Kisan Sahkari Chini Mills Ltd., Lakhimpur-Kheri V. Dy. Commissioner of Income Tax, Sitapur

ITA 566/LKW/2013

• Counselvise Citation: 56623714 RSA 2013
• Duration Of Justice: 10 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 19-05-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 18-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• Assessee Lawyers: S K ARORA
• Keywords: Opportunity of being heard
• Section: 194C

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO.566/LKW/2013 ASSESSMENT YEAR:2007 - 08 KISAN SAHKARI CHINI MILLS LTD., SAMPURNA NAGAR, DISTRICT LAKHIMPUR KHERI. PAN:AAAAK1131D VS. DY.C.I.T., SITAPUR. (APPELLANT) (RESPONDENT) APPELLANT BY SHRI S. K. ARORA, FCA RESPONDENT BY SHRI ALOK MITRA, D. R. DATE OF HEARING 19/05/2014 DATE OF PRONOUNCEMENT 1 3 /06/2014 O R D E R PER A. K. GARODIA, A.M. THIS IS AN ASSESSEES APPEAL DIRECTED AGAINST THE ORDER PASSED BY LEARNED CIT (A), BAREILLY DATED 09/03/2013 FOR ASSESSMENT YEAR 2007 - 2008. 2. THE GROUND RAISED BY THE ASSESSEE ARE AS UNDER: 1. THAT THE LEARNED CIT(A) BAREILLY HAS ERRED ON FACTS AND IN LAW IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING RS.3,00,000/ - U/S 40(A)(IA) PAID TO CONTRACTOR FOR PREPARATION OF JAVIK KHAD THROUGH BIO COMPOST PLANT FROM PRESS MUD FOR NON DEDUCTION OF TDS U/S 194J OF THE INCOME TAX ACT. 2 2. THAT THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND OR VARY FROM THE ABOVE GROUNDS OF APPEAL AT OR BEFORE THE TIME OF HEARING. 3. IT WAS SUBMITTED BY LEARNED A.R. OF THE ASSESSEE THAT ON THIS IMPUGNED PAYMENT, TDS IS DEDUCTIBL E U/S 194C AND NOT U/S 194 J AS HELD BY THE ASSESSING OFFICER. HE FURTHER SUBMITTED THAT IN THE PRESENT CASE, TDS WAS DEDUCTED ON 28/04/2007 AT THE TIME OF PAYMENT AND THE SAME HAS BEEN DEPOSITED WITH CENTRAL GOVERNMENT ON 7 TH MAY, 2007. HE SUBMITTED THAT SINCE TDS WAS DEDUCTED BEFORE THE DUE DATE FOR FILING THE RETURN OF INCOME , NO DISALLOWANCE IS JUSTIFIED. 4. AS AGAINST THIS, LEARNED D.R. OF THE REVENUE SUPPORTED THE ORDER OF CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. WE FIND THAT THIS WAS THE CLAIM OF THE ASSESSEE THAT THE TDS IS DEDUCTIBLE U/S 194C AND NOT U/S 194J. ON THIS ASPECT, NO FINDING IS GIVEN BY CIT(A). BESIDES , IT WAS ALSO SUBMITTED BEFORE CIT(A) THAT TDS WAS DEDUCTED AT THE TIME OF PAYMENT AND WAS DEPOSITED ON 07/05/2011 AND THE COPY OF CHALLANS WERE ALSO PLACED ON PAPER BOOK BEFORE CIT(A). BEFORE US ALSO, IT WAS POINTED OUT THAT THE AMOUNT WAS DEPOSITED ON 07/05/2007 BUT THE DATE IS WRONGLY MENTIONED AS 07/05/2011 IN WRITTEN SUBMISSIONS . ON PAGE 11 OF THE PAPER BOOK , A CHALLAN IS APPEARING OF RS.6,978/ - WHICH IS DATED 07/05/2007. UNDER THESE FACTS , WE FEEL THAT THE MATTER SHOULD GO TO CIT(A) FOR FRESH DECISION. ACCORDINGLY, WE SET ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER TO HIM FOR FRESH DECISION. FIRST OF ALL , HE SHOULD DECIDE AS TO WHETHER THE TDS IS DEDUCTIBLE U/S 194C OR 194J. THEREAFTER, HE SHOULD ALSO EXAMINE THE CLAIM OF THE ASSESSEE THAT TDS WAS IN FACT DEDUCTED U/S 194C ON 28/04/2007 AT THE TIME OF PAYMENT AND THE SAME 3 WAS PAID TO THE CREDIT OF CEN TRAL GOVERNMENT ON 07/05/2007. AFTER EXAMINING ALL THESE ASPECTS, THE CIT(A) SHOULD PASS A REASONABLE ORDER AS PER THE LAW AFTER AFFORDING REASONABLE OPPORTUNITY OF BEING HEARD TO BOTH THE SIDES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/. SD/. (SUNIL KUMAR YADAV) ( A. K. GARODIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 1 3 /06/2014. *C.L.SINGH COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT. 3. CONCERNED CIT 4. THE CIT(A) 5. D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR