M/s. ANAND TEXTILES , PATHANKOT V. INCOME TAX OFFICER WARD- 4 (1), AMRITSAR

ITA 674/ASR/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 0545 (ITAT-AMRITSAR)
• Duration Of Justice: 1 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2008-2009
• Appeal Filed On: 11-11-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAMAN DAMATHIA
• Assessee Lawyers: PARVEEN JAIN
• Keywords: TDS
• Section: 40(a)(ia); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR BEFORE SH. N. K. CHOUDHRY, JUDICIAL MEMBER AND SH. O. P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 674/ASR/2019 A SSESSMENT YEAR: 2008-09 M/S ANAND TEXTILES, TUNG PAI, BATALA ROAD, AMRITSAR [PAN: AAGFA 1009B] VS. INCOME TAX OFFICER, WARD 4(1), AMRITSAR, PUNJAB (APPELLANT) (RESPONDENT) APPELLANT BY : SH. PARVEEN JAIN (ADV.) RESPONDENT BY: SMT. RAMAN DAMATHIA (DR) DATE OF HEARING: 17.12.2019 DATE OF PRONOUNCEMENT: 19.12.2019 ORDER PER O. P. MEENA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-2, AMRITSAR DA TED 30.08.2019 FOR THE ASSESSMENT YEAR 2008-09. 2. GROUND NO. 1 IS GENERAL IN NATURE AND DOES NOT R EQUIRE OUR ADJUDICATION. 3. GROUND NO. 2 IS AGAINST THE PASSING EX-PARTE ORD ER BY CIT(APPEAL). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND FIND THA T THE LD. CIT(APPEAL) HAS FIXED HEARING ON 02.07.2012, 23.12.2013, 10.11.2017 , 23.10.2015, 20.01.2017 AND 14.08.2019. HOWEVER, THE COUNSEL OF THE ASSESSEE HA S SOUGHT ADJOURNMENT ON VARIOUS DATES AND NO DETAILS WERE FILED, THEREFORE THE ORDER PASSED BY THE ITA NO. 674/ASR/2019 (AY 2008-09) M/S ANAND TEXTILES V. ITO 2 CIT(APPEAL) ON MERITS. WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF CIT(APPEAL), ACCORDINGLY THIS GROUND OF APPEAL IS DISMISSED. 5. GROUND NO. 3 IS AGAINST THE CONFIRMATION OF DISA LLOWANCE OF RS.3,24,775/- BEING 10% OF FABRICATION CHARGES. 6. THE COUNSEL SUBMITTED THAT THE BOOKS OF ACCOUNT WERE REJECTED U/S 145(3) OF THE ACT. HENCE, WHERE THE BOOKS OF ACCOUNT ARE REJE CTED AND GP RATE IS APPLIED, THEN NO OTHER ADDITION IS REQUIRED TO BE MADE. 7. PER CONTRA THE LD. DR RELIED ON THE ORDERS OF LO WER AUTHORITIES. 8. WE HAVE HEARD THE RIVAL SUBMISSIONS AND FIND THA T HENCE THE BOOKS OF ACCOUNT ARE REJECTED THEN NO OTHER ADDITION IS REQU IRED TO BE MADE, THEREFORE ABOVE DISALLOWANCE OF RS.3,24,775/- MADE BY THE AO ON ACC OUNT OF FABRICATION EXPENSES IS ACCORDINGLY DELETED. 9. GROUND NO. 4 IS AGAINST THE CONFIRMATION OF ADDI TION OF RS.5,03,743/- MADE ON ACCOUNT OF NON DEDUCTION OF TDS ON CLEARING AND FORWARDING CHARGES. 10. THE AO NOTED THAT THE ASSESSEE HAS MADE PAYMENT OF RS.5,03,743/- ON ACCOUNT OF CLEARING AND FORWARDING CHARGES ON WHICH TAX WAS NOT DEDUCTED AS PER PROVISIONS OF SECTION 194C OF THE ACT. HENCE, THE E XPENSES WERE DISALLOWED U/S 40(A)(IA) OF THE ACT. 11. BEING AGGRIEVED THE ASSESSEE FILED THIS APPEAL BEFORE THIS TRIBUNAL. THE LD. COUNSEL SUBMITTED THAT WHEN THE BOOKS OF ACCOUNT AR E REJECTED THEN NO OTHER DISALLOWANCES ARE CALLED FOR. 12. PER CONTRA THE LD. SR. DR SUBMITTED THAT THE DI SALLOWANCES WERE MADE U/S 40(A)(IA) OF THE ACT WHICH ARE STATUTORY DISALLOWAN CES, HENCE SAME ARE NOT RELATED ITA NO. 674/ASR/2019 (AY 2008-09) M/S ANAND TEXTILES V. ITO 3 TO REJECTION OF BOOKS OF ACCOUNT, HENCE THE CIT(APP EAL) HAS RIGHTLY CONFIRMED THE SAME. 13. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSE D THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE DISALLOWANCES WERE MADE ON ACCOUNT OF NON DEDUCTION OF TDS U/S 194C OF THE ACT WHICH ARE STATUTORY DISALLO WANCES, HENCE THE SAME ARE NOT GOVERNED BY THE REJECTION OF BOOKS OF ACCOUNT. HENC E, SAME ARE REQUIRED TO BE DISALLOWED STATUTORILY, THEREFORE THIS GROUND OF AP PEAL OF THE ASSESSEE IS DISMISSED. 14. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS PA RTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON DECEMBER 19, 2019 SD/- SD/- (N. K. CHOUDHRY) (O. P. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER DATE: 19.12.2019 /GP/SR. PS. COPY OF THE ORDER FORWARDED TO: (1) THE APPELLANT: (2) THE RESPONDENT: (3) THE CIT(APPEALS), (4) THE CIT CONCERNED (5) THE SR. DR, I.T.A.T. TRUE COPY BY ORDER