Accrecent Way Marketing (p) Ltd., Guwahati V. Deputy Commissioner of Income Tax, Circle-3, Guwahati

ITA 359/GTY/2018

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8498 (ITAT-GUWAHATI)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 20-12-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ANIL KR AGARWALA FCA SH
• Keywords: TDS
• Section: 143(3)

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL GUWAHATI BENCH SMC GUWAHATI BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.359/GAU/2018 ASSESSMENT YEAR:2012-13 ACCRECENT WAY MARKETING PVT. LTD. HOUSE NO.10, BYE LANE NO.1, AMTALA PATH, REHABARI, GUWAHATI-781008 [ PAN NO.AAFCA 8279 H ] / V/S . DCIT, CICLE-3, AAYKAR BHAWAN, G.S. ROAD, CHRISTIAN BASTI, GUWAHATI-781005 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI ANIL KR. AGARWALA, FCA /BY RESPONDENT SHRI A.K. BHARDWAJ, ADDL. CIT-DR /DATE OF HEARING 11-07-2019 /DATE OF PRONOUNCEMENT 10-10-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2012-13 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS)-2, GUWAHATIS ORDER DATED 31.07.2018 PASSED IN CASE NO.GUWA-592/2014-15/94 INVOLVING PR OCEEDINGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE ASSESSEES FORMER SUBSTANTIVE GROUND PLEADED IN THE INSTANT APPEAL CHALLENGES BOTH THE LOWER AUTHORITIES ACTION DISALL OWING ITS SALARY PAYMENT OF 2 LAC ON ACCOUNT OF NON-DEDUCTION OF TDS U/S194J R.W.S. 40(A)(IA). LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY CONTENDED THAT SINCE THE ASSESSEE HAD RECORDED THE IMPUGNED EXPENDITURE OF REMUNERATION FOR LEGAL MATT ERS, THE SAME HAS BEEN RIGHTLY TREATED AS PROFESSIONAL SERVICES REQUIRING TDS DEDU CTION U/S 194J OF THE ACT. I FIND NO MERIT IN REVENUES INSTANT ARGUMENT. CASE FILE SUGG EST THAT THE ASSESSEE HAD EMPLOYED AN ADVOCATE, MR PRADIP TARAFDAR FOR SALARY OF 25,000/- PER MONTH FROM JULY, 2011 TO ITA NO.359/GAU/2018 A.Y. 2012-1 3 ACCRECENTE WAY MARKETING PVT. LTD. VS. DCIT, CIR- 3, GUWA PAGE 2 MARCH, 2012. THIS CLINCHING ASPECT HAS NOWHERE REBU TTED EITHER OF THE LOWER PROCEEDINGS. I OBSERVE IN THESE FACTS AND CIRCUMSTA NCES THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN TREATING THE SALARY PAYMENT AS PROFES SIONAL SERVICE REQUIRING TDS DEDUCTION. THE ASSESSING OFFICER IS ACCORDINGLY DIR ECT TO DELETE THE IMPUGNED DISALLOWANCE. 3. NEXT COMES THE LATTER ISSUE OF AD HOC DISALLOWANCE OF 5 LAC MADE IN BOTH THE LOWER PROCEEDINGS. I FIND THAT NEITHER BOTH THE LOW ER AUTHORITIES HAVE DRAWN ANY COMPARATIVE CHART OF ASSESSEES CORRESPONDING EXPEN SES CLAIMS INCLUDING DIRECT EXPENSE, SALARY, WAGES, TRAVEL AND SALES PROMOTION HEADS, IN EARLIER AND LATTER ASSESSMENT YEARS. NOR THE ASSESSEE HAS PROVED THE S AME BY FILING NECESSARY COGENT EVIDENCE. I THEREFORE DEEM IT APPROPRIATE THAT A LU MP SUM DISALLOWANCE OF 1 LAC WOULD MEET THE ENDS OF JUSTICE WITH A RIDER THAT SA ME SHALL NOT BE TREATED AS A PRECEDENT IN ANY OTHER ASSESSMENT YEAR. 4. THIS ASSESSEES APPEAL IS PARTLY ALLOWED IN ABOV E TERMS. ORDER PRONOUNCED IN ACCORDANCE WITH RULE 34(3) OF T HE ITAT RULES BY PUTTING ON NOTICE BOARD 10 /10/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R GUWAHATI, *DKP/SR.PS ' - 10/10/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-ACCRECENT WAY MARKETING PVT. LTD. HOUSE NO.10, BYE LANE NO.1, AMTALA P ATH, REHABARI, GUWAHATI-781008 2. /RESPONDENT-DCIT, CIR-3, AAYKAR BHAWAN, G.S. ROAD, CHRISTIAN BASTI, GUWAHATI-781005 3. & ' , / CONCERNED CIT GUWAHATI 4. ' - / CIT (A) 5. - //& , & , / DR, ITAT, GUWAHATI 6. 1 / GUARD FILE. BY ORDER/ , /TRUE COPY/ SR. PRIVATE SECRETARY (ON TOUR) &,