A.C.I.T., Central Circle, Agra V. M/s Sun Glass Works (p) Ltd., Firozabad

ITA 33/AGR/2014

• Counselvise Citation: 3320314 RSA 2014
• Duration Of Justice: 4 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 25-06-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 11-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: WASEEM ARSHAD
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR , ACCOUNTANT MEMBER ITA NO. 33 / AG RA / 201 4 ASSESSMENT YEAR 200 9 - 20 10 A.C.I.T./D.C.I.T. VS. M/S. SUN GLASS WORKS (P) LTD., CENTRAL CIRCLE, 1 - MATHURA NAGAR, AGRA FIROZABAD. (PAN AABCS 9173 J ) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI WASEEM ARSHAD, SR. D.R. RESPONDENT BY : NONE . DATE OF HEARING : 25 .0 6 .2014 DATE OF PRONOUNCEMENT : 27 .0 6 .2014 ORDER PER BHAVNESH SAINI, JUDICIAL MEMBER : 1. THIS APPEAL BY REVENUE IS DIRECTED AGA INST THE ORDER OF LEARNED CIT(A) - II , AGRA DATED 26 .0 9 .201 3 FOR A.Y. 200 9 - 10 . ITA NO. 33 /AGRA./2014 2 2. IN THIS CASE, ASSESSMENT ORDER HAS BEEN PASSED UNDER SECTION 143(3) OF THE I.T. ACT VIDE ORDER DATED 29.12.2011. IN THE ASSESSMENT ORDER, THE A.O. HAS HELD THAT THE ASSESSEE LIABLE FOR MAKING DEDUCTION OF TAX AT SOURCE (TDS) ON PAYMENT TO THE GAS AUTHORITY OF INDIA LTD. (GAIL) RELATING TO THE PART OF THE PAYMENT MADE ON ACCOUNT OF TRANSPORTATION CHARGES AND ROYALTY PAID ON PURCHASE OF GAS FROM GAIL AND SINCE NO TDS WAS MADE BY THE ASSESSEE, THE A.O. HELD THAT TOTAL AMOUNT OF RS.1,17,47,748/ - PAID ON ACCOUNT OF TRANSPORTATION CHARGES AND ROYALTY ARE DISALLOWABLE UNDER SECTION 40(A)(IA) OF THE ACT AND THIS AMOUNT WAS ADDED TO THE RETURNED INCOME. THE ASSESSEE FILED WRITTEN SUBMIS SION BEFORE LEARNED CIT(A) WHICH IS QUOTED IN THE IMPUGNED ORDER IN WHICH THE ASSESSEE DENIED LIABILITY OF TDS AND REFERRED TO CBDT CIRCULAR NO.9/2012 DATED 17.10.2012 ISSUED IN RESPECT OF MATTER RELATING TO DEDUCTION OF TDS FOR PAYMENT BY THE PURCHASER OF NATURAL GAS ON GAS TRANSPORTATION CHARGES TO THE SELLER. THE CIRCULAR IS REPRODUCED IN THE APPELLATE ORDER TO PROVE THAT ON SUCH A MATTER ASSESSEE WAS NOT LIABLE FOR TDS. THE WRITTEN SUBMISSION OF THE ASSESSEE WAS FORWARDED TO THE A.O. FOR EXAMINATION. TH E A.O. IN THE REMAND REPORT DATED 29.03.2013 REPORTED THAT THERE IS NO TDS LIABILITY AGAINST THE ASSESSEE IN VIEW OF THE CBDT CIRCULAR NO.9/2012(SUPRA). ITA NO. 33 /AGRA./2014 3 3. THE LEARNED CIT(A) CONSIDERING THE REMAND REPORT OF THE A.O. AND THE BOARD CIRCULAR HELD THAT SINC E A.O. HIMSELF ADMITTED THAT THERE IS NO TAX LIABILITY ON ASSESSEE TO DEDUCT TDS AND FURTHER THE TAX OUT OF SUCH PAYMENTS HAVE ALREADY BEEN PAID BY THE RECIPIENT, DELETED THE ENTIRE ADDITION. THE INCOME TAX RETURN FROM THE RECIPIENT WAS ALSO BEFORE LEARNED CIT(A) TO THAT EFFECT. ON CONSIDERATION OF THE SUBMISSION OF THE LEARNED D.R., WE DO NOT FIND ANY JUSTIFICATION TO INTERFERE OF THE ORDER OF THE LEARNED CIT(A) IN DELETING THE ADDITION. SINCE A.O. ADMITTED IN THE REMAND REPORT THAT THERE IS NO TDS LIABILI TY AGAINST THE ASSESSEE, THEREFORE, APPEAL OF THE REVENUE IS NOT MAINTAINABLE AND LIABLE TO DISMISS . F URTHER LEARNED CIT(A) FOUND THAT THE PAYMENTS MADE TO GAIL IS EXPLAINED IN THE LETTER IN WHICH IT WAS INFORMED THAT TAX LIABILITY HAS BEEN PAID BY THE REC IPIENT. THEREFORE, ON THIS POINT ALSO THERE IS NO LIABILITY OF THE ASSESSEE FOR DEDUCTION OF THE TDS. THE DEPARTMENTAL APPEAL FAILS AND IS DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISMISSED. (ORDER PRONOUNCED IN THE OPEN COURT) SD/ - SD/ - ( PRAMOD KUMAR ) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER AMIT/ ITA NO. 33 /AGRA./2014 4 COPY OF THE ORDER FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT (APPEALS) CONCERNED 4. CIT CONCERNED 5. D.R., ITAT, AGRA BENCH, AGRA 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL, AGRA TRUE COPY