DCIT, Shimla V. M/s H.P. Bus Stand Management &Dev. Authority, Shimla

ITA 793/CHANDI/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 81018 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-11-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 11-09-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR AMA RVEER SINGH
• Keywords: Assessment record
• Section: 143(3); 148

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI T.R.SOOD, ACCOUNTANT MEMBER ITA NO. 792/CHD/2014 ASSESSMENT YEAR : 2007-08 AND ITA NOS. 793 TO 795/CHD/2014 ASSESSMENT YEARS : 2009-10 TO 2011-12 THE D.C.I.T., VS. M/S H.P. BUS STAND MANAGEMENT CIRCLE SHIMLA. & DEV. AUTHORITY, SHIMLA. PAN: AAALT0176C (APPELLANT) (RESPONDENT) APPELLANT BY : DR.AMARVEER SINGH, DR RESPONDENT BY : SHRI VISHAL MOHAN DATE OF HEARING : 18.11.2014 DATE OF PRONOUNCEMENT : 20.11.2014 O R D E R PER BENCH : ALL THE APPEALS OF THE REVENUE ARE DIRECTED AGAINS T THE ORDER OF LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-, SHIMLA DATED 30.6.2014 FOR THE ABOVE ASSESSMENT YEARS. 2. IN ALL THE APPEALS, THE REVENUE CHALLENGED THE O RDER OF THE LEARNED CIT (APPEALS) IN DELETING THE ADDITI ONS MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(I A) OF THE INCOME TAX ACT ON ACCOUNT OF PAYMENT MADE BY TH E ASSESSEE TO HRTC TOWARDS THE REIMBURSEMENT OF EXPEN SES. 2 3. THE ISSUE IS IDENTICAL IN ALL THE ASSESSMENT YEA RS UNDER APPEAL, THEREFORE, ALL THE APPEALS ARE DECIDE D TOGETHER. THE FACTS ARE HOWEVER, TAKEN FROM ASSESS MENT YEAR 2007-08 FOR THE PURPOSE OF DISPOSAL OF ALL THE APPEAL. 4. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ORIGINAL ASSESSMENT FOR ASSESSMENT YEAR 2007-08 WAS COMPLETED VIDE ORDER PASSED UNDER SECTION 143(3) OF THE INCOME TAX ACT ON 30.11.2009 AT NIL INCOME AFTER ADJUSTING THE BROUGHT FORWARD LOSSES. ON SUBSEQUE NT PERUSAL OF THE ASSESSMENT RECORDS, THE ASSESSING OF FICER NOTICED THAT THE ASSESSEE HAD ALLOTTED PARKING SPAC E AT VARIOUS BUS STANDS, ETC. FOR RS.2.94 CRORES DURING THE FINANCIAL YEAR UNDER CONSIDERATION. ON THIS AMOUN T, THE ASSESSEE WAS REQUIRED TO COLLECT TAX BUT THE SAME H AD NOT BEEN COLLECTED AS THERE WAS NOTHING ON THE RECORD T O SHOW THE COLLECTION OF TAX. THUS A SUM OF RS.6,61,078/ - HAD NOT BEEN COLLECTED AND DEPOSITED INTO THE GOVERNMEN T ACCOUNT BY THE ASSESSEE. BESIDES INTEREST @ 1% IS ALSO LIABLE AS PER LAW FOR VIOLATION OF THE PROVISIONS O F SECTION 206C OF THE INCOME TAX ACT. IT WAS ALSO NOTICED T HAT THE ASSESSEE HAD CLAIMED EXPENDITURE OF RS.12,13,924/- ON ADVERTISEMENT AND PUBLICITY BUT NO TAX AT SOURCE WA S DEDUCTED AS REQUIRED UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT. THEREFORE, DEDUCTION CLAIMED HAD TO BE A DDED. THE ASSESSING OFFICER THEREFORE, RECORDING THE REAS ONS FOR REOPENING OF THE ASSESSMENT ISSUED NOTICE UNDER SECTION 3 148 OF THE INCOME TAX ACT. IT WAS NOTICED AS PER PROFIT & LOSS ACCOUNT THAT THE ASSESSEE CLAIMED EXPENDITUR E OF RS.2.49 CRORES, ON WHICH NO TAX AT SOURCE HAD BEEN DEDUCTED AS REQUIRED UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT. THE ASSESSEE WAS AN AUTHORITY CONSTITUTE D VIDE NOTIFICATION OF THE H.P. GOVERNMENT ON 31.10.2005 F OR MANAGEMENT OF THE BUS STANDS SITUATED IN THE STATE OF HIMACHAL PRADESH. THE ASSESSMENT WAS COMPLETED UN DER SECTION 143(3)/147 OF THE INCOME TAX ACT MAKING ADD ITION OF RS.2.49 CRORES. 5. THE ASSESSEE SUBMITTED BEFORE THE LEARNED CIT (APPEALS) THAT THE ORDER PASSED BY THE ASSESSING OF FICER IS BAD IN LAW AS ADDITION HAS BEEN MADE BY APPLYING TH E PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME TAX A CT ON ACCOUNT OF PAYMENT MADE TO HRTC. THE ISSUE OF DEDUCTION OF TAX AT SOURCE ON PAYMENT TO HRTC AROSE WHEN ITO(TDS) CONDUCTED A SURVEY ON THE ASSESSEE FO R THE RELEVANT ASSESSMENT YEARS 2009-10 TO 2012-13 AND RA ISED DEMAND ON ACCOUNT OF TDS ON THE PAYMENTS MADE TO HR TC TOWARDS THE REIMBURSEMENT OF EXPENSES ON THE GROUND THAT THE PAYMENTS MADE TO HRTC ARE COVERED BY THE PROVISIONS OF SECTION 194J OF THE INCOME TAX ACT. THE LEARNED CIT (APPEALS) DISMISSED THE APPEAL OF THE ASSESSEE. THE ASSESSEE FURTHER PREFERRED APPEAL B EFORE THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BEN CH IN ITA NOS.761 TO 764/CHD/2012 AND VIDE ORDER DATED 4 31.12.2013, THE TRIBUNAL ALLOWED THE APPEALS OF THE ASSESSEE ON THE GROUND THAT TDS IS NOT APPLICABLE O N THE PAYMENTS MADE TO HRTC AS BEING REIMBURSEMENT OF EXPENSES. THE LEARNED CIT (APPEALS) FOLLOWING THE ORDER OF THE TRIBUNAL DATED 31.12.2013 ALLOWED THE APPEAL S OF THE ASSESSEE AND DELETED THE ADDITION. THE ORDER OF THE TRIBUNAL IS REPRODUCED IN PARA 5 OF THE IMPUGNED OR DER. 6. ON GOING THROUGH THE SUBMISSIONS OF THE PARTIES IN THE LIGHT OF THE ORDER OF THE TRIBUNAL IN THE CASE OF THE SAME ASSESSEE DATED 31.12.2013 (SUPRA), WE DO NOT F IND ANY MERIT IN THE APPEAL OF THE REVENUE. THE COPY OF THE ORDER OF THE TRIBUNAL ABOVE IS PLACED ON RECORD, AS IS REPRODUCED IN THE IMPUGNED ORDER AND THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE ORDER OF T HE TRIBUNAL DATED 31.12.2013. WE, THEREFORE, DO NOT FIND ANY ERROR IN THE ORDER OF THE LEARNED CIT (APPEALS) IN FOLLOWING THE ORDER OF THE TRIBUNAL FOR THE PURPOSE OF DELETING THE ADDITION. 7. THE SAME ISSUE ARISES IN THE REMAINING DEPARTMEN TAL APPEALS ON IDENTICAL FACTS, IN WHICH THE LEARNED CI T (APPEALS) SIMILARLY FOLLOWING THE ORDER OF THE TRIB UNAL ALLOWED THE APPEALS OF THE ASSESSEE. 8. IN VIEW OF THE ABOVE DISCUSSION, ALL THE DEPARTM ENTAL APPEALS STANDS DISMISSED. 5 9. IN THE RESULT, ALL THE APPEALS OF THE REVENUE AR E DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 20 TH DAY OF NOVEMBER, 2014. SD/- SD/- (T.R.SOOD) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 20 TH NOVEMBER, 2014 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH