Shri Manoj Kumar singh, V. ITO WD-2(2), Ranchi

ITA 230/RAN/2016

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9995 (ITAT-RANCHI)
• Duration Of Justice: 4 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 18-07-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• Assessee Lawyers: M K CHOWDHARY

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 230 /RAN/2016 ASSESSMENT YEAR : 2010 - 2011 SRI MANOJ KUMAR SINGH, NEAR RAM JANKI MANDIR, BACHRA, CHATRA, JHARKHAND VS. ITO, WARD 2(2), RANCHI PAN/GIR NO. AZFPS 4932 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI M.K.CHOWDHARY , AR REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 14 /12/ 2016 DATE OF PRONOUNCEMENT : 14 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 25.4.2016 , FOR THE ASSESSMENT YEAR 2010 - 2011 . 2. THE SOLE ISSUE INVOLVED IN THIS IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING ADDITION OF RS.39,58,273/ - U/S.40(A)(IA) OF THE ACT. 2. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED 2 ITA NO. 230/RAN/2016 ASSESSMENT YEAR : 2010 - 2011 THAT THE ASSESSEE HAS MADE PAYMENT FOR TRANSPORTATION CHARGES WITHOUT DEDUCTION OF TDS U/S.194C OF THE ACT TO THE FOLLOWING PERSONS: SR.NO. NAME AMOUNT (RS.) 1. AMNA KHATOON 1,00,679 2. ANIL K VISHWAKARMA 51,442 3. BIPIN K SINGH 93,302 4. BIRJU P MEHTA 84,000 5. KISHORE K SINGH 1,87,500 6. LAL BAPUN YADAV 4,07,475 7. MD SFID ANSARI 2,27,141 8., MD SHAHANAWAZ KHAN 60,912 9. MD SAMER KHAN 1,22,834 10. NAKHWANTI DEVI 1,74,819 11. OM PRAKASH VISHWAKARMA 50,792 12. P ALAM 62,096 13. PAPPU K MISHRA 1,44,090 14. PAWAN KUMAR 60,000 15. RAJ KUMAR 11,91,405 16. RANJEET KUMAR 1,23,944 17. RAVINDRA SINGH 1,15,000 18. SHAILENDRA K SINGH 93,376 19. SURENDRA K SINGH 1,40,308 20. TETAR MAHTO 1,60,759 21. TULSI SHAW 1,62,399 22. UPENDRA K SINGH 1,44,000 TOTAL: 39,58,273 THEREFORE, BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, THE ASSESSING OFFICER DISALLOWED THE DEDUCTION OF RS.39,58,273/ - . 3. ON APPEAL, LD CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER . 4. BEFORE ME, LD A.R. FILED COPY OF THE BALANCE SHEET OF THE ASSESSEE FOR THE YEAR ENDED 31.3.2010 AND POINTED OUT THEREFROM THAT NO PAYMENT 3 ITA NO. 230/RAN/2016 ASSESSMENT YEAR : 2010 - 2011 WAS OUTSTANDING TO THE TRANSPORTERS TO WHOM PAYMENTS OF RS.39,58,273/ - HAS BEEN CLAIMED AS DEDUCTION. HENCE, HE SUBMI TTED THAT IN VIEW OF THE DECISION OF HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL) , NO DISALLOWANCE U/S.40(A)(IA) WAS WARRANTED IN THE CASE OF THE ASSESSEE. HE FURTHER SUBMITTED THAT THE SLP FILED AGAINST THE JUDGMENT OF HONBLE ALLAHABAD HIGH COURT HAS BEEN DISMISSED BY THE HONBLE SUPREME COURT VIDE JUDGMENT DATED 2.7.2014 IN CC NO.(S) 8068/2014. HE SUBMITTED THAT WHERE THERE ARE CONTRARY DECISIONS OF HONBLE HIGH COURTS ON AN ISSUE AND NONE OF WHICH IS HONBLE JURISDICTIONAL HIGH COURT, THEN THE DECISION IN FAVOUR OF THE ASSESSEE SHOULD BE FOLLOWED IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS.VEGETABLE PRODUCTS LTD., 88 ITR 192 (SC). 5 . IN THE FACTS AND CIRCUM STANCES OF THE CASE, I FIND THAT THERE IS NO AMOUNTING OUTSTANDING AND PAYABLE AT THE END OF THE YEAR TO THE TRANSPORTERS . THEREFORE, I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT I N THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD(SUPRA) DELETE THE DISALLOWANCE OF RS. 39,58,273 / - MADE U/S.40(A)(IA) OF THE ACT AND ALLOW THE GROUND OF APPEAL OF THE ASSESSEE. 4 ITA NO. 230/RAN/2016 ASSESSMENT YEAR : 2010 - 2011 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRO N OUNCED IN THE OPEN COURT ON 14 /12/2016 IN THE PRESENCE OF PARTIES. S D / - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 14 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SRI MANOJ KUMAR SINGH, NEAR RAM JANKI MANDIR, BACHRA, CHATRA, JHARKHAND 2. THE RESPONDENT. ITO, WARD 2(2), RANCHI 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//