Shri Ugrasen Ramraj Yadav, Surat V. The Income tax Officer,Ward-5(4), Surat

ITA 742/AHD/2011

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5967 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 1 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 28-04-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 08-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P BATHEJA
• Assessee Lawyers: RAMESH KUMAR MA LPANI
• Keywords: Principle of natural justice; Condonation of delay
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SRI D.K TYAGI, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER SRI UGRASEN RAMRAJ YADAV, 8/9, KARUNA SAGAR SOCIETY, OPP. TVS AUTO POINT, DUMBHAL, SURAT PAN: AALPY3211C (APPELLANT) VS INCOME TAX OFFICER, WARD 5(4), SURAT (RESPONDENT) ASSESSEE BY: SRI RAMESH KUMAR MALPANI, A.R. REVENUE BY: SRI O.P. BATHEJA, SR.D.R. DATE OF HEARING : 28-04-2014 DATE OF PRONOUNCEMENT : 29-04-20 14 / ORDER PER : D.K. TYAGI, JUDICIAL MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A)-IV SURAT DATED 22-03-2010. 2. THE ASSESSEE HAS TAKEN FOLLOWING GROUNDS OF APPE AL:- 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE, THE HON'BLE CIT (A) HAS ERRED IN HOLDING THE VIEW THAT TAX OF DEDUCTIBLE ITA NO. 742/AHD/2011 ASSESSMENT YEAR 2007-08 I.T.A NO.742/AHD/2011 A.Y. 2007-08 PAGE NO SHRI UGRASEN RAMRAJ YADAV V. ITO 2 ON FREIGHT PAID TO FIVE PARTIES OF RS. 34,11,216/- WHEREAS NO TAX WAS ACTUALLY DEDUCTIBLE ON SAME AND THUS HON'BLE CIT(A) HAS ERRED IN SUSTAINING DISALLOWANCE U/S 40(A)(IA) OF THE ACT. 2) THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE HON'BLE CIT(A) HAS ERRED IN SUSTAINING THE DISALLOW ANCE MADE IN RESPECT OF FREIGHT PAID OF RS. 34,11,216/- U/S 40(A )(IA) OF THE ACT. 3. THIS APPEAL HAS BEEN FILED LATE BY ASSESSEE. AP PLICATION FOR CONDONATION OF DELAY SUPPORTED BY AFFIDAVIT IS ON R ECORD. 4. AFTER HEARING BOTH THE PARTIES, THE DELAY IN FIL ING THE APPEAL WAS CONDONED AND THE APPEAL WAS ADMITTED FOR HEARING. 5. DURING THE ASSESSMENT PROCEEDINGS, AO FOUND THAT ASSSESSEE IN HIS PROFIT AND LOSS ACCOUNT HAD DEBITED TOTAL FREIGHT P AYMENT OF RS. 34,14,908/- IN RESPECT OF VARIOUS SUB-CONTRACTORS. FOR VERIFIC ATION VIS--VIS COMPLIANCE OF PROVISIONS OF SECTION 194C OF THE ACT, AO CALLED FOR THE DETAILS ABOUT TDS RETURN ALONG WITH TDS ACCOUNT. TO WHICH ASSES SEES REPLY WAS THAT NO TAX WAS DEDUCTED AT SOURCE, SO NO RETURN OF TDS WERE FILED. THEREAFTER AO SHOW CAUSED THE ASSESSEE AS TO WHY THIS FREIGHT PAYMENT OF RS. 34,14,908/- MADE TO VARIOUS SUB-CONTRACTORS SHOULD NOT BE DISALLOWED U/S. 40(A)(IA) OF THE ACT. ASSESSEE FAILED TO FURNISH T HESE DETAILS. THEREFORE AO APPLYING THE PROVISIONS OF SECTION 40(A)(IA) DIS ALLOWED THIS SUM OF RS. 34,14,908/- AND ADDED TO THE TOTAL INCOME OF THE AS SESSEE. 6. LD. CIT(A) BY PASSING AN EX-PARTE ORDER HAS CONF IRMED THIS ACTION OF AO. 7. BEFORE US LEARNED COUNSEL OF THE ASSESSEE PRAYE D THAT ASSESSEE BE GIVEN AT LEAST ONE MORE OPPORTUNITY TO PRESENT HIS CASE BEFORE LD. CIT(A) I.T.A NO.742/AHD/2011 A.Y. 2007-08 PAGE NO SHRI UGRASEN RAMRAJ YADAV V. ITO 3 AS SUFFICIENT OPPORTUNITY WAS NOT GIVEN TO HIM BY T HE LD. CIT(A). LD. DR HOWEVER RELIED ON THE ORDERS OF LOWER AUTHORITIES A ND SUBMITTED THAT THERE WAS NO NEED TO GIVE ANOTHER OPPORTUNITY TO THE ASSE SSEE AS HE FAILED TO AVAIL THE OPPORTUNITIES GIVEN BY THE LOWER AUTHORIT IES. WE HOWEVER FEEL THAT IN THE INTEREST OF NATURAL JUSTICE AND FAIR PLAY, T HE ASSESSEE BE GIVEN ONE MORE CHANCE TO PRESENT HIS CASE AND FOR THIS PURPOS E THE MATTER IS RESTORED BACK TO THE FILE OF LD. CIT(A) TO PASS A F RESH ORDER AFTER PROVIDING ADEQUATE OPPORTUNITIES OF BEING HEARD TO THE ASSESS EE. 8. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD : DATED 29/04/2014 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,