ACIT, CIR-3(TDS), KOLKATA, Kolkata V. MICC PTA India Corp. Pvt. Ltd., Purba Medinipur

ITA 468/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 0657 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 9 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2017
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 17-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARJEE
• Keywords: Bonafide belief; Reasonable cause
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA D BENCH, KOLKATA [BEFORE SRI J. SUDHAKAR REDDY, HONBLE A CCOUNTANT M EMBER & SRI S.S. VISWANETHRA RAVI , HONBLE JUDICIAL MEMBER ] I .T.A. NO. 468 /KOL /201 6 ASSESSMENT YEAR: 20 1 1 - 12 & I.T.A. NO. 469 /KOL/201 6 ASSESSMENT YEAR: 20 1 2 - 1 3 ACIT CIRCLE - 3 (TDS) KOLKATA.. . .. APPELLANT COMMISSIONER OF INCOME TAX, TDS, KOLKATA 10B, MIDDLETON ROAD 7 TH FLOOR KOLKATA 700 071 MCC PTA INDIA CORP. PVT. LTD. .. .... .. . .. .. . . RESPONDENT BHUNIARAICHAK VIA: SUTAHATA HALDIA PURBA MIDNAPORE PIN - 721 635 [PAN : CALMO 5043 D ] APPEARANCES BY: SHRI SANJAY JHA, OFFICE STAFF , PRESENT ON BEHALF OF THE ASSESSEE. SHRI A.K. TIWARI & SHRI ARINDAM BHATTACHARJEE , CIT , DR, APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : DECEMBER 19 TH , 2017 DATE OF PRONOUNCING THE ORDER : DECEMBER 26 TH , 2017 O R D E R PER J. SUDHAKAR REDDY : - BOTH THESE APPEALS ARE FILED BY THE REVENUE AND ARE DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 24 , KOLKATA , (HEREINAFTER THE LD. CIT (A)), PASSED U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT), DT. 31 / 1 2 /201 5 , FOR THE ASSESSMENT YEAR 20 1 0 - 1 1 & 2011 - 12, ON THE FOLLOWING GROUNDS: - 2. THE COMMON GROUNDS OF APPEAL FOR BOTH THE ASSESSMENT YEARS ARE AS FOLLOWS: - 1. THAT UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT(A) - 24/KOLKATA, HAS ERRED IN DELETING THE PENALTY THE PENALTY U/S 271C. IN THE APPELLATE ORDER CERTAIN POINTS HAD BEEN SET ASIDE BEFORE THE TDS A.O. FOR VERIFICATION. IN THOSE ISSUES PENALTY AMOUNT CAN BE RETAINED, 2 I.T.A. NO. 468/KOL/2016 ASSESSMENT YEAR: 2011 - 12 & I.T.A. NO. 469/KOL/2016 ASSESSMENT YEAR: 2012 - 13 MCC PTA INDIA CORP. PVT. LTD REDUCED OR ENHANCED AS PER SECTION 275(1A) OF THE ACT. THE ORDER OF THE CIT(A) OVERRIDES SUCH PROVISION AND THUS ERRONEOUS. 2. THE APPELLANT CRA VES LEAVE TO ADD, ALTER/MODIFY THE GROUND OF APPEAL DURING THE COURSE OF HEARING. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY SUBMISSIONS WERE MADE. AN APPLICATION FOR ADJOURNMENT IS FILED . THE SAME IS REJECTED AS, IN OUR VIEW, IT IS NOT A FIT CASE FOR GRANT OF ADJOURNMENT. WE PROCEED TO DISPOSE OFF THIS CASE EX - PARTE, QUA THE ASSESSEE ON MERITS, AFTER HEARING THE LD. D/R. 4. WE HAVE HEARD THE LD. D/R SHRI A.K. TIWARI. THE ASSESSING OFFICER, IN THIS CASE HAS PASSED AN ORDER U/S 201(1)/201(1A) OF TH E ACT, ON 31/03/2014. THE ASSESSING OFFICER HELD THAT THE ASSESSEE FAILED TO DEDUCT TAX AT SOURCE AS REQUIRED BY LAW. THE ASSESSEE CARRIED THE MATTER IN APPEAL. THE LD. FIRST APPELLATE AUTHORITY, CONFIRMED THE FINDING OF THE ASSESSING OFFICER ON THE ISSUE OF DEDUCTION OF TAX AT SOURCE ON WHARFAGE CHARGES. HE HELD THAT THE ASSESSEE H AS BONAFIDE BELIEF AND REASONABLE CAUSE TO DEDUCT TAX AT SOURCE U/S 194C OF THE ACT, RATHER THAN SECTION 194I OF THE ACT. 5. WE ARE OF THE OPINION THAT THE ISSUE SHOULD BE SET A SIDE TO THE FILE OF THE ASSESSING OFFICER, FOR FRESH ADJUDICATION, KEEPING IN VIEW THE FINDINGS OF THE LD. FIRST APPELLATE AUTHORITY, ON THE ORDER PASSED U/S 201(1)/ 201(1A) OF THE ACT. 6. IN THE RESULT, BOTH THESE APPEALS BY THE REVENUE ARE ALLOWED FOR S TATISTICAL PURPOSES. KOLKATA, THE 26 TH DAY OF DECEMBER , 2017. SD/ - SD/ - [ S.S. VISWANETHRA RAVI] [ J. SUDHAKAR REDDY ] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED : 26 .1 2 .2017 {SC SPS} 3 I.T.A. NO. 468/KOL/2016 ASSESSMENT YEAR: 2011 - 12 & I.T.A. NO. 469/KOL/2016 ASSESSMENT YEAR: 2012 - 13 MCC PTA INDIA CORP. PVT. LTD COPY OF THE ORDER FORWARDED TO: 1. ACIT CIRCLE - 3(TDS) KOLKATA COMMISSIONER OF INCOME TAX, TDS, KOLKATA 10B, MIDDLETON ROAD 7 TH FLOOR KOLKATA 700 071 2. MCC PTA INDIA CORP. PVT. LTD BHUNIARAICHAK VIA: SUTAHATA HALDIA PURBA MIDNAPORE PIN - 721 635 3. CIT(A) - 4. CIT - , 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY HEAD OF OFFICE/ D .D.O. ITAT, KOLKATA BENCHES