SOUTH CARRYING CORPORATION, THANE V. ITO WD 3(3), THANE

ITA 3293/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 2415 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-10-2016
• Appeal Filed By: Assessee
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 01-06-2015
• Court: TRIBUNAL
• Department Lawyers: PRADEEP KUMAR SINGH
• Assessee Lawyers: RAJENDRA SAWALE KISHORE PODDAR
• Section: 194C

Judgement Text

, . . , IN THE INCOME TAX APPELLATE TRIBUNAL SMC , BENCH MUMBAI BEFORE SHRI R.C.SHARMA , A CCOUNTANT MEMBER ./ ITA NO . 3 293 /MUM /20 1 5 ( / ASSESSMENT YEAR : 200 7 - 20 08 ) M/S SOUTH CA RRYING CORPORATION, A - 201, ROYAL CROWN, OPP. MUNICIPAL SCHOOL NO.13, KHOPAT ROAD, THANE (W) - 400601 VS. ITO WARD - 3(3), THANE ./ ./ PAN/GIR NO. : A A TFS 3130 J ( / APPELLANT ) .. ( / RESPONDENT ) /A SSESSEE BY : SHRI RAJENDRA SAWALE, KISHORE PODDAR /REVENUE BY : SHRI PRADEEP KUMAR SINGH / DATE OF HEARING : 11 / 0 8 /2016 / DATE OF PRONOUNCEMENT 24 / 1 0 /201 6 / O R D E R TH IS IS AN APPEAL FIL ED BY THE ASSESSEE AGAINST THE ORDER OF CIT (A) FOR ASSESSMENT YEAR 200 7 - 20 08 , WHEREIN THE ASSESSEE IS AGGRIEVED FOR DISALLOWANCE OF RS. 31,87,641/ - U/S.40(A)(IA) OF THE ACT. 2. RIVAL CONTENTIONS HAVE BEEN HEARD AND RECORD PERUSED. FACTS IN BRIEF ARE THAT DISALLOWANCE HAS BEEN MADE U/S.40(A)(IA) OF THE ACT FOR NON DEDUCTION OF TDS U/S.194C ON THE PAYMENTS MADE FOR ENGAGING VARIOUS CARRIERS/LORRIES FOR TRANSPORTATION OF MOBILE TOWERS. 3. IT WAS CONTENDED BY LD. AR THAT SINCE THERE EXISTS NO CONTRACT BETWEEN THE ASSESSEE AND THE OWNERS OF THE CARRIER SO HIRED; NO QUESTION ARISES ON APPLICABILITY OF SECTION 194C OF THE ACT, 1961. ITA NO. 3 293 /2015 2 4. THE ISSUE UNDER CONSIDERATION IS SQUARELY COVERED BY THE DECISION OF COORDINATE BENCH IN THE CASE OF BHAIL BULK CARRIERS, 50 SOT 622, WHEREIN THE TRIBUNAL OBSERVED AS UNDER : - S.194C(1) APPLIES TO ANY PAYMENT MADE TO A PERSON FOR CARRYING OUT ANY WORK IN PURSUANCE OF A CONTRACT BETWEEN CONTRACTOR AND PERSON MAKING PAYMENT. ASSESSEE - TRANSPORTER IS NOT LIABLE TO DEDUCT TDS UNDER S.1 94C(1) FOR PAYMENTS MADE TO THE OUTSIDE PARTIES WHOSE VEHICLES WERE HIRED FOR FULFILLING CONTRACT WHEN OUTSIDE TANK OWNERS DO NOT HAD ANY RESPONSIBILITY OR LIABILITY TOWARDS THE FULFILLMENT OF CONTRACT. IF CONDITION OF CARRYING OUT ANY WORK IN PURSUANCE OF A CONTRACT IS NOT FULFILLED THEN PROVISIONS OF THIS SECTION WILL NOT BE APPLICABLE AT ALL. 5. AS THE FACTS AND CIRCUMSTANCES DURING THE YEAR UNDER CONSIDERATION ARE EXACTLY SIMILAR, RESPECTFULLY FOLLOWING THE DECISION OF THE COORDINATE BENCH, I DO NOT FIND ANY MERIT IN THE DISALLOWANCE SO MADE BY THE AO. 6 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED . O RDER PRONOUNCED IN THE OPEN COURT ON THIS 24/10/ 201 6 . S D/ - ( R.C.SHARMA ) / ACCOUNTANT ME MBER MUMBAI ; DATED 24/10/2016 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, MUMBAI 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A), MUMBAI. 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE. //TRUE COPY// ITA NO. 3 293 /2015 3 DATE INITIAL 1. DRAFT DICTATED ON 11 - 8 - 16 SR.PS 2. DRAFT PLACED BEFORE AUTHOR 11 - 8 - 16 (DICTATION PAD HAS BEEN ENCLOSED ALONG WITH THIS ORIGINAL FILE) SR.PS 3. DRAFT PROPO SED & PLACED BEFORE THE SECOND MEMBER JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS SR.PS/ PS 6. KEPT FOR PRONOUNCEMENT ON SR.PS 7. FILE SENT TO THE BENCH CLERK SR.PS 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.