M/s. Asha Silk Mills, Surat V. The Income tax Officer,Ward-2(4), Surat

ITA 812/AHD/2011

• Counselvise Citation: 81220514 RSA 2011
• Duration Of Justice: 4 year(s) 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 28-04-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 15-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DINESH SINGH
• Assessee Lawyers: M J SHAH
• Section: 147; 144

Judgement Text

ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH, AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S.S. GODARA JM] ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 M/S. ASHA SILK MILLS ...............APPELLAN T ASHA HOUSE, 21 ST CENTURY BUSINESS CENTRE, RING ROAD, SURAT. [PAN: AAJFA 9711 D] VS. INCOME TAX OFFICER, .................RESPONDEN T WARD 2(4), SURAT. APPEARANCES BY: M.J. SHAH, FOR THE APPELLANT DINESH SINGH, FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : APRIL 28, 2015 DATE OF PRONOUNCING THE ORDER : APRIL 30, 2015 O R D E R PER PRAMOD KUMAR AM: THIS APPEAL FILED BY THE ASSESSEE IS. DIRECTED AGAI NST THE ORDER DATED 27.01.2011 PASSED BY THE LD. CIT(A) IN THE MATTER O F ASSESSMENT UNDER SECTION 144 READ WITH SECTION 147 OF THE INCOME TAX ACT, 19 61 (HEREINAFTER REFERRED TO AS THE ACT) . FOR THE A.Y. 2005-06 ON THE FOLLOWING GROUNDS:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF THE INCO ME TAX (APPEALS) HAS ERRED CONFIRMING THE ACTION OF THE ASSESSING OF FICER IN MAKING ADDITION OF RS.15,24,677/- ON ACCOUNT OF DISALLOWAN CE OF JOB CHARGES ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 2 OF 3 PAID TO ASIAN DYEING AND PRINTING MILLS PVT. LTD. U /S. 40(A)(IA) OF THE INCOME TAX ACT, 1961. 2. TO ADJUDICATE ON THIS ISSUE ONLY A FEW MATERIAL FACTS NEEDS TO BE TAKEN NOTE OF. DURING THE COURSE OF ASSESSMENT PROCEEDIN GS, THE A.O. NOTED THAT THERE IS A SHORT DEDUCTION OF TAX AT SOURCE FROM THE PAYM ENT OF JOB WORK CHARGES TO M/S ASIAN DYEING AND PRINTING MILLS PVT. LTD. IT W AS ON THIS BACK DROP THE A.O. DISALLOWED THE RELATED PAYMENT OF RS.15,24,677/- BY INVOKING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. AGGRIEVED, THE ASSES SEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCES S. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF T HE APPLICABLE LEGAL POSITION. WE FIND THAT THE ISSUE AS TO WHETHER THE DISALLOWANCE UNDER SECTION 40(A)(IA) CAN BE INVOKED IN A CASE AND SHORT DEDUCTION OF TAX AT SOU RCE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE HONBLE CALCUTTA HIGH COURT DECISION IN THE CASE OF CIT VS. S.K. TEKRIWAL (361 ITR 432 (CAL)) WHEREIN IT IS HEL D THAT THERE IS NOTHING IN THE SAID SECTION TO TREAT, INTER ALIA, THE ASSESSEE AS A DEFAULTER WHEN THERE IS SHORTFALL IN THE DEDUCTION. OUR ATTENTION IS ALSO INVITED TO THE JUDGEMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CI T VS. PRAYAS ENGINEERING LIMITED (TAX APPEAL NO.1237 OF 2014 JUDGEMENT DATED 17.11.2014 WHEREIN THEIR LORDSHIPS HAVE TAKEN THE SAME APPROACH. IN T HIS VIEW OF THE MATTER AND RESPECTFULLY FOLLOWING THE ESTEEMED VIEWS OF JURISD ICTIONAL HIGH COURT, WE HOLD THAT THE A.O. WAS INDEED UNJUSTIFIED IN INVOKING SE CTION 40(A)(IA) OF THE ACT. ACCORDINGLY, THE A.O. IS DIRECTED TO DELETE THE IMP UGNED DISALLOWANCE OF RS.15,24,677/-. THE ASSESSEE GETS THE RELIEF ACCOR DINGLY. ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 3 OF 3 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS A LLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 30 TH DAY OF APRIL, 2015. SD/- SD/- S. S. GODARA PRAMOD KUM AR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD, THE 30 TH DAY OF APRIL, 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT/DEPUTY REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES, AHMEDABAD