TRIMURTI POLYMERS, MUMBAI V. ADDL CIT RG 17(3), MUMBAI

ITA 4321/MUM/2012

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 7872 (ITAT-MUMBAI)
• Duration Of Justice: 4 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2017
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: E
• Next Hearing Date: 26-08-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 22-06-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: DR A K NAYAK
• Section: 194C

Judgement Text

, INCOME-TAX APPELLATE TRIBUNAL -EBENCH MUMBAI , , BEFORE S/SH.RAJENDRA,ACCOUNTANT MEMBER AND AMARJIT SINGH,JUDICIAL MEMBER ./I.T.A./4321/MUM/2012, / ASSESSMENT YEAR: 2006-07 M/S. TRIMURTI POLYMERS C/O., M/S. MITESH MEHTA & ASSOCIATES 432, LAMINGTON ROAD, OPERA HOUSE MUMBAI-400 006. PAN:AABFT 5080 G VS. ACIT. RANGE-17(3) MUMBAI. ( /APPELLANT ) ( / RESPONDENT) / REVENUE BY: DR.A.K. NAYAK-CIT-DR /ASSESSEE BY: NONE / DATE OF HEARING: 23/03/2017 / DATE OF PRONOUNCEMENT: 31.03.2017 / PER RAJENDRA, AM - CHALLENGING THE ORDER DATED 9/04/2012, OF THE CIT ( A)-19,MUMBAI THE ASSESSEE HAS FILED THE PRESENT APPEAL.ASSESSEE-FIRM,ENGAGED IN THE BUSINESS OF MANUFACTURING OF PLASTIC HANGERS,FILED ITS RETURN O F INCOME ON 30.10.2006, DECLARING INCOME OF RS.1.31CRORES.THE ASSESSING OFF ICER(AO)COMPLETED THE ASSESSMENT U/S.143(3)OF THE ACT,ON 30.12.2008,DETER MINING ITS INCOME AT RS.1.41CRORES. 2. EFFECTIVE GROUND OF APPEAL IS ABOUT CONFIRMING THE ADDITION OF RS.9.58 LAKHS UNDER SECTION 40(A)(IA) OF THE ACT. DURING THE ASSE SSMENT PROCEEDINGS, THE AO FOUND THAT AS PER THE AUDIT REPORT FOR UNIT NUMBER- I TRANSPORT CHARGES, AMOUNTING RS.8.66 LAKHS AND PROFESSIONAL FEES OF RS .33,672/- HAD BEEN CREDITED/PAID TO VARIOUS PARTIES, THAT TAX WAS NOT DEDUCTED AT SOURCE, THAT SAME WAS NOT PAID ON OR BEFORE SPECIFIED DATES.HE FURTHE R FOUND THAT IN CASE OF UNIT II, THE ASSESSEE HAD NOT DEDUCTED TAXES FOR TRANSPO RT CHARGES OR THE PROFESSIONAL CHARGES OF RS.90,780/-AND RS.22,448/-RESPECTIVELY. INVOKING THE PROVISIONS OF SECTION 40(A)(IA),THE AO DISALLOWED THE AMOUNTS OF TRANSPORTATION CHARGES AND PROFESSIONAL CHARGES FOR BOTH THE UNITS. 4321/M/12(06-07) M/S. TRIMURTI POLYMERS 2 3. AGGRIEVED BY THE ORDER OF THE AO, THE ASSESSEE PREF ERRED AN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY (FAA).BEFORE HIM, IT WAS ARGUED THAT PAYMENTS WERE PART OF THE REIMBURSEMENT EXPENSES INCURRED ON BEHA LF OF THE ASSESSEE, THAT TAXES COULD BE DIRECTED ONLY IF SERVICE CHARGES WER E RECEIVED, THAT PROVISIONS OF SECTION 40(A)(IA) WERE APPLICABLE FOR RS.2,915/-ONL Y AND NOT FOR RS. 9.85 LAKHS. IT FILED FURTHER DETAILS DURING THE APPELLATE PROCE EDINGS. AFTER CONSIDERING THE SAME, THE FAA HELD THAT THE TAX AUDIT REPORT CLEARL Y MENTIONED THAT ASSESSEE HAD NOT DEDUCTED TAX AT SOURCE ON THE AMOUNT IN DISPUTE , THAT OUT OF THE TOTAL EXPENSES OF RS.9.58 LAKHS AN AMOUNT OF RS.3.79 LAKH S WAS ON ACCOUNT OF MISCELLANEOUS EXPENSES, THAT THE ASSESSEE WAS CLAIM ING THE SAME UNDER THE HEAD, HAMALI CHARGES, THAT THE TOTAL AMOUNT ON ACCO UNT OF FREIGHT CHARGES WAS RS.5.78 LAKHS, THAT THE ASSESSEE HAD NOT SHOWN AS T O HOW IT WAS REIMBURSEMENT,THAT THE PERUSAL OF SIMPLE BILLS REVE ALED THAT SAME WERE NOT REIMBURSEMENT BUT WERE FREIGHT CHARGES, THAT THE PR OVISIONS OF SECTION 194C OF THE ACT WERE APPLICABLE TO THE FACTS OF THE CASE. H E FINALLY HELD THAT THE ASSESSEE HAD NOT PROVIDED DETAILS OF HAMALI CHARGES OF RS.3. 79 LAKHS, THAT IT WAS SUPPOSED TO DEDUCT TAX AT SOURCE, THAT THE AO HAD R IGHTLY MADE A DISALLOWANCE OF RS.10.13 LAKHS UNDER SECTION 40(A)(IA) OF THE AC T. 4. AS STATED EARLIER, NONE APPEARED BEFORE US DURING T HE COURSE OF HEARING. THE DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDER OF THE FAA. 5. WE FIND THAT THE FAA HAS GIVEN A CATEGORICAL FINDIN G OF FACT THAT AMOUNTS IN DISPUTE WERE NOT REIMBURSEMENT, THAT PROVISIONS OF SECTION 194C WERE APPLICABLE TO THE PAYMENTS MADE UNDER THE HEAD FREI GHT CHARGES,THAT NO EVIDENCES WERE PRODUCED WITH REGARD TO HAMALI CHARG ES. NOTHING WAS BROUGHT ON RECORD BEFORE US TO CONTROVERT THE FINDINGS GIVE N BY THE FAA.SO, CONFIRMING THE SAME WE DECIDE THE EFFECTIVE GROUND OF APPEAL A GAINST THE ASSESSEE. AS A RESULT APPEAL FILED BY THE ASSESSEE STANDS DIS MISSED. ! ' #$% &'() . 4321/M/12(06-07) M/S. TRIMURTI POLYMERS 3 ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST MARCH , 2017. &* + ' 31 &, , 2017 SD/- SD/- ( / AMARJIT SINGH ) ( / RAJENDRA ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER MUMBAI; + ' /DATED : 31.03.2017. JV.SR.PS. / COPY OF THE ORDER FORWARDED TO : 1. APPELLANT / 2. RESPONDENT / 3. THE CONCERNED CIT(A)/ , 4. THE CONCERNED CIT / 5. DR BENCH, ITAT, MUMBAI / , , . . . 6. GUARD FILE/ //TRUE COPY// / BY ORDER, / DY./ASST. REGISTRAR , /ITAT, MUMBAI .