Gangwal Carriers Pvt. Ltd., Jaipur V. ITO, New Delhi

ITA 492/DEL/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81832 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 8 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 13-10-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 28-01-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH BENCH BENCH BENCH C CC C : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE BEFORE SHRI G.D. AGRAWAL, VICE PRESIDENT AND PRESIDENT AND PRESIDENT AND PRESIDENT AND SHRI SHRI SHRI SHRI ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY, JUDICIAL , JUDICIAL , JUDICIAL , JUDICIAL MEMBER MEMBER MEMBER MEMBER ITA NO ITA NO ITA NO ITA NO . .. . 492/DEL/201 492/DEL/201 492/DEL/201 492/DEL/201 3 33 3 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2007 2007 2007 2007 - -- - 08 0808 08 M/S GANGWAL CARRIERS M/S GANGWAL CARRIERS M/S GANGWAL CARRIERS M/S GANGWAL CARRIERS PVT.LTD., PVT.LTD., PVT.LTD., PVT.LTD., 9A 9A9A 9A- -- -G GG G- -- -43, 43, 43, 43, GANESHAM PLAZA, GANESHAM PLAZA, GANESHAM PLAZA, GANESHAM PLAZA, CENTRAL SPINE, CENTRAL SPINE, CENTRAL SPINE, CENTRAL SPINE, VIDHYADHAR NAGAR, VIDHYADHAR NAGAR, VIDHYADHAR NAGAR, VIDHYADHAR NAGAR, JAIPUR. JAIPUR. JAIPUR. JAIPUR. PAN : AACCG0252H. PAN : AACCG0252H. PAN : AACCG0252H. PAN : AACCG0252H. VS. VS. VS. VS. INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -12(1), 12(1), 12(1), 12(1), NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.C. PARWAL, CA. RESPONDENT BY : SMT. PARMINDER KAUR, SR.DR. ORDER ORDER ORDER ORDER PER G.D. AGRAWAL PER G.D. AGRAWAL PER G.D. AGRAWAL PER G.D. AGRAWAL, VP , VP , VP , VP : :: : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LEARNED CIT(A)-XV, NEW DELHI DATED 27 TH NOVEMBER, 2012 FOR THE AY 2007-08. 2. THE ONLY GROUND RAISED BY THE ASSESSEE READS AS UNDER:- THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS ERRED ON FACTS AND IN LAW IN CONFIRMING ADDITION OF RS.2,43,000/- U/S 40(A)(IA) U/S 194I FOR NON DEDUCT ION OF TAX AT SOURCE ON AMOUNT CREDITED TO THE ACCOUNT OF KAMAL KISHORE KHETAN TOWARDS HIRE CHARGES OF JCB MACHINE UPTO 17.05.06 BY HOLDING THAT THOUGH THE DEDUCTION ON RENT OF MACHINERY OR PLANT OR EQUIPMEN T IS BROUGHT INTO STATUTE FROM 13.07.06, SINCE PAYMENT I S MADE SUBSEQUENTLY TAX WAS LIABLE TO BE DEDUCTED AT THE TIME OF PAYMENT EVEN IF IT WAS NOT DEDUCTIBLE AT TH E TIME OF CREDIT. 3. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D PERUSED RELEVANT MATERIAL PLACED BEFORE US. THE ASSESSING OFFICER HAS MADE A ITA-492/DEL/2013 2 DISALLOWANCE OF `2,43,000/- UNDER SECTION 40(A)(IA) OF THE INCOME-TAX ACT, 1961 ON THE GROUND THAT THE ASSESSEE FAILED TO DEDUCT THE TAX UNDER SECTION 194I FROM THE PAYMENT OF RENT. IT WA S POINTED OUT BY THE LEARNED COUNSEL THAT THE ABOVE RENT WAS PAID FOR HI RING OF JCB MACHINE. THE RENT WAS FOR THE PERIOD 1.4.2006 TO 17.5.2006. THAT THE DEFINITION OF RENT GIVEN UNDER SECTION 194I HAS BEEN MODIFIE D WITH EFFECT FROM 13.07.2006. BEFORE THE MODIFICATION OF THE DEFINIT ION, THE HIRE CHARGES FOR THE MACHINERY WERE NOT CONSIDERED AS RENT BUT O NLY THE RENT ON THE LEASING OF IMMOVABLE PROPERTY WAS CONSIDERED AS REN T. WE FIND THE SUBMISSION OF THE ASSESSEE TO BE FACTUALLY CORRECT. WE, THEREFORE, HOLD THAT THE ASSESSEE WAS NOT LIABLE TO DEDUCT THE TAX UNDER SECTION 194I IN RESPECT OF THE RENT PAID FOR HIRING OF JCB MACHI NE PRIOR TO 13.07.2006. ACCORDINGLY, WE DELETE THE DISALLOWANC E UNDER SECTION 40(A)(IA) OF THE ACT AMOUNTING TO `2,43,000/-. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. DECISION PRONOUNCED IN THE OPEN COURT ON 21 ST OCTOBER, 2014. SD/- SD/- ( (( ( ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ABY T. VARKEY ) )) ) (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL (G.D. AGRAWAL ) )) ) JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT DATED : 21.10.2014 VK. COPY FORWARDED TO: - 1. APPELLANT : M/S GANGWAL CARRIERS PVT.LTD., M/S GANGWAL CARRIERS PVT.LTD., M/S GANGWAL CARRIERS PVT.LTD., M/S GANGWAL CARRIERS PVT.LTD., 9A 9A9A 9A- -- -G GG G- -- -43, GANESHAM PLAZA, CENTRAL SPINE, 43, GANESHAM PLAZA, CENTRAL SPINE, 43, GANESHAM PLAZA, CENTRAL SPINE, 43, GANESHAM PLAZA, CENTRAL SPINE, VIDHYADHAR NAGAR, JAIPUR. VIDHYADHAR NAGAR, JAIPUR. VIDHYADHAR NAGAR, JAIPUR. VIDHYADHAR NAGAR, JAIPUR. 2. RESPONDENT : INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, INCOME TAX OFFICER, WARD WARD WARD WARD- -- -12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 12(1), NEW DELHI. 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR