DCIT, Jamshedpur V. M/s Deyconstruction Co., Jamshedpur

ITA 81/RAN/2016

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9990 (ITAT-RANCHI)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2005-2006
• Appeal Filed On: 10-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: CHAUDHURY ORAM
• 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

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI SMC BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER ITA NO. 81 /RAN/2016 ASSESSMENT YEAR : 2005 - 06 DCIT,CIRCLE - 1, 47, C.H.AREA, JAMSHEDPUR VS. M/S. DEY CONSTRUCTION CO. 30, SONARI WEST, JAMSHEDPUR PAN/GIR NO. AACFD 7825 J (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : NONE REVENUE BY : SHRI CHAUDHURY ORAM , DR DATE OF HEARING : 14 /12/ 2016 DATE OF PRONOUNCEMENT : 14 /12/ 2016 O R D E R THIS IS AN APPEAL FILED BY THE REVENUE AGA INST THE ORDER OF CIT(A) - RANCHI , DATED, FOR THE ASSESSMENT YEAR . 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) WAS NOT JUSTIFIED IN DELETING THE ADDITION MADE UNDER THE HEAD CRANE HIRE CHARGES OF RS.30,16,113/ - U/S. 40(A)(IA) OF THE A C T FOR NON - DEDUCTION OF TAX AT SOURCE U/S.194C OF THE ACT. 3. I HAVE HEARD THE RIVAL SUBMISSION, PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. THE BRIEF FACTS OF THE CASE 2 ITA NO. 81/RAN/2016 ASSESSMENT YEAR : 2005 - 06 ARE THAT THE ASSESSING OFFICER OBSERVED THAT DURING THE YEAR UNDER APPEAL, THE ASSESSEE HAS MADE PAYMENT FOR CRANE HIRE CHARGES OF RS. 30,16,113/ - FROM WHICH NO TDS U/S.194C WAS DEDUCTED BY THE ASSESSEE. HE, THEREFORE, BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, DISALLOWED THE DEDUCTION FOR THE SAME. 4 . ON APPEA L, LD CIT(A) VACATED THE DISALLOWANCE BY OBSERVING AS UNDER I HAVE GONE THROUGH THE ORDER OF THE AO AS WELL AS T H E WRITTEN SUBMISSION MADE BY THE APPELLANT. OF SECTION 194C, EXPLANATION IV IT CAN BE SEEN THAT CARRIAGE OF GOODS OR PASSENGER BY ANY MODE OF TRANSPORT OTHER THAN BY RAILWAY WILL INCLUDE CONTRACT FOR ANY SPECIFIED ASSESSEE UNDER WHICH THE ASSESSEE IS COVE RED AND IS REQUIRED TO DEDUCT TAX AT SOURCE. FROM THE ABOVE NARRATION, IT IS FOUND THAT THE ASSESSEE HAS HIRED ONLY CRANES WHICH IS NOT COVERED UNDER TRANSPORTATION OF GOODS OR PASSENGER. FURTHER, THE HIRED CRANES HAS BEEN USED BY THE ASSESSEE HIMSELF TO EXECUTE CONTRACT WORK. THEREFORE HIRING OF PLANT AND MACHINERY FOR EXECUTING WORK WILL NOT INCLUDE FOR DEDUCTING TAX U/S.194C. THIS HIRED PLANT AND MACHINERY IS ALSO NOT COVERED UNDER SUB - CONTRACT AS THE CONTRACT HAS NOT BEEN SUB - CONTRACTED TO AN Y OTHER PERSON. THEREFORE, THIS ALSO DOES NOT COVERED UNDER SUB - CONTRACT, CARRIAGE OF GOODS ETC OR SUPPLY OF LABOUR. THE APPELLANT HAS ALSO QUOTED A NO. OF DECISIONS IN HIS FAVOUR. 5. LD D.R. RELIED ON THE ORDER OF THE ASSESSING OFFICER. 6. I FIND THAT NO SPEC IFIC MISTAKE IN THE ORDER OF THE LD CIT(A) COULD BE POINTED OUT BY LD D.R. DURING THE COURSE OF HEARING. IN ABSENCE OF THE SAME, I FIND NO GOOD REASON TO INTERFERE WITH THE ORDER OF THE LD CIT(A), 3 ITA NO. 81/RAN/2016 ASSESSMENT YEAR : 2005 - 06 WHICH IS HEREBY CONFIRMED AND GROUND OF APPEAL OF THE REVE NUE IS REJECTED. 7. IN THE RESULT, APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRO N OUNCED IN THE OPEN COURT ON 14 /12/2016 IN THE PRESENCE OF PARTIES. S D / - (N.S SAINI) A CCOUNTANT MEMBER RANCHI ; DATED 14 /12 /2016 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : DCIT,CIRCLE - 1, 47, C.H.AREA, JAMSHEDPUR 2. THE RESPONDENT. M/S. DEY CONSTRUCTION CO. 30, SONARI WEST, JAMSHEDPUR 3. THE CIT(A) JAMSHEDPUR 4. CIT , JAMSEDPUR 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//