DCIT, Circle - 2, Midnapore, Paschim Medinipur V. Shri Hemraj Agarwal, Paschim Medinipur

ITA 324/KOL/2011

• Counselvise Citation: 32423514 RSA 2011
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2011
• Appeal Filed By: Department
• Bench Allotted: A
• Next Hearing Date: 30-05-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 22-02-2011
• Court: TRIBUNAL
• Department Lawyers: H N SINGH
• Assessee Lawyers: M D SHAH

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH A, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $ $ $ $ / ITA NO . 324/KOL/2011 %& '(/ ASSESSMENT YEAR : 2007-08 (*+ / APPELLANT ) D.C.I.T., CIRCLE-2, MIDNAPORE - % - - VERSUS - . (-.*+/ RESPONDENT ) SHRI HEMRAJ AGARWAL, MEDINIPUR (PAN: AFQPA 4712 G) *+ / 0 '/ FOR THE APPELLANT: SHRI H.N.SINGH -.*+ / 0 '/ FOR THE RESPONDENT: SHRI M.D.SHAH '1 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THIS APPEAL IS FILED BY THE REVENUE AGAINST THE OR DER DATED 14.12.2010 OF THE CIT(A)-XXXVI, KOLKATA PERTAINING TO A.YR. 2007-08 2. THE ONLY ISSUE RAISED BY THE REVENUE IS THAT T HE DELETION OF DISALLOWANCE AMOUNTING TO RS.24,78,270/- MADE BY THE LD. A.O. U/ S 40(A)(IA) OF THE IT ACT 3. THE BRIEF FACTS OF THE CASE ARE THAT THE AO W HILE DOING THE SCRUTINY ASSESSMENT NOTICED THAT DURING THE ASSESSMENT PROCEEDINGS THE EXPENDITURE OF RS.24,78,270/- WAS DEBITED TOWARDS PAYMENT MADE TO THE TRANSPORT CONTR ACTORS/LORRY FREIGHT. THE AO IS OF THE VIEW THAT THE APPELLANT WAS LIABLE TO DEDUCT TA X ON THE SAID AMOUNT. AND AS THE APPELLANT HAS FAILED TO DO SO, THE AO DISALLOWED TH E ENTIRE EXPENDITURE IN VIEW OF THE PROVISIONS OF SECTION 40(A)(IA). 2 3.1. ON APPEAL THE LD. CIT(A) AFTER TAKING INTO CONSIDERATION THE VARIOUS SUBMISSIONS HAS DELETED THE SAME BY OBSERVING AS UNDER :- 5. THE SUBMISSION OF THE AR OF THE APPELLANT HAS BEEN CONSIDERED IN THE LIGHT OF THE MATERIALS PLACED BEFORE ME AND THE CASE LAWS REFERRED TO. THE APPELLANT IS AN INDIVIDUAL ENGAGED IN WHOLESALE BUSINESS OF PULS ES. HE MADE PAYMENT TO THE TRANSPORT CONTRACTORS TOWARDS TRANSPORTATION OF HIS GOODS. IT IS QUITE OBVIOUS FROM THE ACT THAT AN INDIVIDUAL WAS NOT REQUIRED TO DEDUCT TAX AT SOURCE ON PAYMENTS TO CONTRACTORS AND SUB-CONTRACTORS, PRIOR TO INSERTION OF SECTION 194C(1)(K) WITH EFFECT FORM 01/06/2007. UNDER THE C IRCUMSTANCES, I DO NOT FIND ANY MERIT IN THE ADDITION MADE BY THE AO AND THE SA ME IS THEREFORE, DELETED. THE APPELLANT GETS RELIEF OF RS.24,78,721/-. 3.2. AGGRIEVED BY THIS THE REVENUE IS IN APPE AL BEFORE US. 4. THE LD. DR THOUGH RELIED ON THE ORDERS OF THE AO COULD NOT CONTRADICT THE FINDINGS OF THE LD. CIT(A). ON THE OTHER HAND, THE LD. AR STRONGLY RELYING ON THE ORDERS OF THE LD. CIT(A). CONTENDED THAT THE ACTION OF THE LD. CIT(A) MAY BE UPHELD. 5. HAVING HEARD THE RIVAL SUBMISSIONS AND PE RUSED THE MATERIALS AVAILABLE ON RECORD, KEEPING IN VIEW OF THE FACT THAT THE ASSESS EE IS AN INDIVIDUAL AND IN SO FAR AS THE PROVISIONS OF SECTION 194C(1) IS CONCERNED THE AMENDMENT MADE BY THE FINANCE ACT, 2007 W.E.F. 01.06.2007 STATES THAT SECTION 194 C(1) IS APPLICABLE TO THE INDIVIDUAL ASSESSEE ONLY FROM 01.06.2007. SINCE THE ASSESSMEN T YEAR INVOLVED IN THIS APPEAL IS 2007-08 WE FIND NO INFIRMITY IN THE ORDERS OF THE L D. CIT(A) WHICH IS IN CONFORMITY WITH THE PROVISIONS OF IT ACT. THEREFORE, WE CONFIR M THE SAME AND DISMISS THE REVENUES APPEAL. 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.05.2011. SD/- SD/- MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , ,, , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 30 . 05.2011 R.G.(.P.S.) 3 '1 / -2 3'2'4- COPY OF THE ORDER FORWARDED TO: 1. SHRI HEMRAJ AGARWAL, PROP. OF M/S. KAMAL STORES, TE -187, CHANDNI CHOWK, KHARAGPUR, DIST.PASCHIM MEDINIPUR. 2 THE DCIT, CIRCLE-2, KOLKATA 3. THE CIT, 4. THE CIT(A)-XXXVI, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA .2 -/ TRUE COPY, '1%9/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES