Agrawal Grain Trading Co., Dahod V. The Income tax Officer,Ward-1, Dahod

ITA 671/AHD/2011

• Counselvise Citation: [2011] 140 COUNSELVISE.COM (IT) 50627 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-09-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Next Hearing Date: 08-09-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 03-03-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SAMIR TEKRIWAL
• Assessee Lawyers: MUKESH N DOSHI

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, SMC BENCH . .. . . .. . , , , , BEFORE SHRI T.K. SHARMA, JUDICIAL MEMBER ITA NO.671/AHD/2011 [ASSTT. YEAR : 2006-2007] AGRAWAL GRAIN TRADING CO. 19, ANAJ MARKET YARD DAHOD 389 151. PAN : AAGFA 4539 A ! /VS. ITO, WARD-1 DAHOD. ( (( (#$ #$ #$ #$ / APPELLANT) ( (( (%&#$ %&#$ %&#$ %&#$ / RESPONDENT) ! '( ) * / ASSESSEE BY : SHRI MUKESH N. DOSHI ,- ) * / REVENUE BY : SHRI SAMIR TEKRIWAL DATE OF HEARING : 23 RD SEPTEMBER, 2011 DATE OF PRONOUNCEMENT : 23 RD SEPTEMBER, 2011 / O R D E R THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE OR DER OF THE CIT(A)-VI, BARODA DATED 22.12.2010 CONFIRMING THE ADDITION ON ACCOUNT OF DISALLOWANCE OF INTEREST OF RS.18,825/- UNDER SECTION 40(A)(IA) OF THE INCOME T AX ACT, 1961. 2. BRIEFLY STATED FACTS ARE THAT THE ASSESSEE-FIRM DEDUCTED TDS OF RS.2091/- FROM INTEREST PAYMENT OF RS.18,825/- PERTAINED TO THE PE RIOD FROM 16.05.2005 TO 22.02.2006. THE ASSESSEE PAID AMOUNT OF TDS PLUS I NTEREST OF RS.106/- FOR LATE PAYMENT OF THE SAID TDS ON 19.04.2006 AND 08.05.200 6. THE AO INVOKED SECTION 40(A)(IA) OF THE ACT AND DISALLOWED THE INTEREST OF RS.18,825/-. ON APPEAL, BEFORE THE CIT(A), THE ASSESSEE CONTENDED THAT OUT OF TDS OF R S.2091/- TDS OF RS.1,497/- WAS DEDUCTED AND CREDITED TO THE TDS PAYABLE ACCOUNT IN THE MONTH OF MARCH, 2006 AND WAS PAID BEFORE DUE DATE OF FILING OF THE RETURN OF INCOME AND FOLLOWING THE DECISION OF BAPUSAHEB NANASAHEB DHUMAL VS.ACIT, 132 TTJ (MUM ) 694, DISALLOWANCE TO THE EXTENT OF RS.13,425/- PERTAINED TO THE TDS OF RS.1, 497/- PAID BEFORE DUE DATE OF FILING OF THE RETURN OF INCOME BE CANCELLED. IN THE IMPUG NED ORDER THE LEARNED CIT(A) HELD THAT THE TAX WAS DEDUCTIBLE FROM THE INTEREST OF RS .18,825/- IN MONTHS OTHER THAN LAST MONTH OF PREVIOUS YEAR. THE CASE, THEREFORE, DOES NOT FALL UNDER CLAUSE (A) OF SECTION ITA NO.671/AHD/2011 -2- 40(A)(IA). AGGRIEVED WITH THE ORDER OF THE CIT(A), THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING BEFORE ME, ON BEHALF OF A SSESSEE, SHRI MUKESH DOSHI APPEARED AND POINTED OUT THAT IN CASE THE REVENUE I S OF THE VIEW THAT THE CASE OF THE ASSESSEE IS COVERED BY CLAUSE (B) OF SECTION 40(A)( IA), IN THAT EVENT, THE AO BE DIRECTED TO ALLOW DEDUCTION OF RS.18,825/- IN A.Y.2 007-2008 BECAUSE THE ASSESSEE HAS PAID THE TDS OF RS.2,091/- PLUS INTEREST PLUS INTER EST OF RS.106/- FOR LATE PAYMENT OF THE SAID TDS ON 19.04.2006 AND 08.05.2006. THE LEA RNED DR APPEARED BEFORE US HAS NO OBJECTION IN CASE THIS DIRECTION IS GIVEN TO THE AO. 4. HAVING HEARD BOTH THE SIDES, I HAVE CAREFULLY GO NE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. IN MY VIEW, THE ALTERNATIVE PRA YER OF THE LEARNED COUNSEL FOR THE ASSESSEE IS FAIR AND REASONABLE. THE ASSESSEE HAD PAID TDS OF RS.2,091/- PLUS INTEREST FOR LATE PAYMENT OF THE SAID TDS ON 19.04.206 AND 0 8.05.2006. THIS WAS STATED BY THE AO IN THE ASSESSMENT ORDER. THEREFORE, IN MY V IEW, THE ASSESSEE IS NOT ENTITLED FOR THE DEDUCTION OF RS.18,825/- FOR THE ASSESSMENT YEA R A.Y.2006-2007 AS PRAYED FOR BUT ENTITLED FOR A.Y.2007-2008. ACCORDINGLY, THE CLAIM OF THE ASSESSEE FOR THE DEDUCTION FOR THE YEAR UNDER APPEAL IS DISMISSED. HOWEVER, A O IS DIRECTED TO CONSIDER THE ASSESSEES CLAIM FOR DEDUCTION OF RS.18,825/- FOR T HE A.Y.2007-2008. 5. IN THE RESULT, ASSESSEES APPEAL IS DEEMED PARTL Y ALLOWED. ORDER PRONOUNCED IN OPEN COURT THE DATE MENTIONED O N THE FIRST PAGE OF THIS ORDER. SD/- ( . .. . . .. . /T.K. SHARMA ) /JUDICIAL MEMBER C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD