Santhoshchand Chopra, Bangalore V. Income Tax Officer, Ward-1 (3), Belgaum., Belgaum

ITA 246/PAN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93460 (ITAT-PANAJI)
• Duration Of Justice: 10 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-06-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 28-07-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEHBOOB ALI KHAN
• Assessee Lawyers: V K GURUNATHAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH, PANAJI BEFORE SHRI GEORGE MATHAN , HONBLE JUDICIAL MEMBER AND SHRI N.K. BILLAIYA , HONBLE ACCOUNTANT MEMBER ITA NO. 2 46/PNJ/2014 (ASST. YEAR : 200 8 - 0 9 ) SRI SANTHOSHCHAND CHOPRA, PROP. M/S. VANDANA TRADERS, APMC YARD, SAUNDATTI, DISTRICT BELGAUM. VS. ITO , WARD - 1(3), BELGAUM . PAN NO. ACHPC 6826 H (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.K. GURUNATHAN - ADV. DEPARTMENT BY : SHRI MEHBOOB ALI KHAN - D.R. DATE OF HEARING : 1 8 / 0 6 /2015 . DATE OF PRONOUNCEMENT : 18/ 0 6 /201 5 . O R D E R PER N.K. BILLAIYA THIS APPEAL BY THE ASSESSEE IS PREFERRED AGAINST THE ORDER OF L D.CIT (A), BELGAUM , DATED 1 0 /0 6 /201 4 PERTAINING TO A.Y. 200 8 - 0 9 . 2. THE SUM AND SUBSTANCE OF THE GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN UPHOLDING THE DISALLOWANCE OF RS. 21,40,918/ - U/S.40(A)(IA) OF THE ACT. 2 ITA NO. 246 /PNJ/2014 3. ASSESSEE IS A TRADER IN COTTON AND COTTON SEEDS AT APMC, SOUNDATTI . WHILE SCRUTINIZING THE RETURN OF INCOME, ASSESSING OFFICER NOTICED TH A T THE ASSESSEE HAS PAID INTEREST WITHOUT DEDUCTING THE TAX AT SOURCE , SUCH INTEREST HAS BEEN PAID TO 29 PARTIES AS EXHIBITED AT PAGES 2 & 3 OF THE ASSESSMENT ORDER. THE ASSESSEE WAS ASKED TO JUSTIFY ITS STAND. THE ASS ESSEE CLAIMED TH A T IT HAS OBTAINED FORM NO. 15G FROM THE DEPOSITORS . THE ASSESSING OFFICER RUBBISHED T H E CLAIM OF THE ASSESSEE AND OBSERVED THAT THE ASSESSEE NEVER FURNISHED THE SAID F ORM NO. 15G TO THE OFFICE OF THE CHIEF COMMISSIONER OF INCOME - TAX, PANAJI, INVOKING THE PROVISIONS OF SEC. 40()(IA) OF THE ACT, THE ASSESSING OFFICER MADE THE DISALLOWANCE OF RS. 21,40,918/ - . AGGRIEVED BY THIS, THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) , BUT WITHOUT ANY SUCCES S. 4 . BEFORE US, COUNSEL FOR THE ASSESSEE FOR THE FIRST TIME STATED THAT THE INTEREST HAS BEEN PAID DURING THE YEAR UNDER CONSIDERATION AND NO AMOUNT IS PAYABLE ON THE LAST DAY OF THE ACCOUNTING YEAR. THEREFORE, THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VECTOR SHIPPING SERVICES (P) LTD. REPORTED IN 38 TAXMANN.COM 77 (ALL.) SQUARELY APPLY ON THE FACTS OF THE CASE. 3 ITA NO. 246 /PNJ/2014 COUNSEL FURTHER STATED THAT THE SLP AGAINST THE SAID DECISION OF THE HONBLE ALLAHABAD HIGH COURT BY THE REVENUE HAS BEEN DISMISSED BY THE HONBLE SUPREME COURT IN C.C.NO. 8068/2014 . 5. PER CONTRA , LEARNED DR COULD NOT BRING ANY DISTINGUISH ING DECISION IN FAVOUR OF THE REVENUE . 6. HAVING HEARD RIVAL CONTENTIONS. WE HAVE CAREFULLY PERUSED THE ORDERS OF THE AUTHORITIES BELOW. WE FIND THAT THE ISSUE RAISED BY THE COUNSE L HAS BEEN RAISED FOR THE FIRST TIME AND THERE IS NO ADJUDICATION ON THE DATES OF PAYMENTS DURING THE YEAR UNDER CON SIDERATION . THEREFORE, IN THE INTEREST OF JUSTICE AND FAIR PLAY, WE RESTORE THE ISSUE TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSEE IS DIRECTED TO DEMONSTRATE THAT ALL THE INTEREST HAVE BEEN PAID DURING THE YEAR UNDER CONSIDERATION ITSELF AND NO AMO UNT IS FOUND PAYABLE ON THE LAST DAY OF THE ACCOUNTING YEAR. THE ASSESSING OFFICER IS DIRECTED TO VERIFY THIS CLAIM OF THE ASSESSEE AND IF FOUND CORRECT, NO DISALLOWANCE IS TO BE MADE. IN ALTERNATIVE, ONLY THOSE INTEREST WHICH ARE FOUND PAYABLE ON THE LA ST DAY OF THE ACCOUNTING YEAR, DISALLOWANCE SHOULD BE MADE ONLY TO THAT EXTENT. 4 ITA NO. 246 /PNJ/2014 7. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ( ORDER PRONOUNCED IN THE OPEN COURT ON 1 8 TH JUNE , 201 5 ). ( GEORGE MATHAN ) ( N.K. BILLA I YA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 1 9 T H JUNE , 201 5 . VR/ - COPY TO: 1 . THE APPELLANT 2 . THE RESPONDENT 3 . THE LD. CIT 4 . THE CIT(A) 5 . THE D.R 6 . GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., PANAJI 5 ITA NO. 246 /PNJ/2014 DATE INITIAL ORIGINAL DICTATION PAD IS ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 1 8 .06.2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 1 8 .06.2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 1 8 /06/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 1 8 /06/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 1 9 /06/2015 SR.PS 6. DATE OF PRONOUNCEMENT 1 8 /06/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 19 /06/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER