Income tax Officer, Nashik V. Sinnar Taluka Sahakari Dudh Utpadak Prakriya Sangh Maryadit, Sinnar

ITA 401/PUN/2017

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 6047 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 5 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-08-2019
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 17-07-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 16-02-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ASHOK BABU
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE . , , , BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI VIKAS AWASTHY, JM . / ITA NO . 401 /PUN/201 7 / ASSESSMENT YEAR : 20 1 3 - 14 INCOME TAX OFFICER, WARD 1(3), NASHIK ....... / APPELLANT / V/S. SINNAR TALUKA SAHAKARI DUDH UTPADAK AND PRAKRIYA SANGH MARYADIT, SAHAKAR BHAVAN, SHIVAJI CHOWK, SINNAR PAN : AADAS3474Q / RESPONDENT ASSESSEE BY : NONE/ WRITTEN SUBMISSION REVENUE BY : SHRI N. ASHOK BABU / DATE OF HEARING : 1 7 - 07 - 2019 / DATE OF PRONOUNCEMENT : 01 - 0 8 - 2019 / ORDER PER VIKAS AWASTHY, JM : TH IS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1, NASHIK DATED 05 - 12 - 2016 FOR THE ASSESSMENT YEAR 2013 - 14. 2. THE GROUNDS OF APPEAL BY REVENUE ASSAILING THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) AR E : 2 ITA NO .401/PUN/2017, A.Y. 2013 - 14 1. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD.CIT(A) - 1, NASIK WAS JUSTIFIED IN DELETING THE ADDITION OF RS.1,25,25,148/ - MADE U/S 40(A)(IA) OF THE INCOME TAX ACT, 1961 AS THE ASSESSEE MADE SANSTHA VYAVASTHAPAN CHARGES (COMMISSION PAYMENTS RS.1,15,29,968/ - ) AND DUDH VIKRI PARTICHI COMMISSION (MILK SALES COMMISSION PAYABLE RS.9,95,180/ - ) WITHOUT DEDUCTING TDS AS PER THE PROVISIONS OF SECTION 194H OF THE INCOME TAX ACT 1961. 2. WHETHER ON THE FACTS AND IN THE CIRCUMSTANCE S OF THE CASE, THE LD. CIT(A) - I, NASIK WAS JUSTIFIED TO HOLD THAT THE RELATION OF THE ASSESSEE AND OTHER MILK SOCIETIES ARE PRINCIPAL TO PRINCIPAL BASIS, INSTEAD IT WAS PRINCIPAL TO AGENT BASIS, WHILE DEALING COMMISSION PAYMENT TO OTHER SOCIETIES. 3. THE ORDER OF THE CIT(A) MAY BE VACATED AND THAT OF THE ASSESSING OFFICER MAY BE RESTORED. 4. THE APPELLANT CRAVE LEAVE TO ADD, ALTER, OR DELETE ANY GROUND OF APPEAL. 3 . NONE APPEARED TO REPRESENT THE ASSESSEE. HOWEVER, WRITTEN SUBMISSIONS HAVE BEEN FILED ON BEHALF OF ASSESSEE. A PERUSAL OF WRITTEN SUBMISSIONS REVEAL THAT THE ISSUE RAISED IN THE PRESENT APPEAL BY THE REVENUE IS IDENTICAL TO THE ONE RAISED IN ITA NO. 2482/PUN/2016 FOR ASSESSMENT YEAR 2012 - 13 BY THE REVENUE IN ASSESSEES OWN CASE . THE ISSU E WAS DECIDED AGAINST THE DEPARTMENT BY THE CO - ORDINATE BENCH VIDE ORDER DATED 03 - 08 - 2018. IDENTICAL ISSUE WAS RAISED IN THE ASSESSMENT YEARS 2009 - 10, 2010 - 11 AND 2011 - 12 BY THE DEPARTMENT IN ITA NOS. 1553/PN/2013, 1706/PN/2014 AND 1393/PUN/2015 FOR THE R ESPECTIVE ASSESSMENT YEARS. THE TRIBUNAL HAS BEEN CONSISTENTLY DECIDING THIS ISSUE AGAINST THE REVENUE. THE DEPARTMENT FILED APPEAL BEFORE THE HONBLE BOMBAY HIGH COURT IN INCOME TAX APPEAL NO. 161 OF 2015 AGAINST THE ORDER OF TRIBUNAL IN ITA NO. 1553/PN /2013 DATED 28 - 05 - 2014 FOR THE ASSESSMENT YEAR 2009 - 10 . THE SAID APPEAL OF DEPARTMENT WAS DISMISSED BY THE HONBLE HIGH COURT VIDE ORDER DATED 01 - 03 - 2016 ON ACCOUNT OF LOW TAX. SINCE, THE ISSUE IN APPEAL IS RECURRING IN NATURE AND NO MATERIAL HAS BEEN PL ACED BEFORE US TO SHOW ANY DIFFERENCE IN THE FACTS AND TRANSACTION 3 ITA NO .401/PUN/2017, A.Y. 2013 - 14 INVOLVED IN THE ASSESSMENT YEAR UNDER APPEAL, WE FIND NO REASON TO TAKE A VIEW DIFFERENT FROM THE ONE ALREADY TAKEN BY THE CO - ORDINATE BENCHES. F OLLOWING THE DECISION OF CO - ORDINATE BENCH IN THE PRECEDING ASSESSMENT YEARS IN ASSESSEES OWN CASE , THE GROUND RAISED BY THE REVENUE IS DISMISSED FOR THE SIMILAR REASONS. 4. IN THE RESULT, THE APPEAL BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED ON THURSDAY, THE 01 ST DAY OF AUGUST, 2019. SD/ - SD/ - ( . /D. KARUNAKARA RAO ) ( / VIKAS AWASTHY) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE; / DATED : 01 ST AUGUST, 2019 RK / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - I, NASHIK 4. THE PR. COMMISSIONER OF INCOME TAX - 1, NASHIK 5. , , , / DR, ITAT, A BENCH, PUNE. 6. / GUARD FILE. // // TRUE COPY// / BY ORDER, / PRIVATE SECRETARY, , / ITAT, PUNE