The Assistant Commissioner of Income Tax, Srinagar V. M/s Shabir Transporters, Kashmir

ITA 316/ASR/2015

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 5286 (ITAT-AMRITSAR)
• Duration Of Justice: 4 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 22-08-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M P SINGH
• Keywords: Additional evidence; Corroborative evidences; TDS; Set aside
• Section: 143(3); 133(6); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. B. R. BASKARAN, ACCOUNTANT MEMBER AND SH. N. K. CHOUDHRY, JUDICIAL MEMBER I.T.A. NO. 316/ASR/2015 A SSESSMENT YEAR: 2007-08 ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE SRINAGAR VS. M/S SHABIR TRANSPORTERS, SRINAGAR [PAN: ABEFS 6503K] (APPELLANT) (RESPONDENT) APPELLANT BY : SH. M. P. SINGH CIT-DR RESPONDENT BY: SH. JOGINDER SINGH (C.A.) DATE OF HEARING: 22.08.2019 DATE OF PRONOUNCEMENT: 22.08.2019 ORDER PER B. R. BASKARAN, ACCOUNTANT MEMBER: THE REVENUE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 30-03-2015 PASSED BY LD CIT(A), JAMMU AND IT RELATES TO THE AS SESSMENT YEAR 2007-08. THE REVENUE IS AGGRIEVED BY THE DECISION OF LD CIT(A) I N DELETING THE DISALLOWANCE OF HIRE CHARGES OF RS.379.30 LAKHS CLAIMED BY THE ASSE SSEE. 2. THE ASSESSEE IS A TRANSPORT CONTRACTOR. THE PRESENT ASSESSMENT WAS COMPLETED BY THE AO U/S 143(3) R.W.S. 263 OF THE ACT. THE AO NOTICED THAT THE ASSESSEE HAS PAID HIRE CHARGES AND ACCORDINGLY DIRECTED THE ASSE SSEE TO FURNISH BILLS/VOUCHERS IN SUPPORT OF THE SAME. HE ALSO ASKED THE ASSESSEE TO FURNISH THE DETAILS OF TAX DEDUCTED AT SOURCE FROM HIRE CHARGES. HOWEVER, THE ASSESSEE STATED THAT IT HAS FURNISHED THE VOUCHERS IN THE ORIGINAL ASSESSMENT P ROCEEDINGS AND FURTHER STATED ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 2 THAT THE PAYMENTS MADE TO EACH OF THE PERSON DO NOT EXCEED THE THRESHOLD LIMIT FOR ATTRACTING TDS PROVISIONS. NOT SATISFIED WITH THE REPLY OF THE ASSESSEE, THE AO DISALLOWED THE ENTIRE HIRE CHARGES OF RS.379.30 LAK HS. 3. BEFORE LD CIT(A), THE ASSESSEE FURNISHED CERT AIN EXPLANATIONS AND HENCE THE LD CIT(A) CALLED FOR A REMAND REPORT FROM THE AO. IN THE REMAND PROCEEDINGS, THE AO MADE INDEPENDENT ENQUIRES FROM CERTAIN PARTI ES ON SAMPLE BASIS. ALL THE PERSONS WITH WHOM ENQUIRIES WERE MADE CONFIRMED THE HIRE CHARGES RECEIVED BY THEM. THEY ALSO CONFIRMED THAT THE PAYMENT RECEIVE D BY THEM WAS LESS THAN THE THRESHOLD LIMIT OF RS.20,000/- FOR ATTRACTING TDS. AFTER CONSIDERING THE REMAND REPORT FURNISHED BY THE AO AND THE RESPONSE OF THE ASSESSEE TO THE REMAND REPORT, THE LD CIT(A) HELD THAT THE DISALLOWANCE IS NOT WAR RANTED. ACCORDINGLY HE DELETED THE DISALLOWANCE. AGGRIEVED, THE REVENUE HAS FILED THIS APPEAL. 