Mr Krishan Kumar Somani, Howrah V. ITO, WD-47(1), KOLKATA, Kolkata

ITA 751/KOL/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4147 (ITAT-KOLKATA)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2007-2008
• Appeal Filed On: 21-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MD GHAYAS UDDIN
• Assessee Lawyers: S D VERMA
• Keywords: Business income; Non-deduction of tax
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH D KOLKATA BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER AND SHRI S.S.VISWANETHRA RAVI, JUDICIAL MEMBER ITA NO.751/KOL/2016 ASSESSMENT YEAR: 2007-08 MR. KRISHAN KUMAR SOMANI, GANGES GARDEN-II BLOCK-GA-13, 106, KIRAN CHANDRA SINGHA ROAD, SHIBPUR HOWRAH-711102 [ PAN AIZPS 0467 Q ] / V/S . INCOME TAX OFFICER, WARD-47(1), 3 GOVERNMENT PLACE (WEST), KOLKATA-700 001 /APPELLANT .. /RESPONDENT /BY APPELLANT SHRI S.D.VERMA, ADVOCATE /BY RESPONDENT MD. GHAYAS UDDIN, DR /DATE OF HEARING 10-11-2016 /DATE OF PRONOUNCEMENT 09-12-2016 /O R D E R PER WASEEM AHMED, ACCOUNTANT MEMBER:- THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLKATA DATED 18.01.2016. ASSESSMENT WAS FRAMED BY ITO WARD-47(1), KOLKATA U/S 263/143(3) OF THE IN COME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS THE ACT) VIDE HIS ORD ER DATED 28.03.2013 FOR ASSESSMENT YEAR 2007-08. THE GROUNDS RAISED BY THE ASSESSEE PER ITS APPEAL ARE AS UNDER:- 1. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-14, KOLKATA WA S NOT JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING DISALLOWANCE UNDER SECTION 40(A)(IA) READ WITH SECTION 194C AMOU NTING TO ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 2 RS7,29,000/- UNDER THE HEAD LABAOUR CHARGES WHEREAS THE APPELLANT WAS NOT LIABLE TO DEDUCT TDS AS PER EXPRESS PROVISI ONS OF SECTION 194C AS APPLICABLE FOR ASSESSMENT YEAR 2007-2008. 2. THAT IN THE FACTS AND CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S)-14, KOLKATA W AS NOT JUSTIFIED IN CONFIRMING THE ACTION OF THE ASSESSING OFFICER IN M AKING DISALLOWANCE UNDER SECTION 40(A)(I) READ WITH SECTION 194C AMOUN TING TO RS.14,34,157/- UNDER THE HEAD EXPORT FREIGHT FOR NO N-DEDUCTION OF TAX UNDER SECTION 194C WHEREAS THE APPELLANT WAS NOT LI ABLE TO DEDUCT TS AS PER EXPRESS PROVISIONS OF SECTION 194C AS APPLIC ABLE FOR ASSESSMENT YEAR 2007-2008 READ WITH CBDT CIRCULAR 723 DATED 19 /09/1996. SHRI S.D. VERMA, LD. AUTHORIZED REPRESENTATIVE APP EARED ON BEHALF OF ASSESSEE AND MD. GHAYAS UDDIN, LD. DEPARTMENTAL REP RESENTATIVE APPEARED ON BEHALF OF REVENUE. 2. FIRST ISSUE RAISED BY ASSESSEE IN THIS APPEAL IS THAT LD. CIT(A) ERRED IN CONFIRMING THE ORDER OF ASSESSING OFFICER BY SUSTAI NING THE DISALLOWANCE ON ACCOUNT OF NON-DEDUCTION OF TDS U/S. 194C OF THE A CT. 3. BRIEFLY, THE FACTS ARE THAT THE ASSESSEE IS AN I NDIVIDUAL, CARRYING ON HIS BUSINESS UNDER NAME & STYLE OF ENGINEERS ENTERPRIS ES. THE ASSESSEE HAS CLAIMED LABOUR CHARGES FOR AN AMOUNT OF RS.7.29 LAK H ON WHICH NO TDS WAS DEDUCTED BY ASSESSEE. ACCORDINGLY, AO DISALLOWED TH E AFORESAID SUM FOR NON- DEDUCTION OF TDS AND ADDED TO THE TOTAL INCOME OF A SSESSEE. 4. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE L D. CIT(A) WHO CONFIRMED THE ORDER OF ASSESSEE. AGGRIEVED BY THIS, ASSESSEE HAS COME UP AN APPEAL B EFORE US. 5. BEFORE US LD. AR FOR THE ASSESSEE SUBMITTED PAPE R BOOK WHICH IS RUNNING PAGES 1 TO 73 AND SUBMITTED THAT THE ASSESS EE IS AN INDIVIDUAL AND THE RELEVANT AY INVOLVED IS AY 2007-08 RELEVANT TO FINANCIAL YEAR 2006-07. LD. COUNSEL FOR THE ASSESSEE FURTHER STATED THAT THE PR OVISIONS OF SECTION 194C(1) FOR TDS ON INDIVIDUAL WILL APPLY WITH EFFEC T FROM 01-06-2007 AND NOT IN THE CASE OF THE ASSESSEE. ON THE OTHER HAND THE LD. DR PLEADED THAT THE SAID GROUND WAS NOT RAISED BY THE ASSESSEE BEFORE THE AO & THE LD. CIT(A). HENCE ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 3 IT SHOULD BE RESTORED TO THE AO. THE LD. DR SUPPORT ED THE ORDER OF THE LOWER AUTHORITIES. 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AGAINST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF LABO UR CHARGES PAID FOR CONTRACT JOBS FOR NON-DEDUCTION OF TAX DEDUCTED AT SOURCE (T DS FOR SHORT) BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. WE FIND THAT THIS ISSUE IS NOW SQUARELY COVERED IN FAVOUR OF THE ASSESSEE AND AGAI NST THE REVENUE BY THE DECISION IN THE CASE OF ACIT VS SMT. KEYA SETH IN ITA NO.842 & 843/K/2010 FOR ASSESSMENT YEARS 2006- 07 & 2007-08 VIDE ORDER DATED 11.03.2011. WE FIND THAT IN THE CASE OF SMT. KEYA SETH CITED (SUPRA), WHEREIN EXACTLY THE SAME ISSUE HAS BEEN DECIDED AS UNDER: '5. WE HAVE HEARD RIVAL CONTENTIONS AND GONE THROUG H FACTS AND CIRCUMSTANCES OF THE CASE. IT IS AN ADMITTED POSITI ON THAT THE ASSESSEE AN INDIVIDUAL CARRYING ON THE BUSINESS OF AYURVEDIC (COSMETIC DIVISION) AND THE CONSULTANCY ON BEAUTICIAN AND ALSO RELATED THERAPIES . AS CLAIMED BY THE ASSESSEE, WHETHER THE PROVISIONS OF SECTION 194(1) AS EXISTED IN ASSESSMENT YEARS 2006-07 & 2007-08 WILL APPLY TO THE ASSESSEE OR NOT? ADMITTEDLY, ASSESSEE HAS NOT DEDUC TED ANY TDS ON ADVERTISEMENT PAYMENT AND ACCORDING TO HER, PROVISI ONS OF SECTION 194C(1) AS EXISTED IN THE RELEVANT ASSESSMENT YEARS WILL NOT OBLITERATE ANY DUTY ON ASSESSEE TO DEDUCT TDS. NOW, WE HAVE TO EXAMINE THIS. THE RELEVANT PROVISIONS OF SECTION 194C(1) & (2) AS EXIST IN ASSESSMENT YEAR 2006-07 & 2007-08 READS AS UNDER :- '(1) ANY PERSON RESPONSIBLE FOR PAYING ANY SUM TO A NY RESIDENT (HEREAFTER IN THIS SECTION REFERRED TO AS THE CONTR ACTOR) FOR CARRYING OUT ANY WORK (INCLUDING SUPPLY OF LABOUR FOR CARRYING O UT ANY WORK) IN PURSUANCE OF A CONTRACT BETWEEN THE CONTRACTOR AND- - (A) THE CENTRAL GOVERNMENT OR ANY STATE GOVERNMENT ; OR (B) ANY LOCAL AUTHORITY ; OR (C) ANY CORPORATION ESTABLISHED BY OR UNDER A CENTR AL, STATE OR PROVINCIAL ACT ; OR (D) ANY COMPANY, OR (E) ANY CO-OPERATIVE SOCIETY ; OR (F) ANY AUTHORITY, CONSTITUTED IN INDIA BY OR UNDER ANY LAW, ENGAGED EITHER FOR THE PURPOSE OF DEALING WITH AND SATISFYI NG THE NEED FOR ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 4 HOUSING ACCOMMODATION OR FOR THE PURPOSE OF PLANNIN G, DEVELOPMENT OR IMPROVEMENT OF CITIES, TOWNS AND VILLAGES, OR FOR B OTH ; OR (G) ANY SOCIETY REGISTERED UNDER THE SOCIETIES REGI STRATION ACT, 1860 (21 OF 1860), OR UNDER ANY LAW CORRESPONDING TO THAT AC T IN FORCE IN ANY PART OF INDIA ; (H) ANY TRUST ; OR (I) ANY UNIVERSITY ESTABLISHED OR INCORPORATED BY O R UNDER A CENTRAL, STATE OR PROVINCIAL ACT AND AN INSTITUTION DECLARED TO BE A UNIVERSITY UNDER SECTION 3 OF THE UNIVERSITY GRANTS COMMISSION ACT, 1956 (3 OF 1956), OR (J) ANY FIRM, SHALL, AT THE TIME OF CREDIT OF SUCH SUM TO THE ACCOUNT OF THE CONTRACTOR OR AT THE TIME OF PAYMENT THEREOF IN CAS H OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE, WHICHEVER IS EARLIER, DEDUCT AN AMOUNT EQUAL TO-- (I) ONE PER CENT. IN CASE OF ADVERTISING, (II) IN ANY OTHER CASE TWO PER CENT. OF SUCH SUM AS INCOME-TAX ON INCOME COMPRISED THERE IN. (2) ANY PERSON (BEING A CONTRACTOR AND NOT BEING AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY) RESPONSIBLE FOR PAYING ANY SUM TO ANY RESIDENT (HEREAFTER IN THIS SECTION REFERRED TO AS THE SUB-C ONTRACTOR) IN PURSUANCE OF A CONTRACT WITH THE SUB-CONTRACTOR FOR CARRYING OUT, OR FOR THE SUPPLY OF LABOUR FOR CARRYING OUT, THE WHOLE OR ANY PART OF T HE WORK UNDERTAKEN BY THE CONTRACTOR OR FOR SUPPLYING WHETHER WHOLLY OR P ARTLY ANY LABOUR WHICH THE CONTRACTOR HAS UNDERTAKEN TO SUPPLY SHALL, AT T HE TIME OF CREDIT OF SUCH SUM TO THE ACCOUNT OF THE SUB-CONTRACTOR OR AT THE TIME OF PAYMENT THEREOF IN CASH OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE, WHICHEVER IS EARLIER, DEDUCT AN AMOUNT EQUAL TO ONE PER CENT OF SUCH SUM AS INCOME-TAX ON INCOME COMPRISED THEREIN.' 6. FROM THE ABOVE PROVISIONS OF SECTION 194C(1), IT IS CLEAR THAT THE PAYMENTS MADE BY INDIVIDUAL OR HINDU UNDIVIDED FAMI LY DOES NOT COME WITHIN THE AMBIT OF TDS I.E. THE EXPENDITURE INCURR ED FOR ADVERTISEMENT AS INDIVIDUAL AND HUF ARE SPECIFICALLY EXCLUDED IN THE ABOVE PROVISIONS. THE PROVISION OF SUB-SECTION (2) APPLIES ONLY TO PA YMENTS MADE TO SUB- CONTRACTORS AND NOT TO CONTRACTORS. ACCORDINGLY, AS SESSING OFFICER CAN NOT MADE DISALLOWANCE BY INVOKING PROVISIONS OF SEC TION 40A(IA), AS PRESENT ASSESSEE BEING AN INDIVIDUAL IS NOT LIABLE TO DEDUCT TAX IN VIEW OF PROVISIONS OF SECTION 194C(1) AS EXISTED IN THE RELEVANT ASSESSMENT YEARS. NO DOUBT, ASSESSEE'S TURNOVER EXCEEDS THE MO NETARY LIMIT AS SPECIFIED UNDER CLAUSE (A) OR CLAUSE (B) OF SECTION 44AB AND THE ASSESSEE'S ACCOUNTS ARE SUBJECT TO AUDIT AND THE AS SESSEE HAS AUDITED HER ACCOUNTS AND FILED TAX AUDIT REPORT ALONG WITH RETURN OF INCOME. WE FIND THAT THE ASSESSING OFFICER HAS MADE DISALLOWAN CE IN VIEW OF THE AMENDED PROVISIONS OF SECTION 194C(1) BY THE FINANC E ACT, 2007 WITH EFFECT FROM 01.06.2007 WHEREIN IT IS PROPOSED TO AM END SUB-SECTION (1) IN SECTION 194C SO AS TO INCLUDE PAYMENTS MADE BY A NY INDIVIDUAL OR ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 5 HINDU UNDIVIDED FAMILY WHOSE TOTAL SALES / GROSS RE CEIPTS OR TURNOVER FROM THE BUSINESS OR PROFESSION CARRIED ON BY HIM E XCEED MONETARY LIMIT SPECIFIED UNDER CLAUSE (A) OR CLAUSE (B) OR SECTION 44AB DURING THE FINANCIAL YEAR OR IMMEDIATELY PRECEDING FINANCIAL Y EAR IN WHICH SUCH SUM IS CREDITED OR PAID TO THE ACCOUNT OF THE CONTR ACTOR. THIS AMENDMENT TAKES EFFECT FROM 1ST DAY OF JUNE, 2007 A ND IS APPLICABLE FOR AND FROM ASSESSMENT YEAR 2008-09. IN SECTION 19 4C(1) WITH EFFECT FROM 01.06.2007, BY THE FINANCE ACT, 2007, CLAUSE A S INSERTED, READS AS UNDER :- '(K) ANY INDIVIDUAL OR A HINDU UNDIVIDED F AMILY, WHOSE TOTAL SALES, GROSS RECEIPTS OR TURNOVER FROM THE BUSINESS OR PROFESSION CARRIED ON BY HIM EXCEED THE MONETARY LIMITS SPECIFIED UNDE R CLAUSE (A) OR CLAUSE (B) OF SECTION 44AB DURING THE FINANCIAL YEA R IMMEDIATELY PRECEDING THE FINANCIAL YEAR IN WHICH SUCH SUM IS C REDITED OR PAID TO THE ACCOUNT OF THE CONTRACTOR, SHALL, AT THE TIME OF CR EDIT OF SUCH SUM TO THE ACCOUNT OF THE CONTRACTOR OR AT THE TIME OF PAYMENT THEREOF IN CASH OR BY ISSUE OF A CHEQUE OR DRAFT OR BY ANY OTHER MODE, WH ICHEVER IS EARLIER, DEDUCT AN AMOUNT EQUAL TO - (I) ONE PER CENT IN CASE OF ADVERTISIN G, (II) IN ANY OTHER CASE TWO PER CENT, OF SUCH SUM AS INCOME-TAX ON INCOME COMPRISED THERE IN : PROVIDED THAT NO INDIVIDUAL OR A HINDU UNDIVIDED FA MILY SHALL BE LIABLE TO DEDUCT INCOME-TAX ON THE SUM CREDITED OR PAID TO THE ACCOUNT OF THE CONTRACTOR WHERE SUCH SUM IS CREDITED OR PAID EXCLU SIVELY FOR PERSONAL PURPOSES OF SUCH INDIVIDUAL OR ANY MEMBER OF HINDU UNDIVIDED FAMILY.' 7. WE FIND FROM THE ARGUMENTS OF LD.SR. DR THAT REV ENUE WANT TO INVOKE PROVISIONS OF SUB- SECTION (2) OF SECTION 19 4C FOR FURTHERANCE OF THIS CASE BUT WE ARE OF THE CONSIDERED VIEW THAT SE CTION 194C(2) WILL APPLY TO THE PAYMENTS MADE TO SUB-CONTRACTORS BY TH E CONTRACTOR AND NOT BY THE ASSESSEE. IN THE PRESENT CASE, IT IS AN ADMITTED POSITION THAT THE ASSESSEE HAS MADE PAYMENTS ON ADVERTISEMENT TO THE CONTRACTORS AND NOT TO SUB-CONTRACTORS. FURTHER AS REFERRED BY LD. COUNSEL FOR THE ASSESSEE, THIS PROVISION WAS EXPLAINED BY CBDT CIRC ULAR NO.3 OF 2008 DATED 12.03.2008 WHICH IS REPORTED IN (2008)299 ITR 8 (STATUTE) AND THE RELEVANT CIRCULAR AS REPORTED AT PAGE 71, READS AS UNDER :- '54. EXPANSION OF SCOPE OF THE PROVISIONS OF SECTI ON 194C. 54.1 THE EXISTING PROVISIONS OF SUB-SECTION (1) OF SECTION 194C PROVIDED FOR DEDUCTION OF INCOME-TAX AT SOURCE FROM ANY SUM CREDITED OR PAID TO THE RESIDENT CONTRACTOR FOR CARRYING OUT ANY WORK ( INCLUDING SUPPLY OF LABOUR FOR CARRYING OUT ANY WORK) IN PURSUANCE OF A CONTRACT BETWEEN THE CONTRACTOR AND THE GOVERNMENT, LOCAL AUTHORITIES, S TATUTORY CORPORATIONS, COMPANIES, CO-OPERATIVE SOCIETIES, STATUTORY AUTHOR ITIES ENGAGED IN PROVIDING HOUSING ACCOMMODATION, ETC., REGISTERED S OCIETIES, TRUSTS, UNIVERSITIES AND FIRMS. THE RATE OF TDS IS 1% IN RE SPECT OF ADVERTISING CONTRACTS AND 2% IN OTHER CASES. ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 6 54.2 THE EXISTING PROVISIONS OF SUB-SECTION (1) OF SECTION 194C DID NOT PROVIDE FOR DEDUCTION OF TAX AT SOURCE ON PAYMENTS MADE BY AN INDIVIDUAL OR A HINDU UNDIVIDED FAMILY TO A CONTRAC TOR. 54.3 CONSIDERING THE RISING NUMBER OF CONTRACTS BEI NG AWARDED BY INDIVIDUALS AND HUFS CARRYING ON BUSINESS OR PROFES SION AND THE INCREASING VOLUME OF SUCH PAYMENTS TO CONTRACTORS, IT WAS FELT THAT THERE IS NEED TO REQUIRE SUCH PERSONS TO DEDUCT TAX AT SO URCE FROM PAYMENTS MADE BY THEM TO CONTRACTORS. 54.4 THERE WOULD BE GENUINE DIFFICULTIES IF INDIVID UALS OR HUFS WITH SMALL BUSINESS TURNOVERS OR GROSS RECEIPTS OF PROFE SSION ARE REQUIRED TO DEDUCT TAX AT SOURCE. AN EXCEPTION IN SUCH CASES WO ULD BE JUSTIFIED. SIMILARLY THE CONTRACTS AWARDED BY AN INDIVIDUAL OR A MEMBER OF HUF OF HUF EXCLUSIVELY FOR PERSONAL PURPOSES MERIT EXCLUSI ON. 54.5 ACCORDINGLY, THE FINANCE ACT, 2007, HAS SUBSTI TUTED THE SAID SUB- SECTION (1) TO INCLUDE IN ITS AMBIT SUCH INDIVIDUAL OR A HINDU UNDIVIDED WHOSE TOTAL SALES, GROSS RECEIPTS OR TURNOVER FROM THE BUSINESS OR PROFESSION CARRIED ON EXCEED THE MONETARY LIMITS SP ECIFIED UNDER CLAUSE(A) OR CLAUSE (B) OF SECTION 44AB DURING THE FINANCIAL YEAR IMMEDIATELY PRECEDING FINANCIAL YEAR IN WHICH SUM I S CREDITED OR PAID TO THE ACCOUNT OF THE CONTRACTOR. THIS AMENDMENT SHALL NOT APPLY IN RESPECT OF PAYMENTS MADE TO A CONTRACTOR BY ANY IND IVIDUAL OR A MEMBER OF A HINDU UNDIVIDED FAMILY EXCLUSIVELY FOR THEIR PERSONAL PURPOSES. 54.6 APPLICABILITY - THIS AMENDMENT WILL TAKE EFFEC T FROM THE 1ST DAY OF JUNE, 2007.' 8. IN VIEW OF THE ABOVE CLEAR PROVISIONS OF SECTION 194(1) AS EXISTING IN ASSESSMENT YEARS 2006-07 & 2007-08, I.E. RELEVANT A SSESSMENT YEARS IN THE PRESENT APPEALS, IT IS CLEAR THAT THE ASSESS EE IS UNDER NO OBLIGATION TO DEDUCT TDS ON THE EXPENDITURE OF ADVE RTISEMENT, AS THE ASSESSEE BEING AN INDIVIDUAL, AND THE CLAIM OF THE ASSESSEE IS AS PER PROVISIONS OF LAW. ONCE THE ASSESSEE IS NOT LIABLE TO DEDUCT TDS UNDER THE PROVISION OF SECTION 194C(1), THE PROVISIONS OF SECTION 40A(IA) FOR MAKING DISALLOWANCE OF EXPENDITURE FOR NON-DEDUCTIO N OF TDS WILL NOT APPLY. WE FURTHER FIND THAT, IT IS NOT THE CASE OF THE REVENUE THAT THE EXPENSES ARE BOGUS OR UNREASONABLE OR EXCESSIVE BUT THE DISALLOWANCE IS MADE MERELY FOR NON-DEDUCTION OF TDS. ACCORDINGL Y, WE ARE OF THE CONSIDERED VIEW THAT CIT(A) HAS RIGHTLY DELETED THE DISALLOWANCE AND WE CONFIRM THE SAME.' AS THE ISSUE RAISED BY THE ASSESSEE IS EXACTLY ON S IMILAR FACTS IN THE PRESENT CASE, TAKING A CONSISTENT VIEW THAT THE AMENDED PRO VISIONS OF SECTION ITA NO.751/KOL/2016 A.Y . 2007-08 MR. KRISHAN KR SOMANI VS. ITO WDD-47 (1) KOL. PAGE 7 194C(1) OF THE ACT WILL NOT APPLY TO THE PRESENT AS SESSMENT YEAR, IN THE INSTANT CASE OF THE ASSESSEE. ACCORDINGLY, THIS ISSUE OF AS SESSEE'S APPEAL IS ALLOWED. 7. NEXT ISSUE RAISED BY ASSESSEE IS EXACTLY ON SIMI LAR FACTS IN THE PRESENT CASE EXCEPT AMOUNT INVOLVED, WE HAVE ALREADY DISCUS SED THE FACTS IN PARA-6 OF THIS ORDER, TAKING A CONSISTENT VIEW WE ALLOW AS SESSEES ISSUE. AO IS DIRECTED ACCORDINGLY. 8. IN THE RESULT, ASSESSEES APPEAL STANDS ALLOWED. ORDER PRONOUNCED IN OPEN COURT ON 09/12/2016 SD/- SD/- (S.S.VISWANETHRA RAVI) (WASEEM AHMED) JUDICIAL MEMBER ACCOUNTANT MEMBER *DKP SR.P.S ! - 09/12/2016 / KOLKATA / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-MR. KRISHAN KUMAR SOMANI, GANGES GARDEN- II BLOCK- GA-13, 106, KIRAN CHANDR SINGHA ROAD, SHIBPUR HOWRAH-102 2. /RESPONDENT-ITO WARD-47(1), 3 GOVT. PLACE (WEST) KO LKATA-001 3. '# % / CONCERNED CIT 4. % - / CIT (A) 5. &'( ))'# , '# / DR, ITAT, KOLKATA 6. (*+ / GUARD FILE. BY ORDER/ , /TRUE COPY/ / '#,