M/s Niranjanlal sarawgi, Purulia V. Income Tax Officer-Ward-3(4), Purulia, Purulia

ITA 2697/KOL/2013

• Counselvise Citation: 269723514 RSA 2013
• Duration Of Justice: 9 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 02-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: BRIJESH KUMAR SINGH

Judgement Text

I.T.A. NO.: 2697/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA SMC BENCH, KOLKATA BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER I.T.A. NO.: 2697/ KOL./ 2013 ASSESSMENT YEAR : 2009-2010 M/S. NIRANJANLAL SARAWGI,.......................... ...........APPELLANT L.M. GHOSH STREET, MUNSIFFDANGA, PURULIA-723 101 [PAN : AAEFN 2559 D] -VS.- INCOME TAX OFFICER,................................ ........RESPONDENT WARD-3(4), PURULIA, SOUTH LAKE ROAD, PURULIA-723 101 APPEARANCES BY: SHRI BRIJESH KUMAR SINGH, ADVOCATE, FOR THE APPELLANT MD. GAYASUDDIN ANSARI, JCIT, SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : AUGUST 22, 2014 DATE OF PRONOUNCING THE ORDER : 02.09.2014 O R D E R PER SHRI MAHAVIR SINGH, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS ARISING OUT O F THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS), ASANSOL IN AP PEAL NO. 302/CIT(A)/ASL/W-3(4)/PUR/11-12 DATED 10.10.2013 FO R THE ASSESSMENT YEAR 2009-10. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGA INST THE ORDER OF LD. CIT(APPEALS) CONFIRMING THE ADDITION OF RS.93,275/- MADE BY THE ASSESSING OFFICER BY DISALLOWING THE PAYMENT OF INT EREST FOR NON- DEDUCTION OF TDS BY INVOKING THE PROVISIONS OF SECT ION 40(A)(IA) OF THE ACT. I.T.A. NO.: 2697/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 2 OF 3 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THRO UGH THE FACTS AND CIRCUMSTANCES OF THE CASE. I FIND THAT THE ASSESSEE CLAIMED INTEREST PAYMENT TO SHRI NIRANJANLAL SARAWGI AND SHRI OMPRAK ASH SARAWGI TO RS.81,275/- AND RS.12,000/- RESPECTIVELY. THE ASSES SING OFFICER REQUIRED THE ASSESSEE TO VERIFY WHETHER THE ASSESSEE HAS DED UCTED TDS ON THE ABOVE PAYMENT OF INTEREST UNDER SECTION 194A OF THE ACT. THE ASSESSEE EXPLAINED THAT THE LOAN CREDITORS, I.E. SHRI NIRANJ AJLAL SARAWGI AND SHRI OMPRAKASH SARAWGI HAVE FILED FORM 15H/15G AND IN VI EW OF THAT THE ASSESSEE HAS NOT DEDUCTED TDS. ON FURTHER QUERY FRO M THE BENCH, HE STATED THAT THE FORM 15H AND FORM 15G WERE NOT SUBM ITTED BEFORE THE JURISDICTIONAL COMMISSIONER OF INCOME TAX. IN THE A BSENCE OF THE SAME, THE ASSESSING OFFICER DISALLOWED THE INTEREST PAYME NT OF RS.93,275/-. 4. AGGRIEVED, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(APPEALS), WHO ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER BY STATING THAT FORM 15G AND 15H WAS OBTAINED ON 4/5 TH APRIL, 2009, I.E. WELL AFTER DEBITING OF THIS INTEREST. ACCORDINGLY LD. CI T(APPEALS) NOTED THAT THE ASSESSEE HAS NOT OBTAINED FORM 15H AND 15G IN TIME. HENCE, HE VIOLATED THE PROVISIONS OF INCOME TAX RULES. HENCE, LD. CIT( APPEALS) CONFIRMED THE DISALLOWANCE. 5. AGGRIEVED, ASSESSEE CAME IN APPEAL BEFORE THE TR IBUNAL. 6. I FIND FROM THE FACTS OF THE CASE THAT ADMITTED FACTS ARE THAT THE LOAN CREDITORS FILED FORM 15G AND 15H FOR NON-DEDUCTION OF TDS. WHETHER THIS WAS SUBMITTED BEFORE LD. CIT(APPEALS) CONCERN OR NO T IS NOT RELEVANT QUESTION. ONCE FORM 15G AND 15H ARE SUBMITTED BY LO AN CREDITORS BEFORE THE ASSESSEE, THE ASSESSEE IS NOT OBLIGED FOR DEDUC TION OF TDS ON THE ABOVE PAYMENT OF INTEREST. FOR LATE SUBMISSION OF F ORM 15G AND 15H BEFORE CONCERNED OR JURISDICTIONAL CIT OTHER PENAL PROVISIONS WHICH CAN BE INVOKED IF THE DEPARTMENT FEELS SO. BUT IN THE P RESENT CASE, THE LOAN CREDITORS HAVE SUBMITTED FORM 15G AND 15H WELL BEFO RE DEBITING THE INTEREST, THE ASSESSEE HAS SUFFICIENT CAUSE FOR NOT DEDUCTING TDS. I.T.A. NO.: 2697/ KOL. / 2013 ASSESSMENT YEAR : 2009-2010 PAGE 3 OF 3 ACCORDINGLY I AM OF THE VIEW THAT THE ASSESSEE IS N OT LIABLE TO DEDUCT TDS UNDER SECTION 194A OF THE ACT. ONCE THE ASSESSEE IS NOT LIABLE TO DEDUCT TDS, NO DISALLOWANCE UNDER SECTION 40(A)(IA) CAN BE MADE. 7. IN TERMS OF THE ABOVE, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND DAY OF SEPTEMBER, 2014. SD/- MAHAVIR SINGH (JUDICIAL MEMBER) KOLKATA, THE 2 ND DAY OF SEPTEMBER, 2014 COPIES TO : (1) M/S. NIRANJANLAL SARAWGI, L.M. GHOSH STREET, MUNSIFFDANGA, PURULIA-723 101 (2) INCOME TAX OFFICER, WARD-3(4), PURULIA SOUTH LAKE ROAD, PURULIA-723 101 (3) CIT (4) CIT(A) (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.