SWASTIK TRADING CO., MUMBAI V. ITO WD 2(4), KALYAN

ITA 2883/MUM/2015

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 2524 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 14-05-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEIL PHILIP
• Assessee Lawyers: AJAY R SINGH
• Keywords: Rectification of order
• Section: 143(3); 148

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL SMC, BE NCH MUMBAI BEFORE SHRI R.C.SHARMA, ACCOUNTANT MEMBER ./ ITA NO.2883/MUM/2015 ( / ASSESSMENT YEAR :2005-2006 M/S SWASTIK TRADING CO., SAI LEELA APARTMENT, KULGAON, STATION ROAD, BADLAPUR VS. ITO, WARD-2(4) KALYAN ./ ./PAN/GIR NO. : AAEFS 0714 P ( /APPELLANT ) .. ( / RESPONDENT ) /ASSESSEE BY : SHRI AJAY R. SINGH /REVENUE BY : SHRI NEIL PHILIP # $ / DATE OF HEARING : 12/07/2016 # $ /DATE OF PRONOUNCEMENT 20/07/2016 / O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF CIT(A)- MUMBAI, FOR THE ASSESSMENT YEAR 2005-2006 IN THE MA TTER OF ORDER PASSED U/S 143(3) R.W.S. 147 OF THE I.T. ACT,1961. 2. IN THIS APPEAL THE ASSESSEE IS AGGRIEVED FOR ADD ITION MADE BY DISALLOWING PAYMENT U/S.40(A)(IA) FOR ASSESSEES FA ILURE TO DEDUCT TDS AT SOURCE U/S.194C. 3. FROM THE RECORD I FOUND THAT ASSESSEE IS A COMPA NY FILED THE RETURN OF INCOME FOR A.Y.2005-06 ON 31.10.2005 DECLARING T HE TOTAL INCOME OF RS.54,520/-. THE RETURN WAS SELECTED FOR SCRUTINY A SSESSMENT U/S.143(3) AND ASSESSMENT WAS COMPLETED ON 27-9-2007. NOTICE I SSUED U/S.154 DATED 23-6-2009 FOR RECTIFICATION OF MISTAKE ALONG WITH DETAILS OF MISTAKE NAMELY TDS NOT DEDUCTED ON TRANSPORT CHARGES U/S.19 4C. IN THE ORDER PASSED U/S.154 DATED 10-11-2009 THE AO DISALLOWED R S.14,73,759/- FOR NOT COMPLYING WITH THE PROVISION OF SECTION 194C. THE ASSESSEE PREFERRED ITA NO.2883/15 2 APPEAL BEFORE CIT(A). THE CIT(A) ALLOWED THE APPEA L OF ASSESSEE VIDE ORDER DATED 26-9-2011. ON 9-2-2012 THE AO ISSUED A NOTICE U/S.148 SEEKING TO REOPEN THE CASE ON THE VERY SAME ISSUE W HICH WAS SUBJECT MATTER OF APPEAL BEFORE CIT(A). ISSUING NOTICE U/S. 148 DATED 9-2-2012 ON THE REASON RECORDED ON THE SAME ISSUE RELATING TO W HICH EARLIER PROCEEDING U/S.154 WAS INITIATED, THEREFORE, ONCE A GAIN INITIATING THE PROCEEDING U/S.147 ON THE VERY SAME ISSUE IS NOT JU STIFIED MORE SO WHEN THE EARLIER RECTIFICATION PROCEEDING HAD MERGED WIT H THE CIT(A) ORDER DATED 26-9-2011. EVEN ON MERITS I FOUND THAT EACH P AYMENT SO MADE FOR TRANSPORT CHARGES WAS BELOW RS.20,000/-, NO DISALLO WANCE WAS WARRANTED U/S.40(A)(IA) R.W.S194C. I ALSO FOUND THAT REOPENIN G WAS ALSO NOT VALID INSOFAR AS VERY SAME ISSUE HAS ALREADY BEEN DECIDED BY THE CIT(A) U/S.154 AND THE CIT(A) HAS ALLOWED ASSESSEES APPEA L ON THE PLEA THAT THERE IS NO MISTAKE APPARENT ON RECORD SO AS TO WAR RANT PROCEEDINGS U/S.154 OF THE ACT. ACCORDINGLY, BOTH ON MERIT AS W ELL AS ON THE LEGAL GROUND, I DO NOT FIND ANY MERIT IN THE ORDER OF LOW ER AUTHORITIES. 4. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20/07/ 2016. SD/ - (R.C.SHARMA) $% / ACCOUNTANT MEMBER MUMBAI ; *+ DATED 20/07/2016 . .,/PKM , . / PS ITA NO.2883/15 3 &'() *)' / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. 1 ( ) / THE CIT(A), MUMBAI. 4. 1 / CIT 5. 2 34 5 , $ 5 , / DR, ITAT, MUMBAI 6. 46 / GUARD FILE. 2 //TRUE COPY//