ACIT, Mangalore V. Mr. G. Balaraj, Mangalore

ITA 825/BANG/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60752 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2008-2009
• Appeal Filed On: 19-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMBASTHA CITI
• Assessee Lawyers: RAMASUBRAMANYAN

Judgement Text

ITA.825/BANG/2011 PA GE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH ''A', BANGALORE BEFORE SHRI. N. BARATHVAJA SANKAR, VICE PRESIDENT AND SHRI. GEORGE GEORGE K, JUDICIAL MEMBER I.T.A NO.825/BANG/2011 (ASSESSMENT YEAR 2008-09) ASST. COMMISSIONER OF INCOME-TAX, MANGALORE .. APPELLANT V. SHRI. G. BALARAJ, NO.6-112-81, NETRAVATHI NAGAR LAYOUT, NAGORI, KANKANADY, MANGALORE .. RESPONDENT PAN : ABZPB5464B APPELLANT BY : SHRI. AMBASTHA, CIT- I RESPONDENT BY : SHRI. RAMASUBRAMANYAN, CA DATE OF HEARING : 21.06.2012 DATE OF PRONOUNCEMENT : O R D E R PER N. BARATHVAJA SANKAR, VICE PRESIDENT : THIS IS AN APPEAL FILED BY THE REVENUE IN THE CASE OF THE ASSESSEE, SHRI. G. BALARAJ, MANGALORE. AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS), MYSORE, DATED .11.07.2011, FOR THE ASSESSMENT YEAR 2008-09. 02. THE FACTS OF THE CASE ARE THAT THE ASSESSEE IS AN INDIVIDUAL ENGAGED IN THE BUSINESS OF UNDERTAKING PWD CONTRACT WORKS. THE ITA.825/BANG/2011 PA GE - 2 CONTRACTS WERE AWARDED TO THE ASSESSEE BY KIADB AND IN TURN ASSESSEE HAS GIVEN THE SAME AS SUB-CONTRACT TO SHRI. BAPUJI. THUS, THE ASSESSEE WAS LIABLE TO DEDUCT TDS AND REMIT IT TO THE GOVERN MENT ACCOUNT AS PER THE PROVISIONS OF SECTION 194COF THE ACT, BUT H AS FAILED TO DO SO WHICH ATTRACTS THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. HOWEVER, THE ASSESSEE HAS NEITHER OFFERED THE ABOVE RECEIPT, NOR HAS CLAIMED ANY EXPENDITURE ON IT. HE CLAIMED THE TDS PORTION OF T HE ABOVE RECEIPT AS HIS COMMISSION AS PER THE AGREEMENT ENTERED WITH SR I. J. BAPUJI. THE ASSESSING OFFICER CONSIDERED THE AMOUNT OF CONTRACT S RECEIPTS TO THE EXTENT OF RS.5,75,05,854/- AS INCOME OF THE ASSESSE E AND DISALLOWED THE CONSEQUENT PAYMENT TO SHRI. J. BAPUJI ON TRANSF ER OF WORK U/S.40(A)(IA) OF THE ACT. AGGRIEVED BY THE ABOVE D ISALLOWANCE THE ASSESSEE WENT IN APPEAL BEFORE THE COMMISSIONER OF INCOME-TAX (APPEALS). 03. THE COMMISSIONER OF INCOME-TAX (APPEALS), FOLLO WING THE ORDERS OF THE ITAT, IN ASSESSEE'S OWN CASE IN ITA.5 94/BANG/2010, DATED.04.01.2011 FOR AY 2007-08 AND ITA.1207/BANG/2 009, DATED.12.11.2010 FOR THE AY 2006-07, ALLOWED THE AP PEAL OF THE ASSESSEE. REVENUE IS AGGRIEVED BY THIS DECISION OF THE COMMISSIONER OF INCOME-TAX (APPEALS) AND IS IN APPEAL BEFORE US. ITA.825/BANG/2011 PA GE - 3 04. WE HAVE HEARD BOTH SIDES AND FIND THAT SIMILAR ISSUE WAS HEARD AND ADJUDICATED IN THE ASSESSEE'S OWN CASE IN ITA.5 94/BANG/2010, DATED.04.01.2011 FOR AY 2007-08 AND ITA.1207/BANG/2 009, DATED.12.11.2010 FOR THE AY 2006-07, WHEREIN THE TR IBUNAL CONFIRMED THE ORDERS OF THE COMMISSIONER OF INCOME-TAX (APPEA LS) AND DISMISSED THE REVENUE'S APPEAL. FOLLOWING THE SAM E, WE DISMISS THE REVENUE'S APPEAL. 05. IN THE RESULT THE REVENUE'S APPEAL IS DISMISSED . ORDER PRONOUNCED IN OPEN COURT ON 21.06.2012. SD/- SD/- (GEORGE GEORGE K) (N. BARATHVAJA SANKAR) JUDICIAL MEMBER VICE PRESIDENT