Mr. L. Rajesh Kanna, CHENNAI V. ITO, CHENNAI

ITA 2474/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8191 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 26-08-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: TDS
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 40(a)(ia)

Judgement Text

, A/SMC , IN THE INCOME TAX APPELLATE TRIBUNAL A/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./I.T.A.NO.2474/MDS/2016 ( / ASSESSMENT YEAR :2008-09) MR. L. RAJESH KANNA, NO.47/16, MAMBALAM HIGH ROAD, T. NAGAR, CHENNAI-600 017. VS. THE INCOME TAX OFFICER, BUSINESS II(3), CHENNAI-600 034. PAN:AEFPR6243B ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : NONE / RESPONDENT BY : MR. SHIVA SRINIVAS , JCIT ! ' #$ / DATE OF HEARING : 30 . 11 .201 6 %& #$ /DATE OF PRONOUNCEMENT : 09 . 0 1 .201 7 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-2, CHENNA I, DATED 29.07.2016 IN ITA NO.8/CIT(A)-2/2012-13. ITA NO.2474/MDS/2016 :-2-: 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS WITH REGA RD TO SUSTENANCE OF ADDITIONAL TAX TO THE TUNE OF ` 6,18,705/-. 3. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSE E IS A CIVIL CONTRACTOR. THE ASSESSEE FILED RETURN OF INCOME ON 06.10.2008 AND ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT WITH INCOME OF ` 2,34,184/-. DURING THE COURSE OF A.G AUDIT, IT WAS POINTED OUT THAT THE LABOUR CHARGES WAS DEBITED TO THE EXTENT OF ` 26,45,354/- WAS DEBITED AND ALSO NOTED THAT NO TDS U/S.194C OF THE ACT WAS DEDUCTED IN RESPECT OF LABOUR PAYMENTS MADE EXCEEDI NG ` 50,000/-. THE ASSESSEE WAS SERVED WITH A SHOW CAUSE NOTICE U/ S.154 OF THEACT AND A REVISION OF ASSESSMENT U/S.154 WAS PASSED TH EREBY DISALLOWING THE PAYMENT MADE TO THE SUB CONTRACTOR U/S.40(A)(IA) TO THE TUNE OF ` 26,37,848/-. AGGRIEVED WITH THE REVISION ORDER, TH E ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A). ON APPEAL, THE CIT(A) CONFIRMED THE DISALLOWANCE MADE BY THE AO. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. I HAVE HEARD THE LD.D.R AND PERUSED THE MATERI AL ON RECORD. THE ASSESSMENT WAS COMPLETED IN THIS CASE U/S.143( 3) OF THE ACT ON ITA NO.2474/MDS/2016 :-3-: 30.12.2010. THE AO WANTED TO IMPLEMENT THE AUDIT OB JECTION WITH REGARD TO NON-DEDUCTION OF TDS BY INVOKING THE PROV ISIONS OF THE SECTION 40(A)(IA) OF THE ACT. IN OUR OPINION, WHET HER THE AMOUNT PAID AS LABOUR CHARGES WAS LIABLE FOR DEDUCTION OF TDS U/S.194C OF THE ACT OR NOT, IS DEBATABLE ISSUE THAT ISSUE CANN OT BE DEALT U/S.154 OF THE ACT. ACCORDINGLY, WE ARE OF THE OPINION THA T LOWER AUTHORITIES COMMITTED AN ERROR IN INVOKING THE PROVISIONS OF TH E SECTION 40(A)(IA) OF THE ACT WHILE REVISING THE ASSESSMENT ORDER U/S .154 OF THE ACT. ACCORDINGLY, I ANNUL THE ORDER OF LOWER AUTHORITIES . 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH JANUARY , 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 09 TH JANUARY , 2017. K S SUNDARAM. ' #)* +*# / COPY TO: 1 . / APPELLANT 3. ! ,# () / CIT(A) 5. */0 #1 / DR 2. / RESPONDENT 4. ! ,# / CIT 6. 02 3' / GF