K2 Cranes & Components P Ltd., CHENNAI V. ITO Corporate Ward 4(4), CHENNAI

ITA 2804/CHNY/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8701 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2014-2015
• Appeal Filed On: 21-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M MATHIVANAN
• Assessee Lawyers: T T DURAIRAJ KANDIAR
• Section: 40(a)(ia)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . . . , , # BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER /. I.T.A. NO. 2804/CHNY/2017 / ASSESSMENT YEAR : 2014-15 K2 CRANES & COMPONENTS P. LTD., NO. 14A, TELUGU BRAHMIN STREET, VELACHERRY, CHENNAI 600 042. [PAN: AADCK 3625M] VS. THE INCOME TAX OFFICER, CORPORATE WARD 4(4), NUNGAMBAKKAM, CHENNAI 600 034. ( / APPELLANT) ( $%' /RESPONDENT ) ASSESSEE BY : SHRI. T. T. DURAIRAJ KANDIAR, FCA REVENUE BY : SHRI. M. MATHIVANAN, JCIT 0 /DATE OF HEARING : 06.12.2018 0 /DATE OF PRONOUNCEMENT : 19.12.2018 / O R D E R PER S. JAYARAMAN, ACCOUNTANT MEMBER: THE ASSESSEE FILED THIS APPEAL AGAINST THE CONSOLI DATED ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-8, CHENNAI IN ITA NO. 126 & 279/16-17 DATED 15.09.2017 FOR ASSESSMENT YEAR 2014 -15. :-2-: ITA NO: 2804/CHNY/2017 2. WHILE MAKING THE ASSESSMENT FOR ASSESSMENT YEAR 2014-15, THE ASSESSING OFFICER DISALLOWED CRANE HIRE CHARGES AND FREIGHT CHARGES U/S. 40(A)(IA) WHICH DID NOT SUFFER TDS. AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFORE THE CIT(A). THE CIT(A) DISMISSED THE APPEAL. AGGRIEVED, THE ASSESSEE FILED THIS APPEAL. 3. THE LD. AR INVITING OUR ATTENTION TO THE PAPER B OOK SUBMITTED THAT THE LD. CIT(A) GROSSLY ERRED IN CONFIRMING THE DISALLOWANCE ON THE CRANE HIRE CHARGES PAID TO OM SAI RAM CRANES, PAN: AAZPE 3424 D, AT RS. 4,12,450/- ON WHICH THE ASSESSEE HAD DULY DEDUC TED TDS. WITH REGARD TO DISALLOWANCES OF RS. 1,58,300/- IN THE NA ME OF SHRI JAGAN MUTHU KUMAR AND RS. 41,000/- IN THE NAME OF SMT. VI JAYALAKSHMI, PAN: BODPD 7289 E, THEY HAVE ADMITTED THESE PAYMENTS IN THEIR RESPECTIVE RETURNS AND PAID TAXES THEREON WITHIN THE STIPULATE D TIME. HENCE, AS PER SECOND PROVISO TO SECTION 40(A)(IA) W.E.F. 01.0 4.2013, THESE PAYMENTS WOULD NOT ATTRACT THE PROVISIONS OF SECTIO N 40(A)(IA). 4. WITH REGARD TO THE DISALLOWANCES ON FREIGHT CHAR GES AT RS. 35,87,735/- MADE U/S. 40(A)(IA), THE LD. AR INVITIN G OUR ATTENTION TO THE PAN NOS AND THE AMOUNT GIVEN TO THE 8 PARTIES IN TH E PAPER BOOK SUBMITTED THAT THE LD. CIT(A) GROSSLY ERRED IN DISA LLOWING THESE CLAIMS WITHOUT CONSIDERING THE FACT THAT FOR ALL THE 8 PAR TIES, THE ASSESSEE HAS :-3-: ITA NO: 2804/CHNY/2017 GIVEN PAN NO AND THE AMOUNT PAID TO THEM. IN THIS REGARD, THE LD. AR RELIED ON THE HONBLE ITAT HYDERABAD B BENCH DECISI ON IN THE CASE OF ACIT, CIRCLE 1, KURNOOL VS MR. MOHAMMED SUHAIL, KU RNOOL IN ITA NO. 1536/HYD/2014 DATED 13.02.2015 WHICH WAS SUBSEQUENT LY RELIED ON BY THE HONBLE ITAT KOLKATA B BENCH IN THE CASE OF SOM A RANI GHOSH VS DCIT, KOLKATA IN ITA NO. 1420/KOL/2015 DATED 09.09. 2016 ALSO. PER CONTRA, THE LD. DR SUPPORTED THE ORDERS OF THE LOWE R AUTHORITIES. 5. WE HEARD THE RIVAL SUBMISSIONS AND GONE THROUGH THE RELEVANT MATERIAL. IT IS CLEAR THAT THE ASSESSEE HAS DEDUCT ED TDS IN ONE CASE AND IN OTHER TWO CASES, IT IS SUBMITTED THAT THE RE CIPIENTS HAVE PAID THE TAXES AND FILED THEIR RETURNS. IN THE CASE OF THE 8 PARTIES, THE ASSESSEE HAS GIVEN PAN NUMBERS. IN THE FACTS AND CIRCUMSTAN CES, WE ARE OF THE VIEW THAT THESE ISSUES REQUIRE A FRESH EXAMINATION AND HENCE WE REMIT THE ISSUES BACK TO THE AO FOR A FRESH EXAMINATION. THE ASSESSEE SHALL LAY ALL MATERIALS IN SUPPORT OF ITS CONTENTION AND COMPLY WITH THE REQUIREMENTS OF THE AO IN ACCORDANCE WITH LAW. THE ASSESSING OFFICER AFTER GIVING ADEQUATE OPPORTUNITY TO THE ASSESSEE S HALL DECIDE THE ISSUES IN ACCORDANCE WITH LAW. THE ASSESSEES APPEAL IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. :-4-: ITA NO: 2804/CHNY/2017 6. IN THE RESULT, THE ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON WEDNESDAY, THE 19 TH DAY OF DECEMBER, 2018 AT CHENNAI. SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER SD/- ( ) (S. JAYARAMAN) /ACCOUNTANT MEMBER /CHENNAI, 5 /DATED: 19 TH DECEMBER, 2018 JPV 0$6787 /COPY TO: 1. ' / APPELLANT 2. $%' /RESPONDENT 3. : ) ( /CIT(A) 4. : /CIT 5. 7$ /DR 6. < /GF