Orissa Cooperative Marketing Federation Limited, Bhubaneswar V. JCIT, Range-II, Bhubaneswar

ITA 70/CTK/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2972 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 8 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Appeal Filed On: 23-02-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS; Set aside
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BEFORE S/ AND MANISH BORAD, ACCOUNTANT MEMBER ORISSA CO FEDERATION LTD., OLD STATION ROAD, BHUBANESWAR. PAN/GIR NO. (APPELLANT PER BENCH THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A),1, BHUBANESWAR 15. 2. IN THE GROUNDS OF APPEAL, THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LD CIT(A) IN CONFIRMING THE ASSESSMENT U/S.144 OF THE ACT, ADHOC DISALLOWANCE OF 10% OF ADVERTISEMENT EXPENSES, DONATION EXPENSES OF RS.3,60,107/- 3. LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ASSESSMENT IN THIS CASE WAS COMPLETED U/S.144 OF THE ACT WITHOUT HEARING THE ASSESSEE, THEREFORE, ASSESSEE COULD NOT FURNISH THE REQUIRED RELEVANT DETAILS WITH REGARD TO IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK S/ SHRI CHANDRA MOHAN GARG, JUDICIAL AND MANISH BORAD, ACCOUNTANT MEMBER ITA NO. 70/CTK/2018 ASSESSMENT YEAR : 2014-15 ORISSA CO - OP MARKETING FEDERATION LTD., OLD STATION ROAD, BHUBANESWAR. VS. JCIT, RANGE NO. AAAAO 0258 K (APPELLANT ) .. ( RESPONDENT ASSESSEE BY : SHRI P.R.MOHANTY REVENUE BY : SHRI M.K.GAUTAM, DATE OF HEARING : 25 /10 / 20 DATE OF PRONOUNCEMENT : 26/ 10 O R D E R THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A),1, BHUBANESWAR DATED 30.11.2017 FOR THE ASSESSMENT YEAR IN THE GROUNDS OF APPEAL, THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LD CIT(A) IN CONFIRMING THE ASSESSMENT U/S.144 OF THE ACT, ADHOC DISALLOWANCE OF 10% OF ADVERTISEMENT EXPENSES, DONATION EXPENSES OF AND ADDITION OF RS.5,05,76,375/-. LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ASSESSMENT IN THIS CASE WAS COMPLETED U/S.144 OF THE ACT WITHOUT HEARING THE ASSESSEE, THEREFORE, ASSESSEE COULD NOT FURNISH THE REQUIRED RELEVANT DETAILS WITH REGARD TO P A G E 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, JUDICIAL MEMBER AND MANISH BORAD, ACCOUNTANT MEMBER JCIT, RANGE - II , BHUBANESWAR. RESPONDENT ) P.R.MOHANTY , AR CIT (DR) / 20 21 10 /2021 THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE FOR THE ASSESSMENT YEAR 2014- IN THE GROUNDS OF APPEAL, THE ASSESSEE IS AGGRIEVED BY THE DECISION OF THE LD CIT(A) IN CONFIRMING THE ASSESSMENT U/S.144 OF THE ACT, ADHOC DISALLOWANCE OF 10% OF ADVERTISEMENT EXPENSES, DONATION EXPENSES OF LD A.R. OF THE ASSESSEE SUBMITTED THAT THE ASSESSMENT IN THIS CASE WAS COMPLETED U/S.144 OF THE ACT WITHOUT HEARING THE ASSESSEE, THEREFORE, ASSESSEE COULD NOT FURNISH THE REQUIRED RELEVANT DETAILS WITH REGARD TO ITA NO. 70/CTK/2018 ASSESSMENT YEAR : 2014-15 P A G E 2 | 3 ADDITION OF RS.5,05,76,376/-U/S.40(A)(IA) OF THE ACT. HE SUBMITTED THAT THE LD CIT(A) HAS DISMISSED THE APPEAL, STATING THAT NO DETAILS, DOCUMENTS AND EVIDENCES WERE FURNISHED TO SHOW THAT TAX WAS DEDUCTED AS PER TDS PROVISIONS AND THE ASSESSEE WAS NOT REQUIRED TO DEDUCT TAX AT SOURCE. HE SUBMITTED THAT THE ASSESSEE IS A GOVERNMENT CONCERN AND THE AO HAS NOT PROVIDED ANY OPPORTUNITY TO THE ASSESSEE TO SUBMIT IN THIS REGARD BEFORE MAKING ANY SUCH ADDITION OF THE FAILURE OF THE ASSESSEE. HENCE, IT WAS HIS PRAYER THAT THE MATTER MAY BE RESTORED TO THE FILE OF THE AO TO CONSIDER THE DETAILS AND EVIDENCES IN SUPPORT OF THE ASSESSEES CONTENTION. 4. REPLYING TO ABOVE, LD CIT DR SUPPORTED THE ORDERS OF LOWER AUTHORITIES. HE SUBMITTED THAT THE ASSESSEE WAS UNABLE TO FURNISH ANY DETAILS EITHER BEFORE THE AO OR BEFORE THE LD CIT(A) TO SHOW THAT NO TDS IS REQUIRED ON THE PAYMENTS SO MADE BY THE ASSESSEE. 5. HAVING HEARD THE RIVAL SUBMISSIONS, WE OBSERVE THAT THE ASSESSEE IS A STATE GOVERNMENT CONCERN. IN THIS CASE, THE ASSESSMENT WAS FRAMED UNDER SECTION 144 OF THE ACT, FOR WHICH, THE ASSESSEE WAS DEPRIVED TO FURNISH THE DETAILS WITH REGARD TO TDS DEDUCTION. HOWEVER, THE AO HAS ESTIMATED THE DISALLOWANCE IN THE ABSENCE OF SUPPORTING BILLS AND VOUCHERS AND THE DISALLOWANCE U/S.40(A)(IA) OF THE ACT. HOWEVER, BEFORE THE LD CIT(A), ON THE BASIS OF WRITTEN SUBMISSIONS, RESTRICTED SOME OF THE DISALLOWANCES MADE BY THE AO BUT CONFIRMED THE DISALLOWANCE U./S.40(A)(IA) OF THE ACT. THE CONTENTION OF THE ASSESSEE THAT THE AO SHOULD ITA NO. 70/CTK/2018 ASSESSMENT YEAR : 2014-15 P A G E 3 | 3 HAVE GIVEN OPPORTUNITY TO THE ASSESSEE TO FURNISH ALL THE DETAILS REQUIRED FOR MAKING DISALLOWANCE U/S.40(A)(IA) OF THE ACT. KEEPING IN VIEW THE CONTENTIONS OF THE ASSESSEE AS ALSO TO RENDER SUBSTANTIAL JUSTICE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND REMIT THE MATTER BACK TO THE FILE OF THE AO FOR A DENOVO CONSIDERATION AFTER HEARING THE ASSESSEE IN ALL THE ISSUES. NEEDLESS TO SAY THAT IF THE ASSESSEE WILL NOT BE ABLE TO FURNISH THE REQUIRED DETAILS AT THE TIME OF ASSESSMENT PROCEEDINGS, THE AO IS FREE TO MAKE ASSESSMENT AS PER LAW. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 26/10/2021. SD/- SD/- (MANISH BORAD) (CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 26 /10/2021 B.K.PARIDA, SPS (OS) COPY OF THE ORDER FORWARDED TO : BY ORDER SR.PVT.SECRETARY ITAT, CUTTACK 1. THE APPELLANT : ORISSA CO - OP MARKETING FEDERATION LTD., OLD STATION ROAD, BHUBANESWAR 2. THE RESPONDENT. JCIT, RANGE - II , BHUBANESWAR 3. THE CIT(A) - 1 , BHUBANESWAR 4. PR.CIT - 1 , BHUBANESWAR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//