The DCIT, Circle-3(1)(1), Ahmedabad V. M/s. Naugar Water Supply Co. Pvt. Ltd., Ahmedabad

ITA 3325/AHD/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 8245 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 5 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-05-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Assessment Year: 2012-2013
• Appeal Filed On: 09-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V K SINGH
• Section: 143(3); 194C; 201(1); 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD D BENCH BEFORE: SHR I RAJPAL YADAV , JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER THE DCIT, CIRCLE - 3(1)(1), AHMEDABAD (APPELLANT) VS M/S. NAUGAR WATER SUPPLY CO. PVT. LTD. BUILDING NO. 12A, SIGMA CORPORATE, B/H RAJPATH CLUB, OFF. S.G. ROAD, BODAKDEV, AHMEDABD PAN: AACCN7403R (RESPOND ENT) REVENUE BY : S H RI V.K. SINGH , SR. D . R. ASSESSEE BY: NONE DATE OF HEARING : 20 - 03 - 2 018 DATE OF PRONOUNCEM ENT : 10 - 05 - 2 018 / ORDER P ER : AM ARJIT SINGH, ACCOUNTANT MEMBER : - THIS REVENUE S APPEAL FOR A.Y. 2012 - 13 , ARIS ES FROM ORDER OF THE CIT(A) - 9 , AHM EDABAD DATED 06 - 10 - 2016 , IN PROCEEDINGS UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT . 2. THE REVENUE HAS RAISED FOLL OWING GROUNDS OF APPEAL: - 1. THE CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.74,63,216/ - MADE ON ACCOUNT OF DISALLOWANCE U/S.40(A)(IA) OF THE ACT. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LEI, COMMISSIONER OF INCOME TAX (A) OUGHT: TO HAVE UPHELD THE ORDER OF THE ASSESSING OFFICER. I T A NO . 3325 / A HD/20 16 A SSESS MENT YEAR 2012 - 13 I.T.A NO. 3325 /AHD/20 16 A.Y. 2012 - 13 PAGE NO DCIT VS. M/S. NAUGAR WATER SUPPLY CO. PVT. LTD. 2 3. IT IS, THEREFORE, PRAYED THAT: THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (A) MAY BE SET - ASIDE AND THAT OF THE ASSESSING OFFICER BE RESTORED. 3. IN THIS CASE, RETURN OF INCOME DECLARING LOSS OF RS. - 2 , 92 , 55 , 150/ - WAS FILED ON 30 TH SEP, 2012. SUBSEQUENTLY, THE CAS E WAS SELECTED UNDER SCRUTINY BY ISSUING OF NOTICE U/S. 143(2) OF THE ACT ON 21 ST AUGUST, 2013. ON SCRUTINY IT WAS DISCERNED TO THE ASSESSING OFFICER THAT ASSESSEE HAS NOT DEDUCTED TDS ON CONSULTANCY CHARGES OF RS . 74 , 63 , 216/ - PAID TO M/S. DOSHI O N PVT. LTD. I.E. ITS 100% SHARE - HOLDING COMPANY OF THE ASSESSEE. THE ASSESSING OFFICER OBSERVED THAT ASSESSEE SHOULD HAVE DEDUCTED TAX O N AFORESAID PAYMENT AS PER THE PROVISIO N OF SECTION 194C OF THE ACT. CONSEQUENTLY, THE ASSESSING OFFICER HAS DISALLOWED THE ABOVE AMOUNT OF RS. 74 , 6 3,216/ - U/S. 40 (A)(IA) OF THE ACT. 4. AGGRIEVED ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A). THE LD. CIT(A) HAS ALLOWED THE APPEAL OF THE ASS ESSEE STATING THAT THE PAYEE O F CONSULTANCY CHARGES HAS OFFERED THE AFORESAID AMOUNT IN ITS RETURN OF INCOME FILED WITHIN THE TIME LIMIT PRESCRIBED U/S. 139(1) OF THE ACT. THE ASSESSEE HAS ALSO FURNISHED A CERTIFICATE FROM THE CHARTERED ACCOUNTANT CERTIF YING THAT TAX ON THE AFORESAID SAID AMOUNT HAS BEEN PAID BY THE PAYEE AS PRESCRIBED IN THE FIRST PROVISO TO SECTION 201(1) OF THE ACT. 5. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD CAREFULLY. THE ASSESSING OFFICER HAD DISAL LOWED AN AMOUNT OF RS. 74,63,216/ - U/S. 40(A)(IA) OF THE ACT ON ACCOUNT OF NOT DEDUCTING TAX ON PAYMENT OF CONSULTANCY CHARGES TO M/S DOSHIAN PVT. LTD . A S PER PROVISION OF SECTION 201(1) OF THE ACT ON FAILING TO DEDUCT TAX ON THE SUM PAID TO THE RESIDEN T , THE ASSESSEE SHALL NOT BE DEEMED TO BE AN ASSESSEE IN DEFAULT OF TAX IF SUCH RESIDENT (I) HAS FURNISHED HIS RETURN OF INCOME U/S. 139 (II) HAS TAKEN INTO ACCOUNT SUCH SUM FOR COMPUTING INCOME IN SUCH RETURN OF INCOME (III) HAS PAID THE TAX DUE ON THE INCOME DECLARED BY HIM IN SUCH RETURN OF INCOME AND THE PERSON FURNISHED A CERTIFICATE TO THIS EFFECT FROM AN ACCOUNTANT IN SUCH FORMS AS MAY BE PRESCRIBED. I.T.A NO. 3325 /AHD/20 16 A.Y. 2012 - 13 PAGE NO DCIT VS. M/S. NAUGAR WATER SUPPLY CO. PVT. LTD. 3 IN THIS CASE M/S DOSHIAN PVT. LTD . HAS ALSO FURNISHED SUCH CERTIFICATE ON THE PRESCRIBED FORM AS P ER RULE 31ACB OF THE I.T. RULE. IN VIEW OF THE ABOVE FACTS AND CIRCUMSTANCES W E CONSIDER THAT ASSESSEE H AS MADE COMPLIANCE WITH THE ABOVE PROVISION OF THE ACT AND RULE, THEREFORE, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF THE LD. CIT(A). ACCORDINGLY , THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PR ONOUNCED IN THE OPEN C OURT ON 10 - 05 - 201 8 SD/ - SD/ - ( RAJPAL YADAV ) ( AMARJIT SINGH ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 10 /05 /2018 / COPY OF ORDER FORWARDED TO: - 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,