Sayaji Hotels Ltd., Indore V. The ACIT TDS Indore, Indore

ITA 613/Ind/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0880 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-06-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2011-2012
• Appeal Filed On: 21-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R P MOURYA
• Keywords: Reasonable cause; TDS; Set aside
• Section: 194J

Judgement Text

SAYAJI HOTELS LTD 1 ITA NO.613/IND/2019 , , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER AND SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA NO.613/IND/2019 ASSESSMENT YEAR: 2011-12 APPELLANT BY NONE REVENUE BY SHRI R.P. MOURYA, SR. DR DATE OF HEARING 08.06.2020 DATE OF PRONOUNCEMENT 09.06.2020 O R D E R PER MANISH BORAD, AM. THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF LD. CIT(A)-I, INDORE DATED 13.03.2019 PERTAINING TO ASS ESSMENT YEAR 2010-11. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL: 1. THE HON'BLE. CIT(A)-1, INDORE HAS ERRED IN LAW A ND FACTS IN BY CONFIRMING THE ORDER OF THE LD. ACIT, WHO HAD CONCLUDED THAT THE COMPANY OUGHT TO HAVE DEDUCTED TAX UNDER SECTION 194J ON PAYMENT TO M/S BHARTI AIRTEL LTD TOWARDS INTERNET CHARGES. THE HON'BLE. CIT(A) HAS FAILED TO APPRECIATE THE FACTS OF THE CASE AND THE PREVAILING CASE LAWS ON THE MATTER. 2. THE HON'BLE. CIT(A)-1, INDORE HAS ERRED IN LAW AND FACTS IN BY CONFIRMING THE ORDER OF THE LD. ACIT, WHO HAD CONCLUDED THAT THE COM PANY OUGHT TO HAVE DEDUCTED TAX UNDER SECTION 206C ON SCRAP SOLD BY THE COMPANY. THE HON'BLE. M/S. SAYAJI HOTELS LTD, OPP. RAJSHREE TALKIES, KALAGHODA, SAYAJIGUNJ., VADODARA VS. ACIT (TDS), INDORE (APPELLANT ) (REVENUE) PAN NO.AADCS2086A SAYAJI HOTELS LTD 2 ITA NO.613/IND/2019 CIT(A) HAS FAILED TO APPRECIATE THAT THE COMPANY B EING A HOTEL DOES NOT ENGAGED IN ANY MANUFACTURING OR MECHANICAL WORKINGS FROM WHICH ANY WASTE OR SCRAPE IS GENERATED. THE HON'BLE. CIT(A) HAS FAI LED TO APPRECIATE THAT SECTION 206C IS NOT APPLICABLE TO THE COMPANY AND THUS NO LIABILITY IS IMPOLSED ON THE COMPANY UNDER SECTION 206C. THE HON'BLE CIT(A) HAS FAILED TO APPRECIATE THE FACTS OF THE CASE AND THE PREVAILIN G CASE LAWS ON THE MATTER. 3. THE APPELLANT CRAVES LEAVE TO ADD, AMEND, ALT ER, DELETE, CHANGE OR MODIFY ANY OR ALL GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE. THE AP PEAL WAS TAKEN UP WITH THE ASSISTANCE OF LD. DEPARTMENTAL REPRESENTATIVE. ON PERUSAL OF THE IMPUGNED ORDER W E FIND THAT THE ORDER OF LD. CIT(A) IS EX PARTE DUE TO NON APPEARANCE OF THE ASSESSEE. LD. CIT(A) HAS NOT DEALT WITH MERITS OF THE CASE AND HAS DISMISSED THE APPEAL IN LIMINE . 4. LD. DEPARTMENTAL REPRESENTATIVE RAISED NO OBJECT ION IF THE ISSUES ON MERITS IN THE INSTANT APPEAL ARE RESTORED TO LD. CIT(A) FOR AFRESH ADJUDICATION. 5. WE, THEREFORE IN THE INTEREST OF JUSTICE AND BEI NG FAIR TO BOTH THE PARTIES, SET ASIDE THE ORDER OF LD. CIT(A) AND RESTORE ALL THE ISSUES RAISED ON MERITS IN THE INSTANT APPEAL TO TH E FILE OF LD. CIT(A) FOR AFRESH ADJUDICATION AND FOR PASSING A SP EAKING ORDER AFTER PROVIDING REASONABLE OPPORTUNITY OF BEING HEA RD TO THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO BE PROMPT T O ATTEND THE SAYAJI HOTELS LTD 3 ITA NO.613/IND/2019 HEARING AND SHOULD NOT TAKE UNNECESSARY ADJOURNMENT UNLESS OTHERWISE REQUIRED FOR REASONABLE CAUSE. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. THE ORDER PRONOUNCED IN THE OPEN COURT ON 09.06.2 020. SD/- SD/- ( KUL BHARAT) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER / DATED : 9 TH JUNE, 2020 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE