Shri Amiya S.Dey, Vapi V. The Income tax Officer,Vapi Ward-4, Daman

ITA 3274/AHD/2010

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6045 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 18-06-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 10-12-2010
• Court: TRIBUNAL
• Department Lawyers: P L KUREEL

Judgement Text

, , , , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD 0 00 0 0 00 0 , , , , ! '# ! '# ! '# ! '#, , , , $ $ $ $ BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA NO. 3274/AHD/2010 ASSESSMENT YEAR 2007-08 SHRI AMIYA S. DEY C/O, CHHIBUBHAI PATEL, IN FRONT OF GULAB HOSPITAL, KILVANI ROAD, SILVASSA. PAN: AGRPD4653K VS INCOME TAX OFFICER VAPI WARD-4, DAMAN. %&/ APPELLANT ()%& / RESPONDENT REVENUE BY : SHRI P.L. KUREEL, SR. DR ASSESSEE(S) BY : SHRI TUSHAR P. HEMANI, AR !* + #,/ // / DATE OF HEARING : 18/06/2014 -./ + #, / DATE OF PRONOUNCEMENT : 27/06/2014 0 00 0/ // / O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), VALSAD DATED 21.08.2010. 2. THE SOLE ISSUE INVOLVED IN GROUND NO. 1 TO 4 & 6 OF THIS APPEAL OF THE ASSESSEE IS THAT COMMISSIONER OF INCOME TAX (AP PEALS) ERRED IN CONFIRMING DISALLOWANCE U/S. 40(A)(IA) OF PAYMENT M ADE TO SUB-CONTRACTORS AGGREGATING TO RS 71,39,011/-. ITA NO. 3274/AHD/2010 SHRI AMIYA S. DEY, SILVASSA. AY 2007-08 - 2 - 3. THE BRIEF FACTS OF THE CASE ARE AS FOLLOWS: THE ASSESSEE IS A LABOUR CONTRACTOR AND PAID RS 71, 39,011/- TO THE SUB-CONTRACTORS ON WHICH NO DEDUCTION OF TAX DE DUCTED AT SOURCE WAS MADE. THE ASSESSING OFFICER THEREFORE DISALLOWED R S 71,39,011/- BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. ON APPEAL, THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 4. THE ONLY ARGUMENT OF THE AUTHORIZED REPRESENTAT IVE OF THE ASSESSEE WAS THAT BY FOLLOWING THE DECISION OF THIS BENCH OF THE TRIBUNAL RENDERED IN THE CASE OF ITO VS. SHRI PARASMAL MANEK CHAND JAIN IN ITA NO. 2690/AHD/2012 ASSESSMENT YEAR 2008-09 WHEREIN VIDE ORDER DATED 22.11.2013 THE TRIBUNAL RESTORED THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER FOR RE-ADJUDICATING THE ISSUE OF DISALLOWAN CE OF EXPENDITURE U/S. 40(A)(IA) OF THE ACT FOR NON-DEDUCTION OF TDS FROM THE PAYMENTS MADE TO THE SUB-CONTRACTORS WITH THE DIRECTION TO CONSIDER THE AMENDMENT MADE BY THE FINANCE ACT, 2012 THAT IF THE PAYEE PAYS THE TA X ON THE AMOUNT PAID BY THE ASSESSEE TO HIM BY SHOWING THE RECEIPTS AS HIS INCOME, THEN NO DISALLOWANCE OF EXPENDITURE CAN BE MADE IN THE HAND S OF THE ASSESSEE U/S. 40(A)(IA) OF THE ACT. HE PRAYED THAT IN THE PRESEN T APPEAL ALSO, THE MATTER SHOULD BE RESTORED TO THE FILE OF THE ASSESSING OFF ICER WITH SIMILAR DIRECTION. 5. WE, THEREFORE, FOLLOWING THE ABOVE DECISION OF THE TRIBUNAL, RESTORE THE MATTER BACK TO THE FILE OF THE ASSESSIN G OFFICER WITH THE SAME DIRECTION AS STATED ABOVE IN THE AFORESAID ORDER. THUS, THE GROUNDS OF APPEAL OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 6. GROUND NO. 5 OF THE APPEAL READS AS UNDER: ALTERNATIVELY AND WITHOUT PREJUDICE TO ABOVE, THE C OMMISSIONER OF INCOME TAX(A) AS WELL AS LD. ASSESSING OFFICER O UGHT TO HAVE ITA NO. 3274/AHD/2010 SHRI AMIYA S. DEY, SILVASSA. AY 2007-08 - 3 - ALLOWED EXPENDITURE IN SUCCEEDING EXPENDITURE WHERE IN TAX HAD BEEN DULY DEPOSITED TO THE GOVERNMENT TREASURY ACCO UNT. 7. AT THE TIME OF HEARING, THE AUTHORIZED REPRESEN TATIVE OF THE ASSESSEE SUBMITTED THAT HE IS NOT PRESSING THIS GRO UND OF APPEAL. HENCE, THE SAME IS DISMISSED AS NOT PRESSED. 8. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE COURT ON FRIDAY, THE 27 TH OF JUNE, 2014 AT AHMEDABAD. SD/- SD/- (KUL BHARAT) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 27/06/2014 GHANSHYAM MAURYA, SR. P.S. TRUE COPY 0 + (#1 21/# 0 + (#1 21/# 0 + (#1 21/# 0 + (#1 21/#/ COPY OF THE ORDER FORWARDED TO : 1. %& / THE APPELLANT 2. ()%& / THE RESPONDENT. 3. # !3 / CONCERNED CIT 4. !3() / THE CIT(A)-III, AHMEDABAD 5. 1'6 (# , , / DR, ITAT, AHMEDABAD 6. 678 9* / GUARD FILE. 0! 0! 0! 0! / BY ORDER, : :: :/ // / ; ; ; ; ( DY./ASSTT.REGISTRAR) , , , , / ITAT, AHMEDABAD