Mahanadi Coal Field Ltd, Angul V. ACIT(TDS), Bhubaneswar

ITA 250/CTK/2010

• Counselvise Citation: 25022114 RSA 2010
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2011
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 10-08-2011
• Assessment Year: 2008-2009
• Appeal Filed On: 29-06-2010
• Court: TRIBUNAL
• Department Lawyers: PARAMITA TRIPATHY
• Assessee Lawyers: NIRANJAN PANDAAR
• Keywords: Opportunity of being heard

Judgement Text

IN THE INCME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE : SHRI K.K.GUPTA, AM , AND SHRI K.S.S.PRASAD RAO, JM ITA NO. 250/CTK/2010 (ASSESSMENT YEAR 2008 - 09) MAHANADI COAL FIELD LIMITED, JAGANNATH AREA, DERA, ANGUL PAN: AABCM 5188 P VERSUS ASS T.COMMISSONER OF INCOME - TAX, TDS, BHUBANESWAR. (APPELLANT) (RESPONDENT) FOR THE APPELLANT: SHRI NIRANJAN PANDA,AR FOR THE RESPONDENT SMT. PARAMITA TRIPATHY, DR DATE OF HEARING : 10.08.2011 DATE OF PRONOUNCEMENT : 12.08.2011 ORDER SHRI K.K.G UPTA, AM : THE ASSESSEE IS IN APPEAL AGAINST THE ORDER DT.16.2.2010 OF THE COMMISSIONER OF INCOME - TAX (APPEALS) PASSED U/S.154 OF THE INCOME - TAX ACT,1961 FOR THE ASSESSMENT YEAR 2008 - 09. 2. THE BRIEF FACTS ARE THAT DURING THE ASSESSMENT YEAR UNDER CONSIDER ATION THE ASSESSE HAD PAID 9.52 CRORES UNDER THE HEAD LAND COMPENSATION BUT NO TDS U/S.194LA WAS DEDUCTED FROM THE PAYMENT MADE TO THE LAND OWNERS. THEREFORE, THE ACIT(TDS) ISSUED SHOW - CAUSE NOTICE AND AFTER HEARING THE ASSESSEE, HE CAME TO CONCLUDE THAT THE PAYMENT OF COMPENSAT ION TO THE LAND OWNER BY THE ASSESSEE COMES UNDER THE PURVIEW OF TDS U/S.194LA AND ACCORDINGLY HE RAISED DEMAND OF TDS U/S.201(1) AND INTEREST THEREON U/S.201(1A). AGAINST THIS, THE ASSESSEE FILED APPEAL BEFORE THE CIT(A) , WHO WAS OF THE VIEW THAT THE PAYM ENT OF COMPENSATION FOR THE AGRICULTURAL LAND TOTALING TO 2,69,24,713 AND COMPENSATION PAID FOR STANDING TREES AMOUNTING TO 34,06,000 ARE NOT COVERED UNDER THE DEFINITION OF IMMOVABLE PROPERTY AND THEREFORE DOES NOT COME UNDER THE PURVIEW OF SECTION 194LA. ACCORDINGLY, THE LEARNED CIT(A) ALLOWED PARTIAL REL IEF TO THE ASSESSEE VIDE HIS ORDER DT.23.3.2009 HOLDING THAT THE ASSESSEE IS LIABLE TO DEDUCTION OF TDS ON THE AMOUNT OF COMPENSATION PAID OF 4,70,05,713 ITA NO.250/CTK/2010 2 AGAINST THE ENTIRE PAYMENT OF 7,73,36,426 AS HELD BY THE ACIT(TDS) . THEREAFTER THE ASSESSEE FILED A PETITION U/S.154 BEFORE THE LEARNED CIT(A) STATING THAT THERE WAS A MISTAKE APPARENT FROM RECORD IN THE ORDER DT.23.3.2009 INASMUCH AS THE LEARNED CIT(A) HAD INADVERTENTLY NOT ALLOWED THE BASIC EXEMPTION AS