SHRI GOVERDHAN PRASAD SINGHAL, JAIPUR V. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-6, JAIPUR

ITA 742/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1862 (ITAT-JAIPUR)
• Duration Of Justice: 2 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 04-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: POONAM ROY DCIT DHK
• Assessee Lawyers: SHAMBHU LAL GUPTA
• Keywords: Opportunity of being heard

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH HKKXPAN] YS[KK LNL; ] DS LE{K BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER VK;DJ VIHY LA-@ ITA NO. 742/JP/2017 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2013-14 GOVERDHAN PRASAD SINGHAL, CC-229, GOLE MARKET, JAWAHAR NAGAR, JAIPUR. CUKE VS. A.C.I.T., CIRCLE-6, JAIPUR. PAN NO.: ACVPS 0236 P VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI SHAMBHU LAL GUPTA (CA) JKTLO DH VKSJ LS@ REVENUE BY : SMT. POONAM ROY (DCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 13/12/2017 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 14/12/2017 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE EMANATES FR OM THE ORDER OF LD. CIT(A)-2, JAIPUR DATED 23/08/2017 FOR THE A.Y. 2 013-14, WHEREIN THE ASSESSEE HAS RAISED SOLE EFFECTIVE GROUND OF APPEAL , WHICH IS AS UNDER:- 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, TH E LD CIT(A) WRONG, UNJUST AND ERRED IN LAW IN UPHOLDING THE ADD ITION OF RS. 4,95,351/- U/S 40(A)(IA) OF THE INCOME TAX ACT ON A CCOUNT OF NON DEDUCTION OF TDS ON INTEREST TO NBFC IGNORING THE F ACT THAT THE INSTALLMENT FOR INTEREST WITH PRINCIPLE HAS BEEN PA ID IN ADVANCE BY POST DATED CHEQUE. THE LD. CIT(A) IS FURTHER WRONG, UNJUST AND ERRED IN LAW IGNORING THE SECOND PROVISO TO SECTION 40(A)(IA). ITA 742/JP/2017_ GOVERDHAN PD. SINGHAL VS ACIT 2 2. THE ONLY ISSUE INVOLVED IN THE APPEAL IS SUSTAINI NG THE ADDITION OF RS. 4,95,351/- MADE U/S 40(A)(IA) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) FOR NON DEDUCTION OF TDS ON INTEREST TO NBF C. THE ASSESSEE HAS PAID INTEREST OF RS. 4,95,351/- TO THE NBFC NAMELY TATA CAPITAL HOUSE FINANCE. THE ASSESSEE HAS MADE PAYMENT WITHOUT DEDUCT ING TDS. THE ASSESSEE TOOK A PLEA THAT AS PER SECOND PROVISO TO SECTION 40(A)(IA) OF THE ACT, NO DISALLOWANCE CAN BE MADE. THE ASSESSING OFFIC ER DID NOT ACCEPT THE CONTENTION OF THE ASSESSEE FOR THE REASON THAT SECO ND PROVISO TO SECTION 40(A)(IA) OF THE ACT REFERRED TO SECTION 201 OF THE ACT. AS PER PROVISIONS OF SUB-SECTION (1) OF SECTION 201, THE ASSESSEE WHO HAS NOT DEDUCTED TDS ON THE PAYMENTS HAS TO FULFILL CERTAIN SPECIFIC CONDIT IONS AND ONE OF THEM IS FURNISHING CERTIFICATE FROM AN ACCOUNTANT IN FORM 2 6A AS PER RULE 31ACB BY THE PAYEE. THE LD AR OF THE ASSESSEE SUBMITTED TH AT SUCH CERTIFICATE COULD NOT BE OBTAINED BUT NOW THE ASSESSEE HAS OBTAI NED SUCH CERTIFICATE AND IF THE MATTER RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER, THIS WILL BE SUBMITTED BEFORE THE ASSESSING OFFICER FOR VERIF ICATION. HE HAS ALSO DRAWN OUR ATTENTION THAT THE LD. CIT(A) HAS MENTIONED THAT AMENDMENT HAS BEEN SPECIFICALLY PROVIDED TO BE EFFECTIVE FROM CER TAIN DATE AND THE AMENDMENT WAS NOT IN FORCE DURING THE YEAR UNDER CON SIDERATION, WHICH IS FACTUALLY INCORRECT. ITA 742/JP/2017_ GOVERDHAN PD. SINGHAL VS ACIT 3 3. ON THE OTHER HAND, THE LD DR HAS RELIED ON THE O RDERS OF THE AUTHORITIES BELOW. 4. BENCH HAVE HEARD BOTH THE SIDES ON THIS ISSUE. B ENCH IS OF THE VIEW THAT IN THE INTEREST OF JUSTICE AND EQUITY, THIS MA TTER NEEDS A FRESH LOOK AT THE LEVEL OF THE ASSESSING OFFICER. THE ISSUE IS RES TORED TO THE A.O. TO BE DECIDED AS PER LAW AFTER PROVIDING EFFECTIVE AND ADE QUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE SHALL SUB MIT NECESSARY DOCUMENTS BEFORE THE ASSESSING OFFICER. HENCE, THE MATTER IS RESTORED BACK TO THE FILE OF THE ASSESSING OFFICER. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 14/12/2017. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 14 TH DECEMBER, 2017 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI GOVERDHAN PRASAD SINGHAL, JAIPUR . 2. IZR;FKHZ @ THE RESPONDENT- THE A.C.I.T., CIRCLE-6, JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 742/JP/2017) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR