M/s. Geeyem Motors P.Ltd. Ltd, Cochin V. The ACIT, Cochin

ITA 532/COCH/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90771 (ITAT-COCHIN)
• Duration Of Justice: 4 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-05-2015
• Appeal Filed By: Assessee
• Bench Allotted: DB
• Next Hearing Date: 11-05-2015
• Assessment Year: 2010-2011
• Appeal Filed On: 18-12-2014
• Court: TRIBUNAL
• Assessee Lawyers: MATHEW JOSEPH CA SHRI K K JOHN
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE S/SHRI V.DURGA RAO, JM AND B.R.BASKARAN, AM I.T.A. NO. 532/COCH/2014 ASSESSMENT YEAR : 2010-11 M/S. GEEYEM MOTORS P. LTD., 11/346, NH-47, BYE PASS, NETTOOR P.O., KOCHI-682304. [PAN: AABCG 8860A] VS. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE-1(2), KOCHI. (ASSESSEE-APPELLANT) (REVENUE-RESPONDENT) ASSESSEE BY SHRI MATHEW JOSEPH, CA REVENUE BY SHRI K.K. JOHN, SR. DR DATE OF HEARING 11/05/2015 DATE OF PRONOUNCEMENT 11/05/2015 O R D E R PER B.R.BASKARAN, ACCOUNTANT MEMBER: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 23-09- 2014 PASSED BY THE LD. CIT(A)-II, KOCHI AND IT RELA TES TO THE ASSESSMENT YEAR 2010-11. 2. THE ASSESSEE IS AGGRIEVED BY THE DECISION OF TH E LD. CIT(A) IN CONFIRMING THE DISALLOWANCE OF RS.28.99 LAKHS U/S. 40(A)(IA) O F THE I.T. ACT. I.T.A. NO.532/COCH/2014 2 3. WE HEARD BOTH THE PARTIES AND PERUSED THE RECORD . THE FACTS ARE THAT THE ASSESSEE HAD PAID A SUM OF RS.57,39,578/- AS ADVERT ISING CHARGES TO M/S. KPB ADVERTISING P. LTD.. HOWEVER THE ASSESSEE HAD DEDU CTED TAX AT SOURCE AT THE RATE OF 1% U/S. 194C OF THE ACT AS AGAINST THE PRES CRIBED RATE OF 2%. HENCE THE ASSESSING OFFICER DISALLOWED 50% OF THE PAYMENT, I. E, 28,99,337/- BY INVOKING THE PROVISIONS OF SEC. 40(A)(I) OF THE ACT FOR SHOR T DEDUCTION OF TAX AT SOURCE. THE LD. CIT(A) ALSO CONFIRMED THE SAME. 4. AT THE TIME OF HEARING, BOTH THE PARTIES AGREED THAT THIS ISSUE IS COVERED BY THE DECISION OF THE CO-ORDINATE BENCH DATED 29-0 5-2013 PASSED IN THE CASE OF APOLLO TYRES LTD. IN I.T.A. NO. 31/COCH/2010 RELATI NG TO THE ASSESSMENT YEAR 2006-07. THE LD. AR FURNISHED A COPY OF THE SAID O RDER. 5. ON GOING THROUGH THE ORDER OF THE TRIBUNAL REFER RED ABOVE, WE NOTICE THAT THE CO-ORDINATE BENCH, HAS INTER ALIA, FOLLOWED THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF M/S. S.K. TEKRIW AL IN ITAT NO.183 OF 2012 GA NO.2069 OF 2012 DATED 03/12/2012 AND HAS FINALLY HE LD THAT SECTION 40(A)(IA) DOES NOT ENVISAGE A SITUATION WHERE THERE WAS SHORT DEDUCTION/LESSER DEDUCTION AS IN THE CASE OF SECTION 201(1A) OF THE ACT. 6. FOLLOWING THE ABOVE SAID JUDGMENT, WE ALSO HOLD THAT THE IMPUGNED DISALLOWANCE IS NOT JUSTIFIED SINCE IT IS A CASE OF SHORT DEDUCTION OF TAX AT SOURCE. I.T.A. NO.532/COCH/2014 3 ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT( A) ON THIS ISSUE AND DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED DISALLOWAN CE. 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 11-05-2015 SD/- SD/- (V. DURGA RAO) (B.R. BASKARAN) JUDICIAL MEMBER ACC OUNTANT MEMBER PLACE: KOCHI DATED: 11TH MAY, 2015 GJ COPY TO: 1. M/S. GEEYEM MOTORS P. LTD., 11/346, NH-47, BYE P ASS, NETTOOR P.O., KOCHI-682304. 2. THE ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE -1(2, KOCHI. 3. THE COMMISSIONER OF INCOME-TAX(APPEALS)-II, KOCH I. 4. THE COMMISSIONER OF INCOME-TAX, KOCHI. 5. D.R., I.T.A.T., COCHIN BENCH, COCHIN. 6. GUARD FILE. BY ORDER (ASSISTANT REGISTRAR) I.T.A.T., COC HIN