M/S KASHMIR CEMENT, UDHAMPUR V. INCOME TAX OFFICER, WARD-2(4), UDHAMPUR

ITA 584/ASR/2018

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 0976 (ITAT-AMRITSAR)
• Duration Of Justice: 3 year(s) 10 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-10-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: DB
• Next Hearing Date: 27-09-2022
• Assessment Year: 2014-2015
• Appeal Filed On: 28-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: WAY OF GRANTING SUFFICIENT OPPORTUNITY OF
• Keywords: TDS
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 584/Asr/2018 Assessment Year: 2014-15 M/s Kashmir Cements, Battal Ballian, Industrial Area, Udhampur [PAN: AAHFK 3694D] Vs. Income Tax Officer, Ward-2(4), Udhampur (Appellant) (Respondent) Appellant by : None Respondent by: Ms. Amanpreet Kaur, Sr. DR Date of Hearing: 28.09.2022 Date of Pronouncement: 13.10.2022 ORDER Per Dr. M. L. Meena, AM: This appeal has been filed by the assessee against the order dated 16.08.2018 passed by the Ld. Commissioner of Income Tax (Appeals), Jammu, in respect of Assessment Year 2014-15, arising out of the Assessment Order dated 08.12.2016 of the Income Tax Officer, Ward-2(4), Udhampur, challenging disallowance of expenses under the head loading ITA No. 584/Asr/2018 Kashmir Cements v. ITO 2 and unloading expenses, repair and maintenance expenses, Staff Welfare expenses, Travelling expenses, and Vehicle Diesel and working allowances paid to partners. 2. None appeared for the assessee. Finding no bonafide returns the adjournment application filed is rejected. Considering the facts on record and after hearing the ld. Addl. CIT-DR, it is decided to hear the appeal on merits in the interest of the justice. The issue of selection of the case under scrutiny as challenged by the assessee is not arising out of the order of the impugned order. Therefore, this ground is dismissed as not maintainable. 3. After considering the contentions raised by the counsel for the assessee in grounds of appeal and facts discussed by the ld. CIT(A) that since the freight paid to M/s Punjab Kashmir Roadlines a sum aggregating to Rs.1,49,470/- which exceeds Rs.75,000/-. Thus, it was hit by section 194C of the Act, and therefore, the assessee was liable to deduct tax at source while making payment in respect of M/s Punjab Kashmir Roadlines. The ld. DR contended that the ld. CIT(A) was justified in confirming the addition of Rs.1,49,470/- made by the AO on account of disallowances of expenses of freight charges by invoking provisions of section 40(a)(ia). She further argued that other disallowances have been confirmed by the ld. ITA No. 584/Asr/2018 Kashmir Cements v. ITO 3 CIT(A) for want of complete details of either production of proper bills/vouchers or the persons/labourers in respect of which the expenditure was claimed. 4. Having heard the ld. Addl. CIT DR, perusal of the record and the impugned order, it is noted that the assessee has paid freight to M/s Punjab Kashmir Roadlines a sum of Rs.1,49,470/- without deducting TDS as required under the proviso to section 194C of the Act. The ld. CIT(A) has concurred with the observation of the ld. Assessing Officer without taking a rebuttal of the assessee on the issue of regarding details of TDS deduction on the freight payment if any, accordingly, the issue of TDS is remitted back to the file of the ld. CIT(A) to adjudicate afresh after calling for the details from the assessee by way of granting sufficient opportunity of being heard. The assessee is directed to cooperate in the fresh proceedings before the ld. CIT(A) with the direction to provide the information regarding details of TDS if any deducted as per the provisions of law. 5. As regards the next issue which pertains to disallowance of expenses for want of bills/vouchers in respect of payment, under the heads staff welfare, miscellaneous expenses, travelling expenses, and Vehicle Diesel ITA No. 584/Asr/2018 Kashmir Cements v. ITO 4 expenses for want of proper bills/vouchers besides expenses claimed under the head loading and unloading expenses, repair and maintenance expenses, Staff Welfare expenses, Travelling expenses, and Vehicle Diesel and working allowances. The ld. CIT(A) has not brought on record any evidences to disprove the disputed expenses claimed by the appellant assessee. He has merely mentioned in the order that bills/vouchers are not produced in respect of person or labourers. However, to disprove the claim of assessee, he is required to bring on record, the supporting corroborative documentary evidences. Further, the CIT(A) has not discussed any circumstantial evidences to substantiate that the expenses claimed by the appellant assessee were bogus expenses or otherwise not incurred for the business purposes. Taking into consideration, the totality of the facts and the circumstances of the case, such disallowances of expenses confirmed by the ld. CIT(A) on the basis of presumption and assumption are not justified. In our view, the additions confirmed on account of such miscellaneous expenses in respect of claims of unloading expenses, repair and maintenance expenses, Staff Welfare expenses, Travelling expenses, and Vehicle Diesel and working allowances, are not justified. Accordingly, the same are deleted. ITA No. 584/Asr/2018 Kashmir Cements v. ITO 5 6. In the result, the appeal filed by the assessee is partly allowed. Order pronounced in the open court on 13.10.2022 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr/PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT(Appeals) (4) The CIT concerned (5) The Sr. DR, I.T.A.T True Copy By Order