N. Ramasamy, Tiruppur V. ITO, Tiruppur

ITA 2781/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 7882 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 26-09-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Non-deduction of tax; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . . , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER ./ ITA NO. 2781/MDS/2016 / ASSESSMENT YEAR : 2013-14 SHRI N. RAMASAMY, 11/4, (21-B), PULIYAMARATHOTTAM, RVE LAYOUT, 3 RD STREET, KANGEYAM ROAD, TIRUPUR 641604 PAN : AEGPR7095N V. THE INCOME TAX OFFICER, WARD 2 (1), TIRUPUR ( /APPELLANT) ( !' /RESPONDENT) # /APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE !' # /RESPONDENT BY : SHRI V. NANDAKUMAR, JCIT # /DATE OF HEARING : 27.12.2016 # /DATE OF PRONOUNCEMENT : 31.01.2017 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, COIMBAT ORE DATED 29.06.2016 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2 I.T.A. NO.2781/MDS/2016 2. SHRI S. SRIDHAR, THE LD. COUNSEL FOR THE ASSESSE E SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED 32,52,000/- FOR NON-DEDUCTION OF TAX UNDER SECTION 40 (A) (IA) OF T HE INCOME TAX ACT, 1961 (IN SHORT THE ACT). REFERRING TO THE ASSESSMENT ORDER, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ASSESSING OFFICER FOUND THE ASSESSEE DEDUCTED TAX AND BELATED LY PAID THE SAME ON 09.01.2014 & 10.01.204. REFERRING TO A COP Y OF THE CERTIFICATE ISSUED BY CHARTERED ACCOUNTANT IN ANNEX URE A, IN RESPECT OF THE RECIPIENT, THE LD. COUNSEL SUBMITTED THAT THE RECIPIENT HAS ALREADY INCLUDED THE AMOUNT PAID BY THE ASSESSE E IN THE RETURN OF INCOME AND PAID THE TAX. SINCE THE RECIPIENT HA S ALREADY PAID THE TAX, ACCORDING TO THE LD. COUNSEL FOR THE ASSESSEE, THERE CANNOT BE ANY DISALLOWANCE. 3. WE HEARD SHRI V. NANDAKUMAR, THE LD. DEPARTMENTA L REPRESENTATIVE ALSO. THE LD. D.R., SUBMITTED THAT WHETHER THE RECIPIENT HAS INCLUDED THE AMOUNT RECEIVED FROM THE ASSESSEE IN HIS TOTAL INCOME HAS TO BE VERIFIED. THEREFORE THE LD . D.R., SUBMITTED THAT THE ISSUE MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. 3 I.T.A. NO.2781/MDS/2016 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON BOTH SIDES AND PERUSED THE MATERIAL AVAILABLE ON RECORD. EVEN THO UGH, THE ASSESSING OFFICER OBSERVED THAT THE TAX DEDUCTED BY THE ASSESSEE WAS BELATEDLY PAID TO THE GOVERNMENT ACCOUNT, THE C HARTERED ACCOUNTANT OF THE RECIPIENT APPEARS TO HAVE GIVEN A CERTIFICATE THAT THE RECIPIENT HAS INCLUDED THE AMOUNT IN HIS TOTAL INCOME AND PAID THE TAX. THIS TRIBUNAL IS OF THE CONSIDERED OPINIO N THAT IF THE RECIPIENT HAS PAID THE TAX IN RESPECT OF THE PAYMEN T RECEIVED FROM THE ASSESSEE, THEN THERE CANNOT BE ANY DISALLOWANCE UNDER SECTION 40 (A) (IA) OF THE ACT. HOWEVER, IT HAS TO BE VER IFIED BY THE ASSESSING OFFICER WHETHER THE RECIPIENT HAS PAID TH E TAX AS CLAIMED BY THE ASSESSEE IN RESPECT OF THE AMOUNT PAID BY TH E ASSESSEE. ACCORDINGLY THE ORDERS OF THE LOWER AUTHORITIES ARE SET ASIDE AND THE DISALLOWANCE MADE BY THE ASSESSING OFFICER TO THE E XTENT OF 32,52,000/- IS REMITTED BACK TO THE FILE OF THE ASS ESSING OFFICER. THE ASSESSING OFFICER SHALL REEXAMINE THE MATTER AN D FOUND OUT WHETHER THE RECIPIENT HAS PAID THE TAX ON THE AMOUN T PAID BY THE ASSESSEE AND THEREAFTER DECIDE THE MATTER AFRESH IN ACCORDANCE WITH LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. 4 I.T.A. NO.2781/MDS/2016 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 31 ST JANUARY, 2017 AT CHENNAI. SD/- SD/- ( . . ) ( . . . ) (D.S. SUNDER SINGH) (N.R.S. GANESAN) / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, /DATED, THE 31 ST JANUARY, 2017. JR. # ! $ % $ /COPY TO: 1. /APPELLANT 2. !' /RESPONDENT 3. &' ( )/CIT(A)-3, COIMBATORE 4. PRINCIPAL CIT-3, COIMBATORE 5. ! $ /DR 6. () /GF.