The ACIT,TDS Circle, Ahmedabad V. M/s. Oil & Natural Gas Corpn.Ltd., Mehsana

ITA 382/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80267 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 5 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-08-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 31-07-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 11-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SONIA KUMAR
• Assessee Lawyers: S N SOPARKAR

Judgement Text

, , , , D, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, D BENCH . .. . . .. . , !' !' !' !', , , , #$ %&'( #$ %&'( #$ %&'( #$ %&'(, , , , )* + ) ' )* + ) ' )* + ) ' )* + ) ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO.381, 382, 383 AND 384/AHD/2011 [ASSTT.YEAR : 2008-2009 AND 2009-2010] ACIT, TDS CIRCLE AHMEDABAD. /VS. M/S.OIL & NATURAL GAS CORPN. LTD. KDM BHAVAN, PALAVASNA MEHSANA. PAN : AAACO 1598 A ( (( (-. -. -. -. / APPELLANT) ( (( (/0-. /0-. /0-. /0-. / RESPONDENT) + 1 2 )/ REVENUE BY : SMT.SONIA KUMAR, SR.DR 4& 1 2 )/ ASSESSEE BY : SHRI S.N. SOPARKAR 5 1 &(*/ DATE OF HEARING : 31 ST JULY, 2014 678 1 &(*/ DATE OF PRONOUNCEMENT : 08/08/2014 )9 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THESE FOUR APPEALS OF THE REVENUE FOR THE ASSTT.YEAR 2008-2009 AND 2009-2010 ARE DIRECTED AGAINST THE ORDER OF THE CIT(A). SINCE IDENTICAL ISSUE IS INVOLVED IN THESE APPEALS, THESE ARE BEING DISPOSED OF WITH THIS CONSOLIDATED ORDER. 2. IDENTICAL EFFECTIVE GROUND OF THE APPEAL OF THE REVENUE IN ALL THESE FOUR APPEALS READS AS UNDER: ITA NO.381, 382, 383 AND 384/AHD/2011 -2- 1. THE LD.CIT(A) HAS ERRED IN LAW AS WELL AS ON FA CTS OF THE CASE IN DELETING THE ORDER PASSED U/S.201(1) OF THE I.T.ACT OF RS.6,55,51,482 AND INTEREST CHARGE UNDER SECTION 201(1A) OF THE IT ACT OF RS.1,57,32,356/- [ITA NO.381/AHD/2011] OF RS.7,45,05,585 AND INTERES T CHARGE UNDER SECTION 201(1A) OF THE IT ACT OF RS.89,40,670/- [I TA NO.382/AHD/2011], OF RS.7,88,61,670/-AND INTEREST CHARGE UNDER SECTIO N 201(1A) OF THE IT ACT OF RS.1,89,26,776/- [ITA NO.383/AHD/2011], OF R S.8,72,30,798/-AND INTEREST CHARGE UNDER SECTION 201(1A) OF THE IT ACT OF RS.1,04,67,696/- [ITA NO.384/AHD/2011] EVEN THOUGH DURING THE COURSE OF VERIFICATION IT WAS NOTICED THAT THE ASSESSEE COMPANY WAS PAID CONV EYANCE, MAINTENANCE, REIMBURSEMENT EXPENDITURE (CMRE) AND U NIFORM REIMBURSEMENT TO ITS EMPLOYEES IS A PART OF SALARY & EMPLOYER HAD NOT DEDUCTED TDS ON THE SAME. 3. THE LEARNED COUNSEL FOR THE ASSESSEE, AT THE OUT SET, SUBMITTED THAT THE ISSUE IN THESE APPEALS PREFERRED BY THE REVENUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE ITAT, AHMEDABAD B ENCH IN ASSESSEES OWN CASE FOR THE ASSTT.YEAR 2009-10 IN ITA NO.184-185 A ND 1066/AHD/2010 DATED 16.11.2012 WHEREIN HELD THAT THE ASSESSEE-COMPANY W AS NOT LIABLE TO DEDUCT TDS ON THE PAYMENT OF CONVEYANCE, MAINTENANCE, REIM BURSEMENT OF EXPENDITURE TO ITS EMPLOYEES. HE SUBMITTED THAT TH E ISSUE IS ALSO COVERED WITH THE BINDING DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSEES OWN CASE IN CIT(TDS) VS. OIL & NATURAL GAS CORPORATION (INDIA) LTD., (2013) 38 TAXMANN.COM 187 (GUJARAT) WHEREIN HELD THAT THE TDS PROVISION UNDER SECTION 192 OF THE ACT WERE NOT ATTRACTED TO THE CONVEYANCE , MAINTENANCE AND REIMBURSEMENT OF EXPENDITURE TO THE EMPLOYEES AND T HE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. THE LEARNED DR COULD NOT C ONTROVERT THE SUBMISSIONS OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF THE AO AND THE CIT(A) AND ALSO DECISION OF THE ITAT, AHMED ABAD IN ASSESSEES OWN ITA NO.381, 382, 383 AND 384/AHD/2011 -3- CASE FOR THE ASSTT.YEAR 2009-10 DATED 16.11.2012 (S UPRA) AND ALSO THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN ASSESSE ES OWN CASE CITED SUPRA. WE FIND THAT THE ASSESSEE HAS PAID CONVEYANCE, MAINTEN ANCE AND REIMBURSEMENT OF THE EXPENDITURE (CMRE) TO ITS EMPLOYEES AND ALSO PA ID UNIFORM REIMBURSEMENT TO ITS EMPLOYEES, ON WHICH THE ASSESSEE COMPANY HAS NOT DEDUCTED TDS UNDER SECTION 192 OF THE IT ACT. WE FIND THAT THE ISSUE WHETHER THE TDS PROVISIONS OF SECTION 192 ARE APPLICABLE TO SUCH PAYMENT MADE BY THE ASSESSEE-COMPANY, THE SAME IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE ITAT, AHMEDABAD BENCH IN ASSESSEES OWN CASE FOR A.Y.2009 -10 DATED 16.11.2012 (SUPRA), AND ALSO WITH THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT IN CIT (TDS) VS. OIL AND NATURAL GAS CORPORATION (INDI A) LTD. (SUPRA), WHEREIN HELD THAT THE TDS PROVISION OF SECTION 192 WAS NOT ATTRACTED TO CMRE ALLOWANCES PAID TO ITS EMPLOYEES BY THE ASSESSEE-CO MPANY, AND THE ISSUE WAS DECIDED IN FAVOUR OF THE ASSESSEE. RESPECTFULLY FO LLOWING THE DECISION OF THE HONBLE JURISDICTIONAL HIGH COURT ON THIS ISSUE, WE HOLD THAT THERE IS NO MISTAKE IN THE ORDER OF THE CIT(A) IN HOLDING THAT THE ASSE SSEE WAS NOT LIABLE TO DEDUCT TDS UNDER SECTION 192 ON SUCH AMOUNTS, AND ACCORDIN GLY, THE GROUNDS OF THE APPEALS OF THE REVENUE ARE DISMISSED. 5. IN THE RESULT, ALL FOUR APPEALS OF THE REVENUE A RE DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %&'( %&'( %&'( %&'( / ANIL CHATURVEDI) )* + )* + )* + )* + /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD