ITO (TDS), Rourkela V. Penguin Trading & Agencies Pvt. Ltd., Keonjhar

ITA 26/CTK/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6178 (ITAT-CUTTACK)
• Duration Of Justice: 1 year(s) 6 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2013-2014
• Appeal Filed On: 19-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS

Judgement Text

P A G E 1 | 5 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO . 26 /CTK/201 8 ASSESSMENT YEAR : 201 3 - 14 INCOME TAX OFFICER (TDS), AAYAKAR BHAVAN, UNIT NAGAR, ROURKELA. VS. M/S. PENGUIN TRADING & AGENCIES LTD., AT: MAA PARVATI ENCLAVE, D BLOCK, 2 ND FLOOR, BARBIL - 758035 PAN/ TAN NO. BBNPO 0362 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI SUBHENDU DUTTA, DR DATE OF HEARING : 31 / 0 7 / 201 9 DATE OF PRONOUNCEMENT : 6 / 0 8 / 201 9 O R D E R PE R L.P.SAHU, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER DATED 31.10.2017 OF THE CIT(A), CUTTACK FOR THE ASSESSMENT YEAR 2013 - 14. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE CIT(A) WAS NOT JUSTIFIED IN DELETING THE DEMAND RAISED U/S.206C(6) OF RS.65,18,020/ - AND INTEREST LEVIED U/S.206C(7) OF RS.2,57,267/ - TOTALING TO RS.67,75,287/ - OF THE I.T.ACT, 1961. 3. THE FACTS IN BRIEF ARE THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MINING OF IRON ORE, EXPORT OF EMBROIDERED FABRICS & OTHER COMMODITIES. A TDS INSPECTION WAS CONDUCTED BY THE ASSESSING OFFICER ON 18.12.2012 IN THE BUSINESS PREMISES OF THE ASSESSEE. DURING THE COURSE OF IN SPECTION, THE ASSESSING OFFICER FOUND THAT NO TAX HAD BEEN COLLECTED AT SOURCE AS PER THE PROVISIONS OF SECTION 206C(1) ON THE ITA NO.26/CTK/2018 ASSESSMENT YEAR : 2013 - 14 P A G E 2 | 5 SALE OF IRON ORE FROM JULY, 2012 TO NOVEMBER, 2012. HOWEVER, DURING THE ABOVE SALE OF IRON ORE WAS EFFECTED OF RS.64,68,89,039/ - AND, THEREFORE, TCS TO BE COLLECTED @ 1% AMOUNTED TO RS.64,68,890/ - AND THE ASSESSEE HAS DEPOSITED TCS ONLY RS.1,79,694/ - . IN VIEW OF ABOVE, THERE WAS SHORTFALL IN TCS OF RS.62,89,196/ - . BEFORE THE AO, IT WAS SUBMITTED THAT THE BUYERS HAD SUBMITTED DECLA RATION FORM NO.27C FOR NON - COLLECTION OF TCS AND, THEREFORE, NO TCS WAS COLLECTED. THE AO FOUND THAT THE 15 NUMBER OF DECLARATION FORMS SUBMITTED AT THE TIME OF INSPECTION DID NOT BEAR ANY DATE AND THE PART - II OF THE SAME HAD NOT BEEN FILLED IN AND SIGN ED. THE AO ALSO NOTED THAT COPIES OF THE DECLARATION FORMS HAD NOT BEEN DELIVERED TO THE CCIT/CIT AS PER THE PROVISIONS OF SECTION 206C(1B) OF THE ACT. ACCORDINGLY, THE AO ISSUED A SHOW CAUSE NOTICE INITIALLY IN RESPONSE TO WHICH THE ASSESSEE SUBMITTED IN WRITING THAT IT HAD NOT COLLECTED TCS FROM THE PARTIES WHO HAD GIVEN 27C FORMS BEING MANUFACTURERS AND THAT ALL THESE FORMS WOULD BE SUBMITTED IF SOME TIME WAS ALLOWED. SUBSEQUENTLY, IN RESPONSE TO THE FINAL SHOW CAUSE NOTICE OF THE AO, THE ASSESSEE SUBMIT TED 76 DECLARATION FORMS IN FORM NO.27C RELATING TO 25 PARTIES ALONG WITH THE DETAILS OF SALES MADE TO THEM. HOWEVER, THE AO DID NOT ACCEPT THOSE DECLARATION FORMS BECAUSE OF CERTAIN DEFECTS FOUND THEREIN AND ALSO FOR THE REASON THAT ALL THOSE DECLARATION FORMS WERE NOT FILED AT THE TIME OF TCS INSPECTION. THE AO ALSO REFUSED TO TAKE THE DECLARATION FORMS INTO CONSIDERATION BECAUSE COPIES OF THE SAME WERE NOT DELIVERED TO THE CCIT/CIT HAVING JURISDICTION OVER THE ASSESSEE AS PER THE PROVISIONS OF SECTION 20 6C(IB) AND WERE SUBMITTED TO THE CIT - 3, KOLKATA ONLY ON 21.1.2013. FINALLY, THE AO RAISED A DEMAND OF RS.65,18,020/ - U/S.206C(6) AND LEVIED INTEREST THEREON OF RS.2,57,267/ - U/S.206C(7).