T.E.Abinesh, CHENNAI V. ACIT Non Corporate Ward 8(1), CHENNAI

ITA 2561/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1640 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 03-09-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R ANITAJCIT
• Assessee Lawyers: S R RAAMAN
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH: CHENNAI , !'# !. , & ' BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER # ./ ITA NOS.2560 & 2561/CHNY/2018 '( /ASSESSMENT YEARS: 2013-14 & 2014-15 SHRI T.E. ABINESH ABI & ABI GROUP OF COMPANIES, INSTITUTION AND MEDIA, UNIT NO:382, 10 TH FLOOR, SEETHAKKATHI BUSINESS CENTRE, ANNA SALAI, THOUSAND LIGHTS, CHENNAI 600 006. [PAN: BBEPA 7824A] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE WARD-8(1), CHENNAI 600 034 ( /APPELLANT) ( )*+ /RESPONDENT) + , - / APPELLANT BY : MR. S.R. RAAMAN, C.A. )*+ , - /RESPONDENT BY : MS. R. ANITA, JCIT . ' , /& /DATE OF HEARING : 02.12.2019 01( , /& / DATE OF PRONOUNCEMENT : 02.12.2019 2 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THESE ARE TWO APPEALS FILED BY THE ASSESSEE AGAINST THE CONSOLIDATED ORDERS OF THE LEARNED COMMISSIONER OF INCOME TAX (A PPEALS)-9, CHENNAI IN ITA NO.2560 & 2561/CHNY/2018 :- 2 -: ITA NOS.98 & 93/CIT(A)-9/2016-17 DATED 27.06.2018 F OR THE ASSESSMENT YEARS 2013-14 & 2014-15. 2. SHRI MR. S.R. RAAMAN, CHARTERED ACCOUNTANT REPRE SENTED ON BEHALF OF THE ASSESSEE AND MS. R. ANITA, JCIT REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LEARNED AUTHORIZED REPRE SENTATIVE THAT THE ASSESSEE IS AN INDIVIDUAL WHO IS IN THE BUSINESS OF HIRING OF VEHICLES, DEALING IN WHOLESALE TRADING OF SOFT DRINKS AND ALSO DOING FIN ANCE BUSINESS. THE AUTHORIZED REPRESENTATIVE ALSO SUBMITS THAT THE ASS ESSEE IS ALSO INVOLVED IN FILM PRODUCTION. IT WAS A SUBMISSION THAT THE ASSE SSEE HAD MADE INTEREST PAYMENTS TO VARIOUS NBFCS BEING TATA FINANCE, L&T F INANCE, KOTAK MAHINDRA FINANCE, ETC. AS THE ASSESSEE HAD FAILED TO DEDUCT TDS REQUIRED U/S.194A, THE ASSESSING OFFICER HAD DISALLOWED THE INTEREST PAYME NTS BY APPLYING TO THE PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME TAX A CT, 1961. IT WAS A SUBMISSION THAT THE ASSESSEE WAS IN THE PROCESS OF OBTAINING A CERTIFICATE FROM THE CHARTERED ACCOUNTANTS OF THE PERSONS TO WHOM TH E INTEREST HAS BEEN PAID TO SUBMIT THAT THE RECIPIENTS HAD OFFERED THE INTER EST INCOME TO TAX. IT WAS A SUBMISSION THAT ALL THE CERTIFICATES HAVE NOT BEEN OBTAINED. HOWEVER, IT WAS FURTHER A SUBMISSION THAT THE ISSUE MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION IN LINE WITH THE DECISI ON OF THE HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGES P. LTD., REPORTED IN 293 ITR 226 (SC) AND ALSO TO THE DECISION OF THE HONBL E DELHI HIGH COURT IN THE ITA NO.2560 & 2561/CHNY/2018 :- 3 -: CASE OF THE COMMISSIONER OF INCOME TAX VS. ANSAL LA ND MARK TOWNSHIP (P) LIMITED REPORTED IN [2015] 377 ITR 635 (DELHI). 4. IN REPLY, THE LEARNED DEPARTMENTAL REPRESENTATIV E SUPPORTED THE ORDER OF THE LEARNED ASSESSING OFFICER AND THE LEARNED CI T(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSION AND PERU SED THE MATERIALS AVAILABLE ON RECORD. 6. IN VIEW OF THE DECISION OF THE HONBLE SUPREME C OURT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGES P. LTD., REFERRED SUP RA AND ALSO THE DECISION OF THE HONBLE DELHI HIGH COURT IN THE CASE OF THE COMMISSIONER OF INCOME TAX VS. ANSAL LAND MARK TOWNSHIP (P) LIMITED AND TH E DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF S.A.A. ISP AHANI TRUST, TAX CASE APPEAL NO.179 & 180OF 2009 DATED 04.10.2010, WHEREI N IT HAS BEEN HELD THAT THE RECOVERY COULD NOT BE MADE ONCE AGAIN FROM THE ASSESSEE WHEN THE PAYEE HAS INCLUDED THE INCOME ON WHICH TAX WAS ALLE GEDLY TO HAVE BEEN DEDUCTED. THIS BEING SO, IN THE INTEREST OF NATURA L JUSTICE, THE ISSUE IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDIC ATION AND TO GRANT THE ASSESSEE ADEQUATE OPPORTUNITY TO PRODUCE EVIDENCE T O SHOW THAT THE RECIPIENTS HAVE OFFERED THE SAID INTEREST INTO TAX. 7. IN THE CIRCUMSTANCES, THE ISSUE IS RESTORED TO T HE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATION IN LINE WITH THE DECISI ON OF THE HONBLE SUPREME COURT IN THE CASE OF HINDUSTAN COCA COLA BEVERAGES P. LTD., REFERRED TO SUPRA ITA NO.2560 & 2561/CHNY/2018 :- 4 -: AND AFTER GRANTING ADEQUATE OPPORTUNITY TO THE ASSE SSEE TO SUBSTANTIATE ITS CLAIM. 8. IN GROUND NO.5 OF THE ASSESSEES APPEAL, THE ASS ESSEE HAS CHALLENGED THE ACTION OF THE LEARNED CIT(A) IN CONFIRMING THE ADDITION ON ACCOUNT OF THE TRAVELLING EXPENSES AND CASH DEPOSITS. THE ASSESSE E HAS BEEN UNABLE TO PRODUCE ANY EVIDENCE TO SUBSTANTIATE THE SAID GROUN D. THE PERUSAL OF THE ORDER OF THE LEARNED CIT(A) SHOWS THAT THOUGH SUBST ANTIAL OPPORTUNITY HAS BEEN GRANTED TO THE ASSESSEE, NO EVIDENCE HAS BEEN PRODUCED BEFORE HIM ALSO. BEFORE THE ASSESSING OFFICER ALSO NO EVIDENC E HAS BEEN PRODUCED. 9. THIS BEING SO, IN THE ABSENCE OF ANY EVIDENCE BE ING PRODUCED, THE FINDINGS OF THE LEARNED CIT(A) AND THAT OF THE ASSE SSING OFFICER IN RESPECT OF THE ADDITIONS REPRESENTING THE TRAVEL EXPENSES AND THE CASH DEPOSITS STANDS CONFIRMED. 10. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DECEMBER, 2019 IN CHENNAI. SD/- ( ! . ) ( S. JAYARAMAN ) & /ACCOUNTANT MEMBER /CHENNAI, 3# /DATED: 2 ND DECEMBER, 2019 . IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ITA NO.2560 & 2561/CHNY/2018 :- 5 -: 2 , )/89 :9(/ /COPY TO: 1. + /APPELLANT 2. )*+ /RESPONDENT 3. . ;/ ( )/CIT(A) 4. . ;/ /CIT 5. 9'<= )/ /DR 6. = > /GF