M/s New Punjab Motor Transport, Jamshepur V. I.T.O., Jamshepur

ITA 308/RAN/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 2177 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 4 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 05-11-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: D K SUTARIYA CITA JSR
• Assessee Lawyers: S K PODDAR
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 194C

Judgement Text

1 ITA NO. 308 /RAN/ 201 4 IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S.SAINI , ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE , JUDICIAL MEMBER ITA NO. 308 /RAN/201 4 A .Y. : 20 10 - 20 11 M/S NEW PUNJAB MOTOR TRANSPORT, ROOM NO.28, PARKING, DIMNA ROAD, MANGO, JAMSHEDPUR - 831012 V S ITO, WARD - 2(3), JAMSHEDPUR P AN NO. : A AFFN 4221 P (APPELLANT ) . RESPONDENT ASSESSEE BY : SHRI S.K.PODDAR & DEVESH PODDAR, ADV. REVENUE BY :SHRI D.K.SUTARIYA, CIT(A), JSR DATE OF HEARING : 2 4 . 05 .201 8 DATE OF PRONOUNCEMENT : 25.05 .201 8 O R D E R PER PAVAN KUMAR GADALE, JM : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT ( A ) , JAMSHEDPUR , DATED 29.08.2014 , FOR THE ASSESSMENT YEAR 20 10 - 11 . 2. THIS APPEAL WAS DI SPOSED OFF BY THE TRIBUNAL VIDE ORDER DATED 11.03.2016. THEREAFTER ON MISCELLANEOUS APPLICATION FILED BY THE ASSESSEE , THE ORDER DATED 11.03.2016 WAS RECALLED VIDE ORDER PASSED IN MISCELLANEOUS APPLICATION DATED 28.02.2018 TO THE LIMITED EXTENT OF DISPOSAL OF GROUND NO.2. NOW, THE APPEAL HAS BEEN LISTED BEFORE US TO DECIDE THE GROUND NO.2 RAISED IN GROUNDS OF APPEAL WHICH IS AS UNDER : - 2. FOR THAT THE PAYMENT OF ENTIRE HIRE CHARGES STANDS PAID AND THERE WAS NO OUTSTANDING OR HIRE CHARGES PAYABLE AS ON 31/ 03/2010, 2 ITA NO. 308 /RAN/ 201 4 FURTHER DISALLOWANCE MADE U/S 40(A)(IA) AMOUNTING TO RS 7,55,326/ - AND RS 29,17,909/ - FOR MAINTENANCE EXPENSES ON OWNED TRUCKS AND HIRED TRUCKS PAID TO ROADSIDE GARAGES WAS NOT LIABLE FOR DEDUCTION U/S 40(A)(IA). ENTIRE EXPENSES STANDS PAID AND NO AMOUNT STANDS PAYABLE. 3 . B RIEF FACTS RELATING TO THE ABOVE GROUND ARE THA T THE AO DURING THE COURSE OF ASSESSMENT NOTED THAT THE PAYMENTS ARE MADE FOR REPAIR & MAINTENANCE FOR A SINGLE VOUCHER FOR CARRYING OUT WORK AND IN VOICE , THE VALUE OF MATE RIAL IS NOT MENTIONED SEPARATELY. THEREFORE, THE CASE OF THE ASSESSEE CALLS FOR THE APPLICATION OF THE PROVISIONS U/S.194C(3)(II) OF THE ACT. AS NO EXPLANATION IN THIS REGARD HAS BEEN FILED BY THE ASSESSEE, THE AO DISALLOWED AN AMOUNT OF RS.7,55,3 26/ - AND RS.29,17,909/ - U/S.40(A)(IA) OF THE ACT AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. 4 . AGGRIEVED BY THE ASSESSMENT ORDER, THE ASSESSEE HAS FILED AN APPEAL WITH THE CIT(A). IN THE APPELLATE PROCEEDINGS LD. AR OF THE ASSESSEE ARGUE THE GROUN DS AND REITERATED THE SUBMISSIONS AND LD.CIT(A) HAVING CONSIDERED THE FINDINGS AND THE SUBMISSIONS OF THE ASSESSEE DEALT ON THE DISPUTED ISSUE AND DISMISSED THE GROUND RAISED BY THE ASSESSEE ON ADDITION OF REPAIRS AND MAINTENANCE ON OWN TRUCKS AND HIRE TRUCKS. 5 . AGGRIEVED BY THE ORDER OF CIT(A), EARLIER THE ASSESSEE HAS RAISED THIS GROUND ALONG WITH OTHER GROUNDS BEFORE THE TRIBUNAL, HOWEVER, THE TRIBUNAL BY MISTAKENLY HAS NOT DECIDED THIS GROUND, AGAINST WHICH THE ASSESSEE FILE D A MISCELLANEOUS APPLICATION, WHEREIN VIDE ORDER DATED 22.02.2018, THE TRIBUNAL RECALLED THE ORDER TO DECIDE THE GROUND NO.2 RAISED BY THE ASSESSEE. 3 ITA NO. 308 /RAN/ 201 4 6 . LD.AR BEFORE US SUBMITTED THAT THE REPAIRS AND MAINTENANCE EXPENSES ARE IN RESPECT OF ASSESSEES TRUC KS AND, THEREFORE, THESE PAYMENTS WERE MADE BELOW RS.20,000/ - AND, THEREFORE, PROVISION OF SECTION 194C(3) DOES NOT APPLY AND THESE PAYMENTS ARE MADE TO VARIOUS PERSONS FOR THE REPAIRS AND MAINTENANCE. HENCE, THERE IS NO QUESTION OF MAKING ADDITION . 7 . CONTRA, LD.DR SUBMITTED THAT THE CIT(A) HAS CONSIDERED THE FACTS IN RIGHT PERSPECTIVE AND CONFIRMED THE ADDITION. 8 . WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE SOLE DISPUTED ISSUE IS WITH RESPECT TO DISALLOWANCE OF EXPE NSES ON ACCOUNT OF REPAIRS AND MAINTENANCE. THE CONTENTION OF THE LD. AR OF THE ASSESSEE THAT THE REPAIRS & MAINTENANCE EXPENSES ON HIRE TRUCKS AND OWN TRUCKS OF RS.29,17,909/ - AND RS.7,55,326/ - CONSISTS OF VARIOUS PAYMENTS MADE AND, THEREFORE, THE PAYMENT S DO NOT ATTRACT PROVISIONS OF SECTION 194C AND ALSO PROVISIONS OF SECTION 40(A)(IA) OF THE ACT SHALL NOT BE APPLIED. WE PERUSED THE ASSESSMENT YEAR AND FOUND THAT THE ASSESSEE HAS NOT GIVEN THE INFORMATION IN RESPECT OF THESE PAYMENTS AND THE AO HAS DEALT ON THE ISSUE AND DISALLOWED THE PAYMENTS FOR NON - DEDUCTION OF TDS BUT THE FACTS REMAIN THAT THE ASSESSEE SUBMITTED THAT THESE PAYMENTS HAVE BEEN MADE TO VARIOUS TRUCKS DRIVERS AND THEREFORE, ADDITION CANNOT BE SUSTAINED BUT THE LD.AR COULD NOT CONTROVERT THE FINDINGS OF CIT(A) WITH RESPECT TO THE PROVISIONS OF THE ACT AND PRAYED FOR AN OPPORTUNITY TO SUBSTANTIATE ITS CLAIM. WE ARE OF THE OPINION THAT EVEN BEFORE THE LOWER 4 ITA NO. 308 /RAN/ 201 4 AUTHORITIES THE ASSESSEE COULD NOT SUBSTANTIATE HIS CLAIM. THEREFORE, CONSIDERING THE OVERALL ASPECTS AND PROVISIONS OF LAW AND PRINCIPLE OF NATURAL JUSTICE, WE DIRECT THE AO TO VERIFY AND EXAMINE THE ISSUE AND PASS ORDER AFTER PROVIDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THIS GROUND OF APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICA L PURPOSES. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 25 / 05 /201 8 SD/ - SD/ - ( N.S.SAINI ) ( PAVAN KUMAR GADAL E ) ACCOUNTANT MEMBER JUDICIAL MEMBER RANCHI , DATED 25 / 05 /201 8 PRAKASH KUMAR MISHRA , S R. PS COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// SR.PS, ITAT, RANC HI 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) CONCERNED 4. CIT , CONCERNED 5. DR, ITAT, RANCHI 6. GUARD FILE.