Sri Lakshmi Cotton Ginning & Pressing Millas, Kurnuthala V. The Assistant Commissioner of Income Tax, Circle-2(1), Guntur

ITA 75/VIZ/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 9801 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 1 year(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2019
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: SMC
• Assessment Year: 2010-2011
• Appeal Filed On: 23-03-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK
• Keywords: TDS
• Section: 143(3); 40(a)(ia); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , HONBLE ACCOUNTANT MEMBER ITA NO. 75 / VIZ /201 8 (ASST. YEAR : 20 1 0 - 11 ) M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS, KURNUTHALA (VS.), VATTIHERUKURU (M), GUNTUR DISTRICT. V S . A CIT, CIRCLE - 2 (1), GUNTUR . PAN NO. AAIFS 2788 M (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI G.V.N. HARI ADV OCATE . DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 02 / 0 4 /201 9 . DATE OF PRONOUNCEMENT : 05 / 0 4 /201 9 . O R D E R PER V. DURGA RAO, JUDICIAL MEMBER TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 1 , GUNTUR , DATED 18 /0 1 /201 8 FOR THE ASSESSMENT YEARS 20 1 0 - 11 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - 1. THE ORDER OF THE LD. CIT(A) IS CONTRARY TO THE FACTS AND ALSO THE LAW APPLICABLE TO THE FACTS OF THE CASE. 2. THE LD. CIT(A) IS NOT JUSTIFIED IN SUSTAINING THE ADDITION OF RS. 1,47,830/ - MADE BY THE ASSESSING OFFICER TOWARDS DISALLOWANCE OF INTEREST UNDER SECTION 40(A)(IA) OF THE ACT. 2 ITA NO. 75/VIZ/2018 ( M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS ) 3. ANY OTHER GROUND THAT MAY BE URGED AT THE TIME OF APPEA L HEARING. 3 . FACTS OF THE CASE, IN BRIEF, ARE THAT ASSESSEE - FIRM IS DOING THE BUSINESS IN COTTON GINNING AND PRESSING MILL UNDER THE NAME AND STYLE OF M/S. SRI LAKSHMI COTTON GINNING AND PRESING MILLS, FILED ITS RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS. 11,17,710/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UND E R CASS AND ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT') . SUBSEQUENTLY, AN ORDER UNDER SECTION 263 WAS PASSED BY THE PR .COMMISSION ER , DATED 24/02/2015 AND DIRECTED THE ASSESSING OFFICER TO DISALLOW THE INTEREST PAYMENT OF RS. 1,47,830/ - ON ACCOUNT OF NON - DEDUCTION OF TDS. THE ASSESSING OFFICER AFTER FOLLOWING THE DIRECTIONS OF THE PR.COMMISSIONER, THE ADDITION WAS MADE TO THE EXTENT OF RS. 1,47,830/ - AND THE SAME IS ADDED TO THE TOTAL INCOME OF THE ASSESSEE BY ORDER DATED 30/10/2015 . IT IS A FACT THAT THE ORDER OF THE PR.COMMISSIONER DATED 24/02/2015 NOT CHALLENGED BY THE ASSESSEE. 4 . AGGRIEVED BY THE ORDER OF THE ASSESSING OFFICER, THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A), WHO ADJUDICATED THE APPEAL ON MERITS AND CONFIRMED THE ORDER OF THE ASSESSING OFFICER. 3 ITA NO. 75/VIZ/2018 ( M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS ) 5. ON BEING AGGRIEVED, ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THIS TRIBUNAL. 6 . THE LD. COUNSEL FOR THE ASSESSEE HAS RELIED ON THE GROUNDS OF APPEAL, WHEREAS LD. DEPARTMENTAL REPRESENTATIVE RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. 7 . WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIAL AVAILABLE ON RECORD AND ORDERS O F THE AUTHORITIES BELOW. 8 . IN THIS CASE, THE ASSESSEE HAS FILED ITS RETURN OF INCOME BY DECLARING TOTAL INCOME OF RS. 11,17,710/ - . THE CASE OF THE ASSESSEE WAS SELECTED FOR SCRUTINY UNDER CASS AND ASSESSMENT WAS COMPLETED UNDER SECTION 143(3) , DATED 22/02/2013 BY DETERMI NI NG TOTAL INCOME OF RS. 16,17,710/ - . THE ORDER OF THE ASSESSING OFFICER WAS SUBJECTED TO REVISION UNDER SECTION 263 . THE PR.COMMISSIONER WHILE EXERCISING THE POWERS CONFERRED IN HIM UNDER SECTION 263 , DIRECTED THE ASSESSING OFFICER TO DISALLOW THE INTEREST PAYMENTS TO THE EXTENT OF RS. 1,47,830/ - ON ACCOUNT OF NON - DEDUCTION OF TDS. ACCORDINGLY, THE ASSESSING OFFICER PASSED ORDER UNDER SECTION 143(3) R.W.S. 263 OF THE ACT ON 30/10/2015 BY DISALLOWING I NTEREST PAYMENTS OF RS. 1,47,830/ - . ON APPEAL, LD.CIT(A) CONFIRMED THE ORDER OF THE ASSESSING OFFICER. WE FIND THAT THE ORDER PASSED BY THE PR.COMMISSIONER UNDER SECTION 263 HAS NOT BEEN CHALLENGED BY THE ASSESSEE. THE PR.COMMISSIONER 4 ITA NO. 75/VIZ/2018 ( M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS ) HAS DIRECTED THE A SSESSING OFFICER TO DISALLOW THE INTEREST EXPENDITURE ON ACCOUNT OF NON - DEDUCTION OF TDS. ACCORDINGLY, THE ASSESSING OFFICER HAS DISALLOWED THE INTEREST EXPENDITURE OF RS.1,47,830/ - . UNDER THESE FACTS AND CIRCUMSTANCES OF THE CASE , WE ARE OF THE OPINION THAT WHEN THE PR.COMMISSIONER DIRECTED THE ASSESSING OFFICER TO DISALLOW CERTAIN EXPENSES , THE ASSESSING OFFICER HAS NO OPTION EXCEPT TO OBEY THE ORDER OF PR.COMMISSIONER . ACCORDINGLY, HE DISALLOWED THE SAME. THEREFORE, LD. CIT(A) OUGHT TO HAVE BEEN CONSI DERED THE CASE ON MERITS FOR THE REASON THAT THE ORDER PASSED BY THE PR.COMMISSIONER HAS NOT BEEN CHALLENGED. THEREFORE, WE FIND THAT THERE IS NO MERIT IN THE ARGUMENT OF THE LD. COUNSEL FOR THE ASSESSEE. EVEN OTHERWISE ON MERITS, WE FIND NO REASON TO IN TERFERE WITH THE ORDER OF THE LD.CIT(A). THUS, THIS APPEAL FILED BY THE ASSESSEE DESERVES TO BE DISMISSED. ACCORDINGLY, WE DO SO. 9. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON TH IS 0 5 T H DAY OF APRIL , 201 9 . S D / - S D / - ( D.S. SUNDER SINGH ) ( V. DURGA RAO ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 0 5 T H APRIL , 201 9 . VR/ - 5 ITA NO. 75/VIZ/2018 ( M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS ) COPY TO: 1. THE ASSESSEE - M/S. SRI LAKSHMI COTTON GINNING & PRESSING MILLS, KURNUTHALA (VS.), VATTIHERUKURU (M), GUNTUR DISTRICT. 2. THE REVENUE ACIT, CIRCLE - 2(1), GUNTUR. 3. THE PR. CIT , GUNTUR. 4. THE CIT(A) - 1, GUNTUR. 5. THE D.R . , VISAKHAPATNAM. 6. GUARD FILE. BY ORDER (VUKKEM RAMBABU) SR. PRIVATE SECRETARY, ITAT, VISAKHAPATNAM.