DCIT, New Delhi V. Shri Sidharth Sahni, New Delhi

ITA 5422/DEL/2010

• Counselvise Citation: 542220114 RSA 2010
• Duration Of Justice: 3 year(s) 10 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-10-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 15-09-2014
• Assessment Year: 2005-2006
• Appeal Filed On: 02-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B R R KUMAR
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH G , NEW DELHI) BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER I.T.A. NO. 5422/DEL/2010 ASSESSMENT YEAR : 2005-06 DCIT, CIRCLE 22(1), VS. SHRI SIDHARTH SAHNI, NEW DELHI F-89/5, OKHLA INDL. AREA, PHASE I, NEW DELHI. GIR / PAN:AAPRS6372G (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI BRR KUMAR, SR. DR RESPONDENT BY : SHRI KAPIL GOEL, ADV. ORDER PER T.S. KAPOOR, AM: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF LD. CIT(A) DATED 21.09.2010. THE REVENUE IS AGGRIEVED WITH TH E ACTION OF LD. CIT(A) BY WHICH HE HAD DELETED THE ADDITION OF RS.9,13,562 /- MADE BY THE A.O. U/S 40(A)(IA) FOR NON DEDUCTION OF TDS. 2. AT THE OUTSET, THE LD. D.R. SUBMITTED THAT LD. C IT(A) HAS WRONGLY ALLOWED THE RELIEF AND HE HEAVILY RELIED UPON THE O RDER OF THE A.O. 3. ON THE OTHER HAND, LD. A.R. HEAVILY RELIED UPON THE ORDER OF LD. CIT(A) AND SUBMITTED THAT LD. CIT(A) AFTER HAVING N OTED THAT PROVISIONS FOR TAX DEDUCTION AT SOURCE WERE NOT APPLICABLE TO THE INDIVIDUAL IN THE YEAR UNDER CONSIDERATION, HAS RIGHTLY DELETED THE ADDITI ON. 4. WE HAVE HARD RIVAL PARTIES AND HAVE GONE THROUGH THE MATERIAL PLACED ON RECORD. WE FIND THAT THE ASSESSEE IN THIS APPEA L IS AN INDIVIDUAL. DURING ITA NO.5422/DEL/2010 2 HT YEAR UNDER CONSIDERATION, HE MADE CERTAIN CONTRA CTUAL PAYMENTS. THE A.O. DISALLOWED THE PAYMENTS HOLDING THAT THE ASSES SEE HAD NOT DEDUCTED TAX AT SOURCE. LD. CIT(A) ON THE OTHER HAND HAS GIVEN RELIEF HOLDING THAT PROVISIONS OF SECTION 40(A)(IA) WERE NOT APPLICABLE TO INDIVIDUAL IN THE YEAR UNDER CONSIDERATION. LD. CIT(A) HAS DELETED THE AD DITION BY HOLDING AS UNDER: {6} DURING THE COURSE OF APPELLATE PROCEEDINGS TH E AUTHORIZED REPRESENTATIVE OF THE APPELLANT SUBMITTED THAT THE PROVISIONS OF SECTION 194C GOVERNING THE DEDUCTION OF TAX AT SOUR CE ARE NOT APPLICABLE TO INDIVIDUAL ASSESSES FOR ASSESSMENT YE AR 2005-06 AND THE AMENDMENT TO SECTION 194C HAS BEEN BROUGHT ABOU T W.E.F. 01.06.2007. I HAVE GONE THROUGH THE PROVISIONS OF S ECTION 194C AND IT IS APPARENT THAT THE CLAIM OF THE ASSESSEE IN THIS REGARD IS ABSOLUTELY CORRECT. THE ONUS TO DEDUCT TAX AT SOURCE HAS BEEN PUT ON THE INDIVIDUALS ONLY FROM ASSESSMENT YEAR 2008-09 IN RE SPECT OF ANY PAYMENT TO CONTRACTORS. THEREFORE, THE ASSESSING OF FICER HAS ERRONEOUSLY APPLIED THE PROVISIONS OF SECTION 194C IN THE CASE OF THE ASSESSEE FOR AY 2004-05 AND A SUCH ADDITION MADE U/ S 40(A) TO THE TUNE OF RS.9,13,652/- IS DELETED. 5. FROM THE PERUSAL OF THE ABOVE, WE FIND THAT LD. CIT(A) HAS PASSED A REASONED AND SPEAKING ORDER AND HAS RIGHTLY DELETED THE ADDITION, WHICH REQUIRES NO INTERFERENCE. 6. IN VIEW OF THE ABOVE, APPEAL FILED BY THE REVENU E IS DISMISSED. 7. ORDER PRONOUNCED IN THE OPEN COURT ON 31 ST OCT., 2014. SD./- SD./- ( I. C. SUDHIR) (T.S. KAPOOR ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 31 ST OCT., 2014 SP ITA NO.5422/DEL/2010 3 COPY FORWARDED TO:- 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT (A)-, NEW DELHI. 5. THE DR, ITAT, LOKNAYAK BHAWAN, KHAN MARKET, NEW DEL HI. TRUE COPY. BY ORDER (ITAT, NEW DELHI). S.NO. DETAILS DATE INITIALS DESIGNATION 1 DRAFT DICTATED ON 29.10.14 SR. PS/PS 2 DRAFT PLACED BEFORE AUTHOR 29.10.14 SR. PS/PS 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/AM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR. PS/PS 6 KEPT FOR PRONOUNCEMENT SR. PS/PS 7 FILE SENT TO BENCH CLERK 31/10/2014 SR. PS/PS 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE O N WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER