ACIT CEN CIR 38, MUMBAI V. NAPROD LIFE SERVICES P.LTD, MUMBAI

ITA 6126/MUM/2012

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 84472 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 09-12-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 05-10-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VIVEK BATRA
• Keywords: Non-deduction of tax
• Section: 194C

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL B BE NCH, MUMBAI , !' $ $ $ $ % & ' , !' ( BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI AMIT SHUKLA, JUDICIAL MEMBER ./I .T.A. NO.6126/MUM/2012 ( ) ) ) ) / ASSESSMENT YEAR : 2009-10 THE ACIT, CENT CIR 38, AAYAKAR BHAVAN, MUMBAI-400 020 / VS. M/S. NAPROD LIFE SERVICES PVT. LTD., 304, TOWN CENTRE, ANDHERI KURLA ROAD, ANDHERI, MUMBAI 400 059 '* ./ +, ./ PAN/GIR NO. : AAACN 1291M ( *- / APPELLANT ) .. ( ./*- / RESPONDENT ) *- 0 / APPELLANT BY: SHRI VIVEK BATRA ./*- 1 0 / RESPONDENT BY: SHRI K. GOPAL 1 %2 / DATE OF HEARING :11.12.2014 34) 1 %2 / DATE OF PRONOUNCEMENT :11.12.2014 !& / O R D E R PER N.K. BILLAIYA, AM: THIS IS AN APPEAL BY THE REVENUE AGAINST THE ORDER OF THE LD. CIT(A)-41, MUMBAI DT.3.7.2012 PERTAINING TO A.Y.200 9-10. 2. THE REVENUE IS AGGRIEVED BY THE DELETION OF THE DISALLOWANCE OF EXHIBITION EXPENSES PAID BY THE ASSESSEE OUTSIDE I NDIA ON ACCOUNT OF NON-DEDUCTION OF TAX AT SOURCE. ITA NO. 6126/M/2012 2 3. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PRO CEEDINGS THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAS IN CURRED EXHIBITION EXPENSES OF RS. 29,33,376/-. THE ASSESSEE WAS ASKE D TO GIVE THE DETAILS OF TDS DEDUCTED ON SUCH EXPENSES. IT WAS EXPLAINE D BY THE ASSESSEE THAT PROVISIONS OF TDS DO NOT APPLY ON SUCH PAYMENTS. T HE SUBMISSIONS OF THE ASSESSEE DID NOT FIND FAVOUR WITH THE AO WHO WA S OF THE FIRM BELIEF THAT PROVISIONS OF SEC. 194C SQUARELY APPLY AND ACC ORDINGLY DISALLOWED THE SUM OF RS. 29,33,376/-. 4. THE ASSESSEE CARRIED THE MATTER BEFORE THE LD. C IT(A). IT WAS EXPLAINED THAT THE ASSESSEE HAS MADE PAYMENT OUTSID E INDIA AND THE PAYEES ALSO RESIDE OUTSIDE INDIA THEREFORE PROVISIO NS OF SEC. 194C ARE NOT APPLICABLE. THE ASSESSEE FURTHER SUBMITTED THE DET AILS OF TDS MADE IN RESPECT OF TWO CASES. AFTER CONSIDERING THE FACTS AND THE SUBMISSIONS OF THE ASSESSEE AND ALSO THE REMAND REPORT OF THE AO T HE LD. CIT(A) DELETED THE ADDITION. THE RELEVANT EXTRACT OF THE FINDINGS OF THE LD. CIT(A) READ AS UNDER: ON THE OTHER HAND, THE A.R. OF THE APPELLANT HAS SUBMITTED THAT IN THE CASE OF PAYMENT MADE TO UBM INDIA PVT. LTD. IT WAS WRONGLY SHOWN AS PAYMENT MADE TO UBM INDIA PVT. LTD . WHICH WAS CORRECTED AND REVISED ACCOUNT WAS SUBMITTED BEF ORE THE A.O. IN THE CASE OF ADMART PVT. LTD. AND M/S. SOHUM EXPO DISPLAY PVT. LTD. TDS WAS DULY DEDUCTED AND DEPOSITED AS PER PRO VISION OF SECTION 194C WHICH WAS IGNORED BY THE A.O. IN OTHER CASES, THE PAYMENTS WERE MADE OUTSIDE INDIA, THEREFORE THE PRO VISIONS OF SECTION 194C ARE NOT APPLICABLE. FROM THE PERUSAL O F THE SUBMISSIONS MADE AND REMAND REPORT OF THE A.O.IT IS NOTICED THAT THE ASSESSEE HAS MADE PAYMENT TO UBM INDIA PVT. LT D., PHARMACEUTICAL EXPORT PROMOTION COUNCIL, EUROCXPO E XHBITION AND CONG. DEVIN GMPH AND MESSE FRANKFURT. IN THE SE CASES THE PAYMENTS WERE MADE OUTSIDE INDIA WHICH IS CLEAR FRO M THE DETAILS SUBMITTED BEFORE THE A.O. AND BEFORE ME AND IN THE CASE M/S. ADMART PVT. LTD AND M/S. SOHUM EXPO DISPLAY PVT. LT D., THE ITA NO. 6126/M/2012 3 ASSESSEE HAS DEDUCTED TDS AND DEPOSITED IN THE GOVE RNMENT ACCOUNT. HOWEVER, THE AO HAS NOT ACCEPTED THE ARGUM ENTS OF THE APPELLANT WITH A YEW THAT PROVISION OF SECTION 194C ARE APPLICABLE AND THE ASSESSEE HAS TO DEDUCT TDS, THEREFORE MADE THE DISALLOWANCE. FROM THE FACTS OF THE CASE IT IS CLEA R THAT THE PAYMENTS WERE MADE OUTSIDE INDIA AND IN THE CASE OF UBM THE PAYMENT WAS MADE OUTSIDE INDIA BUT WAS WRONGLY MENT IONED AS PAYMENT MADE TO UBM INDIA PVT. LTD WHICH WAS CLARIF IED AND DETAILS WERE SUBMITTED BEFORE THE A.O. IN OTHER CAS ES, THE PAYMENTS WERE MADE OUTSIDE INDIA AND THE PROVISIONS OF SECTI ON 194C ARE NOT APPLICABLE. IN OTHER TWO CASES M/S. ADMART PVT. LTD. AND M/S. SOHUM EXPO DISPLAY PVT. LTD. THE TDS WAS DEDUCTED A S PER THE PROVISION OF SECTION 194C. KEEPING IN VIEW THE TOTA LITY OF FACTS AND CIRCUMSTANCES, IT IS HELD THAT IN TWO CASES THE TDS WAS DULY DEDUCTED AND IN OTHER CASES THE PAYMENTS WERE MADE OUTSIDE INDIA AND PROVISION OF SECTION 194C IS NOT APPLICABLE. THEREFORE, THE DISALLOWANCE MADE BY THE AO IS NOT SUSTAINABLE, HEN CE DELETED. GROUND OF APPEAL IS ALLOWED. 5. THE LD. DEPARTMENTAL REPRESENTATIVE COULD NOT CO NTROVERT THE AFORESTATED FINDINGS OF THE LD. CIT(A). 6. WE FIND THAT THE LD. CIT(A) HAS DELETED THE ADDI TION AFTER VERIFYING THE FACTS OF THE PAYMENT THEREFORE NO INTERFERENCE IS CALLED FOR 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DECEMBER, 2014 SD/- SD/- (AMIT SHUKLA ) (N.K. BILLAIYA) !' /JUDICIAL MEMBER !' / ACCOUNTANT MEMBER MUMBAI; 5! DATED : 11 TH DECEMBER, 2014 . . ./ RJ , SR. PS ITA NO. 6126/M/2012 4 !& !& !& !& 1 11 1 .% .% .% .% 6)% 6)% 6)% 6)% / COPY OF THE ORDER FORWARDED TO : 1. *- / THE APPELLANT 2. ./*- / THE RESPONDENT. 3. 7 ( ) / THE CIT(A)- 4. 7 / CIT 5. 89 .% , , / DR, ITAT, MUMBAI 6. 9: ; / GUARD FILE. !& !& !& !& / BY ORDER, /% .% //TRUE COPY// < << < / = = = = + + + + (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI