ACIT, V. Jamshedpur Eye Hospital,

ITA 280/RAN/2014

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0316 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 04-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHOUDHARY ORAON
• Assessee Lawyers: N N SEN
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RANCHI CIRCUIT BENCH, RANCHI BEFORE SHRI N.S. SAINI, HONBLE ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, HONBLE JUDICIAL MEMBER ITA NO. 280/RAN/2014 (ASST. YEAR : 2006-07) ACIT, CIRCLE-2, JAMSHEDPUR. VS. M/S. JAMSHEDPUR EYE HOSPITAL, SAKCHI, JAMSHEDPUR. PAN NO. AAAAJ 0159 J (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI N.N. SEN ADV. DEPARTMENT BY : SHRI CHOUDHARY ORAON - DR DATE OF HEARING : 05/11/2015. DATE OF PRONOUNCEMENT : 05/11/2015. O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS), JAMSHEDPUR, D ATED 16/06/2014. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT TH E COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN DELETING THE DISALLOW ANCE OF RS.6,91,464/- MADE BY THE ASSESSING OFFICER UNDER S ECTION 40(A)(IA) OF THE ACT FOR NON-DEDUCTION OF TDS UNDER SECTION 194C OF THE ACT. 3 . WE HAVE HEARD RIVAL SUBMISSIONS AND PERUSED THE O RDERS OF THE LOWER AUTHORITIES AND THE MATERIALS AVAILABLE ON RE CORD. IN THE INSTANT CASE, THE ASSESSING OFFICER OBSERVED THAT THE ASSES SEE HAS DEBITED RS.4,70,429/- PAID TO M/S. ALL INDIA WOMENS CONFER ENCE FOR ITS CATERING 2 ITA NO. 280/RAN/2014 SERVICES TO THE HOSPITAL FROM WHICH NO TDS WAS DEDU CTED. HE FURTHER OBSERVED THAT PAYMENT TO THE TUNE OF RS. 2,21,035/- MADE TO THREE PARTIES ON WHICH TDS WAS DEDUCTIBLE BUT NOT DEDUCTE D. THEREFORE, HE DISALLOWED RS. 6,91,464/- BY INVOKING THE PROVISION S OF SECTION 40(A)(IA) OF THE ACT. 4. ON APPEAL, COMMISSIONER OF INCOME TAX (APPEALS) OB SERVED THAT THE PAYMENTS TO M/S. ALL INDIA WOMENS CONFERENCE A ND CARL ZEISS (I) PVT. LTD. WERE TOWARDS PURCHASE OF GOODS AND PAYMEN T TO MR.KALICHARAN IS TOWARDS DAILY WAGES. THEREFORE, THE PROVISIONS OF SEC. 194C WOULD NOT BE APPLICABLE AND THERE WAS NO NEED TO DEDUCT T DS WHILE MAKING PAYMENTS TO THEM. THEREFORE, THERE IS NO VIOLATION OF THE PROVISIONS OF SEC. 40(A)(IA) OF THE ACT. HE FURTHER OBSERVED THA T NO DETAILS/ EXPLANATION HAS BEEN FURNISHED IN RESPECT OF DISALL OWANCE OF RS.57,136/- PAID TO SHRI A. SHASHI SHARMA AND THERE FORE, THIS DISALLOWANCE UNDER SECTION 40(A)(IA) IS CONFIRMED. HENCE, HE RESTRICTED THE DISALLOWANCE TO RS. 57,136/- IN PLACE OF RS. 6, 91,464/-. BEING AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US. 5. DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE ASSESSING OFFICER WHEREAS AUTHORIZED REPRESENTATIVE OF THE ASSESSEE SUPPORTED THE ORDER OF THE COMMISSIONER OF INCOME T AX (APPEALS). 6 . WE FIND THAT DEPARTMENTAL REPRESENTATIVE COULD NO T CONTROVERT THE FINDING OF THE COMMISSIONER OF INCOME TAX (APPE ALS) THAT PAYMENTS MADE TO M/S. ALL INDIA WOMENS CONFERENCE AND CARL ZEISS (I) PVT. LTD. WERE FOR PURCHASE OF GOODS AND PAYMENTS TO MR. KALI CHARAN WAS TOWARDS DAILY WAGES AND, THEREFORE THE PROVISIONS O F SEC. 194C WERE NOT APPLICABLE AND ACCORDINGLY, THE ASSESSEE WAS NOT LI ABLE TO DEDUCT TDS WHILE MAKING THE PAYMENTS TO THEM, HENCE, THE PROVI SIONS OF SEC. 40(A)(IA) WOULD NOT APPLY. IN ABSENCE OF THE SAME , WE FIND NO GOOD REASON TO INTERFERE WITH THE ORDERS OF THE COMMISSI ONER OF INCOME TAX 3 ITA NO. 280/RAN/2014 (APPEALS) WHICH IS CONFIRMED AND THE GROUND OF APPE AL OF THE REVENUE IS DISMISSED. 7 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED . ORDER PRONOUNCED IN THE COURT AT THE CLOSE OF THE H EARING ON THURSDAY, THE 5 TH DAY OF NOVEMBER, 2015 AT RANCHI. SD/- SD/- (GEORGE MATHAN) (N.S.SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 05 TH NOVEMBER, 2015. VR/- COPY TO: 1. THE ASSESSEE. 2. THE REVENUE. 3. THE CIT 4. THE CIT(A) 5. THE D.R. 6. GUARD FILE. BY ORDER ASSISTANT REGISTRAR I.T.A.T., RANCHI 4 ITA NO. 280/RAN/2014 DATE INITIAL ORIGINAL DICTATION PAD & DRAFT ARE ENCLOSED IN THE FILE 1. DRAFT DICTATED ON 05/11/2015 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 06/11/2015 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 06/11/2015 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 06/11/2015 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS 06/11/2015 SR.PS 6. DATE OF PRONOUNCEMENT 05/11/2015 SR.PS 7. FILE SENT TO THE BENCH CLERK 06/11/2015 SR.PS 8. DATE ON WHICH FILE GOES TO THE HEAD CLERK 9. DATE OF DISPATCH OF ORDER