ITO, V. M/s.Professional couriers,

ITA 82/COCH/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1021 (ITAT-COCHIN)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-01-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 07-01-2013
• Assessment Year: 2008-2009
• Appeal Filed On: 15-03-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S VIJAYAPRABHA; M ANIL KUMAR
• Assessee Lawyers: T M SREEDHARANSR

Judgement Text

1 ITA NO. 82/COCH/2012 IN THE INCOME TAX APPELLATE TRIBUNAL COCHIN BENCH, COCHIN BEFORE SHRI N.R.S. GANESAN (JM) AND SHRI B.R. BASKA RAN(AM) I.T.A NO. 82/COCH/2012 (ASSESSMENT YEAR 2008-09) ITO, WD.1 VS M/S PROFESSIONAL COURIERS PALAKKAD RANGE, PALAKKAD CHANDRA NAGAR, PALAKKAD PAN : AADFP4734B (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI M ANIL KUMAR, C.I.T. & SMT. S VIJAYAPRABHA RESPONDENT BY : SHRI T.M SREEDHARAN,SR COUNSEL DATE OF HEARING : 07-01-2013 DATE OF PRONOUNCEMENT : 11-01-2013 O R D E R PER N.R.S. GANESAN (JM) THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE C.I.T. (A) DATED 26-12-2011 AND PERTAINS TO ASSESSMENT YEA R 2008-09. 2. SMT. VIJAYAPRABHA, THE LD.DR SUBMITTED THAT THE T AXPAYER HAS NOT DEDUCTED TAX AT THE TIME OF PAYING THE COMMISSION. THE TAX DEDUCTED WAS 2 ITA NO. 82/COCH/2012 ALSO NOT REMITTED TO THE GOVERNMENT ACCOUNT. ACCOR DING TO THE LD.DR UPTO FEBRUARY, 2008, THE TAXPAYER HAS NOT DEDUCTED ANY T AX FROM THE COMMISSION PAYMENT. THEREFORE, THE ASSESSING OFFIC ER DISALLOWED RS.64,39,920 U/S 40(A)(IA) OF THE ACT. THE APPELLA TE COMMISSIONER WITHOUT VERIFYING THE DETAILS DELETED THE ADDITION MADE BY THE ASSESSING OFFICER. 3. ON THE CONTRARY, SHRI T.M. SREEDHARAN, THE LD.SE NIOR COUNSEL FOR THE TAXPAYER SUBMITTED THAT THE TAXPAYER, IN FACT, DEDU CTED TAX AND ALSO REMITTED THE SAME TO THE GOVERNMENT WITHIN THE DUE DATE FOR FILING OF THE RETURN OF INCOME. THEREFORE, ACCORDING TO THE LD.R EPRESENTATIVE, THE COMMISSIONER OF INCOME-TAX(A) HAS RIGHTLY DELETED T HE ADDITION. THE LD.REPESENTATIVE HAS PLACED HIS RELIANCE ON THE DEC ISION OF THIS TRIBUNAL IN THE TAXPAYERS OWN CASE FOR ASSESSMENT YEAR 2007-08 IN ITA NO.665/COCH/2010 ORDER DATED 25-07-2012 AND SUBMITT ED THAT ON IDENTICAL CIRCUMSTANCES, THIS TRIBUNAL FOUND THAT ONCE THE TA X DEDUCTED AT SOURCE WAS DEPOSITED IN THE GOVERNMENT ACCOUNT, THERE CANN OT BE ANY ADDITION U/S 40(A)(IA) OF THE ACT. IF AT ALL THERE WAS ANY DELAY, ACCORDING TO THE LD.SENIOR COUNSEL, THE DEPARTMENT MAY LEVY INTEREST FOR DELAYED PAYMENT. ON A QUERY FROM THE BENCH WHETHER THE DATE OF PAYME NTS ARE VERIFIED BY 3 ITA NO. 82/COCH/2012 THE LOWER AUTHORITIES, THE LD.SENIOR COUNSEL VERY F AIRLY SUBMITTED THAT THE DATE OF PAYMENTS WAS NOT REFLECTED IN THE ORDERS OF THE AUTHORITIES BELOW, THEREFORE, THE ASSESSING OFFICER MAY BE ASKED TO VE RIFY WHETHER THE TAX WAS DEDUCTED AND DEPOSITED THE SAME IN THE GOVERNMENT A CCOUNT. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND ALSO PERUSED THE MATERIAL AVAILABLE ON RECORD. THE COMM ISSIONER OF INCOME- TAX(A) DELETED THE ADDITION ON THE GROUND THAT THE TAX WAS DEDUCTED AND REMITTED TO THE GOVERNMENT ACCOUNT. THE CONTENTION OF THE LD.DR IS THAT THIS FACT WAS NOT VERIFIED BY THE LOWER AUTHORITIES . FROM THE ASSESSMENT ORDER IT APPEARS THAT THE TAXPAYER HAS NOT DEDUCTED TAX TILL FEBRUARY, 2008. IT IS NOT KNOWN WHEN THE TAX WAS DEDUCTED AND WHEN IT WAS ACTUALLY REMITTED TO THE GOVERNMENT ACCOUNT. SINCE THE TAXP AYER CLAIMS THAT THE TAX WAS DEDUCTED AND DEPOSITED IN THE GOVERNMENT ACCOUN T, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE ASSESSING OFFICER N EEDS TO VERIFY THE DETAILS WITH REGARD TO DATE OF DEDUCTION AND DATE OF DEPOSI T IN THE GOVERNMENT ACCOUNT. ACCORDINGLY, THE ORDERS OF THE LOWER AUTH ORITIES ARE SET ASIDE AND THE ISSUE OF DISALLOWANCE U/S 40(A)(IA) IS REMITTED TO THE FILE OF THE ASSESSING OFFICER. THE ASSESSING OFFICER SHALL VERIFY THE DA TE OF TAX DEDUCTION AT SOURCE 4 ITA NO. 82/COCH/2012 AND THE ACTUAL REMITTANCE MADE BY THE TAXPAYER TO T HE GOVERNMENT ACCOUNT AND THEREAFTER DECIDE THE SAME IN ACCORDANC E WITH LAW AFTER GIVING REASONABLE OPPORTUNITY TO THE TAXPAYER. 5. IN THE RESULT, APPEAL OF THE REVENUE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON THIS 11 TH JANUARY, 2013. SD/- SD/- (B.R. BASKARAN) (N.R.S. GANESAN) ACCOUNTANT MEMBER JUDICIAL MEMBER COCHIN, DT : 11 TH JANUARY, 2013 PK/- COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE COMMISSIONER OF INCOME-TAX 4. THE COMMISSIONER OF INCOME-TAX(A) 5. THE DR (TRUE COPY) BY ORDER ASSTT. REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL, COCHIN BENCH