Anusam Apparels, Tiruppur V. ITO, Tiruppur

ITA 783/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8199 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Next Hearing Date: 30-11-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 29-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Keywords: TDS
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 40(a)(ia)

Judgement Text

, A/SMC , IN THE INCOME TAX APPELLATE TRIBUNAL A/SMC BENCH, CHENNAI . , BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER ./I.T.A.NO.783/MDS/2016 ( / ASSESSMENT YEAR:2007-08) M/S . ANUSAM APPARELS, NO.6, PUGALUMPERUMALPURAM, II STREET, KUMARANANDHAPURAM, CHENNAI-641 602. VS. THE INCOME TAX OFFICER, WARD-I(1), TIRUPUR, (PREVIOUSLY ASSESSED UNDER WARD I (3) TIRUPUR. PAN:AAJFA5205E ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MR. T. BANUSEKAR, CA / RESPONDENT BY : MR. SHIVA SRINIVAS , JCIT ! ' #$ / DATE OF HEARING : 30 . 11 .201 6 %& #$ /DATE OF PRONOUNCEMENT : 09 . 0 1 .201 7 / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER: THIS APPEAL IS FILED BY THE ASSESSEE, AGGRIEVED B Y THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(A)-3, COIMBA TORE, DATED 17.12.2015 IN ITA NO.477/2014-15 PASSED U/S.154 OF THE ACT. ITA NO.783/MDS/2016 :-2-: 2. THE MAIN GRIEVANCE OF THE ASSESSEE IS WITH REGAR D TO SUSTENANCE OF ADDITIONAL TAX TO THE TUNE OF ` 57,000/- UNDER SECTION 40(A)(IA) OF THE ACT WHILE REVISING THE ASSESSMENT ORDER U/S.154 OF THE ACT. 3. THE BRIEF FACTS OF THE CASE IS THAT THE ASSESSE E IS ENGAGED IN THE BUSINESS OF STITCHING ON JOB WORK BASIS. THE AS SESSEE FILED RETURN OF INCOME ON 14.11.2007 ADMITTING NIL INCOME AND ASSESSMENT WAS COMPLETED U/S.143(3) OF THE ACT ON 12.11.2009 WITH INCOME OF ` 16,91,524/-. DURING THE COURSE OF A.G AUDIT, IT WA S POINTED OUT THAT THE TDS PAYMENT TO THE TOTAL CONTRACT VALUE OF ` 28,50,000/- WAS PAID BELATEDLY AND ACCORDINGLY, RE-COMPUTE OF TOTAL INCOME TO BE MADE. THE ASSESSEE WAS SERVED WITH A SHOW CAUSE NOT ICE U/S.154 OF THE ACT AND A REVISION OF ASSESSMENT U/S.154 WAS P ASSED THEREBY DISALLOWING THE PAYMENT MADE TO THE CONTRACTOR U/S. 40(A)(IA) TO THE TUNE OF ` 28,50,000/-. AGGRIEVED WITH THE REVISION ORDER, TH E ASSESSEE FILED AN APPEAL BEFORE THE LD.CIT(A). ON APPEAL, THE CIT(A) ITA NO.783/MDS/2016 :-3-: CONFIRMED THE DISALLOWANCE MADE BY THE AO. AGAINST THIS, THE ASSESSEE IS IN APPEAL BEFORE US. 4. I HAVE HEARD THE LD.D.R AND PERUSED THE MATERI AL ON RECORD. THE ASSESSMENT WAS COMPLETED IN THIS CASE U/S.143( 3) OF THE ACT ON 12.11.2009. THE AO WANTED TO IMPLEMENT THE AUDIT OB JECTION WITH REGARD TO NON-DEDUCTION OF TDS BY INVOKING THE PROV ISIONS OF THE SECTION 40(A)(IA) OF THE ACT. IN OUR OPINION, THE ISSUE DEALT BY THE AO IN THIS CASE CANNOT BE CONSIDERED U/S.154 OF THE AC T SO AS TO RE-COMPUTE THE EARLIER ASSESSMENT ORDER, IS VERY MU CH DEBATABLE. ACCORDINGLY, WE ARE OF THE OPINION THAT LOWER AUTHO RITIES COMMITTED AN ERROR IN INVOKING THE PROVISIONS OF THE SECTION 40(A)(IA) OF THE ACT WHILE REVISING THE ASSESSMENT ORDER U/S.154 OF THE ACT. ACCORDINGLY, I ANNUL THE ORDER OF LOWER AUTHORITIES. ITA NO.783/MDS/2016 :-4-: 4.1 FURTHER, THE ASSESSEE RAISED ADDITIONAL GROUND S, WHICH ARE NOT PRESSED BEFORE US, THE SAME IS DISMISSED AS NOT PR ESSED. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 09 TH JANUARY , 2017 AT CHENNAI. SD/- ( ) ( CHANDRA POOJARI ) /ACCOUNTANT MEMBER CHENNAI, DATED THE 09 TH JANUARY , 2017. K S SUNDARAM. ' #)* +*# / COPY TO: 1 . / APPELLANT 3. ! ,# () / CIT(A) 5. */0 #1 / DR 2. / RESPONDENT 4. ! ,# / CIT 6. 02 3' / GF