JASBIR SINGH, Jaipur V. ITO, Jaipur

ITA 775/JPR/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 4832 (ITAT-JAIPUR)
• Duration Of Justice: 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-12-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 25-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NARENDRA SINGH DHK

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. 775/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2007-08 JASBIR SINGH, PROP.- M/S JASBIR ROADWAYS, J-12, TRANSPORT NAGAR, JAIPUR. CUKE VS. ITO, WARD 5(3), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: ADUPS 0129 D VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA). JKTLO DH VKSJ LS@ REVENUE BY : SHRI NARENDRA SINGH. LQUOKBZ DH RKJH[K@ DATE OF HEARING : 22/12/2016 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 26/12/2016 VKNS'K@ ORDER PER: BHAGCHAND, A.M. THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 10/06/2016 PASSED BY THE LD CIT(A)-5, JAIPUR FOR TH E A.Y. 2007-08, WHEREIN THE ASSESSEE HAS RAISED SOLE GROUND OF THE APPEAL, WHICH IS AS UNDER:- 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN HOLDING THAT THE ASSESSEE WHO IS ENGAGED IN ARRANGING THE TRANSPORT AND ASSESSED ON COMMISSION INCOME FOR SUCH ARRANGEMENT AS ALSO ON THE TDS AMOUNT RETAINED BY HIM AT RS. 7,80,382/- ITA 775/JP/2016_ JASBIR SINGH VS ITO 2 (292000+19726+468656) CAN BE ALLOWED CREDIT OF ONLY PROPORTIONATE TDS IN THE RATIO OF THE TRANSPORTATION RECEIPT OF RS. 2,33,08,617/- ON WHIC H TAX IS DEDUCTED AT SOURCE AND THE INCOME ASSESSED A T RS. 7,80,382/- AND THEREBY RESTRICTING THE CREDIT O F TDS AT RS. 15,691/- U/S 199 OF THE ACT AS AGAINST RS . 4,68,656/- CLAIMED BY THE ASSESSEE. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE DE RIVED INCOME FROM COMMISSION EARNED FROM SUPPLYING GOODS VEHICLE FOR TRANSPORTATION. THE BILLS ARE RAISED IN ASSESSEES NAME AND THE TDS WAS D EDUCTED. AS PER PAST PRACTICE, THE ASSESSEE WAS DECLARING THE INCOME OF 5 0% TDS IN ASSESSEES OWN INCOME AS ALL THE TRANSPORTERS, WHOSE TRUCKS WERE USED WERE NOT PAID TDS AMOUNT. FOR THE YEAR UNDER CONSIDERATION, THE AS SESSING OFFICER ADDED THE TOTAL INCOME OF THE TDS TO THE INCOME OF THE ASS ESSEE. 3. THE LD. CIT(A) IN HIS ORDER HAS OBSERVED THAT THE ASSESSING OFFICER HAS ADDED THE ENTIRE AMOUNT OF TDS TO THE INCOME OF THE ASSESSEE WHEREAS THE ASSESSEE HAS ALREADY INCLUDED RS. 2,18,7 04/- IN HIS INCOME. THE LD. CIT(A) ALSO HELD THAT THE ASSESSING OFFICER H AS GIVEN CREDIT OF THE TDS OF THE ENTIRE AMOUNT OF RS. 4,68,656/- DESPITE T HAT TRANSPORTATION RECEIPT IS NOT SHOWN AS INCOME AND THEREFORE NOTICE U/S 146 OF THE ACT WAS ISSUED TO WITHDRAWN THE SAID TAX CREDIT CONSIDERING T HE PROVISION OF SECTION 199 OF THE ACT. THE LD. CIT(A) IN PARAGRAPH NO. 5.2 OF HIS ORDER HAS HELD ITA 775/JP/2016_ JASBIR SINGH VS ITO 3 THAT INCOME ASSESSABLE ON ACCOUNT OF COMMISSION AND RETAINED TDS IS RS. 7,80,382/- WHICH IS 3.34% OF THE TOTAL TRANSPORTATIO N RECEIPT OF RS. 2,33,08,617/- AND THEREFORE, HE DIRECTED THE ASSESS ING OFFICER TO ALLOW CREDIT FOR THE PROPORTIONATE AMOUNT OF TDS AT RS. 1 5,691/- AS AGAINST RS. 4,68,656/- ALLOWED BY THE ASSESSING OFFICER. 4. NOW THE ASSESSEE IS IN APPEAL BEFORE ME. THE LD. A R OF THE ASSESSEE HAS REITERATED THE SUBMISSIONS AS MADE OUT BEFORE T HE LD. CIT(A) AND HE FURTHER SUBMITTED THAT THE ENTIRE TDS OF RS. 4,68,6 56/- IS ASSESSED IN THE HANDS OF THE ASSESSEE. AS PER SECTION 199 RELEVANT FOR THE ASSESSMENT YEAR UNDER CONSIDERATION ANY DEDUCTION MADE IN ACCORDAN CE WITH THE PROVISIONS OF THIS CHAPTER AND PAID TO THE CENTRAL GOVERNMENT SHALL BE TREATED AS PAYMENT OF TAX ON BEHALF OF THE PERSON ON WHOSE INCO ME THE DEDUCTION WAS MADE. THEREFORE, ONCE THE AMOUNT OF TDS IS INCLU DED IN THE INCOME, THE ASSESSEE IS ENTITLED FOR THE CREDIT OF THE ENTI RE AMOUNT OF TDS. THERE IS NO PROVISION IN THE ACT TO ALLOW THE PROPORTIONATE C REDIT AS DONE BY THE LD. CIT(A). THEREFORE, HE PRAYED TO ALLOW THE CREDIT OF TDS OF RS. 4,68,656/-. 5. AT THE OUTSET, THE LD DR HAS VEHEMENTLY SUPPORTE D THE ORDERS OF THE AUTHORITIES BELOW. ITA 775/JP/2016_ JASBIR SINGH VS ITO 4 6. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIAL AVAILABLE ON THE RECORD. THE ENTIRE TDS DEDUCTED OF RS. 4,68,656/- WAS ASSESSED IN THE HANDS OF THE ASSESSEE. NOW IF THE CREDIT OF TDS IS NO T ALLOWED TO THE ASSESSEE THEN IT WILL DEFINITELY CANNOT BE MADE PART OF THE INCOME TO BE ASSESSED IN HIS HAND. THE LD. CIT(A)S DIRECTION TO RESTRICT THE TDS CREDIT ONLY TO THE PROPORTIONATE TO THE COMMISSION INCOME OF THE ASSESSEE, WHICH IS ALSO NOT AS PER LAW. THE DEDUCTION OF TDS FROM TH E COMMISSION INCOME IS UNDER THE SEPARATE PROVISION OF LAW. THEREFORE, SUCH DIRECTION IS NOT ACCORDING TO THE PROVISIONS OF LAW. SINCE THE TOTAL AMOUNT OF TDS HAS BEEN ADDED TO THE INCOME OF THE ASSESSEE, THEREFORE, IN THE INTEREST OF JUSTICE, IT SHALL BE JUSTIFIED THAT HE SHOULD HAVE BEEN GIVEN C REDIT FOR THE SAME OTHERWISE THE INCOME WILL NEVER COME IN THE HANDS OF THE ASSESSEE IN THE FORM OF THE CREDIT OF THE TDS. THEREFORE, I DIRECT T O ALLOW THE CREDIT OF TDS IN THE HANDS OF THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26/12/2016. SD/- HKKXPAN (BHAGCHAND) YS[KK LNL;@ ACCOUNTANT MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 26 TH DECEMBER, 2016 *RANJAN ITA 775/JP/2016_ JASBIR SINGH VS ITO 5 VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI JASBIR SINGH, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE ITO, WARD 5(3), 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. 775/JP/2016) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR