The ITO, ,(TDS), Valsad V. The Executive Engineer(Indl.), Valsad

ITA 3177/AHD/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 6325 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-06-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 17-06-2011
• Assessment Year: 2009-2010
• Appeal Filed On: 01-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAMIR TEKRIWA LA
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : B BENCH : AHMEDABAD (BEFORE HONBLE SHRI G.D.AGRAWAL, V.P. & HONBLE SHRI T.K. SHARMA, J.M.) I.T.A. NO. 3177/AHD./2010 : ASSESSMENT YEAR : 2009-2010 ITO (TDS), VALSAD VS- EXECUTIVE ENGINEER (I NDL.), DAKSHIN GUJARAT VIJ.CO.LTD. (TAN : SRTDO 1586E) (APPELLANT) (RESPOND ENT) I.T.A. NO. 3178/AHD./2010 : ASSESSMENT YEAR : 2009-2010 ITO (TDS),VALSAD VS- EXECUTIVE ENGINEER (RU RAL), DAKSHIN GUJARAT VIJ.CO.LTD. (TAN : SRTDO 1564D) (APPELLANT) (RESPOND ENT) APPELLANT BY : SHRI SAMIR TEKRIWA LA, SR.D.R. RESPONDENT BY : WRITTEN SUBMISSION O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THESE TWO APPEALS ARE FILED BY THE REVENUE AGAINST THE ORDERS BOTH DATED 31- 08-2010 OF LEARNED COMMISSIONER OF INCOME TAX(APPEA LS), VALSAD FOR THE ASSESSMENT YEARS 2009-10. AS BOTH THESE APPEALS WER E HEARD ON THE SAME DATE, ARGUED BY THE COMMON REPRESENTATIVE AND THE COMMON ISSUE I S INVOLVED, THEREFORE, THESE ARE DISPOSED OFF BY THIS COMMON ORDER FOR THE SAKE OF C ONVENIENCE. FIRST WE TAKE UP THE ITA NO.3177/A/2010 2. THE GROUNDS RAISED IN THIS APPEAL ARE AS UNDER: 1. THE LD. CIT(A) ERRED IN LAW AS WELL AS FACTS OF THE CASE IN DELETING THE ORDER PASSED U/S.201(1) OF RS.1,88,289/- & INTEREST CHARGED U/S.201(1A) OF THE I.T. ACT OF RS.20,853/- RESPECTIVELY FOR A.Y. 2009- 10 BY THE A.O. 2. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE FACT THAT AFTER 13.7.2006 THE PROVISION OF 194-I IS APPLICABLE ON HIRING CHARGES OF VEHICLE WHICH COVER USES OF PLANT AND MACHINERY AND NOT THE PROVISION OF 194 C OF I.T. ACT. ITA NO.3177&3178/AHD/2010 2 2. BRIEFLY STATED, THE FACTS ARE THAT DURING THE FI NANCIAL YEAR 2009-2009, THE ASSESSEE HAS INCURRED EXPENSES OF RS.23,41,041/- TO WARDS HIRING OF VEHICLES. THE ASSESSEE MADE TDS ON THE SAME, AS PER THE PROVISION S OF SECTION 194C OF THE ACT @2.27%. WHILE MAKING ORDER UNDER SECTION 201(1)/201 (1A) READ WITH SECTION 194-I OF THE ACT, THE AO TREATED THE AFORESAID EXPENSES A S RENT FOR PLANT AND MACHINERY, FALLING WITHIN THE AMBIT OF SECTION 194-I OF THE AC T AND RAISED A DEMAND OF RS.2,09,142/- [INCLUDING INTEREST UNDER SECTION 201 (1A)]. 3. ON APPEAL, IN THE IMPUGNED ORDER, THE LD. CIT(A) TOOK THE VIEW THAT THE AO IS NOT JUSTIFIED IN APPLYING THE PROVISIONS OF SECTION 194-I OF THE I.T. ACT, 1961. FOR HOLDING SO, THE LD. CIT(A) FOLLOWED HIS DECISION IN ASSESSEES OWN CASE IN APPEAL NO.CAB/VI-23/09-10 DATED 29.10.2009. THE GIST OF TH E JUDGEMENT IS REPRODUCED BY THE LD. CIT(A), IN THE IMPUGNED ORDER. 4. AGGRIEVED WITH THE ABOVE ORDER, THE REVENUE IS I N APPEAL BEFORE THE TRIBUNAL. 5. ON THE DATE FIXED FOR HEARING, NONE WAS PRESENT FROM THE SIDES OF THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS WERE FILED WHEREIN IT WAS MENTIONED THAT CONTROVERSY INVOLVED IN THIS APPEAL IS SQUARELY COVERED BY THE DECISION DATED 10.03.2011 OF THE ITAT, AHMEDABAD BENCH IN THE CASE OF AHMEDABAD URBA N DEVELOPMENT AUTHORITY VS- ACIT IN ITA NO. 1637/AHD/2010 FOR THE ASSESSMEN T YEAR 2009-2010. THE COPY OF THE DECISION IS ENCLOSED WITH THE WRITTEN SUBMISSIO NS. IN THIS CONTEXT, IT IS SEEN THAT THE ASSESSMENT YEAR I.E. 2009-2010 INVOLVED IN THE AFOR ESAID JUDGMENT DATED 10.03.2011 OF THE ITAT, AHMEDABAD BENCH IS THE SAME IN THE PR ESENT APPEAL UNDER CONSIDERATION ALSO. 6. ON THE OTHER HAND, SHRI SAMIR TEKRIWALA, SR.D.R. , APPEARING ON BEHALF OF THE REVENUE, RELIED ON THE DECISION OF THE ITAT, F BE NCH, MUMBAI IN THE CASE OF VODAFONE ESSAR LTD. VS- DCIT (TDS) REPORTED IN [20 11] 45 SOT 82/9 TAXMANN.COM 31 (MUM.)(URO) AND CONTENDED THAT THE AO RIGHTLY WO RKED OUT THE SHORT DEDUCTION UNDER SECTION 194-I OF THE I.T.ACT, 1961. THEREFORE , THE ORDER OF THE LD. CIT(A), IN THIS REGARD, BE SET ASIDE AND THAT OF THE AO BE RESTORED . ITA NO.3177&3178/AHD/2010 3 7. HAVING HEARD THE LD. D.R., WE HAVE CAREFULLY GON E THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IT IS PERTINENT TO NOTE THAT FAC TS IN THE CASE OF VODAFONE ESSAR LTD. ( SUPRA ), RELIED ON BY THE LD. D.R., ARE NOT AKIN TO THE F ACTS INVOLVED IN THE APPEAL BEFORE US. THE FACTS IN THE CASE OF AHMEDABAD URBAN DEVELOPMENT AUTHORITY ( SUPRA ), RELIED ON BY THE ASSESSEE IN THE WRITTEN SUBMISSION S, ARE IDENTICAL WITH THAT OF THE PRESENT ASSESSEE. THE COORDINATE BENCH OF THE TRIB UNAL IN THE DECISION, RELIED ON BY THE ASSESSEE IN THE WRITTEN SUBMISSION, IN THE CASE OF AHMEDABAD URBAN DEVELOPMENT AUTHORITY ( SUPRA ) ON IDENTICAL FACTS, HELD THAT PAYMENT OF VEHILE H IRE CHARGES FALL WITHIN THE SCOPE OF 194C AND WAS NOT RENT FOR SEC TION 194-I OF THE I. T. ACT, 1961. WE, THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH IN THE CASE OF AHMEDABAD URBAN DEVELOPMENT AUTHORITY ( SUPRA ) INCLINE TO UPHOLD THE VIEW TAKEN BY THE LD. CIT(A) IN THE IMPUGNED ORDER. RESU LTANTLY, THIS APPEAL OF THE REVENUE IS DISMISSED. 8. NOW WE TAKE UP THE APPEAL OF THE REVENUE IN ITA NO. 3178/AHD./2010. 9. GROUNDS RAISED IN THIS APPEAL ARE AS UNDER: 1. THE LD. CIT(A) ERRED IN LAW AS WELL AS FACTS OF THE CASE IN DELETING THE ORDER PASSED U/S.201(1) OF RS.2,44,701/- & INTEREST CHARGED U/S.201(1A) OF THE I.T. ACT OF RS.28,395/- RESPECTIVELY FOR A.Y. 2009- 10 BY THE A.O. 2. THE LD. CIT(A) ERRED IN NOT CONSIDERING THE FACT THAT AFTER 13.7.2006 THE PROVISION OF 194-I IS APPLICABLE ON HIRING CHARGES OF VEHICLE WHICH COVER USES OF PLANT AND MACHINERY AND NOT THE PROVISION OF 194 C OF I.T. ACT. 10. AT THE TIME OF HEARING BEFORE US, THOUGH NONE W AS PRESENT FROM THE SIDE THE ASSESSEE, THE LD. D.R. CONCEDED THAT THE FACTS AND CONTROVERSY INVOLVED IN THIS APPEAL ARE IDENTICAL WITH THAT OF APPEAL IN ITA NO.3177/AH D/2010 ( SUPRA ). IN THAT CASE, WE HAVE ALREADY HELD IN FAVOUR OF THE ASSESSEE BY UPHO LDING THE DECISION OF THE LD. CIT(A), WHO FOLLOWED THE DECISION OF THE COORDINATE BENCH IN THE CASE OF AHMEDABAD URBAN DEVELOPMENT AUTHORITY ( SUPRA ). FOLLOWING OUR AFORESAID DECISION, WE INCLINE TO UPHOLD THE VIEW TAKEN BY THE LD. CIT( A) WHEREBY HE HELD THAT HIRING ITA NO.3177&3178/AHD/2010 4 CHARGES OF VEHICLE IS COVERED BY SECTION 194C AND N OT BY THE PROVISIONS OF SECTION 194-I OF THE I.T.ACT, 1961. RESULTANTLY, THIS APPEA L OF THE ASSESSEE IS ALSO DISMISSED. 11. IN THE RESULT, BOTH THE APPEALS FILED BY THE RE VENUE ARE DISMISSED. THE ORDER PRONOUNCED IN THE COURT O N 24.06.2011 SD/- SD/- (G.D.AGRAWAL) (T.K. SHARMA) VICE-PRESIDENT JUDICIAL MEMBER DATED : 24/06/2011 COPY OF THE ORDER IS FORWARDED TO:- (1) THE ASSESSEE (2) THE DEPARTMENT. (3) CIT (A.) CONCERNED. (4) CIT CONCERNED. (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AH MEDABAD. TALUKDAR/ SR. P.S.