THE ITO, WARD - 2(2), VIJAYAWADA.., Vijayawada V. Shri Botta Ramesh Kumar, Vijayawada

ITA 461/VIZ/2012

• Counselvise Citation: [2015] 134 COUNSELVISE.COM (IT) 0160 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 03-11-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 14-12-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K RAJESWA R

Judgement Text

ITA NO.461/VIZAG/2012 BOTTA RAMESH KUMAR, VIJAYAWADA 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . . . . , . . . . , $ $ $ $ BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.461/VIZAG/2012 ( / ASSESSMENT YEAR : 2008-09 ) ITO WARD - 2(2) VIJAYAWADA VS. BOTTA RAMESH KUMAR VIJAYAWADA [ PAN: AEP PB 9119N ] ( & & & & / APPELLANT) ( '(& '(& '(& '(& / RESPONDENT ) & ) / APPELLANT BY : SHRI M.N. MURTHY NAIK, DR '(& ) / RESPONDENT BY : SHRI K. RAJESWA R, AR ) - / DATE OF HEARING : 03.11.2015 ) - / DATE OF PRONOUNCEMENT : 11.12.2015 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL IS FILED BY THE REVENUE AGAINST THE ORD ER OF THE CIT(A), VIJAYAWADA DATED 31.10.2012 FOR THE ASSESSMENT YEAR 2008-09. 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIV IDUAL, DOING A BUSINESS AS SERVICE PROVIDER TO BAJAJ AUTO FINANCE LIMITED. IT HAD FILED A RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS.10 ,37,590/-. THE ITA NO.461/VIZAG/2012 BOTTA RAMESH KUMAR, VIJAYAWADA 2 RETURN FILED BY THE ASSESSEE WAS PROCESSED U/S 143( 1) OF THE INCOME-TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). SUBSE QUENTLY AFTER FOLLOWING THE DUE PROCEDURE, ASSESSMENT WAS COMPLETED U/S 143 (3) OF THE ACT. 3. IN THE ASSESSMENT ORDER, THE A.O. HAS OBSERVED T HAT THE ASSESSEE HAS ADMITTED THAT HE HAS PAID INCENTIVES BASED ON T HE PERFORMANCE RENDERED BY THE EMPLOYEES FOR GAINING MORE PARTIES AND RECOVERING DUES FROM THE PARTIES. ACCORDING TO THE A.O., THE INCENTIVES PAID BY THE ASSESSEE ATTRACTS PROVISION U/S 194H OF THE ACT AND BY INVOKING SECTION 40(A)(IA) OF THE ACT, HE HAS DISALLOWED ENTIRE INCE NTIVE PAYMENTS MADE BY THE ASSESSEE. ON APPEAL, THE CIT(A) GAVE A CATE GORICAL FINDING THAT THE INCENTIVES PAID TO EACH EMPLOYEE BELOW THE AMOU NTS LIABLE FOR TAXATION AND A.O. WRONGLY MADE THE ADDITION. BEFOR E US, THE DEPARTMENT HAS NOT BROUGHT ANY MATERIAL TO SHOW THA T THE FINDING GIVEN BY THE CIT(A) IS NOT CORRECT. IN VIEW OF THE ABOVE , WE FIND THAT WHEN THE ASSESSEE HAS PAID SOME MORE AMOUNTS TO ITS EMPL OYEES BASED ON THE PERFORMANCE DONE BY THEM WHICH IS BELOW THE AMO UNTS PRESCRIBED U/S 194H OF THE ACT, THE QUESTION OF DEDUCTION OF T DS DOES NOT ARISE. IN VIEW OF THE ABOVE, WE FIND NO INFIRMITY IN THE ORDE R PASSED BY THE CIT(A). ITA NO.461/VIZAG/2012 BOTTA RAMESH KUMAR, VIJAYAWADA 3 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 11 TH DEC15. SD/- SD/- ( . . . . ) ( . ) ( G. MANJUNATHA) ( (( ( V. DURGA RAO ) )) ) / // / ACCOUNTANT MEMBER / // / JUDICIAL MEMBER /VISAKHAPATNAM: 3 / DATED : 11.12.2015 VG/SPS ) ' 4 / COPY OF THE ORDER FORWARDED TO :- 1. & / THE APPELLANT THE ITO WARD-2(2), VIJAYAWADA 2. '(& / THE RESPONDENT SRI BOTTA RAMESH KUMAR, D.NO.40-1-26, FLAT NO.GF-2, TARA COMPLEX, RAGHURAM STREET, MOGALRAJAPURAM, VIJA YAWADA 3. 5 / THE CIT, VIJAYAWADA 4. 5 () / THE CIT(A), VIJAYAWADA 5. ' , , / // / DR, ITAT, VISAKHAPATNAM 6 . . . . / GUARD FILE / BY ORDER // TRUE COPY // 9: ( SR.PRIVATE SECRETARY ) , / // / ITAT, VISAKHAPATNAM