V.R.A. Cotton Mills Pvt. Ltd., Abohar V. The Addl. Commissioner of Income Tax, Bathinda

ITA 508/ASR/2016

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 8392 (ITAT-AMRITSAR)
• Duration Of Justice: 2 year(s) 11 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 27-08-2019
• Assessment Year: 2008-2009
• Appeal Filed On: 10-10-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P N ARORA LD
• Keywords: TDS
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUN AL AMRITSAR BENCH, AMRITSAR BEFORE SH. B.R. BASKARAN, ACCOUNTANT MEMBER AN D SH. N.K.CHOUDHRY, JUDICIAL MEMBER ITA NO.508(ASR)/2016 ASSESSMENT YEAR:2008-09 V.R.A. COTTON MILLS PVT. LTD. VILL. BURJMOHAR ROAD ABOHAR-152 116 [PAN:AABCV 3100A] VS. ADD. CIT RANGE-II, BATHINA (APPELLANT) (RESPONDENT) APPELLANT BY : SH. P. N. ARORA (LD. ADV.) RESPONDENT BY: SH. CHARAN DASS (LD. DR) DATE OF HEARING: 27.08.2019 DATE OF PRONOUNCEMENT: 09.10.2019 ORDER PER N.K. CHOUDHRY, JM: THIS APPEAL HAS BEEN PREFERRED BY THE ASSESSEE AGAINST TH E ORDER DATED 27.07.2016 IMPUGNED HEREIN, PASSED BY THE LD. CIT(A), BATHINDA WHEREBY THE LD. CIT(A) PARTLY AFFIRMED THE ASSESSMENT DATED 23.12.2010 FRAMED U/S 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER CALLED AS THE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL. 1. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS), BHATINDA ERRED IN CONFIRMING THE DIS ALLOWANCE OF HANDLING CHARGES OF RS. 445986/- RELATING TO NARENDRA LOGISTICS PVT. LTD. IN SPITE OF THE FACT: (A) THAT TDS OF RS. 10106/- WAS DEDUCTED & DEPOSITED. (B) THAT CHARTERED ACCOUNTANT SMT. AARTI MISHRA VIDE H ER REPORT DT. 24.03.2.015 DULY ACKNOWLEDGED THE TOTAL PAYMENT OF RS. 13574371/- TO THE DEDUCTEE OUT OF WHICH 1105396/- WERE TOWARDS HANDLI NG CHARGES. ITA N0.508/ASR/ 2016 (A.Y: 2008-09) VRA COTTON MILLS PVT. LT D. VS. DCIT 2 2. THAT ON THE FACTS & IN THE CIRCUM STANCES OF THE CA SE, LD. COMMISSIONER OF INCOME TAX (APPEALS), BHATINDA, ERRED IN CONFIRMING THE DISALL OWANCE OF PAYMENT OF RS.470136/-, WITHOUT DISCLOSING THE PARTICULARS, ALLEGING THAT T HE APPELLANT HAS NOT FURNISHED FORM NO. 26-A IN RESPECT THEREOF. 3. THAT THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS), BHATINDA ERRED IN NOT ADJUDICATING THE F OLLOWING GROUNDS OF APPEALS: - (A) THAT THE PAYMENTS OF RS. 180817/- TO M/S GOPI CHAN D PARMA NAND AHUJA A HANDLING AGENT, DOES NOT FALL WITHIN THE PR EVIEW OF SEC. 194-C AS PAYMENT BY THE AGENT WAS MADE TO VARIOUS INDIVIDUAL PERSONS/WAGERS EACH BELOW RS. 20000/-. (B) THAT PAYMENT OF TAXI CHARGES AMOUNTING TO RS. 3449 8/- TO NAKUL TRAVELS, RAJKOT THROUGH EMPLOYEES SH. RAJESH SACHDE VA & GOPAL RATHI LOOKING AFTER EXPORT BUSINESS IN GUJRAT, DOES NOT FALL WITH IN THE PREVIEW OF SEC. 194-C IN VIEW OF CBDT CIRCULAR NO. 715 DT. 08.08.1995 (ANSWE R TO QUESTION NO. 6 OF THE CIRCULAR). (C) THAT LABOUR PAYMENTS AMOUNTING TO RS.74993/- MADE THROUGH EMPLOYEE RAKESH KUMAR TO VARIOUS DAILY WAGERS DOES NOT FALL WITHIN THE PREVIEW OF SEC. 194-C EACH BEING BELOW RS. 20000/-. (D) THAT PAYMENTS AMOUNTING TO RS. 61820/- MADE TO KIMT I LAI SHARMA, AGENT OF THE APPELLANT, INTERALIA INCLUDES PAYMENT MADE TO INDIA RAILWAY FOR FREIGHT AMOUNTING TO RS. 34300/- (20080+ 14220/-), ARE OUTSIDE THE PREVIEW OF SEC. 194-C. 4. THAT ON THE FACTS & CIRCUMSTANCES OF THE CASE LD . COMMISSIONER OF INCOME TAX (APPEALS), BHATINDA ERRED IN OVERLOOKING THE FILING THE TWO FORM 26-A WITH ANNEXURE 'A' AS FOLLOWS: (A) FORM NO 26-A WITH ANNEXURE 'A' DT. 13.01.2015 DULY SIGNED BY CA SH. RAMESH BABBER RELATING TO PAYMENT OF RS. 180877/- T O M/S GOPI CHAND PARMA NAND AHUJA, FAZILKA. (B) FORM NO.26-A WITH ANNEXURE A DT. 10.03.2015 DULY SIGNED BY CA SH. A.K. MITTAL RELATING TO PAYMENT OF RS.176662/- M/S. FREIGHTWAYS INTERNATIONAL FORWARDERS, LUDHIANA. 5. THAT ON THE FACTS & IN THE CIRCUMSTANCES OF THE CASE, LD. COMMISSIONER OF INCOME TAX (APPEALS), BHATINADA ERRED IN NOT CONFIR MING THE COMPUTATION OF INCOME DERIVED FROM INDIVIDUAL UNDERTAKING AT RS.6541057/- AFTER ACCEPTANCE OF DUTY DRAW BACK RECEIPT AS INCOME FROM TRADING ACTIVITY EMBEDD ED IN COTTON EXPORT ACCOUNT. ITA N0.508/ASR/ 2016 (A.Y: 2008-09) VRA COTTON MILLS PVT. LT D. VS. DCIT 3 3. LET US TO DECIDE THE APPEAL BY GROUNDS WISE. 4 GROUND NO.1- THE LD. CIT(A) AFFIRMED THE DISALLOWANCE OF HANDLING CHARGE OF RS. 4,45,986/- RELATING TO M/S. NAR ENDRA LOGISTICS PVT. LTD. ON THE GROUND THAT THE TAX WAS NOT DEDUCTED UNDER THE PROVISIONS OF SEC.194C OF THE ACT. THE ASSESSEE CLAIMED BEFO RE US THAT THE ASSESSEE HAS ALREADY DEDUCTED RS.10,106/- U/S 194 C OF THE ACT WHICH CLEARLY REFLECTS FROM FORM NO.16A (PAGE NO.82, 83 & 286 OF PB). CONSIDERING THE SUBMISSION OF THE ASSESSEE AND PERUSIN G THE RECORD, WE FEEL IT APPROPRIATE TO REMAND THE ISSUE IN HAND TO THE FILE OF THE LD. CIT(A) TO DECIDE AFRESH THIS ISSUE WHILE TA KING INTO CONSIDERATION THE TDS CERTIFICATE AND THE RELEVANT DOC UMENTS AND THEREFORE ORDERED ACCORDINGLY. 5. GROUND NO.2- THE LD. CIT(A) AFFIRMED THE DISALLOWANCE OF RS.4,70,136/- ON THE REASON THAT OUT OF TRUCK FREIGHT PAYMENTS TOTALING TO RS.17,84,047/-, THE APPELLANT HAS NOT FUR NISHED ANY FORM - 26 IN THIS RESPECT, THE ASSESSEE HAS DRAWN OUR ATTENTION TO THE FORM- 26A AT PAGES 172 TO 174, 303 TO 305 AND 161 TO 163 OF PB AND SUBMITTED THAT IN RESPECT OF AMOUNT OF RS. 19000/- QUA TRUCK FREIGHT SANJAY ROAD LINE, RS.21,450/- QUA TRUCK FRIGHT RANJIT TRANSPORT AND RS.2,00,000/- QUA CONTAINER CORPORATION OF INDIA HA S ALREADY DEDUCTED TDS AS REFLECTS FROM FORM 16 & 26A. CONSIDERING THE DOCUMENTS AVAILABLE ON RECORD AND SUBMISSION OF THE ASSESSE E, FOR THE END OF JUSTICE, WE FEEL IT APPROPRIATE TO REMAND THE ISSUE IN HAND FOR THE SAID AMOUNTS OF WHICH FORMS-26A HAVE BEEN FILED TO THE FILE OF THE LD. CIT(A) FOR DECISION AFRESH AND HENCE ORDERED ACCO RDINGLY. ITA N0.508/ASR/ 2016 (A.Y: 2008-09) VRA COTTON MILLS PVT. LT D. VS. DCIT 4 6. THE ASSESSEE DID NOT PRESS THE OTHER ADDITIONS AS SUSTA INED BY THE LD. CIT(A) THEREFORE GROUND NOS.3 TO 5 OF THE AP PEAL DOES NOT REQUIRE ANY ADJUDICATION. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 09/1 0/2019. SD/- SD/- (B.R.BASKARAN) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JU DICIAL MEMBER DATED:09/10/2019. /PK/ PS. COPY FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THEN CIT(APPEALS) 5. SR DR, I.T.A.T. AMRITSAR 6. GUARD FILE TRUE COPY BY ORDER