Jugal Kajaria, Howrah V. ITO, WD-58(2) (TDS), KOLKATA, Kolkata

ITA 532/KOL/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 1573 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-02-2018
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 28-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: A K TIBREWAL
• Keywords: Non-deduction of tax

Judgement Text

1 ITA NOS. 532, 533 & 534/KOL/2016 ASSESSMENT YEAR : 2007-2008, 2007-08 & 2008-2009 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA B BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 532/KOL./2016 ASSESSMENT YEAR: 2007-2008 JUGAL KAJARIA,..................................... ......................................APPELLANT DUPLEX NO. 2A, VIVINE VALLEY, LAKE LAND COUNTRY CLUB CAMPUS, HOWRH-711 403 [PAN: CALJO 4657 C] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-58(2) (TDS), KOLKATA, 10B, MIDDLETON ROW, KOLKATA-700 071 & I.T.A. NOS. 533 & 534/KOL./2016 ASSESSMENT YEARS: 2007-2008 & 2008-2009 JUGAL KAJARIA (HUF)................................ ...................................APPELLANT DUPLEX NO. 2A, VIVINE VALLEY, LAKE LAND COUNTRY CLUB CAMPUS, HOWRH-711 403 [PAN: AAEHJ 5909 D] -VS.- INCOME TAX OFFICER,................................ ............................RESPONDENT WARD-58(2) (TDS), KOLKATA, 10B, MIDDLETON ROW, KOLKATA-700 071 APPEARANCES BY: SHRI A.K. TIBREWAL, FCA, FOR THE ASSESSEE SHRI S. DASGUPTA, ADDL. CIT, D.R., FOR THE DEPARTME NT DATE OF CONCLUDING THE HEARING : FEBRUARY 05, 2018 DATE OF PRONOUNCING THE ORDER : FEBRUARY 05, 2018 O R D E R PER SHRI P.M. JAGTAP, ACCOUNTANT MEMBER : THESE THREE APPEALS FILED BY THE TWO ASSESSEES ARE DIRECTED AGAINST THREE SEPARATE ORDERS PASSED BY THE LD. COMMISSIONE R OF INCOME TAX (APPEALS)-24, KOLKATA DATED 04.01.2016, 11.01.2016 & 25.01.2016 AND SINCE THE ISSUE INVOLVED THEREIN IS COMMON, THE SAM E HAVE BEEN HEARD TOGETHER AND ARE BEING DISPOSED OF BY A SINGLE CONS OLIDATED ORDER. 2 ITA NOS. 532, 533 & 534/KOL/2016 ASSESSMENT YEAR : 2007-2008, 2007-08 & 2008-2009 2. BOTH THE ASSESSEES IN THE PRESENT CASE HAD INCUR RED SUBSTANTIAL EXPENDITURE ON PAYMENT OF HIRE CHARGES AND WAGES TO LABOUR DURING THE YEARS UNDER CONSIDERATION. WHILE MAKING THE SAID PA YMENTS, TAX AT SOURCE WAS NOT DEDUCTED BY THE ASSESSEES. IN THIS REGARD, THE EXPLANATION OFFERED BY THE ASSESSEES THAT THEY WERE NOT LIABLE TO DEDUC T TAX AT SOURCE FROM THE SAID PAYMENTS, WAS NOT FOUND ACCEPTABLE BY THE ASSESSING OFFICER AND HE PROCEEDED TO TREAT THE ASSESSEES AS IN DEFAULT U NDER SECTION 201(1A) FOR THEIR FAILURE TO DEDUCT TAX AT SOURCE FROM THE PAYMENTS MADE ON ACCOUNT OF HIRE CHARGES AND WAGES TO LABOUR. HE ALS O CHARGED INTEREST UNDER SECTION 201(1A) AND ACCORDINGLY PASSED THE OR DERS UNDER SECTION 201(1)/201(1A) OF THE ACT ON 28.03.2013 AND 26.03.2 014 FOR A.Y. 2007- 08 AND 2008-09 RESPECTIVELY. 3. AGAINST THE ORDERS PASSED BY THE ASSESSING OFFIC ER UNDER SECTION 201(1)/201(1A), BOTH THE ASSESSEES PREFERRED THEIR APPEALS BEFORE THE LD. CIT(APPEALS) CHALLENGING THE VALIDITY OF ORDERS PAS SED BY THE ASSESSING OFFICER ON THE GROUND THAT THE SAME WERE BARRED BY LIMITATION. THE ASSESSEES ALSO CHALLENGED THE ACTION OF THE ASSESSI NG OFFICER IN TREATING THEM AS THE ASSESSEES IN DEFAULT FOR THEIR FAILURE TO DEDUCT TAX AT SOURCE FROM THE PAYMENTS MADE ON ACCOUNT OF HIRE CHARGES A ND WAGES TO LABOUR ON MERIT ON THE GROUND THAT THEY WERE NOT LIABLE TO DEDUCT TAX AT SOURCE FROM THE SAID PAYMENTS. AFTER CONSIDERING THE SUBMI SSIONS MADE ON BEHALF OF THE ASSESSEES AS WELL AS THE MATERIAL AVA ILABLE ON RECORD, THE LD. CIT(APPEALS) FOUND MERIT IN THE PRELIMINARY LEGAL I SSUE RAISED BY THE ASSESSEES THAT THE ORDERS PASSED BY THE ASSESSING O FFICER UNDER SECTION 201(1)/201(1A) WERE BARRED BY LIMITATION. ACCORDING LY, HE CANCELLED THE SAID ORDERS BY HOLDING THE SAME TO BE INVALID. KEEP ING IN VIEW THIS DECISION RENDERED BY HIM ON THE PRELIMINARY ISSUE C ANCELLING THE ORDERS PASSED BY THE ASSESSING OFFICER UNDER SECTION 201(1 )/201(1A) BY TREATING THE SAME AS BARRED BY LIMITATION, THE LD. CIT(APPEA LS) DID NOT DEEM IT NECESSARY TO DECIDE THE OTHER ISSUE RAISED BY THE A SSESSEES IN THEIR APPEALS CHALLENGING THE ACTION OF THE ASSESSING OFF ICER IN TREATING THEM AS 3 ITA NOS. 532, 533 & 534/KOL/2016 ASSESSMENT YEAR : 2007-2008, 2007-08 & 2008-2009 THE ASSESSEES IN DEFAULT UNDER SECTION 201(1)/201(1 A) ON MERIT. AGGRIEVED BY THE ORDERS OF THE LD. CIT(APPEALS) NOT DECIDING THIS ALTERNATIVE CLAIM ON MERIT, THE ASSESSEES HAVE PREF ERRED THESE APPEALS BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEES HAS SUBMITTED THAT THESE APPEALS WERE PREFERRED BEF ORE THE TRIBUNAL BY THE ASSESSEES RAISING THE ISSUE RELATING TO THEIR A LTERNATIVE CLAIM AS AN ABUNDANT PRECAUTION EXPECTING THAT THE REVENUE MIGH T CHALLENGE THE IMPUGNED ORDERS OF THE LD. CIT(APPEALS) HOLDING THE ORDERS PASSED BY THE ASSESSING OFFICER UNDER SECTION 201(1)/201(1A) AS B ARRED BY LIMITATION BY FILING THE APPEALS BEFORE THE TRIBUNAL. HE HAS S UBMITTED THAT THE REVENUE, HOWEVER, HAS NOT DONE THAT INASMUCH AS NO APPEALS HAVE BEEN FILED BY THE REVENUE AGAINST THE IMPUGNED ORDERS OF THE LD. CIT(APPEALS). HE HAS CONTENDED THAT THESE APPEALS FILED BY THE AS SESSEES THUS HAVE BECOME VIRTUALLY INFRUCTUOUS AND THE ASSESSEES HAVE NO OBJECTION IF THE SAME ARE DISMISSED BY THE TRIBUNAL AS INFRUCTUOUS. WE FIND SUBSTANCE IN THIS CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE S AND SINCE THE LD. D.R. HAS ALSO NOT RAISED ANY MATERIAL CONTENTION IN THIS REGARD, WE DISMISS THESE THREE APPEALS FILED BY THE ASSESSEES BY TREAT ING THE SAME AS INFRUCTUOUS. 5. IN THE RESULT, ALL THE THREE APPEALS OF THE ASSE SSEES ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH DAY OF FEBRUARY, 2018. SD/- SD/- (A.T. VARKEY) (P.M. J AGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER KOLKATA, THE 5 TH DAY OF FEBRUARY, 2018 COPIES TO : (1) JUGAL KAJARIA, DUPLEX NO. 2A, VIVINE VALLEY, LAKE LAND COUNTRY CLUB CAMPUS, HOWRH-711 403 4 ITA NOS. 532, 533 & 534/KOL/2016 ASSESSMENT YEAR : 2007-2008, 2007-08 & 2008-2009 2) INCOME TAX OFFICER, WARD-58(2) (TDS), KOLKATA, 10B, MIDDLETON ROW, KOLKATA-700 071 (3) CIT(APPEALS)-24, KOLKATA, (4) CIT- , KOLKATA, (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE TRUE COPY BY ORDER SENIOR PRIVATE SECRETARY, HEAD OF OFFICE/DDO, INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.