M/s JBR Technologies Pvt. Ltd., Ludhiana V. ACIT, C-7, Ludhiana

ITA 655/CHANDI/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 8095 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 3 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2016-2017
• Appeal Filed On: 07-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARVIND SUDERSHAN
• Keywords: Non-deduction of tax; TDS; Set aside
• Section: 40(a)(ia); 201(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 655/CHD/2019 ! ' / ASSESSMENT YEAR : 2016-17 M/S JBR TECHNOLOGIES LIMITED, 2680, JAIN COLONY, MOTI NAGAR, LUDHIANA #$ THE ACIT, CIRCLE - 7, LUDHIANA % & ./PAN NO: AABCJ8941R %'/ APPELLANT )*%' /RESPONDENT HEARING THROUGH VIDEO CONFERENCING +, - . /ASSESSEE BY : SHRI SUDHIR SEHGAL, ADVOCATE - . / REVENUE BY : SHRI ARVIND SUDERSHAN, JCIT DR / 0 - ,1& /DATE OF HEARING : 17.08.2020 23'! - ,1& / DATE OF PRONOUNCEMENT : 17.08.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 20.02.2019 OF THE COMMISSIONER OF INCOM E TAX (APPEALS)-3, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)] 2. THE SOLE ISSUE RAISED BY THE ASSESSEE IS REGARD ING THE CONFIRMATION OF DISALLOWANCE BY THE CIT(A) WHICH WA S MADE BY THE ASSESSING OFFICER U/S 40(A)(IA) OF THE INCOME TAX A CT, 1961 (IN SHORT ITA NO. 655-C-2019 M/S JBR TECHNOLOGIES LTD, LUDHIANA 2 'THE ACT') ON ACCOUNT OF NON-DEDUCTION OF TAX DEDUC TED AT SOURCE (TDS) ON REMUNERATION PAID TO THE DIRECTORS OF THE ASSESSEE COMPANY. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE AMENDED PROVISIONS OF SECTION 201( 1) AND SECTION 40(A)(IA) OF THE ACT TO STATE THAT AS PER THE AMEND MENT MADE VIDE FINANCE ACT, 2012, AN ASSESSEE WILL NOT BE TREATED AS ASSESSEE IN DEFAULT U/S 201(1) OF THE ACT ON ACCOUNT OF NON-DED UCTION OF TDS ON PAYMENT MADE TO A RESIDENT, IF SUCH A RESIDENT HAS FURNISHED HIS RETURN OF INCOME AND HAS TAKEN INTO ACCOUNT SUCH SU M FOR COMPUTING INCOME IN SUCH RETURN OF INCOME AND HAS PAID THE D UE TAXES ON THE INCOME DECLARED BY HIM IN SUCH RETURN AND FURTHER T HE ASSESSEE FURNISHES A CERTIFICATE TO THIS EFFECT FROM AN ACC OUNTANT. FURTHER, THAT AS PER THE AMENDED PROVISIONS OF SECTION 40(A) (IA) OF THE ACT, IF THE ASSESSEE IS NOT DEEMED TO BE AN ASSESSEE IN DEF AULT AS PER THE PROVISIONS OF SECTION 201, THEN IT SHALL BE DEEMED THAT SUCH AN ASSESSEE HAS DEBITED AND PAID THE TAX ON SUCH SUM O N THE DATE OF FURNISHING OF RETURN OF INCOME BY RESIDENT PAYEE. T HE LD. COUNSEL HAS SUBMITTED THAT THE DIRECTORS / PAYEES IN THIS C ASE HAVE TAKEN THE AMOUNT RECEIVED INTO ACCOUNT AND HAVE FURNISHED THE IR RETURNS OF INCOME AND HAVE PAID DUE TAXES THEREUPON. HE HAS SU BMITTED THAT THE ASSESSEE WANTS TO FURNISH THE REQUISITE CERTIFICATE IN THIS RESPECT WHICH COULD NOT BE FURNISHED EARLIER DUE TO SOME IN CAPACITY. THE ITA NO. 655-C-2019 M/S JBR TECHNOLOGIES LTD, LUDHIANA 3 LD. COUNSEL, THEREFORE, HAS SUBMITTED THAT THE MATT ER MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER TO PRODUCE THE RELEVANT EVIDENCE IN THIS RESPECT. 4. THE LD. DR HAS NOT OBJECTED TO THE SAME. 5. IN VIEW OF THE ABOVE, THE IMPUGNED ORDER OF THE CIT(A) IS SET ASIDE AND THE MATTER IS RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION OF THE CONTENTIONS OF THE ASSESSEE THAT THE REMUNERATION PAID TO THE DIRECTORS HAVE BEEN TAKEN INTO ACCOUNT BY THE SAID PAYEE IN THEIR RETURNS OF INCOME AND DUE T AXES PAID AS PER THE RETURN OF INCOME AND FURTHER A CERTIFICATE OF THE ACCOUNTANT TO THIS EFFECT BE FURNISHED BEFORE THE ASSESSING OFFIC ER AS PER THE REQUIREMENT OF THE RELEVANT PROVISIONS. THE ASSESSI NG OFFICER AFTER CONSIDERATION OF THE MATTER WILL DECIDE THE ISSUE I N ACCORDANCE WITH LAW. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS A LLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 17.08.2020. SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 17.08.2020 .. ITA NO. 655-C-2019 M/S JBR TECHNOLOGIES LTD, LUDHIANA 4 4-),5676', / COPY OF THE ORDER FORWARDED TO : 1. %' / THE APPELLANT 2. )*%' / THE RESPONDENT 3. / 8, / CIT 4. / 8, ( )/ THE CIT(A) 5. 69),: , 1: ! , ;<=> / DR, ITAT, CHANDIGARH 6. =?0 / GUARD FILE 4 / / BY ORDER, @ / ASSISTANT REGISTRAR