4. WE HEARD THE PARTIES AND PERUSED THE RECORD . WE NOTICE THAT THE LD CIT(A) HAS DECIDED THE ISSUE AFTER CONSIDERING THE REMAND REPORT AND THE REPLY GIVEN BY THE ASSESSEE TO THE REMAND REPORT. THE LD CIT(A) H AS GIVEN A SPECIFIC FINDING THAT THE VEHICLE OWNERS HAVE CONFIRMED THE RECEIPT OF HI RE CHARGES AND THE AMOUNT PAID TO THEM DID NOT EXCEED THE THRESHOLD LIMIT FOR ATTR ACTING TDS PROVISIONS. FOR THE SAKE OF CONVENIENCE, WE EXTRACT BELOW THE RELEVANT PORTION OF THE ORDER PASSED BY LD CIT(A):- 4. REMAND REPORT DATED 25.08.2014 KINDLY REFER TO YOUR OFFICE LETTER DATED 25-07-2014 VIDE WHICH A REMAND REPORT IN THE CASE OF M/S SHABIR TRANSPORTERS SONWAR SRINAGAR FOR THE ASSESSMENT YEAR 2007-2008 HAS BEEN CALLED FOR. DURING THE COURSE OF APPELLATE PROCEEDI NGS THE ASSESSEE HAS FURNISHED EVIDENCES IN SUPPORT OF HIS CLAIM WHICH WERE FORWARDED BY YOUR K IND SELF FOR VERIFICATION AND SUBMISSION OF REMAND REPORT BY THE UNDERSIGNED. THE DESIRED REPOR T IS SUBMITTED AS UNDER:- ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 3 THAT THE ASSESSEE IS A PARTNERSHIP FIRM HAVING ITS OFFICE AT SONWAR, SRINAGAR, KASHMIR. THE ASSESSEE IS ENGAGED IN THE TRANSPORTATION BUSIN ESS FOR WHICH IT HIRES VEHICLES FROM THE MARKET AGAINST WHICH HIRE CHARGES ARE PAID TO THE C ONCERNED VEHICLE OWNERS. FOR THE RELEVANT ASSESSMENT YEAR 2007-08, THE ASSESSMENT WAS FIXED U /S 143(3) OF THE INCOME TAX ACT, 1961 WHEREBY A TOTAL INCOME OF RS 11,95,905/- WAS ASSESS ED BY THE CONCERNED ASSESSING OFFICER DT. 24/12/2009. THE SAID ORDER WAS LATER SET ASIDE U/S 263 VIDE ORDER NO. 18666 DT. 21-03-2012 BY THE COMMISSIONER OF INCOME TAX, J&K ON THE FOLLOWING GR OUNDS :- 'DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A O HAD SPECIFICALLY ASKED THE ASSESSEE TO INTIMATE THE TOTAL HIRE CHARGES PAID AND ALSO AS TO WHY TAX DEDUCTION HAD NOT BEEN MADE ON SUCH PAYMENTS. FROM THE RECORDS IT IS SEEN THAT NO REPLY WAS FILED BY THE ASSESSEE'. THEREAFTER ASSESSMENT WAS FRAMED UNDER SECTION 143( 3) READ WITH SECTION 263 OF THE IT ACT AND MADE AN ADDITION OF RS 3,79,30,456/- (HIRER CHARGES) AS UNEXPLAINED AND UNSUPPORTED ON THE FOLLOWING GROUNDS: 'IN THE ABSENCE OF ANY PRIMARY DOCUMENT FROM THE AS SESSEE, THE CLAIM OF THE ASSESSEE REGARDING THE PAYMENT OF HIRE CHARGES CAN'T BE RELI ED UPON. IT IS SETTLED POSITION IN LAW THAT WHENEVER THERE ARE CLAIMS FOR EXPENSES MADE BY THE ASSESSEE, THE ONUS IS UPON THE ASSESSEE TO ESTABLISH THE GENUINENESS OF THE SAME. IN THE PRESE NT CASE, THE ASSESSEE FAILED TO PRODUCE ANY BILL OR VOUCHER TO SUBSTANTIATE THE PAYMENT ON ACCOUNT O F HIRE CHARGES. FURTHER, THOUGH THE ASSESSEE HAS CLAIMED THAT THERE WAS NO PARTY ON WHOM TDS WAS LIABLE TO BE DEDUCTED, NO DOCUMENTARY EVIDENCE IN SUPPORT OF THIS CLAIM WAS PRODUCED BY T HE ASSESSEE. EVEN THE BILLS OR CONFIRMATION FROM THE PARTIES REGARDING THE PAYMENT MADE WERE AL SO NOT PRODUCED ON RECORD. ACCORDINGLY, IT IS HELD THAT THE HIRE CHARGES TO THE TUNE OF RS 3,7 9,30,456/- ARE UNEXPLAINED AND UNSUPPORTED AND THEREFORE CANNOT BE HELD AS GENUINE. THESE HIRE CHARGES OF RS 3,79,30,456/- ARE BEING HEREBY DISALLOWED AND ADDED BACK TO THE TOTAL INCOM E OF THE ASSESSEE'. IN THIS REGARD, AFTER RECEIVING THE WRITTEN SUBMISS IONS AND PAPER BOOK OF THE ASSESSEE THE NECESSARY VERIFICATION OF BOOKS OF ACCOUNTS AND CAL LING OF INFORMATION U/S 133 OF THE IT ACT FROM THE VARIOUS PARTIES TO WHOM HIRE CHARGES WERE PAID BY THE ASSESSEE ON SAMPLE BASIS WAS DONE IN THE BELOW MENTIONED PARTIES. ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 4 S. NO NAME OF THE ASS ESSEE DATE OF ISSUANCE OF NOTICE U/S 133 OF THE I.T.ACT,1961 DATE OF RECEIPT OF REPLY 1 SH.MOHD AMIN BHAT S/O SH MOHD SIDIQ BHAT R/O. PALPORA SONWAR SRINAGAR 22 - 07 - 2014 4/8/2014 2 SH.GHULAM MOHD BHAT S/O SH ABDUL RASHID BHAT R/O.BANASAR SONWAR SRINAGAR - DO - 4/8/2014 03 SH SHOWKAT AHMAD SHEIKH S/O SH.ABDUL HAMID SHEIKH R/O KURSOO RAJBAGH SRINAGAR - DO - 1/8/2014 04 SH.GHULAM NABI BHAT S/O SH MOHD SIDIQ BHAT R/O. PALPORA SONWAR SRINAGAR - DO - 1/8/2014 05 MANZOOR HAMID WANI S/O.SH MOHD RAMZAN WANI R/O.SONWAR SRINAGAR. - DO - 4/8/2014 06 SH ABDUL HAMID BHAT S/O SH ABDUL GANI BHAT R/O.CHADOORA BUDGAM - DO - 4/8/2014 07 SH.BASHIR HAMID KACHROO S/O SH ABDUL AZIZ KACHROO R/O KANI MOHALA RAINAWARI SRINAGAR - DO - 4/8/2014 08 SH GHULAM HASSAN MATTO S/O. SH GH MOHD MATTO R/O SALINA BUDGAM - DO - 4/8/2014 ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 5 09 SH. MUSHTAQ AHMAD BHAT S/O GH. MOHI-UD-DIN BHAT R/O H. NO. 2, ISHBER COLONY NISHAT SRINAGAR - DO - 4/8/2014 THE PARTIES HAVE CONFIRMED THAT THE HIRE CHARGES PA YMENTS WERE RECEIVED FROM THE ASSESSEE FIRM AND THE PAYMENT WAS BELOW RS 20,000/- IN ALL THE CASES WHICH CONFIRMS THE CONTENTION OF THE ASSESSEE FIRM 'THAT THE TDS HAS N OT BEEN DEDUCTED FROM THE PAYMENTS OF THE HIRE CHARGES MADE AS NO PARTY WAS PAID AN AMOUNT EX CEEDING THE SPECIFIED LIMIT. SINCE THE BOOKING OF VEHICLES ARE DONE BY STAFF MEMBERS AT VA RIOUS LOCATIONS, THE ASSESSEE WORKS WITH A LARGE NUMBER OF VEHICLES WHICH ARE HIRED FROM TIME TO TIME. THE ASSESSEE GETS PAYMENTS FROM THE CLIENTS AS PER THE RATE CONTRACTS AND MAKES PAYMENT TO THE VEHICLE OWNERS AFTER RETAINING A FRACTION OF AMOUNT AS ITS SHARE AND TO MEET ADMINIS TRATIVE COST. THE PAYMENTS MADE TO THE VEHICLE OWNERS ARE DEBITED TO HIRE CHARGES ACCOUNT' . 5. REJOINDER TO REMAND REPORT: DURING THE COURSE OF HEARING BEFORE YOUR HONOUR, TH E ASSESSEE FILED AN APPLICATION UNDER RULE 46A OF I.T. RULES 1962 FOR ADMISSION OF ADDITIONAL EVIDENCE. THE ADDITIONAL EVIDENCE ARE ACCEPTED UNDER RULE 46A BY YOUR HONOUR AND FORWARDE D THE SAME TO THE LD AO FOR FURTHER VERIFICATION AND ENQUIRIES. THE ASSESSEE IN THE REM AND PROCEEDINGS FILED WRITTEN SUBMISSION AND PAPER BOOK AND ALSO PRODUCED NECESSARY BOOKS OF ACC OUNTS ALONG-WITH SUPPORTING EVIDENCE. DURING THE COURSE OF REMAND PROCEEDINGS THE LD AO O N HIS OWN MADE INDEPENDENT ENQUIRIES AFTER CALLING INFORMATION UNDER SECTION 133(6) OF T HE INCOME TAX ACT 1961 OF VARIOUS PARTIES TO WHOM THE HIRE CHARGES WERE PAID FOR RENDERING SERVI CES. THE LD AO IN HIS REMAND REPORT CONFIRMED 'THAT IN THIS REGARD AFTER RECEIVING THE WRITTEN SUBMISSION AND PAPER BOOK OF THE ASSESSEE, THE NECE SSARY VERIFICATION OF BOOKS OF ACCOUNTS AND CALLING OF INFORMATION U/S 133 OF THE IT ACT FROM V ARIOUS PARTIES TO WHOM HIRE CHARGES WERE PAID BY THE ASSESSEE ON SAMPLE BASIS'. THE LD AO FURTHER REPORTED THAT THE' PARTIES HAVE C ONFIRMED THAT THE HIRE CHARGES PAYMENTS WERE RECEIVED FROM THE ASSESSEE FIRM AND THE PAYMEN T WAS BELOW RS 20,000/- IN ALL THE CASES ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 6 WHICH CONFIRMS THE CONTENTION OF THE ASSESSEE FIRM ' THAT THE TDS HAS NOT BEEN DEDUCTED FROM THE PAYMENTS OF THE HIRE CHARGES MADE AS NO PARTY WAS P AID AN AMOUNT EXCEEDING THE SPECIFIED LIMIT. SINCE THE BOOKING OF VEHICLES ARE DONE BY ST AFF MEMBERS AT VARIOUS LOCATIONS, THE ASSESSEE WORKS WITH A LARGE NUMBER OF VEHICLES WHICH ARE HIR ED FROM TIME TO TIME. THE ASSESSEE GETS PAYMENTS FROM THE CLIENTS AS PER THE RATE CONTRACTS AND MAKES PAYMENT TO THE VEHICLE OWNERS AFTER RETAINING A FRACTION OF AMOUNT AS ITS SHARE A ND TO MEET ADMINISTRATIVE COST. THE PAYMENTS MADE TO THE VEHICLE OWNERS ARE DEBITED TO HIRE CHAR GES ACCOUNT'. THE LD. AO MADE CLEAR FINDING IN HIS REMAND REPORT DATED 25.08.2014 THAT THE VEHICLE OWNERS HAVE CONFIRMED TO HAVE RECEIVED THE PAYMENT ON ACCO UNT OF HIRE CHARGES AND ALSO REPORTED THAT THE PAYMENTS WERE BELOW RS 20,000/- IN ALL CASES WH ICH CONFIRMS THE CONTENTION OF THE ASSESSEE THAT NO TDS WAS REQUIRED TO BE DEDUCTED U/S 194C(3) (I) OF THE INCOME TAX ACT 1961, AS ALL THE PAYMENTS ARE BELOW THE SPECIFIED LIMIT. BASED ON THE VERIFICATION MADE BY THE LD AO, ON THE BASIS OF BOOKS OF ACCOUNTS AND INDEPENDENT ENQUIRES CONDUCTED U/S 133(6) , IT IS CLEARLY ESTAB LISHED THAT BOOK RESULTS DECLARED BY THE ASSESSEE IS ACTUAL. THE ASSESSEE FIRM SHOWN A NET PROFIT OF RS. 11,95,9 05 WHICH IS COMPUTED AS PER THE BOOKS OF THE ACCOUNTS REGULARLY MAINTAINED BY THE ASSESSEE AND V ERIFIED BY THE LD. AO DURING THE REMAND PROCEEDING AND NO DEFECTS IN THE BOOKS OF ACCOUNT W ERE POINTED BY THE LD. AO. SINCE THE BOOKS OF ACCOUNT AND OTHER RELEVANT DOCUMENTS HAVE BEEN D ULY VERIFIED BY THE LD. AO DURING THE COURSE OF REMAND PROCEEDINGS, THE BOOK RESULTS DECL ARED BY THE ASSESSEE MAY KINDLY BE ACCEPTED. RELIANCE IS PLACED ON THE JUDGMENT OF THE HON'BLE J URISDICTIONAL AMRITSAR BENCH IN THE CASE OF M/S JEE ENN ENGINEERS VS ITO (2010) 131 TTJ (ASR)(U O)/82 IN WHICH IT IS HELD THAT ONCE THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNT BEFORE T HE APPELLATE AUTHORITY OR BEFORE THE AO IN A REMAND PROCEEDINGS, THE ORIGINAL DEFAULT U/S 142 DO ES NOT REMAIN INTACT BECAUSE THE ORIGINAL ASSESSMENT HAS ALREADY BEEN SET ASIDE BY THE FIRST APPELLATE AUTHORITY BY SENDING THE MATTER BACK TO THE AO AND THE ASSESSEE HAS PRODUCED ALL BOOKS O F ACCOUNTS. COPY OF JUDGMENT IS ENCLOSED. THE ASSESSEE ALSO PLACED RELIANCE ON ANOTHER JUDGME NT OF HON'BLE JURISDICTIONAL ITAT BENCH AMRITSAR IN THE CASE OF INCOME TAX OFFICER V/S M/S HEMKUNT TRANSPORT SERVICE ITA NO 154/ASR/2012 IN WHICH IT IS HELD THAT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS IN THE ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 7 REMAND PROCEEDINGS WHICH HAVE BEEN VERIFIED BY THE AO. THE AO DID NOT BROUGHT ANYTHING ADVERSE AGAINST THE ASSESSEE, THEREFORE, THE AO IS DIRECTED TO ACCEPT THE BOOK RESULTS DECLARED BY THE ASSESSEE. IN VIEW OF THE ABOVE FACTS AND LEGAL POSITION, IT I S HEREBY PRAYED TO YOUR GOOD-SELF TO KINDLY ACCEPT THE BOOK RESULTS DECLARED BY THE ASSESSEE. 6. DETERMINATION : 6.1 GROUND OF APPEAL NO. 1 IS GENERAL IN NATURE, RE QUIRES NO ADJUDICATION AND ACCORDINGLY DISMISSED. 6.2 GROUND OF APPEAL NO. 2, 3 AND 4 RELATES TO ADDI TIONS MADE BY THE AO ON ACCOUNT OF HIRE CHARGES AMOUNTING TO RS 3,79,34,0456/- ARE UNE XPLAINED AND UNSUPPORTIVE WITH DOCUMENTARY EVIDENCE. THE BRIEF FACTS OF THE CASE ARE THAT THE APPELLANT IS A PARTNERSHIP FIRM AND IS ENGAGED IN THE BUSINESS OF TRANSPORTATION. THE ASSESSMENT IN THIS CASE WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ON 24/12/2009 AT A TOTAL I NCOME OF RS 11,95,905. THEREAFTER, THE SAID ASSESSMENT ORDER WAS SET ASIDE UNDER SECTION 263 ON 21/03/2013 BY THE COMMISSIONER OF INCOME TAX J&K, JAMMU. THE CIT JAMMU WHILE SETTING ASIDE T HE ORDER OBSERVED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO HAD SPECIFICALLY ASKED THE ASSESSEE TO INTIMATE THE TOTAL HIRE CHARGES PAID AND ALSO AS TO WHY TAX DEDUCTION AT SO URCE HAD NOT BEEN MADE ON SUCH PAYMENTS, ON RECORD IT WAS OBSERVED BY THE CIT THAT NO REPLY WAS FILED BY THE APPELLANT ON THE ISSUE. AFTER RECEIVING THE DIRECTIONS FROM THE CIT, THE AO START ED AFRESH PROCEEDINGS AND ASKED THE APPELLANT TO FILE COMPLETE LEDGER ACCOUNT OF HIRE CHARGES WIT H SUPPORTING BILLS/ VOUCHERS AND ALSO TO FURNISH THE DETAILS OF TDS DEDUCTIONS ON HIRE CHARGES PAID TO THE VEHICLE OWNERS. AS PER THE AO, THE ASSESSEE HAD FAILED TO PRODUCE T HE PRIMARY RECORDS WITH THE DETAILS OF HIRE CHARGES FURNISHED DURING COURSE OF ASSESSMENT PROCE EDINGS AND IT CANNOT BE ASCERTAINED WHETHER PAYMENTS MADE ON ACCOUNT OF HIRE CHARGES TO THE DRI VERS WERE INCURRED OR NOT. MERELY FILING THE DETAILS OF HIRE CHARGES ALONG WITH VEHICLE NUMBERS COULD NOT PROVE THE GENUINENESS OF THE EXPENSES MADE FOR TRANSPORTATION. THE AO FURTHER NO TED THAT IN THE ABSENCE OF PRIMARY DOCUMENTS PRODUCED BY THE APPELLANT, THE CLAIM OF T HE APPELLANT REGARDING THE PAYMENT OF HIRE CHARGES CANNOT BE RELIED UPON AND ACCORDINGLY, THE AO HELD THAT WHOLE OF THE HIRE CHARGES ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 8 INCURRED FOR TRANSPORTATION ARE UNEXPLAINED AND UNS UPPORTED AND DISALLOWED THE WHOLE HIRE CHARGES OF RS 3,79,30,456/- AND ADDED BACK TO THE T OTAL INCOME OF THE APPELLANT. THE APPELLANT ARGUED THAT DURING THE COURSE OF THE ASSESSMENT PROCEEDINGS COMPLETE LEDGER ACCOUNT OF HIRE CHARGES ALONG WITH DETAILS OF VEHIC LE NUMBERS TO WHOM HIRE CHARGES WERE PAID WAS FURNISHED AT THE TIME OF ASSESSMENT PROCEEDINGS AS WELL AS DURING THIS PROCEEDINGS. THE APPELLANT FURTHER ARGUED THAT THE PRIMARY RECORDS I N THE FORM OF BILLS/ VOUCHERS WERE PRODUCED AT THE TIME OF ORIGINAL ASSESSMENT PROCEEDINGS. THE AP PELLANT FURTHER ARGUED THAT WITH REGARD TO THE APPLICABILITY OF TDS ON HIRE CHARGES IT WAS SUBMITT ED THAT NO PERSON WAS PAID AN AMOUNT EXCEEDING THE SPECIFIED LIMIT LAID DOWN UNDER SECTI ON 194C (3)(I) OF THE I.T. ACT, 1961. THE APPELLANT FURTHER ARGUED THAT THE AO HAS NOT BROUGH T OUT ON RECORD ANY PAYMENT WHERE THE PROVISION OF SECTION 194C (3)(I) OF THE ACT HAS BEE N VIOLATED. THE APPELLANT HAS ALSO PLACED RELIANCE ON THE HON'B LE JURISDICTIONAL ITAT BENCH AMRITSAR IN THE CASE OF M/S JEE ENN ENGINEERS V/S ITO 42 DTR 166 IN WHICH IT WAS HELD THAT ONCE THE ASSESSEE HAS PRODUCED BOOKS OF ACCOUNTS BEFORE THE APPELLATE AUTHORITY OR BEFORE THE AO IN A REMANDED PROCEEDINGS, THE ORIGINAL DEFAULT U/S 142 DOES NOT REMAIN INTACT BECAUSE THE ORIGINAL ASSESSMENT HAS ALREADY BEEN SET ASIDE BY THE FIRST APPELLATE AUTHORITY BY SENDING MATTER BACK TO THE AO AS THE ASSESSEE HAS PRODUCED ALL BOOKS OF AC COUNT. THE APPELLANT FURTHER PLACED RELIANCE ON ANOTHER JU DGMENT OF HON'BLE JURISDICTIONAL ITAT BENCH AMRTISAR IN THE CASE OF INCOME TAX OFFICER V/S M/S HEMKUNT TRANSPORT SERVICE ITA NO 154/ASR/2012 IN WHICH IT IS HELD THAT THE ASSESSEE HAS PRODUCED THE BOOKS OF ACCOUNTS IN THE REMAND PROCEEDINGS WHICH HAVE BEEN VERIFIED BY THE AO. THE AO DID NOT BROUGHT ANYTHING ADVERSE AGAINST THE ASSESSEE, THEREFORE, THE AO IS DIRECTED TO ACCEPT THE BOOK RESULTS DECLARED BY THE ASSESSEE. THE SUBMISSION OF THE APPELLANT ALONG WITH SUPPORTI NG DOCUMENTS IN THE FORM OF BILLS/ VOUCHERS RECEIVED UNDER RULE 45A OF THE I.T. RULES 1962 AS A DDITIONAL EVIDENCE, WERE FORWARDED TO THE AO FOR HIS COMMENTS. THE ADDITIONAL EVIDENCES ARE A CCEPTED UNDER RULE 46A AFTER GOING THROUGH THE APPLICATION OF THE APPELLANT ALONG WITH THE SUP PORTING DOCUMENTS. THE AO IN HIS REMAND REPORT DID NOT OBJECTED TO THE ADMISSION OF ADDITIO NAL EVIDENCE. THE AO IN HIS REMAND REPORT DATED 25/08/2014 STATED THAT AFTER VERIFICATION OF NECESSARY BOOKS OF ACCOUNTS AND CALLING OF ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 9 INFORMATION U/S 133(6) OF THE I.T. ACT, 1961 FROM T HE PARTIES TO WHOM HIRE CHARGES WERE PAID BY THE APPELLANT ON SAMPLE BASIS AND REPORTED THAT THE PARTIES HAVE CONFIRMED THAT THE HIRE CHARGES PAYMENTS WERE RECEIVED FROM THE APPELLANT AND THE P AYMENTS WERE BELOW RS 20000 IN ALL CASES WHICH CONFIRMS THE CONTENTION OF THE APPELLANT FIRM THAT THE TDS HAS NOT BEEN DEDUCTED FROM THE PAYMENTS OF THE HIRE CHARGES MADE AS NO PARTY WAS P AID AN AMOUNT EXCEEDING THE SPECIFIED LIMIT. THE AO FURTHER REPORTED THAT THE APPELLANT RECEIVED PAYMENTS FROM THE CLIENTS AS PER CONTRACT RATE AND MADE PAYMENT TO THE DRIVERS AFTER RETAININ G A FRACTION OF AMOUNT AS ITS SHARE TO MEET ADMINISTRATIVE COSTS. HAVING CONSIDERED THE ASSESSMENT ORDER, SUBMISSION OF THE APPELLANT AND REMAND REPORT, I FIND THAT DURING THE REMAND PROCEEDINGS THE AO EXAMINED THE ISSUE IN DETAIL WITH RESPECT TO BOOKS OF ACCOUNT ALONG-WITH SUPPORTING EVIDENCES AND THE VEH ICLE OWNERS HAVE CONFIRMED ON INDEPENDENT ENQUIRIES MADE BY THE AO THAT THE PAYMENT OF HIRE C HARGES WERE RECEIVED BY THEM. IT IS NOT JUSTIFIED TO PRESUME THAT THE AMOUNT PAID ON ACCOUN T OF HIRE CHARGES ARE UNEXPLAINED AND UNSUPPORTIVE. IT IS ALSO OBSERVED THAT ALL THE PAYM ENTS MADE TO THE VEHICLE OWNERS ARE LESS THAN THE SPECIFIED LIMIT LAID DOWN U/S 194C(3)(I)OF THE INCOME TAX ACT,1961. THE CASE OF THE APPELLANT IS ALSO SUPPORTED BY THE JURISDICTIONAL I TAT BENCH AMRITSAR AS DISCUSSED IN SUPRA. IN VIEW OF THE FACTS AND LEGAL POSITION, I AGREE WITH THE SUBMISSION AND ARGUMENT OF THE APPELLANT AND GROUND OF APPEAL NUMBER 2,3 & 4 OF THE APPELLAN T ARE ALLOWED AND THEREFORE A RELIEF OF RS 3,79,34,056/-. 5. DURING THE COURSE OF HEARING, THE LD CIT-DR CONTENDED THAT THE AO HAS NOT VERIFIED ALL THE PERSONS TO WHOM THE HIRE CHARGES W ERE PAID. HOWEVER, WE NOTICE THAT THE AO WAS GIVEN FREE HAND IN THE REMAND PROCE EDINGS AND IT IS HE, WHO HAS CHOSEN TO CONDUCT ENQUIRIES ON SAMPLE BASIS. AFTER CONCLUDING THE ENQUIRIES, THE AO HAS GIVEN REMAND REPORT. HENCE WE ARE UNABLE TO AGREE WITH THE CONTENTIONS OF LD CIT-DR. BEFORE US, NO MATERIAL WAS PLACED TO CO NTRADICT THE FINDINGS GIVEN BY LD CIT(A). WE NOTICE THAT THE LD CIT(A) HAS DELETED THE ADDITION AFTER DULY CONSIDERING THE ENTIRE GAMUT OF ISSUES AND HENCE WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER PASSED BY HIM ON THIS ISSU E. ITA NO. 316/ASR/2015 (AY 2007-08) ASSTT. CIT V. SHABIR TRANSPORTERS 10 6. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN CO URT ON AUGUST 22, 2019 SD/- SD/- (N. K. CHOUDHRY) (B. R. BASKARAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 22.08.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: (2) THE RESPONDENT: (3) THE CIT(APPEALS) (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T TRUE COPY BY ORDER