Ajay Kumar Khatore, Ranchi V. ACIT, Ranchi

ITA 41/RAN/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 0004 (ITAT-RANCHI)
• Duration Of Justice: 10 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 27-01-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SANJAY PAL
• Assessee Lawyers: S S.K.PODARDEVESH PODAR
• Keywords: TDS; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 192

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 41/RAN/2016 ASSESSMENT YEAR : 2009 - 2010 AJAY KUMAR KHATORE, NORTH MARKET ROAD, UPPER BAZAR, RANCHI. VS. ACIT, CIRCLE - 1, RANCHI PAN/GIR NO. (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : S/ SHRI S.K.PODAR /DEVESH PODAR , AR REVENUE BY : SHRI SANJAY PAL , DR DATE OF HEARING : 6 /12/ 2016 DATE OF PRONOUNCEMENT : 6 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED 24.11.2015 , FOR THE ASSESSMENT YEAR 2009 - 2010 . 2. THE SO L E GRIEVANCE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE ADDITION OF RS.3,84,000/ - BEING DISALLOWANCE OF FREIGHT INWARDS FOR NON - DEDUCTION OF TDS U/S.194C OF THE ACT. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, ON EXAMINATION OF BOOKS OF 2 ITA NO. 41/RAN/2016 ASSESSMENT YEAR : 2009 - 2010 ACCOUNT, TH E ASSESSING OFFICER HELD THAT THE ASSESSEE HAD NOT DEDUCTED TAX AT SOURCE U/S.194C OF THE ACT FROM THE PAYMENT OF RS.3,84,000/ - ON FREIGHT INWARDS TO M/S. KHATORE EARTHMOVER PVT LTD.,. THEREFORE, HE DISALLOWED DEDUCTION OF RS.3,84,000/ - . 4. ON APPEAL, LD C IT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE ME, LD A.R. OF THE ASSESSEE SUBMITTED THAT AS WILL BE OBSERVED FROM THE ORDERS OF THE LOWER AUTHORITIES THAT PAYMENT OF CARRIAGE WAS MADE TO M/S. KHATORE EARTHMOVERS PVT LTD., DURING THE YEAR U NDER APPEAL AND NO AMOUNT OF TOTAL PAYMENT OF RS. 3,84,000/ - WAS OUTSTANDING AND PAYABLE AS AT THE END OF THE FINANCIAL YEAR RELEVANT TO ASSESSMENT YEAR 2009 - 2010. HENCE, IN VIEW OF THE DECISION OF HON'BLE ALLAHABAD HIGH COURT CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL ), NO DISALLOWANCE U/S.40(A)(IA) WAS WARRANTED IN THE CASE OF THE ASSESSEE. HE SUBMITTED THAT THE HON'BLE ALLAHABAD HIGH COURT IN THE SAID CASE HAS HELD THAT FOR DISALLOWING EXPENSES FROM BUSINESS AND PROFESSION ON THE GROUND THAT TAX HAS NOT BEEN DEDUCTED AT SOURCE, THE AMOUNT SHOULD BE PAYABLE AND NOT IT HAS BEEN PAID BY THE END OF THE YEAR. HE FURTHER SUBMITTED THAT THE SLP FILED AGAINST THE JUDGMENT OF HONBLE ALLAHABAD HIGH COURT HAS BEEN DISMISSED BY THE HONB LE SUPREME COURT VIDE JUDGMENT DATED 2.7.2014 IN CC NO.(S) 8068/2014. HE SUBMITTED THAT WHERE THERE ARE CONTRARY DECISIONS OF HONBLE HIGH COURTS ON AN ISSUE AND NONE OF WHICH IS HONBLE JURISDICTIONAL HIGH COURT, THEN 3 ITA NO. 41/RAN/2016 ASSESSMENT YEAR : 2009 - 2010 THE DECISION IN FAVOUR OF THE ASSESSE E SHOULD BE FOLLOWED IN VIEW OF THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF CIT VS.VEGETABLE PRODUCTS LTD., 88 ITR 192 (SC). HE ALSO SUBMITTED THAT ITAT RANCHI VIDE ITS ORDER DATED 11.3.2016 IN THE CASE OF M/S. NEW PUNJAB MOTOR TRANSPORT VS ITO (ITA NO.308/RAN/2004 AND ITA NO.309/RAN/20104 FOR A.Y.2010 - 2011 ON SIMILAR FACTS, HAS DELETED THE ADDITION MADE U/S.40(A)(IA) OF THE ACT. 6 . AFTER CONSIDERING THE RIVAL SUBMISSIONS, ORDERS OF AUTHORITIES BELOW AND PERUSING THE MATERIALS AVAILABLE ON RECORD . I FIND THAT THERE IS NO AMOUNTING OUTSTANDING AND PAYABLE AT THE END OF THE YEAR. THEREFORE, I SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD(SUPRA) DELETE THE DISALLOWANCE OF RS.3,84,000/ - MADE UNDER THE HEAD CARRIAGE INWARDS FOR NON - DEDUCTION OF TDS U/S.40(A)(IA) OF THE I.T.ACT, 1961 AND ALLOW THE GROUND OF APPEAL OF THE A SSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE AS SESSEE IS ALLOWED. ORDER PRO NOUNCED IN THE OPEN COURT ON 6 /12/2016 IN THE PRESENCE OF PARTIES. SD/ - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 6 /12 /2016 4 ITA NO. 41/RAN/2016 ASSESSMENT YEAR : 2009 - 2010 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : AJAY KUMAR KHATORE, NORTH MARKET ROAD, UPPER BAZAR, RANCHI 2. THE RESPONDENT. ACIT, CIRCLE - 1, RANCHI 3. THE CIT(A) RANCHI 4. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//