SHRAM RESOURCES P. LTD, MUMBAI V. ITO 9(3)(1), MUMBAI

ITA 5393/MUM/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 7621 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 8 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-03-2012
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: H
• Next Hearing Date: 19-03-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 01-07-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: M SUBRAMANIAN
• Keywords: Additional evidence

Judgement Text

SHRAM RESOURCES P LTD ITA NO. 5393/MUM/2010 IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI MUMBAI MUMBAI MUMBAI H HH H BENCH BENCH BENCH BENCH MUMBAI BENCHES, MUMBAI MUMBAI BENCHES, MUMBAI MUMBAI BENCHES, MUMBAI MUMBAI BENCHES, MUMBAI BEFORE BEFORE BEFORE BEFORE SHRI SHRI SHRI SHRI R S SYAL R S SYAL R S SYAL R S SYAL, ,, , AM AMAM AM & & & & SHRI SHRI SHRI SHRI VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM VIJAY PAL RAO, JM ITA NO. ITA NO. ITA NO. ITA NO. 5393/MUM/2010 (ASST YEAR (ASST YEAR (ASST YEAR (ASST YEAR 2006 2006 2006 2006- -- -07 0707 07) )) ) SHRAM RESOURCES P LTD KOSHAL ROW HOUSE NO.1 BEHIND STATE BANK OF INDIA, KANDIVALI (W) MUMBAI 67 VS THE INCOME TAX OFFICER WARD 9(3)(1), MUMBAI (APPELLANT (APPELLANT (APPELLANT (APPELLANT ) )) ) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) PAN NO. PAN NO. PAN NO. PAN NO. AABCS4184P AABCS4184P AABCS4184P AABCS4184P ASSESSEE BY SH M SUBRAMANIAN REVENUE BY SH V V SHASTRI DT.OF HEARING 19 TH MARCH 2012 DT OF PRONOUNCEMENT 28 TH , MARCH 2012 ORDER ORDER ORDER ORDER PER PER PER PER VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO, , , , JM JMJM JM THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER DATED 20.4.2010 OF THE CIT(A) FOR THE AY 2006-07. 2 THE ONLY ISSUE RAISED BY THE ASSESSEE IN THIS APP EAL IS AS UNDER: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, AND ALSO IN LAW, THE LD CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 10 ,47,523/- U/S 40(A)(IA) OF THE ACT. THE LD CIT(A) WRONGLY DISTINGUISHED THE EA RLIER YEARS APPELLATE ORDER WHICH WAS IN FAVOUR OF THE APPELLANT, AND THEREBY ERRE D IN NOT FOLLOWING THE SAME. YOUR APPELLANT, THEREFORE, PRAYS THAT ABOVE ADDI TION BE DELETED. 3 DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS MADE INTEREST PAYMENT TO VARI OUS PARTIES FOR WHICH NO TAX HAS BEEN DEDUCTED AT SOURCE AS REQUIRED U/S 194A OF THE I T ACT. IN FACT, THE ASSESSEE MADE THE INTEREST PAYMENT OF RS. 57,90,651/- WHEREA S AS PER TDS, THE TAX WAS DEDUCTED ONLY ON AN AMOUNT OF RS. 47,43,128/-; THER EFORE, THE ASSESSEE DID NOT SHRAM RESOURCES P LTD ITA NO. 5393/MUM/2010 2 DEDUCT TAX TO THE EXTENT OF RS. 10,47,523/-. THE AS SESSING OFFICER ASKED THE ASSESSEE TO SHOW CAUSE AS TO WHY PROVISIONS OF SEC. 40(A)(IA ) OF THE I T ACT SHOULD NOT BE INVOKED. 3.1 IN RESPONSE, THE ASSESSEE VIDE ITS LETTER DATED 16.12.2008 STATED THAT THE ASSESSEE COMPANY HAS NOT DEDUCTED TAX AT SOURCE IN RESPECT OF THE PERSONS, WHO HAVE FILED FORM NO. 15G/15H AND THEREFORE, TO THE E XTENT OF RS. 10,47,523/-, PAYMENT MADE BY THE ASSESSEE WITHOUT DEDUCTING THE TAX AS T HE ASSESSEE RECEIVED THE FORM 15G/15H. 3.2 THE ASSESSING OFFICER DISALLOWED THE SAID AMOUN T OF RS. 10,47,523/- BY APPLYING PROVISIONS OF SEC. 40(A)(IA) ON THE GROUND THAT THE ASSESSEE HAS NOT SUBMITTED THE COPY OF THE FORM 15G/15H TO THE CHIEF COMMISSIONER/COMMISSIONER OF INCOME TAX AS PER THE PROVISIONS OF SEC. 197A(2) OF THE ACT. 4 ON APPEAL, THE ASSESSEE HAS SUBMITTED BEFORE THE CIT(A) THAT FOR THE AY 2005- 06, THE TRIBUNAL IN ASSESSEES OWN CASE HAS HELD TH AT DISALLOWANCE U/S 40(A)(IA) COULD NOT BE MADE SIMPLY BECAUSE THE SAID FORM 15G/ 15H COULD NOT BE SENT TO THE COMMISSIONER/CIT AS REQUIRED U/S 197A(2). THE CIT(A), THOUGH AGREED WITH THE PROPOSITION LAID DOWN BY THE TRIBUNAL; HOWEVER, CO NFIRMED THE DISALLOWANCE ON THE GROUND THAT THE ASSESSEE HAS NOT SUBMITTED THE COPY OF THE FORM 15G/15H IN RESPECT OF ITS CLAIM EITHER BEFORE THE ASSESSING OFFICER O R BEFORE THE CIT(A). 5 WE HAVE HEARD THE LD AR OF THE ASSESSEE AS WELL A S THE LD DR AND CONSIDERED THE RELEVANT MATERIAL ON RECORD. AT THE OUTSET, THE LD AR OF THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS FILED THE COPY OF T HE FORM 15G/15H AS AN ADDITIONAL EVIDENCE NOW AND REQUESTED FOR ADMISSION OF THE SAM E. SHRAM RESOURCES P LTD ITA NO. 5393/MUM/2010 3 5.1 SINCE THE CIT(A) HAS CONFIRMED THE DISALLOWANCE ONLY ON THE GROUND THAT THE ASSESSEE COULD NOT SUBMIT THE FORM 15G/15H EITHER BEFORE THE ASSESSING OFFICER OR BEFORE THE CIT(A) AND THE ASSESSEE HAS NOW FILED TH E COPY OF FORM 15G/15H BEFORE US FIRST TIME; THEREFORE, IN THE INTEREST OF JUSTIC E, WE REMAND THIS ISSUE TO THE RECORD OF THE ASSESSING OFFICER TO VERIFY AND CONSIDER THE A DDITIONAL EVIDENCE FILED BY THE ASSESSEE BEING FORM 15G/15H AND DECIDE THE ISSUE AF RESH AS PER LAW. 6 IN THE RESULT, THE APPEAL FILE BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. O OO ORDER PRONOUNCED ON THIS RDER PRONOUNCED ON THIS RDER PRONOUNCED ON THIS RDER PRONOUNCED ON THIS 28 2828 28 TH THTH TH , ,, , DAY OF DAY OF DAY OF DAY OF MAR MAR MAR MAR 2012 2012 2012 2012 SD/ SD/ SD/ SD/ SD/ SD/ SD/ SD/ - -- - ( (( ( R S SYAL R S SYAL R S SYAL R S SYAL ) )) ) ACCOUNTANT MEMBER ( (( ( VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO VIJAY PAL RAO ) )) ) JUDICIAL MEMBER PLACE: MUMBAI : DATED: 28 TH ,MAR 2012 RAJ* RAJ* RAJ* RAJ* COPY FORWARDED TO: 1 APPELLANT 2 RESPONDENT 3 CIT 4 CIT(A) 5 DR /TRUE COPY/ BY ORDER DY /AR, ITAT, MUMBAI