M/S CONSTRUCTION ENGINEERS, SRINAGAR V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3, SRINAGAR

ITA 29/ASR/2018

• Counselvise Citation: [2019] 111 COUNSELVISE.COM (IT) 9835 (ITAT-AMRITSAR)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 28-11-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 23-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M A MIR L D COST ACCOUNTANT
• Keywords: Bonafide mistake; TDS
• Section: 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N.K.CHOUDHRY, JUDICIAL MEMBER AND DR. A.L.SAINI, ACCOUNTANT MEMBER ITA NO.29/ASR/2018 ASSESSMENT YEAR: 2014-15 M/S. CONSTRUCTION ENGINEERS, 54-IE, BAGHAT BARZULLAH, SRINAGAR. VS. ASST. CIT, CIRCLE-3, SRINAGAR. [PAN:AABFC 7715P ] (APPELLANT) (RESPONDENT) APPELLANT BY: SH. M.A. MIR, (LD. COST ACCOUNTANT) RESPONDENT BY: SH. CHARAN DASS (LD. DR) DATE OF HEARING: 28.11.2019 DATE OF PRONOUNCEMENT: 30.12.2019 ORDER PER N.K.CHOUDHRY, JM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST TH E IMPUGNED ORDER DATED 28.11.2017 PASSED BY THE LD. CIT (A)- JAMMU, U/S 250(6) OF THE INCOME TAX ACT, 1961 (HEREINA FTER CALLED AS THE ACT). 2. IN THE INSTANT CASE, THE ASSESSEE HAS CHALLENGED THE ONLY ADDITION OF RS.59,93,900/- QUA SUB-CONTRACT WORKS BY APP LYING THE PROVISIONS OF SEC.40(A)(IA) OF THE ACT. THE ASSESSEE HAS CLA IMED THE EXPENDITURE ON ACCOUNT OF SUB-CONTRACT WORKS TO THE TUNE OF ITA N0.29/ASR/ 2018 (A.Y.2014-15 ) M/S CONSTRUCTION ENGINEERS V S. ACIT 2 RS.7,83,46,901/- AND MADE A PAYMENT OF RS.59,93,900/- TO SUB- CONTRACTORS WITHOUT DEDUCTING THE TDS. CONSEQUENTLY, TH E ASSESSING OFFICER DISALLOWED RS.59,93,900 U/S 40(A)(IA), AG AINST WHICH THE ASSESSEE HAS PREFERRED FIRST APPEAL BEFORE THE L D.CIT(A) WHO VIDE IMPUGNED ORDER, CONFIRMED THE DISALLOWANCE OF RS.59,93,900/- ON THE GROUND THAT IN THE WRITTEN SUBMISSIONS FILED BY THE APPELLANT, THE GROUND NO.1 WAS NOT PRESSED . 3. THE ASSESSE PREFERRED THE INSTANT APPEAL AGAINST THE AFFIRMATION OF SAID DISALLOWANCE AND HONESTLY ADMITTED ITS MISTAKE, IN NOT PRESSING THE GROUND NO.1 IN WRITTEN SUBMISSIONS, DUE TO INADVERTENCE AND MISGUIDANCE AND PRAYED FOR REMITTANCE OF THE ISSUE TO THE FILE OF THE LD. CIT(A) FOR DECISION AFRESH. ON THE OTHER HAND, THE LD. DR, REFUTED THE CLAIM OF THE ASSESSEE AND RAISED THE OBJECTION. 4. HAVING CONSIDERED THE SUBMISSIONS OF THE PARTIES AND THE ISSUE RAISED AND HONEST ADMISSION OF BONAFIDE MISTAKE BY THE ASSESSEE. AS THE LD. CIT(A) DID NOT ADJUDICATE THE ISSUE UN DER HAND ON MERIT ON THE GROUND THAT THE ASSESSEE COULD NOT PRESSED THE GROUND NO.1 IN ITS WRITTEN SUBMISSION, THEREFORE CONSIDERING THE PECULIAR FACTS AND CIRCUMSTANCES AND FOR THE END OF LI TIGATION AND JUST DECISION OF THE CASE, WE ARE INCLINED TO ALLOW THE APPEAL OF THE ASSESSEE BUT SUBJECT TO DEPOSIT OF RS.10,000/- IN THE INCOME TAX DEPARTMENT WITHIN ONE MONTH FROM THE RECEIPT OF THIS ORDER. CONSEQUENTLY, THE ISSUE IS REMANDED TO THE FILE OF THE LD. CIT(A) FOR DECISION AFRESH, SUFFICE TO SAY WHILE AFFORDING PROPE R AND REASONABLE OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE. ITA N0.29/ASR/ 2018 (A.Y.2014-15 ) M/S CONSTRUCTION ENGINEERS V S. ACIT 3 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/1 2/2019. SD/- SD/- (DR. A.L.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDIC IAL MEMBER DATED: 30/12/2019. /PK/ PS. COPY FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THEN CIT(APPEALS) 5. SR DR, I.T.A.T. AMRITSAR 6. GUARD FILE TRUE COPY BY ORDER