M/S BALAJI ON BOARD COURIERS, CHENNAI V. ITO NON CORPORATE WARD 3 (1), CHENNAI

ITA 577/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9032 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 10 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 19-02-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SUNDARARAJANADDL
• Assessee Lawyers: R SIVARAMAN
• Keywords: TDS
• Section: 40(a)(ia); 201

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH: CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./ ITA NO. 577 /CHNY/ 201 8 / ASSESSMENT YEAR: 201 3 - 14 M/S. BALAJI ON BOARD COURIERS, OLD NO.5, NEW NO.9, MAHALINGAM CHETTY STREET, MAHALINGAPURAM, CHENNAI 600 034. [PAN: A AG FB 0131M ] VS. THE INCOME TAX OFFICER NON - CORPORATE WARD - 3(1) CHENNAI 600 034 ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. R. SIVARAMAN , ADV OCATE /RESPONDENT BY : M R . A. SUNDARARAJAN, ADD L .CIT / DATE OF HEARING : 0 8 . 01.2020 / DATE OF PRONOUNCEMENT : 0 8 . 01 .20 20 / O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE AS SESSEE AGAINST THE ORDER OF THE LEARNED COMMIS SIONER OF INCOME TAX (APPEALS) - 4 , CHENNAI I N ITA NO. 54/2016 - 17/A.Y.2013 - 14/CIT(A) - 4 , DATED 20.09.2017 FOR THE ASSESSMENT YEAR 201 3 - 14 . ITA NO. 577 / CHNY / 201 8 : - 2 - : 2. MR. R. SIVARAMAN, ADVOCATE , REPRESENTED ON BEHALF OF THE ASSESSEE AND M R. A. SUNDARARAJAN, ADD ITIONAL CIT REPRE SENTED ON BEHALF OF THE R EVENUE . 3. IT WAS A SUBMISSION THAT THE ASSESSEE IS IN THE BUSINESS OF RUNNING A COURIER BUSINESS. IT WAS A SUBMISSION THAT THE ASSESSEE WAS UNABLE TO R EPRESENT I T S CASE PROPERLY BEFORE THE ASSESSING OFFICER. IT WAS ALSO A SUBMISSION THAT EVEN BEFORE THE LEARNED CIT(A) , THE ASSESSEES REPRESENTATION HAD LATCHES AND CONSEQUENTLY THE LEARNED CIT(A) HAD DISMISSED THE APPEAL OF THE ASSESSEE AFTER GRANTING NUMBER OF OPPORTUNITIES TO REPRESENT IT S CASE . IT WAS A SUBMISSION THAT THE ASSESSEES COUNSEL S WERE PRE - OCCUPIED AND HAD FILED A WRIT PETITION ON BEHALF OF THE ASSESSEE BEFORE THE HONBLE JURISDICTIONAL HIGH COURT IN RESPECT OF THE ISSUE OF APP LICABILITY OF SECTION 40(A)(IA) , I N RESPECT OF TH E NON - DEDUCTION OF THE TDS ON THE FREIGHT PAYMENT . I T WAS A SUBMISSION THAT TH E FAILURE ON THE PART OF THE ASSESSEE MAY BE CONDONED AND THE ASSESSEE MAY BE GRANTED ANOTHER OPPORTUNITY TO REPRESENT HIS CLAIMS BEFORE THE ASSESSING OFFICER. 4. IN REPLY, TH E LEARNED DEPARTMENTAL REPRESENTATIVE VEHEMENTLY OPPOSED THE PRAYER OF THE ASSESSEE. IT WAS A SUBMISSION THAT BEFORE THE ASSESSING OFFICER , EIGHT OPPORTUNITY HAD BEEN GIVEN AND BEFORE THE LEARNED CIT(A) , SIX OPPORTUNITIES HAD BEEN GIVEN AND THERE WAS ITA NO. 577 / CHNY / 201 8 : - 3 - : ABSO LUTELY NO CO - OPERATION FROM THE ASSESSEE. IT WAS A SUBMISSION THAT IF THE ASSESSEE IS TO BE GIVEN ANOTHER OPPORTUNITY, PUNITIVE COSTS MAY BE LEVIED UPON THE ASSESSEE TO A MINIMUM OF RS.10,000/ - . 5 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. 6 . A PERUSAL OF THE ASSESSMENT ORDER , AS ALSO THE ORDER OF THE LEARNED CIT(A) , CLEARLY SHOWS THAT THE ASSESSEE HAS NOT USED THE SUBSTANTIAL OPPORTUNITIES PROVIDED BY BOTH THE AUTHORITIES BELOW . IN ANY CASE, CONSIDERING THE FACT THAT THE LEARNED AUTHORIZED REPRESENTATIVE ON BEHALF OF THE ASSESSEE HAS GIVEN AN EXPLANATION AND ALSO HAS ADMITTED TO THE FAILURE, AND AFTER TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LEARNED DEPARTMENTAL REPRESENTATIVE, IN THE INTEREST OF NAT URAL JUSTICE, WE ARE OF THE VIEW THAT THE ISSUE S IN THIS APPEAL ARE LIABLE TO BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR RE - ADJUDICATION AFTER GRANTING THE ASSESSEE ADEQUATE OPPORTUNITY TO SUBSTANTIATE ITS CLAIMS BEFORE THE ASSESSING OFFICER. TH IS IS ,HOWEVER, SUBJECT TO THE CONDITION THAT THE ASSESSEE SHALL PAY THE COST OF RS.10,000/ - TO THE PRIME MINISTER DISASTER RELIEF FUND WITHIN THREE MONTHS FROM THE DATE OF THIS ORDER , AND PRODUCE SUCH RECEIPT BEFORE THE ASSESSING OFFICER. IF THE ABOVE SA ID CONDITION IS NOT COMPLIED , THEN THE ORDER AS PASSED BY THE LEARNED CIT(A) SHALL STAND CONFIRMED. ITA NO. 577 / CHNY / 201 8 : - 4 - : 7 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JANUARY , 20 20 IN CHENNAI. SD/ - ( ) (INTURI RAMA RAO) / ACCOUNTANT MEMBER / CHENNAI, / DATED: 8 TH JANUARY , 2 020 IA, SR. PS SD/ - ( ) (GEORGE MATHAN) /JUDICIAL MEMBER / COPY TO: 1. / APPELLANT 2. / RESPONDENT 3. ( ) / CIT(A) 4. / CIT 5. / DR 6. / GF