Shir Ranjitsingh D.Randhawa, Dist.Baroda V. The Income tax Officer,Ward-2(2), Baroda

ITA 3217/AHD/2008

• Counselvise Citation: 321720514 RSA 2008
• Duration Of Justice: 4 year(s) 2 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 09-11-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 16-09-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SHELLY JINDAL
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD A BENCH BEFORE: SHRI D.K. TYAGI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTAN T MEMBER I.T.A. NO.3217/AHD/2008 A.Y.2005-06 SHRI RANJITSINGH D RANDHAWA PROP. RADIANT TRANSPORT SERVICE, RANDHAWA COMPOUND DUMAD CHOKDI, SAVLI ROAD, DIST.-BARODA-391 310 APPELLANT VS. THE I.T.O., WARD-2(2), BARODA RESPONDENT DEPARTMENT BY : SHRI SHELLY JINDAL, CIT- D.R. ASSESSEE BY : SMT. URVASHI SHODHAN, A.R. DATE OF HEARING : 09.11.2012 DATE OF PRONOUNCEMENT : 23.11.2012 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-II, BARODA DATED 25.07.2008. 2. AT THE TIME OF HEARING ONLY GROUND NOS.1 AND 2 W ERE PRESSED WHICH READ AS UNDER:- 1. LD. CIT(A) HAS ERRED IN LAW AND ON FACTS IN CON FIRMING ADDITION OF RS.3,58,46,088/- MADE BY THE A.O. U/S 40(A)(IA) OF THE ACT. BY CONFIRMING THIS ADDITION THE LD. CIT(A) HAS FAILED TO INTERPRET PROVISIONS OF THE NEWLY INTRODUCED SECTION IN ITS PROPER PERSP ECTIVE AND FURTHER NOT TAKING INTO CONSIDERATION VARIOUS SUBMISSIONS, ARGUMENTS AND JUDGMENTS RELIED UPON BY THE APPELLANT, THIS ACTION OF LD. CIT(A) BEING WITHOUT ANY MERITS OR JUSTIFICATION REQUIRES TO BE QUASHED. 2. LD. CIT(A) HAS FURTHER ERRED IN DIRECTING AO TO ALLOW THE EXPENSES CLAIMED IN THE SUBSEQUENT YEAR BY HOLDING THAT THOU GH THE APPELLANT DEDUCTED THE TAX FROM THE TRANSPORTATION CHARGES IN THE RELEVANT YEAR BUT FAILED TO DEPOSIT THE SAME WITHIN TIME ALLOWED AS PER THE PROVISIONS OF THE ACT. I.T.A. NO.3217/AHD/2008 A.Y.2005-06 2 3. THE A.O., ON VERIFICATION OF DETAILS FOUND THAT ASSESSEE HAS PAID TRANSPORTATION CHARGES WHICH ARE COVERED U/S 194C O F THE ACT. THE ASSESSEE DEDUCTED TAX AT SOURCE BY PAYING OR CREDITING THESE PAYMENTS BUT THE ASSESSEE HAS FAILED TO DEPOSIT THE SAME TO THE GOVERNMENT AC COUNT WITHIN TIME PRESCRIBED UNDER THE ACT. THE ASSESSEE HAS MADE TD S OF RS.4,16,106/- ON TOTAL AMOUNT OF RS.3,94,06,190/- ON TRANSPORTATION CHARGES PAID OR CREDITED. THE A.O. INVOKING THE PROVISIONS OF SECTION 40(A)(I A) OF THE ACT DISALLOWED THE PAYMENT OF RS.3,94,06,190/- ON ACCOUNT OF TRANSPORT ATION CHARGES AND ADDED THE SAME TO THE TOTAL INCOME OF THE ASSESSEE. IN A PPEAL THIS ACTION HAS BEEN CONFIRMED BY LD. CIT(A). 4. BEFORE US LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT TDS DEDUCTED AT SOURCE OF RS.4,16,106/- ON TOTAL AMOUNT OF RS.3,94, 06,190/- WAS PAID IN THE GOVERNMENT ACCOUNT ON 30.06.2005 I.E. BEFORE DUE DA TE OF FILING OF RETURN. ON THESE FACTS DISALLOWANCE/ADDITION CANNOT BE MADE IN VOKING THE PROVISION OF SECTION 40(A)(IA) OF THE ACT IN VIEW OF THE DECISIO N OF THIS TRIBUNAL IN THE CASE OF ALPHA PROJECTS SOCIETY P. LTD. VS. DCIT IN ITA NO.2 869/AHD/2011 DATED 23.03.2012. LD. D.R. ON THE OTHER HAND RELIED ON T HE ORDER OF LOWER AUTHORITIES. 5. AFTER HEARING BOTH THE PARTIES AND PERUSING THE RECORD WE FIND THAT THERE IS NO DISPUTE ABOUT THE FACT THAT TDS AMOUNTING TO RS.4,16,106/- ON TOTAL AMOUNT OF RS.3,94,06,190/- HAS BEEN PAID BY THE AS SESSEE IN THE GOVERNMENT ACCOUNT ON 30.06.2005 I.E. BEFORE THE DUE DATE OF F ILING OF RETURN. ON THESE FACTS NO ADDITION CAN BE MADE BY INVOKING THE PROVI SION OF SECTION 40(A)(IA) OF THE ACT IN VIEW OF THE DECISION OF ALPHA PROJECTS S OCIETY P. LTD. (SUPRA) IN WHICH I.T.A. NO.3217/AHD/2008 A.Y.2005-06 3 FOLLOWING THE DECISION OF CALCUTTA HIGH COURT IN TH E CASE OF VIRGIN CREATORS IN GA NO.3200/2011 DATED 23.11.2011 IT WAS HELD THAT IN C ASE TDS HAS BEEN PAID BEFORE DUE DATE OF FILING OF RETURN, NO DISALLOWANC E CAN BE MADE BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. RESPEC TFULLY FOLLOWING THE SAME THE ADDITION MADE BY THE A.O. AND SUSTAINED BY LD. CIT( A) IS HEREBY DELETED. 6. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 23.11.2012 SD/- SD/- (A.MOHAN ALANKAMONY) (D.K. TYAGI) ACCOUNTANT MEMBER JUD ICIAL MEMBER TRUE COPY N.K. CHAUDHARY, SR. P.S. COPY OF THE ORDER FORWARDED TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE LD. CIT (APPEALS) 5. THE DR, AHMEDABAD 6. THE GUARD FILE BY ORDER AR,ITAT,AHMEDABAD