Ajay Kumar Bansal, Cuttack V. ITO, Ward-1(1), Cuttack

ITA 37/CTK/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7562 (ITAT-CUTTACK)
• Duration Of Justice: 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-11-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 24-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 15-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUVENDU DUTTA
• Assessee Lawyers: P K MISHRA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH, CUTTACK BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 37 /CTK/2016 ASSESSMENT YEAR : 2007 - 08 AJAY KUMAR BANSAL,, C/O. GAYATRI STEEL, PILGRIM ROAD, COLLEGE SQUARE, CUTTACK. VS. ITO, WARD 1(1), CUTTACK PAN/GIR NO. AGRPM 9613 N (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI P.K.MISHRA, AR REVENUE BY : SHRI SUVENDU DUTTA , DR DATE OF HEARING : 24 /11 / 2016 DATE OF PRONOUNCEMENT : 24 /11 / 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - CUTTACK, DATED 20.11.2015 , FOR THE ASSESSMENT YEAR 2007 - 08 . 2. TE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.1,24,200/ - PAID TO RUKMANI RATHOR AS NO TAX WAS DEDUCTED AT SOURCE FROM THE SAID PAYMENT MADE AS RENT. FURTHER, LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS. 1,69,995/ - PAID AS INTEREST WITHOUT DEDUCTING TAX AT SOURCE. 2 ITA NO. 37/CTK/2016 ASSESSMENT YEAR :2007 - 08 3. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER FOUN D THAT THE ASSESSEE HAS MADE PAYMENT OF RS.1,24,200/ - TO SMT. RUKMANI RATHOR WITHOUT DEDUCTING TAX AT SOURCE U/S.194 - I OF THE ACT. THE ASSESSEE SUBMITTED THAT OUT OF PAYMENT OF RS.1,24,200/ - , RS.12,000/ - WAS PAID FOR SECURITY SERVICES PROVIDED BY THE LAND LORD FOR THE SECURITY OF THE GODOWN. HENCE, THE PAY MENT MADE FOR RENT WAS RS.1,12,200/ - WHICH WAS BELOW RS.1,20,0 00/ - , THE STANDARD LIMIT FIXED U/S.194 - I OF THE ACT FOR DEDUCTION OF TDS. HENCE, NO TDS WAS REQUIRED TO BE DEDUCTED FROM THE PAYMENT. THE AS SESSING OFFICER, HOWEVER, INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, DISALLOWED THE DEDUCTION TO THE ASSESSEE. 4. ON APPEAL, LD CIT (A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDER S OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. I FIND THAT THE ASSESSEES EXPLANATION IS THAT IT HAS PAID RENT OF RS.1,12,000/ - DURING THE YEAR UNDER APPEAL AND RS.12,000/ - AS SECURITY SERVICES PROVIDED FOR THE SECURITY OF THE GODOWN. NO MATERIAL HAS BEEN BROUGHT ON RECORD AFTER VERIFICATION BY THE ASSESSING OFFICER TO SHOW THAT THE ABOVE SUBMISSION OF THE ASSESSEE IS INCORRECT. THEREFORE, I FIND NO GOOD REASON NOT TO ACCEPT THE SUBMISSION OF THE ASSESSEE WHICH IS ALSO THE SUBMISSION BEFORE ME. THAT BEING SO, THE RENT PAYMENT DURING THE YEA R BEING RS.1,12,2 00/ - , WHICH IS LESS THAN RS.1,20,000/ - BEING THE LIMIT PRESCRIBED FOR DEDUCTION OF TDS FROM PAYMENT 3 ITA NO. 37/CTK/2016 ASSESSMENT YEAR :2007 - 08 OF RENT U/S.194 - I OF THE ACT. I, THEREFORE, SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND DELETE THE ADDITION OF RS.1,24,200/ - AND ALLOW THIS PART OF GROUND OF APPEAL. 6. REGARDING INTEREST PAYMENT OF RS.1,69,995/ - , IT IS THE SUBMISSION OF LD A.R. OF THE ASSESSEE THAT NO AMOUNT WAS OUTSTANDING PAYABLE TO SHRI GAYATRI DEVI BANSAL AND NANURAM BANSAL UNDER THE HEAD INTEREST. THE SAID AMOUNT OF R S.1 ,69,995/ - WAS ALREADY PAID DURING THE YEAR. HENCE, IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL), NO ADDITION IS CALLED FOR. I FIND FORCE IN THE SUBMISSION OF LD A.R. OF THE ASSESSEE THAT NO AMOUNTING IS OUTSTANDING PAYABLE UNDER THE HEAD INTEREST BY THE ASSESSEE AT THE END OF THE YEAR. IN SUPPORT OF THE SAME, LD A.R. FILED COPY OF BALANCE SHEET AS ON 31.3.2007. THIS SUBMISS ION OF THE ASSESSEE COULD NOT BE CONTROVERTED BY LD D.R. THEREFORE, RESPECTFULLY FOLLOWING THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF VICTOR SHIPPING SERVICES ()LTD., (SUPRA), I SET ASIDE THE ORDERS OF LOWER AUTHORITIES ON THIS ISSUE AND DELETE THE ADDITION OF RS.1,69,995/ - U/S.40(A)(IA) OF THE ACT AND ALLOW THIS PART OF THE GROUND OF APPEAL OF THE ASSESSEE. 4 ITA NO. 37/CTK/2016 ASSESSMENT YEAR :2007 - 08 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCE D IN THE OPEN COURT ON 24 / 11 /2016 IN THE PRESENCE OF PARTIES. S D / - ( N.S SAINI) A CCOUNTANT MEMB ER CUTTACK; DATED 24 /11 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, ASST.REGISTRAR, ITAT, CUTTACK 1. THE APPELLANT : AJAY KUMAR BANSAL,, C/O. GAYATRI STEEL, PILGRIM ROAD, COLLEGE SQUARE, CUTTACK. 2. THE RESPONDENT. ITO, WARD 1(1), CUTTACK 3. THE CIT(A) , CUTTACK 4. CIT , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//