Pradeep Singh Grewal, Mayurbhanj V. CIT, Cuttack

ITA 327/CTK/2013

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 3788 (ITAT-CUTTACK)
• Duration Of Justice: 4 year(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-05-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 24-05-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 22-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: A K MOHAPATRA
• Assessee Lawyers: PRADEEP SINGH GREWAL
• Keywords: Assessment record
• Section: 143(3); 194C; 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAV AN KUMAR GADALE, JUDICIAL MEMBER ITA NO.327/CTK/2013 ASSESSMENT YEAR : 2007 - 08 PRADEEP KUMAR GRE WAL, PROP. M/S. J.B.ROADWAYS, AT : JASHIPUR, DIST: MAYURBHANJ VS. CIT, CUTTACK PAN/GIR NO. AJSPG 0282 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI PRADEEP SINGH GREWAL, ASSESSEE REVENUE BY : SHRI A.K.MOHAPATRA, CIT , DR DATE OF HEARING : 24 /05/ 2017 DATE OF PRONOUNCEMENT : 26 /05/ 2017 O R D E R PER PAVAN KUMAR GADALE, J M THIS IS AN APPEAL FILED BY THE ASSES SEE AGAINST THE ORDER U/S. 263 OF THE INCOME TAX ACT, 1961 OF CIT, CUTTACK, DATED 28.2.2012, FOR THE ASSESSMENT YEAR 2006 - 07. 2. AT THE OUTSET, THE ASSESSEE FILED AN ADJOURN MENT PETITION DATED 24.5.2017 EXPLAINING THAT THE AUTHORISED REPRESENTATIVES ARE OUT OF ORISSA DUE TO PRIOR ENGAGEMENT. 3. WE PERUSED THE ORDER SHE ET NOTHINGS AND FIND THAT THE HEARING OF THIS CASE WAS ADJOURNED SEVERAL TIMES AT THE REQUEST OF LD A.R. OF THE ASSESSEE. 2 ITA NO.327/CTK/2013 ASSESSMENT YEAR :2007 - 08 CONSIDERING THE GROUND OF ADJOURNMENT SOUGHT BY THE ASSESSEE AND THE APPEAL FILED IN THE YEAR 2013, WE CONSIDER IT APPROPRIATE TO REJECT THE ADJOURNMENT APPLICATION AND IN THE INTEREST OF JUSTICE, WE P ROCEED TO DISPOSE OF THE APPEAL AFTER HEARING LD D.R. 4. IN THE GROUNDS OF APPEAL, THE ASSESSEE HAS CHALLENGED THE ACTION OF THE CIT IN PASSING ORDER U/S.263 DATED 28.2.2012 AS INVALID AND ALSO GROUNDS ON MERIT. 5. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PROPRIETOR OF M/S. J.B.ROADWAYS. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER BASED ON THE FINANCIAL STATEMENT FOUND THAT THE ASSESSEE HAS CLAIMED ASSESSING TRANSPORTATION CHARGES OF RS.83,64,196/ - DEBITED IN THE PROFIT AND LOSS ACCOUNT. WHEN THE INFO RMATION WAS CALLED FOR, THE ASSESSEE COULD NOT SUBSTANTIATE THE CLAIM BY PROVIDING DETAILS OF TRANSACTIONS, ADDRESS OF THE PERSONS TO WHOM THE PAYMENTS WERE MADE. ACCORDING TO THE ASSESSING OFFICER, THE ASSESSEE WAS REQUIRED TO DEDUCT TDS AT THE PRESCRIBE D RATE UNDER THE PROVISIONS OF SECTION 194C APPLICABLE IN RESPECT OF TRANSPORTATION CHARGES AND ALSO AS PER TAX AUDIT REPORT, THE ASSESSEE HAS NOT DEDUCTED TDS FROM SUCH PERSONS WHO HAD SUPPLIED THEIR VEHICLES ON HIRE TO THE ASSESSEE. THE ASSESSING OFFIC ER FURTHER RELIED ON THE PROVISIONS OF SECTION 40(A)(IA) AND FORMED AN OPINION THAT THE PROVISIONS OF SECTION 194C ARE ATTRACTED AND PASSED ORDER UNDER SECTION 143(3) ON 4.9.2009 WITHOUT CONSIDERING THE FACTS OF NON - DEDUCTION OF TDS. 3 ITA NO.327/CTK/2013 ASSESSMENT YEAR :2007 - 08 6. SUBSEQUENTLY, THE CIT ON PERUSAL OF THE ASSESSMENT RECORDS FOUND THAT THE ASSESSMENT ORDER IS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF THE REVENUE IN RESPECT OF NON - DEDUCTION OF TDS AND ISSUED A SHOW CAUSE NOTICE U/S.263 OF THE ACT TO THE ASSESSEE. 7. A PERUSAL OF THE REVISIONARY ORDER U/S.263 OF THE ACT THAT ON THE DATE OF HEARING ON 24.6.2010, THERE WAS NO COMPLIANCE BY THE ASSESSEE AND AGAIN THE CASE WAS FINALLY FIXED ON 6.1.2011 AND REFIXED THE DATE OF HEARING ON 24.1.2011. AGAIN THERE WAS NO COMPLIANCE ON 24.1.2 011 AND THE ASSESSEE WAS ALLOWED OPPORTUNITY RE - FIXING THE DATE OF HEARING ON 12.1.2012. ON THE SAID DATE ALSO, THERE WAS NO COMPLIANCE BY THE ASSESSEE NOR ANY ADJOURNMENT WAS FILED. AS THERE WAS NO COMPLIANCE ON VARIOUS DATES AND THE ORDER OF ASSESSMENT WAS ERRONEOUS AND PREJUDICIAL TO THE INTERESTS OF THE REVENUE, THE CIT SET ASIDE THE ASSESSMENT ORDER FOR FRESH ADJUDICATION WITH THE DIRECTION THAT THE ASSESSING OFFICER SHALL EXAMINE THE GENUINENESS OF TRANSPORTATION CLAIM SHOWN IN THE PROFIT AND LOSS AC COUNT BASED ON AUDITED BOOKS OF ACCOUNT AND ALSO THE ASSESSING OFFICER SHALL CALLED FOR THE INFORMATION AND DECLARATION BY THE VEHICLE OWNERS OWNED BY THEM AND REGISTRATION NUMBER AND OTHER DETAILS IN FORM 15 - I AS PER I.T.RULES, 1962. FURTHER, WHETHER THE ASSESSEE HAS AT ANY TIME SUBMITTED THE DETAILS OF VEHICLES OWNERS EARLIER AND ALSO IN THE FINANCIAL YEAR 2006 - 07 ANY BILLS RAISED. WITH THESE OBSERVATIONS, THE CIT HAS PASSED ORDER UNDER SECTION 263 SETTING ASIDE THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE ACT AND ALSO DIRECTED THAT IF THE ASSESSEE DOES NOT COMPLY 4 ITA NO.327/CTK/2013 ASSESSMENT YEAR :2007 - 08 WITH THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, THE TRANSPORTATION CHARGES ARE TO BE DISALLOWED. 8. BEING AGGRIEVED BY THE ORDER OF THE CIT, THE ASSESSEE IS IN APPEAL BEFORE US. 9. AS PER RECORDS, THE APPEAL IS FILED IN 2013 AND ON EARLIER OCCASIONS THE CASE WAS ADJOURNED AT THE REQUEST OF THE ASSESSEE AS MENTIONED IN THE ORDER SHEET. NOW THE ASSESSEE HAS FILED ADJOURNMENT APPLICATION FOR ADJOURNING THE CASE. WE FIND THAT THE A PPEAL IS NUMBERED IN THE YEAR 2013 AND ON PERUSAL OF REVISIONARY ORDER U/S.263, IT SEEMS THAT THE ASSESSEE IS NON - COOPERATIVE WITH THE INCOME TAX DEPARTMENT AND THERE COULD BE VARIOUS REASONS FOR NOT APPEARING BEFORE THE CIT. FURTHER, THERE IS NO RECORD OR ANY INFORMATION AVAILABLE REGARDING CONSEQUENTIAL ORDER PASSED BY THE ASSESSING OFFICER U/S.143(3)/ 263 PURSUANT TO THE DIRECTION OF THE CIT. CONSIDERING THE APPARENT FACTS OF NON - DEDUCTION OF TDS BY THE ASSESSEE AND FURTHER THAT THE ASSESSEE IS NOT SE RIOUS IN PROSECUTING HIS APPEAL BEFORE THE CIT OR EVEN BEFORE THE TRIBUNAL, WE ARE OF THE CONSIDERED OPINION THAT THE ORDER UNDER SECTION 263 IS IN ORDER AND ACCORDINGLY, WE DIS MISS THE APPEAL OF THE ASSESSEE 10. IN THE RESULT, THE APPEAL F ILED BY THE ASSE SSEE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 26 /05/2017 IN THE PRESENCE OF PARTIES. SD/ - SD/ - ( N.S SAINI ) ( PAVAN KUMAR GADALE) A CCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 26 /05/2017 5 ITA NO.327/CTK/2013 ASSESSMENT YEAR :2007 - 08 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : PRADEEP KUMAR GREWAL, PROP. M/S. J.B.ROADWAYS, AT: JASHIPUR, DIST: MAYURBHANJ 2. THE RESPONDENT. CIT, CUTTACK 3. THE CIT(A) 4. PR.CIT , 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//