The Income-tax Officer, Jammu V. Sh. Ved Bhasin, Jammu

ITA 280/ASR/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 63445 (ITAT-AMRITSAR)
• Duration Of Justice: 1 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 25-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: AMRIK CHAND
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.280(ASR)/2012 ASSESSMENT YEAR:2007-08 PAN :AAWPB5873A INCOME TAX OFFICER, VS. SH. VED BHASIN PROP. WAD 1(3), M/S. KASHMIR TIMES, JAMMU. JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. AMRIK CHAND RESPONDENT BY:SH. R.K.GUPTA, CA DATE OF HEARING:23/08/2012 DATE OF PRONOUNCEMENT:23/08/2012 ORDER PER BENCH ; THE REVENUE HAS FILED THE PRESENT APPEAL AGAINST TH E ORDER OF THE CITA), JAMMU, DATED 03.10.2011 FOR THE ASSESSMENT Y EAR 2007-08 ON THE FOLLOWING GROUNDS: 1. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. CIT(A) WAS RIGHT IN DELETING THE ADDITION MADE ON ACCOUNT OF D ISALLOWANCE OF DEDUCTION U/S 40(A)(IA) OF THE INCOME TAX ACT, 1 961, FOR NON DEDUCTION OF TDS AS PER THE PROVISIONS OF SECTION 1 94C ON ACCOUNT OF PRINTING CHARGES PAID TO M/S. K.T. PRESS PVT. LTD. 2 2. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN DELETING THE ADDITION MADE ON ACCOUNT OF D ISALLOWANCE OF DEDUCTION U/S 40(A)(IA) OF THE INCOME TAX ACT, 1 961, FOR NON DEDUCTION OF TDS ON ACCOUNT OF PRINTING CHARGES PAI D TO M/S. K.T. PRESS PVT. LTD. WHEN THE HONBLE HIGH COURT OF PUNJAB & HARYANA IN THE CASE OF RAKESH KUMAR & CO. VS. UNION OF INDIA (2010) 325 ITR 35 HAS CONFIRMED THE DISALLOWANCE MA DE U/S 40(A)(IA) OF THE ACT. 3. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) WAS RIGHT IN DELETING THE ADDITION MADE ON ACCOUNT OF D ISALLOWANCE OF DEDUCTION U/S 40(A)(IA) OF THE INCOME TAX ACT, 1 961, FOR NON DEDUCTION OF TDS ON ACCOUNT OF PRINTING CHARGES PAI D TO M/S. K.T. PRESS PVT. LTD. WHEN THE HONBLE HIGH COURTOF ALLAHABAD IN THE CASE OF M/S. DEYS MEDICAL (UP)(P) LTD. VS. UNION OF IND A & ORS (2009) 316 ITR 445 HAS CONFIRMED THE DISALLOWANCE MADE U/S 40(A)(IA) OF THE ACT. 4. ON THE FACTS AND CIRCUMSTANCES WHETHER THE LD. C IT(A) HAS FAILED TO APPRECIATE THAT THE CONTRACT FOR SUPPLY O F ANY ARTICLE OR THING AS PER PRESCRIBED SPECIFICATIONS ONLY IS A CO NTRACT FOR WORK AND THE PROVISIONS OF SECTION 194C ARE APPLICABLE I N THIS CASE. 5. THE APPLICANT CRAVES TO AMEND OR ADD ANY ONE OR MORE GROUNDS OF APPEAL. 2. THE FACTS NARRATED BY THE REVENUE ARE NOT DISPUT ED BY BOTH THE PARTIES. THEREFORE, THERE IS NO NEED TO REPEAT THE SAME FOR THE SAKE OF CONVENIENCE. 3. MR. R.K. GUPTA, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE ISSUE IN DISPUTE HAS ALREADY BEEN ADJUDICATED AND DECIDED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE SPECIAL BENCH OF ITAT, VISAK HAPATNAM IN THE CASE OF MERILYN SHIPPING & TRANSPORTS, VISAKHAPATNAM VS. A CITRANGE-1, VISAKHAPATNAM,IN ITA NO.477(VIZ/2008 FOR THE ASSESS MENT YEAR 2005-06, 3 DATED 29.03.2012, WHERE IT HAS BEEN DECIDED THAT SE CTION 40(A)(IA) OF THE ACT, IS APPLICABLE ONLY TO THE EXPENDITURE WHICH IS PAYA BLE AS ON 31 ST MARCH OF EVERY AND CANNOT BE INVOKED TO DISALLOW THE AMOUNT S WHICH HAVE ALREADY BEEN PAID DURING THE PREVIOUS YEAR WITHOUT DEDUCTIN G TAX AT SOURCE. HE HAS ALSO PRODUCED COPY OF THE DECISION OF THE SPECIAL B ENCH OF ITAT, VISAKHAPATNAM (SUPRA) FOR OUR PERUSAL. 4. ON THE OTHER HAND, THE LD. DR, RELIED UPON THE O RDER PASSED BY THE ASSESSING OFFICER. 6. AFTER HEARING BOTH THE PARTIES, WE FIND THAT THE ISSUE IN DISPUTE HAS ALREADY BEEN DECIDED AND ADJUDICATED BY THIS BENCH OF THE TRIBUNAL IN THE CASE OF M/S. JAMKASH VEHICLEADES PVT. LTD. JAMMU VS . ADDL. COMMR. OF INCOME-TAX, RANGE-2, JAMMU, IN ITA NO.136(ASR)/2012 FOR THE ASSESSMENT YEAR 2008-09, ORDER DATED 7 TH AUGUST, 2012, IN FAVOUR OF THE ASSESSEE BY FOLLOWING THE DECISION OF THE SPECIAL BENCH OF ITAT , VISAKHAPATNAM (SUPRA). THE RELEVANT FINDINGS OF THE ITAT GIVEN IN PARA 6 ARE REPRODUCED HEREUNDER: 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE LD. CIT(A) IN THE PRESENT CASE HAD MADE T HE DISALLOWANCE, IN THE ABSENCE OF THE DECISION OF SPECIAL BENCH OF ITAT VISAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKHAPATNAM (SUPR A) OR THE DECISION OF THE JURISDICTIONAL BENCH ON THE ISSUE. SINCE THE DECISION OF THE SPECIAL BENCH OF ITAT VISAKHAPATNAM (SUPRA) WAS NOT AVAILABLE WITH THE LD. CIT(A), WHO HAD PASSED THE ORDER ON 19 .03.2012 WHEREAS THE DECISION OF THE SPECIAL BENCH HAS BEEN PRONOUNC ED THEREAFTER. ON 4 PERUSAL OF THE DECISION OF THE SPECIAL BENCH OF IT AT, VISAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKHAPATNAM (SUPRA), WHERE IT H AS BEEN HELD THAT SECTION 40(A)(IA) IS APPLICABLE ONLY TO EXPEND ITURE WHICH IS PAYABLE AS ON 31 ST MARCH OF EVERY YEAR AND CANNOT BE INVOKED TO DISALLOW THE AMOUNTS WHICH HAVE ALREADY BEEN PAID D URING THE YEAR PREVIOUS YEAR WITHOUT DEDUCTING TAX AT SOURCE. IN T HE PRESENT CASE, THE FACTS ARE IDENTICAL AS THE FACTS IN THE CASE OF M/S . MERILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKH APATNAM (SUPRA). THEREFORE, FOLLOWING THE DECISION OF THE S PECIAL BENCH OF ITAT VISAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIP PING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKH APATNAM (SUPRA), THE AO IS NOT JUSTIFIED IN DISALLOWING THE EXPENDITURE. ACCORDINGLY, THE ORDER OF THE LD. CIT(A) IS REVERSE D. THUS, ALL THE GROUNDS OF THE ASSESSEE ARE ALLOWED. 6.1. RESPECTFULLY FOLLOWING THE DECISION OF ITAT, A MRITSAR BENCH, IN THE CASE OF M/S. JAMKASH VEHICLEADES PVT. LTD. JAMMU VS . ADDL. CIT RANGE-2, JAMU, IN ITA NO.136(ASR)/2012 FOR THE ASSESSMENT YE AR 2008-09, DATED 7 TH AUGUST,2012, WE DISMISS THE APPEAL OF THE REVENUE. 7. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 23RD AUGUST, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 23 RD AUGUST, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:SH. VED BHASIN, PROP. M/S. KASHMIR TIM ES, JAMMU. 2. THE ITO WARD 1(3), JAMMU. 3. THE CIT(A), JAMMU. 4. THE CIT, JAMMU 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY