ACIT, Circle-2(2), Bhubaneswar, Bhubaneswar V. NKB Industrial Products Pvt. Ltd., Bhubaneswar

ITA 404/CTK/2013

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 6329 (ITAT-CUTTACK)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-05-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 11-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K NEB
• Assessee Lawyers: BIBEK MOHANTY
• Keywords: Additional evidence
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH, CUTTACK . . , . . , BEFORE SHRI P.K.BANSAL , AM & SHRI D.T.GARASIA , JM ./ ITA NO. 4 04 / C TK /20 1 3 ( / ASSESSMENT YEAR : 200 7 - 08 ) ACIT, CIR - 2(2), BHUBANESWAR VS. NKB INDUSTRIAL PRODUCTS (P) LTD., S - 2/A - 42, 43 & 44, MANCHESWAR INDUSTRIAL ESTATE, BHUBANESWAR. ./ ./ PAN/GIR NO. : A A BCM 2757 K ( / APPELLANT ) .. ( / RESPONDENT ) /REVENUE BY : SHRI N.K.NEB /ASSESSEE BY : SHRI BIBEK MOHANTY / DATE OF HEARING : 2 8 TH APRIL , 201 4 / DATE OF PRONOUNCEMENT : 0 1 /05 /2014 / O R D E R PER BENCH : THIS APPEAL HAS BEEN FILED BY THE REVENUE AGAINST THE ORDER OF THE CIT(A) DATED 28 - 3 - 2013 BY TAKING THE FOLLOWING EFFECTIVE GROUND S : - 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS ERRED I N LAW IN SETTING ASIDE THE ADDITION OF RS. 53,32,320/ - MADE U/S. 40(A)(AI) TO THE AO FOR RE - EXAMINATION, WHEN HE HAD NO SUCH POWER UNDER THE LAW W.E.F. 01.06.2001 AND HAD TO TAKE A DECISION ON THE ISSUE. 2 . BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FIL ED RETURN OF INCOME AT RS. 41,93,540/ - ON 15 - 11 - 2007 , THE ASSESSMENT WAS COMPLETED U/S. 143(3) AT AN INCOME OF RS. 60, 24,000/ - . SUBSEQUENTLY, THE ASSESSMENT WAS REOPENED AND THE AO DISALLOWED THE DEDUCTION U/S. 40(A)(IA) TO THE EXTENT OF RS. 53,32,320/ - HOLDING THAT THE ASSESSE 2 ITA NO. 4 04 /201 3 EVEN THOUGH MADE THE TDS ON THE GROSS PAYMENT, EVEN COPIES OF NUMBER OF CASH VOUCHERS WERE ALSO FILED. THE CIT(A) DIRECTED THE AO TO VERIFY THE PAYMENT AND IF SOME TDS HAS NOT BEEN FOUND TO HAVE BEEN PAID TO THE GOVERNMENT ACCOUNT BY THE PRESCRIBED DUE DATE THE CORRESPONDING CREDIT/PAYMENT TO THE PARTY MAY CONTINUE TO BE DISALLOWED. AGAINST TH E SAID DIRECTION OF THE CIT(A), THE REVENUE HAS COME IN APPEAL BEFORE US. 3 . WE HEARD RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME . IN OUR OPINION, THERE IS NOTHING ILLEGAL IN THE DIRECTIONS GIVEN BY THE CIT(A) . THE CIT(A) IN THIS CASE SIMPLY DIRECTED THE AO TO CO - RELATE ALL THE PAYMENTS CHALLANS WITH THE TDS CERTIFICATES SO THAT THE CORRESPONDING GROSS EXPENDITURE AMOUNT S AND THE TDS AMOUNT S CAN BE TALLIED WITH THE TABLE CONTAINED IN THE REASSESSMENT ORDER. HE FURTHER DIRECTED THAT AFTER SUCH VERIFICATION, IF SOME TDS IS NOT FOUND TO HAVE BEEN PAID TO GOVERNMENT ACCOUNT BY THE PRESCRIBED DUE DATE, THE CORRESPONDING CREDIT/PAYMENT TO THE PARTY MAY CONTINUE TO BE DISALLOWED U.S, 40(A)(IA) . THE DIRECTION OF THE CIT(A), IN OUR OPINION, DO NOT TANTAMOUNT TO BE SETTING ASIDE THE ADDITION. THIS ONLY DEALS WITH THE EXAMINATION AND THE VERIFICATION OF THE PAYMENT CHALLANS WHICH THE ASSESSE HAS FILED BEF ORE THE AUTHORITIES AS AN ADDITIONAL EVIDENCE. IN OUR OPINION, THE CIT(A) HAS ALL THE POWER TO GIVE DIRECTIONS TO THE AO FOR VERIFICATION. THUS, THIS ISSUE OF THE REVENUE STANDS DISMISSED. 4 . IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. 3 ITA NO. 4 04 /201 3 ORDER PRONOUNCED IN THE OPEN COURT ON THIS 01/05 / 201 4 . 01/05 /2014 SD/ - SD/ - ( . . ) ( D.T.GARASIA ) ( . . ) ( P.K.BANSAL ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER CUTTACK ; DATED 01/05 /2014 . . /PKM , . / PS / COPY OF THE ORDER FORWARDED TO : / BY ORDER, / ( ASSTT. REGISTRAR) , / ITAT, CUTTACK 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) , BHUBANESWAR 4. / CIT , BHUBANESWAR 5. , , / DR, ITAT, CUTTACK 6. / GUARD FILE. //TRUE COPY//