DCIT, CHENNAI V. M/s. RMP Infotech (P) Ltd., CHENNAI

ITA 2689/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7525 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-03-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 16-09-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Section: 143(3); 142(1); 148; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , A B ENCH, CHENNAI . , ! . , % !& BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER, AND SHRI G. PAVAN KUMAR, JUDICIAL MEMBER ./ ITA NO.2689/MDS/2016 / ASSESSMENT YEAR : 2008-09 THE DEPUTY COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI 34 V. M/S. RMP INFOTECH (P) LTD, OLD NO.183, NEW NO.300, 1 ST FLOOR, THAMBU CHETTY STREET, CHENNAI 600 001. PAN: AACCR1462N ( /APPELLANT) ( /RESPONDENT) /APPELLANT BY : SHRI SHIVA SRINIVAS, JCIT /RESPONDENT BY : NONE /DATE OF HEARING : 06.03.2017 /DATE OF PRONOUNCEMENT : 15.03.2017 / O R D E R PER A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE REVENUE AGGRIEVED BY TH E ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) IN ITA NO. 9/2010- 11/CIT(A)-3 DATED 29.06.2016 PASSED U/S. 250(6) R.W .S. 143(3) OF THE ACT. 2. THE REVENUE HAS RAISED SEVERAL GROUNDS, HOWEVER THE CRUX OF THE ISSUE IS THAT THE LD. CIT(A) HAS ERRED IN DE LETING THE ADDITION MADE BY THE LD. AO OF RS.3,59,47,376/- INVOKING THE PROVISIONS OF 2 I.T.A. NO.2689/MDS/2016 SECTION 40(A)(IA) OF THE ACT DUE TO NON-DEDUCTION O F TAX AT SOURCE TOWARDS COURIER CHARGES PAID. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A PRIVATE LIMITED COMPANY ENGAGED IN MULTI-LEVEL MARKETING OF GOODS AND SERVICES FILED ITS RETURN ON 07.01.2010 ELECTRONICA LLY IN RESPONSE TO NOTICE U/S. 142(1) AND NOTICE U/S. 148 ALONG WITH N OTICE U/S. 271(1)(B) OF THE ACT. SUBSEQUENTLY THE ASSESSMENT WAS FINALIZED U/S.143(3) OF THE ACT ON 30.12.2010 WHEREIN THE LD. AO MADE ADDITIONS ON ACCOUNT OF THREE COUNTS AMONGST WHICH ONE OF THE ADDITION WAS MADE FOR RS.3,59,47,376/- INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT FOR NON-DEDUCTION OF T AX AT SOURCE AGAINST PAYMENT FOR COURIER CHARGES. ON APPEAL THE LD. CIT(A) DELETED THE ADDITION. 4. AT THE OUTSET, THE LD. DR SUBMITTED BEFORE US TH AT THE LD. CIT(A) HAD DELETED THE ADDITION BASED ON FRESH EVID ENCE WITHOUT OBTAINING A REMAND REPORT FROM THE LD. AO. IT WAS THEREFORE REQUESTED THAT THE MATTER MAY BE REMITTED BACK TO T HE FILE OF LD. AO FOR FRESH CONSIDERATION IN THE LIGHT OF THE EVIDENC E FILED BEFORE THE LD. CIT(A). MOREOVER AT THE TIME OF HEARING THE LD. AR FAILED TO APPEAR BEFORE THE BENCH. 3 I.T.A. NO.2689/MDS/2016 5. AFTER HEARING THE LD. DR, WE FIND MERIT IN HIS C ONTENTION. SINCE IT IS EVIDENT THAT FRESH EVIDENCE WAS FILED B EFORE THE LD. CIT(A) BASED ON WHICH THE LD. CIT(A) HAS HELD THE I SSUE IN FAVOUR OF THE ASSESSEE, WE ARE OF THE CONSIDERED VIEW THAT THE LD. AO SHOULD ALSO BE GIVEN AN FAIR OPPORTUNITY TO EXAMINE THE FRESH EVIDENCE PLACED BEFORE THE LD. CIT(A) FOR THE FIRST TIME. THEREFORE IN THE INTEREST OF JUSTICE WE HEREBY REMIT THE MATT ER BACK TO THE FILE OF LD. AO FOR DE-NOVA CONSIDERATION. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 15 TH MARCH, 2017 AT CHENNAI. SD/- SD/- ( . ) )) ) (G. PAVAN KUMAR) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) / ACCOUNTANT MEMBER /CHENNAI, /DATED, THE 15 TH MARCH, 2017. JR. /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT, 5. /DR 6. /GF.