Divisional Forest Officer, Champawat V. ITO (TDS), Haldwani

ITA 6031/DEL/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90845 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 10-04-2015
• Assessment Year: misc
• Appeal Filed On: 07-11-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PARWINDER KAUR
• Section: 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : B : NEW DELHI BEFORE SHRI R.S. SYAL, AM AND SHRI C.M. GARG, JM ITA NO.6024, 6025 &6026/DEL/2013 ASSESSMENT YEARS: 2009-10, 2010-11 & 2011-12 DIVISIONAL FOREST OFFICER, BAGESHWAR FOREST DIVISION, BAGESHWAR. PAN: MRTD01065B VS. ITO (TDS), HALDWANI. ITA NO.6019 TO 6022/DEL/2013 ASSESSMENT YEARS: 2008-09 TO 2011-12 ITA NOS.6027 TO 6030/DEL/2013 ASSESSMENT YEARS : 2008-09 TO 2011-12 DIVISIONAL FOREST OFFICER, ALMORA FOREST DIVISION, ALMORA. PAN: MRTD00889A ITO (TDS), HALDWANI. ITA NOS.6031 TO 6035/DEL/2013 ASSESSMENT YEARS : 2008-09 TO 2012-13 DIVISIONAL FOREST OFFICER, CHAMPAWAT FOREST DIVISION, CHAMPAWAT. PAN: MRTD00958G ITO (TDS), HALDWANI. ITA NOS.6019 TO 6022 & 6024 TO 6044/DEL/2013 2 ITA NOS.6036 TO 6039/DEL/2013 ASSESSMENT YEARS : 2008-09 TO 2011-12 DIVISIONAL FOREST OFFICER, NAINITAL FOREST DIVISION, NAINITAL. PAN: MRTD01106A VS. ITO (TDS), HALDWANI. ITA NOS.6040 TO 6044/DEL/2013 ASSESSMENT YEARS : 2008-09 TO 2012-13 DIVISIONAL FOREST OFFICER, PITHORAGARH FOREST DIVISION, PITHORAGARH. PAN: MRTP01354D VS. ITO (TDS), HALDWANI. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI V.P. GUPTA, ADVOCATE DEPARTMENT BY : SMT. PARWINDER KAUR, SR. DR DATE OF HEARING : 10.04.2015 DATE OF PRONOUNCEMENT : 13.04.2015 ORDER PER BENCH : THESE APPEALS BY THE ASSESSES ARE DIRECTED AGAINST TH E ORDERS PASSED BY THE CIT(A), DEHRADUN, ON VARIOUS DATES IN REL ATION TO ITA NOS.6019 TO 6022 & 6024 TO 6044/DEL/2013 3 ASSESSMENT YEARS 2008-09 TO 2012-13. THE SOLITARY IS SUE RAISED IN THESE APPEALS THROUGH VARIOUS GROUNDS IS AGAINST THE SUSTENANCE OF DEMAND AGAINST THE ASSESSEE U/SS 206C(6) AND 206C(7) O F THE INCOME-TAX ACT, 1961 (HEREINAFTER ALSO CALLED `THE ACT). 2. BRIEFLY STATED, THE FACTS OF THESE CASES ARE THAT THE ASSESSEES, ALL OF WHICH ARE GOVERNMENT UNDERTAKINGS, SOLD LISA DURIN G THE RELEVANT FINANCIAL YEARS TO BUYERS U/S 206C(1) OF TH E ACT. THE INCOME-TAX OFFICER (TDS) OBSERVED THAT TAX WAS REQUIRED T O BE COLLECTED AT SOURCE, WHICH THE ASSESSEE DID NOT COL LECT. ON BEING CALLED UPON TO EXPLAIN AS TO WHY THEY BE NOT DEEMED TO BE ASSESSEES IN DEFAULT FOR SUCH NON-COLLECTION OF TAX AT SOURCE I N TERMS OF SECTION 206C(6A), THEY STATED THAT ALL THE LISA PURCHASERS WERE MANUFACTURERS AND FORM NO. 27CS WERE OBTAINED FROM THEM . THE ASSESSEES FURNISHED SUCH FORMS, WHICH WERE ADMITTEDLY NOT COLLECTED BY THEM FROM THE BUYERS AT THE TIME OF RECEIPT OF SALE CONSIDERATION OR DEBITING THEIR ACCOUNTS, WHICHEVER IS EARLIER. THE ITO (TDS) ITA NOS.6019 TO 6022 & 6024 TO 6044/DEL/2013 4 HELD THAT IN VIEW OF THE ASSESSEES NOT COLLECTING T AX AT SOURCE, IN THE ABSENCE OF RECEIPT OF SUCH FORMS FROM THE RESPECTIVE BU YERS, AT THE TIME OF SALE OF THE GOODS, THEY COMMITTED DEFAULT A S PER SECTION 206C, FOR WHICH THEY WERE LIABLE TO BE TREATED AS ASSE SSEES IN DEFAULT. THE AMOUNT OF SHORT COLLECTION OF TAX AT SO URCE AND THE CONSEQUENTIAL INTEREST WAS DETERMINED AND THE ASSESS EES WERE DECLARED AS IN DEFAULT FOR THE SAID AMOUNTS. THE L D. CIT(A) UPHELD THE ORDERS PASSED BY THE ITO (TDS). 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED TH E RELEVANT MATERIAL ON RECORD. ALL THESE APPEALS CAME TO BE HEA RD ALONG WITH AN APPEAL IN ITA NO.6023/DEL/2013 INVOLVING IDENTICAL ISSUE. IN FACT, BOTH THE SIDES ARGUED THE APPEAL AS AFORESAID AND AD OPTED THE SAME ARGUMENTS FOR THE INSTANT APPEALS. WE HAVE PASSED A S EPARATE DETAILED ORDER IN THE AFORESAID APPEAL BY HOLDING THAT SINCE THE ASSESSEE FAILED TO COLLECT TAX AT SOURCE FROM THE BUY ERS WITHOUT RECEIPT OF FORM NO. 27CS AT THE TIME OF DEBITING THE IR ACCOUNTS OR ITA NOS.6019 TO 6022 & 6024 TO 6044/DEL/2013 5 RECEIVING THE AMOUNTS, WHICHEVER IS EARLIER, THERE CA N BE NO ESCAPE FROM THE CONSEQUENCES FLOWING FROM SUCH DEFAULT. HOWEV ER, THE MATTER HAS BEEN RESTORED TO THE FILE OF THE ITO (TDS) FOR EXAMINING THE CONTENTION OF THE ASSESSEE THAT THE BUYERS HAD INCLUDED THE INCOME FROM THE INSTANT PURCHASE TRANSACTIONS IN THEIR TOTAL INCOME AND FILED RETURNS U/S 139 OF THE ACT AFTER PAYING TAX DUE THEREON. IT HAS BEEN FURTHER HELD THAT IF THE ASSESSEE FAILS TO S PECIFICALLY PROVE THIS POSITION, THEN, THE OFFICER WOULD BE FULLY ENTI TLED TO TREAT IT AS ASSESSEE IN DEFAULT IN TERMS OF SECTION 206C. AS R EGARDS THE LIABILITY OF INTEREST U/S 206C(7), IT HAS BEEN HELD THAT THE S AME WOULD BE FASTENED ON THE ASSESSEE FROM THE DATE ON WHICH IT WA S REQUIRED TO COLLECT TAX AT SOURCE UP TO THE DATE ON WHICH THE AM OUNT OF TAX WAS PAID BY THE BUYERS. 4. AS THE FACTS AND CIRCUMSTANCES OF THE INSTANT APPEALS ARE MUTATIS MUTANDIS SIMILAR TO THE AFORESAID APPEAL, WE SET ASIDE THE IMPUGNED ORDERS AND SEND THE MATTER BACK TO THE FILE OF ITO (TDS) FOR ITA NOS.6019 TO 6022 & 6024 TO 6044/DEL/2013 6 DECIDING THE ISSUE AFRESH IN THE LIGHT OF OUR DIRECTION S GIVEN OUR ORDER IN ITA NO.6023/DEL/2013 5. IN THE RESULT, THE APPEALS ARE ALLOWED FOR STATIST ICAL PURPOSES. THE ORDER PRONOUNCED IN THE OPEN COURT ON 13.04.2015. SD/- SD/- [C.M. GARG] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 13 TH APRIL, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.