Surinder Kumar, Rewari V. ITO, Rewari

ITA 4303/DEL/2015

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 97133 (ITAT-DELHI)
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-08-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 2
• Next Hearing Date: 26-08-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 02-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIMA BARNWAL
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC-2 NEW DELHI) BEFORE SHRI I.C. SUDHIR: HONBLE JUDICIAL MEMBER ITA NOS. 4303 & 4304/DEL/2013 ASSESSMENT YEARS: 2010-11 & 2011-12 SURINDER KUMAR, VS. ITO, PROP. MOSAIC HOUSE (INDIA) WARD-2, C/O. M.L. GULATI, ADV., GANJ BAZAR, NEW DELHI. REWARI. (PAN: AIHPK9865G) (APPELLANT) (RESPONDENT) APPELLANT BY: SHRI GAUTAM J AIN, ADV. RESPONDENT BY: SMT. ANIMA BARNW AL, JCIT DATE OF HEARING : 27.08.2015 DATE OF PRONOUNCEMENT: 27:08.2015 ORDER IN BOTH THE APPEALS PREFERRED BY THE ASSESSEE, A C OMMON ISSUE HAS BEEN RAISED AS TO WHETHER THE LEARNED CIT(APPEALS) WAS JUSTIFIED IN CONFIRMING THE ADDITION OF RS.10,46,483 IN ASSESSME NT YEAR 2010-11 AND RS.3,35,659 IN THE ASSESSMENT YEAR 2011-12 WITHOUT APPRECIATING THAT THE PAYMENT MADE TO M/S. PUJA FREIGHT FORWARDERS ARE ON LY REIMBURSEMENT OF EXPENSES TO THE AGENT AND PROVISIONS OF SEC. 194-C OF THE ACT FOR TDS AND DISALLOWANCE UNDER SEC. 40(A)(IA) OF THE INCOME-TAX ACT, 1961 ARE NOT APPLICABLE. 2 2. AT THE OUTSET OF HEARING, THE LEARNED AR POINTED OUT THAT THE ISSUE RAISED HEREIN IS FULLY COVERED BY THE DECISION OF C O-ORDINATE BENCH OF THE ITAT IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSM ENT YEAR 2007-08 AND 2009-10 VIDE ITA NO. 467/DEL/2011 AND ITA NO. 2222/ DEL/2012 VIDE ORDER DATED 16.6.2015, A COPY WHEREOF HAS BEEN MADE AVAIL ABLE. 3. HE ALSO PLACED RELIANCE ON THE DECISION OF HONB LE HIGH COURT OF DELHI IN THE CASE OF CIT VS. DLF COMMERCIAL PROJECT CORPORATION (2015)- 123 DTR (DELHI) PAGE 1. 4. THE LEARNED DR ON THE OTHER HAND TRIED TO JUSTIF Y THE ORDERS OF THE AUTHORITIES BELOW ON THE ISSUE. SHE SUBMITTED THAT ORDERS OF THE AUTHORITIES BELOW ON THE ISSUE ARE COMPREHENSIVE AND REASONED O NE WHICH MAY BE UPHELD. 5. HAVING GONE THROUGH THE ORDERS OF THE AUTHORITIE S BELOW AND THE DECISIONS RELIED UPON BY THE LEARNED AR, I FIND THA T ON AN IDENTICAL ISSUE UNDER SIMILAR SET OF FACTS IN THE CASE OF ASSESSEE ITSELF FOR THE ASSESSMENT YEARS 2007-08 AND 2009-10 (SUPRA), THE CO-ORDINATE BENCH OF DELHI HAS GIVEN A FINDING IN FAVOUR OF THE ASSESSEE THAT SINC E THE PAYMENTS HAVE BEEN 3 MADE AS REIMBURSEMENT OF EXPENSES TO THE AGENTS OF THE ASSESSEE, THEREFORE, ASSESSEE WAS NOT OBLIGED TO DEDUCT TDS UNDER SEC. 1 94C OF THE ACT AND AS SUCH NO DISALLOWANCE IS WARRANTED UNDER SEC. 40(A)( IA) OF THE ACT. THE ITAT HAS ACCORDINGLY DELETED THE ADDITION AND ALLOWED TH E GROUND RAISED IN THE APPEALS PREFERRED BY THE ASSESSEE. RESPECTFULLY FOL LOWING THE SAID DECISION, I HOLD THAT ASSESSEE WAS NOT OBLIGED TO DEDUCT TDS UN DER SEC. 194C OF THE ACT AND AS SUCH NO DISALLOWANCE WAS WARRANTED UNDER SEC . 40(A)(IA) OF THE ACT AS THE PAYMENTS HAVE BEEN MADE AS REIMBURSEMENT OF EXP ENSES TO THE AGENTS OF THE ASSESSEE. I, THUS WHILE SETTING ASIDE ORDERS OF THE AUTHORITIES BELOW IN THIS REGARD DIRECT THE ASSESSING OFFICER TO DELETE THE D ISALLOWANCES IN QUESTION MADE IN THE ASSESSMENT YEARS UNDER CONSIDERATION. T HE GROUNDS INVOLVING THE ISSUE ARE ACCORDINGLY ALLOWED. 6. IN RESULT, THE APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 27.08.2015 SD/- ( I.C. SUD HIR ) JUDICIAL MEMBER DATED: 27 /08/2015 MOHAN LAL 4 COPY FORWARDED TO: 1) APPELLANT 2) RESPONDENT 3) CIT 4) CIT(APPEALS) 5) DR:ITAT ASSISTANT REGISTRAR DATE DRAFT DICTATED ON COMPUTER 27.08.2015 DRAFT PLACED BEFORE AUTHOR 27.08.2015 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. APPROVED DRAFT COMES TO THE SR.PS/PS 28.08.2015 KEPT FOR PRONOUNCEMENT ON 27.08.2015 FILE SENT TO THE BENCH CLERK 31.08.2015 DATE ON WHICH FILE GOES TO THE AR DATE ON WHICH FILE GOES TO THE HEAD CLERK. DATE OF DISPATCH OF ORDER.