M/s. S.Kumar Tyre Mfg. Co. Ltd., Dhar V. The ITO (TDS) RANGE-1, Indore

ITA 725/IND/2013

• Counselvise Citation: 72522714 RSA 2013
• Duration Of Justice: 1 year(s) 10 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-10-2015
• Assessment Year: 2000-2001
• Appeal Filed On: 11-12-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S N AGRAWAL
• Keywords: Reasonable cause; Condonation of delay
• Section: 201(1)

Judgement Text

M/SS. KUMAR TYRE ITA NO. 725/IND/2013 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI D.T. GARASIA, HONBLE JUDICIAL MEMBER AND SHRI B.C. MEENA, HONBLE ACCOUNTANT MEMBER ITA NO. 725/IND/2013 A.Y.2000-01 M/S S. KUMAR TYRE MFG. CO. LTD PITHAMPUR DHAR ::: APPELLANT VS INCOME TAX OFFICER (TDS) RANGE-1, DHAR ::: RESPONDENT APPELLANT BY SHRI S.N. AGRAWAL RESPONDENT BY SHRI R.A. VERMA DATE OF HEARING 21 . 10 .2015 DATE OF PRONOUNCEMENT 2 . 11 .2015 O R D E R PER SHRI B.C. MEENA, AM THIS APPEAL FILED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LEARNED CIT(A)-I, INDORE, DATED 16. 9.2013. 2. THERE IS A DELAY OF 3 DAYS IN FILING THE APPEAL. WE HAVE HEARD BOTH THE SIDES ON THE CONDONATION OF DELAY AND T HE M/SS. KUMAR TYRE ITA NO. 725/IND/2013 2 REASON THEREOF. AFTER HEARING BOTH THE SIDES, WE HOLD THAT THERE WAS SUFFICIENT AND REASONABLE CAUSE FOR THE DELA Y. THEREFORE, WE CONDONE THE DELAY AND ADMIT THE APPEAL T O BE DECIDED ON MERITS. 3. THE ASSESSEE IS OUT THE MANUFACTURING OF TYRES AT PITHAMPUR, DHAR, M.P. AS PER THE ASSESSING OFFICER TH E ASSESSEE WAS RESPONSIBLE FOR DEDUCTION OF TAX AT SOURC E AS PER THE PROVISIONS OF CHAPTER XVII OF THE INCOME TAX ACT, 1961 ON THE PAYMENT OF RENT OF RS.72,60,000/-. THE ASSESSEE HAS PAID RENT OF RS. 56 LACS TO SHRIRAM MILLS LIMITED AND RS. 15 LACS TO S. KUMAR RETAILORS SERVICE PRIVATE LIMITED. AS PER THE ASSESSING OFFICER THE PA YMENTS TO SHRIRAM MILLS WERE COVERED BY FORM NO. 15AA. HOW EVER, ON THE RENT PAID TO S. KUMAR RETAILERS SERVICES PVT. L TD. NO TDS WAS MADE AS PER THE PROVISIONS OF SECTION 194-I OF THE ACT. THE PROVISIONS OF SECTION 201(1) OF THE ACT AN D 201(1A) WERE INVOKED AND TDS INCLUDING SURCHARGE @ M/SS. KUMAR TYRE ITA NO. 725/IND/2013 3 20.6% OF RS. 3 LACS AND INTEREST THEREON U/S 201(1A) OF RS.4,68,000/- WAS CHARGED. THE LEARNED CIT(A) CONFIRME D THE ACTION OF THE ASSESSING OFFICER. NOW THE ASSESSEE IS IN APPEAL BEFORE US. 4. AT THE OUTSET OF THE HEARING THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE MAY BE RESTORED TO THE FILE OF THE ASSESSING OFFICER FOR VERIFICATION IN VI EW OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF HINDUSTAN COCA COLA HINDUSTAN COCA COLA BEVERAGE P. LTD. VS. CIT; 293 ITR 226 WHEREIN THE HON'BLE APEX COURT HELD THAT WHEN THE PAYEE HAS DEPOSITED THE TAX ON THE INCOME ON WHICH TDS REMAINS TO BE DEDUCTED, IN THAT C ASE THE PAYER ASSESSEE IS NOT TREATED AS IN DEFAULT AS TO AT TRACT THE PROVISIONS OF SECTIONS 201(1) AND 201(1) OF THE ACT (REFERRED TO PARAS 7 TO 12 OF THE ORDER). THE LD. DR WAS NOT HAVING ANY OBJECTION TO THIS PROPOSITION OF THE LEARNE D M/SS. KUMAR TYRE ITA NO. 725/IND/2013 4 COUNSEL FOR THE ASSESSEE THAT MATTER MAY BE REFERRED B ACK TO THE ASSESSING OFFICER FOR VERIFICATION. 5. AFTER HEARING BOTH THE SIDES AND CONSIDERING THE CASE LAWS RELIED UPON, WE RESTORE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER TO DECIDE THE SAME DE NOVO AS PER L AW AFTER PROVIDING THE ASSESSEE AN OPPORTUNITY OF BEING H EARD. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. PRONOUNCED IN OPEN COURT ON 2ND NOVEMBER, 2015 SD SD (D.T. GARASIA) (B.C. MEENA) JUDICIAL MEMBER ACCOUNTANT MEMBER 2 ND NOVEMBER, 2015 DN/- M/SS. KUMAR TYRE ITA NO. 725/IND/2013 5