DCIT, Ludhiana V. M/s Innovative Colonisers (P) Ltd., Delhi

ITA 466/CHANDI/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8387 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-01-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: Not Allotted
• Next Hearing Date: 04-01-2017
• Assessment Year: 2012-2013
• Appeal Filed On: 02-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: TDS
• 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; 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH,CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND MS.ANNAPURNA GUPTA, ACCOUNTANT MEMBER ITA NO. 466/CHD/2016 ASSESSMENT YEAR : 2012-13 THE DCIT, VS M/S INNOVATIVE COLONISERS (P) LTD., CENTRAL CIRCLE-I, 4, BATTERY LANE, RAJPURA ROAD, LUDHIANA. DELHI. PAN: AABCI3667F (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI RAVI SARANGAL RESPONDENT BY : SHRI SUDHIR SEHGAL DATE OF HEARING : 05.01.2017 DATE OF PRONOUNCEMENT : 12.01.2017 O R D E R PER BHAVNESH SAINI,JM THIS APPEAL BY REVENUE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(APPEALS)-5, CHANDIGARH DATED 23.02.2016 FOR ASSESSMENT YEARS 2012-13 CHALLENGING THE FINDING OF LD. CIT(APPEALS) IN RESTORING ISSUE TO THE ASSESSING OFFICER WITH DIRECTION TO ALLOW DEDUCTION UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT WITHO UT ASSESSEE BRINGING ON RECORD, EVEN BEFORE LD. 2 CIT(APPEALS), THE PROOF OF DEDUCTION/PAYMENT OF TDS IN THIS YEAR ON COMMISSION AMOUNT OF RS. 55,65,313/-. 2. THE ASSESSING OFFICER MADE ADDITION OF THIS AMOUNT DURING ASSESSMENT YEAR 2011-12 FOR NON- DEDUCTION OF TDS WHEREAS THE TDS HAS BEEN PAID ON T HE AMOUNT DURING THE FINANCIAL YEAR RELEVANT TO ASSESS MENT YEAR 2012-13 AND THEREFORE, ASSESSEE PRAYED THAT DEDUCTION FOR THE AMOUNT MAY BE ALLOWED. 3. THE ASSESSEE SUBMITTED BEFORE LD. CIT(APPEALS) THAT ASSESSEE PAID THE COMMISSION OF RS. 55,65,313/ - TO M/S COSMOS INFRA ENGG. LTD. DURING PRECEDING ASSESSMENT YEAR 2011-12 BUT TAX ON THE SAME HAS BEE N DEDUCTED IN THE MONTH OF SEPTEMBER,2011. ACCORDING LY, ADDITION HAS BEEN MADE IN ASSESSMENT YEAR 2011-12 AGAINST WHICH APPEAL HAS BEEN FILED BUT HAS BEEN CONFIRMED BY THE LD. CIT(APPEALS) VIDE ORDER DATED 27.01.2015 FOR ASSESSMENT YEAR 2011-12. THE ASSESS EE, THEREFORE, REQUESTED THAT DIRECTION MAY BE ISSUED I N ASSESSMENT YEAR IN WHICH TDS HAS BEEN PAID BUT AT T HE TIME OF ASSESSMENT FOR ASSESSMENT YEAR 2012-13, NO SUCH DIRECTION HAS BEEN GIVEN. IT WAS, THEREFORE, REQUESTED THAT ASSESSING OFFICER MAY BE DIRECTED TO GIVE NECESSARY DIRECTION ON ACCOUNT OF COMMISSION PAID AMOUNTING TO RS. 55,65,313/- IN ASSESSMENT YEAR UND ER APPEAL. THE LD. CIT(APPEALS) FOUND THAT THE LD. CIT(APPEALS) IN THE CASE OF THE ASSESSEE FOR PRECED ING 3 ASSESSMENT YEAR 2011-12 HAS CONFIRMED THE SIMILAR ADDITION. THEREFORE, THE REQUEST OF THE ASSESSEE W AS FOUND REASONABLE. THE ASSESSING OFFICER WAS DIRECT ED TO ALLOW DEDUCTION AS PER LAW UNDER SECTION 40(A)(IA) OF THE ACT AFTER VERIFYING THE FACTS FROM THE RECORD ON TH IS ISSUE AND DEDUCTION/PAYMENT OF TDS DURING THE YEAR AFTER PROVIDING OPPORTUNITY TO THE ASSESSEE. 4. THE LD. COUNSEL FOR THE ASSESSEE, AT THE OUTSET SUBMITTED THAT ASSESSEE PREFERRED APPEAL BEFORE ITA T CHANDIGARH BENCH IN PRECEDING ASSESSMENT YEAR 2011-12 IN ITA 410/2015 WHICH HAVE BEEN DECIDED ON 21.12.2016 AND SIMILAR ADDITION WAS CHALLENGED OF R S. 55,65,313/- AND THIS GROUND WAS WITHDRAWN BEFORE TH E TRIBUNAL, SAME WAS, THEREFORE, DISMISSED AS WITHDRA WN. COPY OF THE ORDER IS PLACED ON RECORD. 5. IN THIS VIEW OF THE MATTER, IT IS CLEAR THAT SIM ILAR ADDITION IS MADE IN PRECEDING ASSESSMENT YEAR 2011- 12 WHICH HAS ULTIMATELY REACHED FINALITY BY WITHDRAWIN G THIS GROUND BEFORE THE TRIBUNAL. THEREFORE, SIMILA R ADDITION SHOULD NOT BE MADE IN ASSESSMENT YEAR UNDE R APPEAL OF THE SAME AMOUNT. THE LD. CIT(APPEALS) WAS , THEREFORE, JUSTIFIED IN DIRECTING TO ALLOW DEDUCTIO N AS PER LAW IN ASSESSMENT YEAR UNDER APPEAL AFTER VERIFYI NG THE 4 FACTS FROM THE RECORD. THE DEPARTMENTAL APPEAL, THEREFORE, STANDS DISMISSED. 6. IN THE RESULT, DEPARTMENTAL APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- ( ANNAPURNA GUPTA) (BHAVNESH SAINI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 12 TH JANUARY,2017. POONAM COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT(A) 4. THE CIT,DR ASSISTANT REGISTRAR, ITAT/CHD