN AEVPD 4239 G. VS. THE INCOME-TAX OFFICER, WARD-3, SHIMOGA. APPELLANT RESPONDENT ASSESSEE BY : SHRI NARENDRA SHARMA, ADVOCATE REVENUE BY : SHRI VIMAL ANAND, ADDL CIT DATE OF HEARING : 02.05.2019 DATE OF PRONOUNCEMENT : .05.2019 O R D E R PER B.R BASKARAN, ACCOUNTANT MEMBER : THE APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINS T THE ORDER DATED 08-05-2017 PASSED BY LD CIT(A), DAVANGERE AND IT RE LATES TO THE ASSESSMENT YEAR 2009-10. THE ASSESSEE IS AGGRIEVED BY THE DECISION RENDERED BY LD CIT(A) CONFIRMING THE ADDIT ION MADE BY THE AO U/S 40A(3) OF THE ACT. 2. WE HEARD THE PARTIES AND PERUSED THE RECORD. THE ASSESSEE IS A PWD CONTRACTOR. THE ORIGINAL ASSESSMENT WAS COMP LETED U/S ITA NO.2202/BANG/2017 PAGE 2 OF 5 143(3) OF THE ACT FOR THE YEAR UNDER CONSIDERATION ON 26.12.2011. SUBSEQUENTLY, THE LD CIT REVISED THE ASSESSMENT ORD ER U/S 263 OF THE ACT FOR EXAMINING THE ISSUE OF DISALLOWANCE U/S 40A(3) OF THE ACT. CONSEQUENT THERETO, THE PRESENT ASSESSMENT ORD ER WAS PASSED BY THE AO ON 05-05-2014. IN THE INSTANT ASSESSMENT , THE AO DISALLOWED A SUM OF RS.8,23,200/- U/S 40A(3) OF THE ACT, SINCE THE ASSESSEE DID NOT RESPOND TO THE NOTICES ISSUED BY A O. 3. BEFORE LD CIT(A), THE ASSESSEE CONTENDED THAT THE PAYMENTS WERE MADE IN CASH TO THE AGENTS OF THE ASSESSEE, WH O IN TURN, HAS DISBURSED THE SAME TO VARIOUS PERSONS TOWARDS WAGES /SALARIES, PURCHASE OF MATERIALS ETC. IT WAS SUBMITTED THAT T HOSE EXPENSES DID NOT EXCEED THE THRESHOLD LIMIT OF RS.20,000/- A ND ACCORDINGLY CONTENDED THAT THE DISALLOWANCE U/S 40A(3) IS NOT C ALLED FOR. THE ASSESSEE ALSO FURNISHED AFFIDAVITS IN SUPPORT ITS C ONTENTIONS THAT THE PAYEES HAVE ACTED AS AGENTS ON BEHALF OF THE AS SESSEE. THE LD CIT(A) WAS NOT CONVINCED WITH THE CONTENTIONS OF TH E ASSESSEE AND FURTHER DID NOT ACCEPT THE AFFIDAVITS FILED. ACCOR DINGLY HE CONFIRMED THE DISALLOWANCE MADE U/S 40A(3) OF THE ACT. AGGRI EVED, THE ASSESSEE HAS FILED THIS APPEAL. 4. WE NOTICE THAT THE ASSESSEE HAS CLAIMED TH AT THE PAYMENTS HAVE BEEN MADE TO ITS AGENTS FOR ONWARD DISBURSEMEN T TOWARDS VARIOUS EXPENSES. WE ALSO NOTICE THAT THE ASSESSEE HAS FURNISHED AFFIDAVITS TO SUPPORT ITS CONTENTIONS. WE ALSO NOT ICE THAT THE ASSESSEE HAS FURNISHED THE DETAILS OF DISBURSEMENTS MADE BY EACH OF THE AGENTS. ACCORDINGLY WE ARE OF THE VIEW THAT THE AFFIDAVITS FURNISHED BY THE AGENTS ARE SUPPORTED BY THE ACCOUN TS AND ITA NO.2202/BANG/2017 PAGE 3 OF 5 EXPENSES INCURRED BY THE ASSESSEE. ACCORDINGLY WE ARE OF THE VIEW THAT THE LD CIT(A) WAS NOT JUSTIFIED IN REJECTING T HE CONTENTIONS OF THE ASSESSEE. 5. SINCE THE CLAIM OF THE ASSESSEE REQUIRES EXA MINATION OF EXPENSES AND VOUCHES, WE ARE OF THE VIEW THAT THIS ISSUE NEEDS TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER. ACCORDINGLY WE SET ASIDE THE ORDER PASSED BY LD CIT(A) AND RESTORE THE IMPUGNED ISSUE TO THE FILE OF THE ASSESSING OFFICER FOR EXAMINING THE SAME AFRESH. WE ALSO DIRECT THE ASSESSEE TO FULLY CO-OPERATE WIT H THE ASSESSING OFFICER FOR EXPEDITIOUS COMPLETION OF ASSESSMENT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND MAY, 2019. SD/ - (PAVAN KUMAR GADALE) JUDICIAL MEMBER SD/ - (B.R BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED, 2 ND MAY, 2019. / VMS / ITA NO.2202/BANG/2017 PAGE 4 OF 5 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3 . THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER A SST. REGISTRAR, ITAT, BANGALORE. ITA NO.2202/BANG/2017 PAGE 5 OF 5 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. ..