PROVIDED U/S.194LA OF 1,00,000 FOR LAND OUSTEE S FROM THE PAYMENT OF COMPENSATION LIABLE FOR TDS. THE LEARNED CIT(A) VIDE HIS ORDER DT.16.02.2010 REJECTED THE SAID PETITION FILED U/S.154 STATING THAT HE DID NOT FIND ANY ERROR IN THE ORDER OF THE CIT(A) ON THE BASIS THAT THE FIGURES WHICH ARE ALLOWABLE ARE CLEARLY MENTIONED IN THAT ORDER. FURTHER, HE OBSERVED THAT FROM THE SAID ORDER, IT WAS NOT CLEAR WHETHER THE AMOUNTS TAKEN ARE BEFORE THE BASIC EXEMPTION OR AFTER THE BASIC EXEMPTION. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE IMPUGNED ORDERS OF THE LEARNED CIT(A) AS WELL AS THE MATERIAL AVAILABLE ON RECORD. THE LEARNED AR OF THE ASSESSEE CONTENDED BEFORE US AMONGST OTHER THINGS THE DETAILED BIFURCATION OF THE COMPENSATION PAID TO INDIVIDU AL LAND OUSTEES WERE SUBMITTED IN THE APPELLATE PROCEEDINGS AS UNDER : ITA NO.250/CTK/2010 3 THE ABOVE DETAILS HAD BEEN DULY VERIFIED BY THE ASSESSING OFFICER AND REPORTED IN HIS REMAND REPORT TO BE FOUND CORRECT. THE LEARNED DR DID NOT DISPUTE THE ABOVE FACT. THE LEARNED AR OF THE ASSESSEE SUBMITTED THAT INADVERTENTLY THE BASIC EXEMPTION LIMIT AS PROVIDED U/S.194LA OF 1,00,000 PER LAND OUSTEES TOTALING TO 83,87,005.47 WAS NOT TAKEN INTO ACCOUNT BY THE LEARNED CIT(A) WHILE HOLDING THE AMOUNT OF 4,70,05,713 TO BE SUBJECTED T O TDS. CONSIDERING THE ABOVE FACTS, WE ARE OF THE CONSIDERED VIEW THAT THE NON - CONSIDERATION OF THE BASIC EXEMPTION SPECIFICALLY MENTIONED IN THE PROVISIONS OF SECTION 194LA INSPITE OF FURNISHING ALL THE REQUIRED PARTICULARS BEFORE THE LEARNED CIT(A) QUANT IFYING THE LAND OUSTEE WISE PAYMENT OF NOT MORE THAN 1,00,000 IN A YEAR, IS A MISTAKE APPARENT ON RECORD QUALIFYING FOR RECTIFICATION U/S.154 AND THEREFORE, THE LEARNED CIT(A) IS NOT JUSTIFIED IN REJECTING THE PETITION OF THE ASSESSEE FILED U/S.154. WE, T HEREFORE, SET ASIDE THE IMPUGNED ORDER DT.16.02.2010 PASSED U/S.154 AND RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION TO ALLOW THE CLAIM OF THE ASSESSEE AFTER VERIFICATION OF ACCOUNTS/RECORDS AFTER GIVING DUE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. S D / - S D/ - (K.S.S.PRASAD RAO) JUDICIAL MEMBER (K.K.GUPTA) ACCOUNTANT MEMBER DATE: 12.08.2011 H.K.PADHEE, SENIOR PRIVATE SECRET ARY. ITA NO.250/CTK/2010 4 COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT: MAHANADI COAL FIELD LIMITED, JAGANNATH AREA, DERA, ANGUL 2. THE RESPONDENT: ASST.COMMISSONER OF INCOME - TAX, TDS, BHUBANESWAR. 3. THE CIT, 4. THE CIT(A), 5. THE DR, CUT TACK 6. GUARD FILE (IN DUPLICATE) TRUE COPY, BY ORDER, SENIOR PRIVATE SECRETARY.