GLOBE REXINE PVT LTD, CHENNAI V. ITO CO. WARD 2 (1), CHENNAI

ITA 842/CHNY/2018

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 1043 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-09-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 09-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B SAGADEVAN
• Assessee Lawyers: K BALASUBRAMANIAM

Judgement Text

, SMC , IN THE INCOME TAX APPELLATE TRIBUNAL D SMC BENCH : CHENNAI . , ! '#$ % , BEFORE SHRI ABRAHAM P GEORGE, ACCOUNTANT MEMBER AND SHRI GEORGE MATHAN, JUDICIAL MEMBER ./ I.T.A.NO.842/CHNY/2018 / ASSESSMENT YEAR : 2006-07 M/S. GLOBE REXINE PVT LTD ., OLD NO.24,NEW NO.3/135 & 136 CHENDURAN COLONY, MADIPAKKAM, CHENNAI 600 091. VS. THE INCOME TAX OFFICER, COMPANY WARD II(1), CHENNAI-34. [PAN AAACG 1176 G] ( %& / APPELLANT) ( '(%& /RESPONDENT) / APPELLANT BY : MR.K.BALASUBRAMANIAN,C.A /RESPONDENT BY : MR.B.SAGADEVAN,JCIT,D.R ! ' #$% / DATE OF HEARING : 17 - 0 9 - 201 8 &' #$% / DATE OF PRONOUNCEMENT : 17 - 0 9 - 201 8 ) / O R D E R PER GEORGE MATHAN , JUDICIAL MEMBER THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)-13, CHENNA I IN APPEAL ITA NO.842/CHNY/2018 :- 2 -: NO.27/CIT(A)-13/A.Y 2006-07 DATED 09.02.2018 FOR T HE ASSESSMENT YEAR 2006-07. 2. MR.K.BALASUBRAMANIAN REPRESENTED ON BEHALF OF THE ASSESSEE, AND MR.B.SAGADEVAN REPRESENTED ON BEHALF OF THE REVENUE. 3. IT WAS SUBMITTED BY THE LD.A.R THAT TWO ADDITIO NS WERE MADE IN THE CASE OF ASSESSEE, ONE BEING THE ADDITION OF ` 1,18,000/- MADE BY THE LD. ASSESSING OFFICER UNDER THE HEAD TRANSP ORT CHARGES ON ACCOUNT OF NON-DEDUCTION OF TDS U/S.194C OF THE ACT , AND THE SECOND ADDITION OF ` 4,20,000/- MADE BY THE LD. ASSESSING OFFICER IN RE SPECT OF ADVANCE RECEIVED FROM CUSTOMERS TREATED AS UNDIS CLOSED INCOME U/S.68 OF THE ACT. IT WAS A SUBMISSION THAT DETAIL S WERE PRODUCED BEFORE THE LD.CIT(A), WHO ALSO CALLED FOR A REMAND REPORT FROM THE LD. ASSESSING OFFICER AFTER VERIFYING THE FACTS AND EVIDENCES FILED BEFORE HIM. IT WAS A FURTHER SUBMISSION THAT THE REMAND RE PORT HAS BEEN EXTRACTED BY THE LD.CIT(A) IN PAGE-3 OF THIS ORDER. IT WAS A SUBMISSION THAT IN THE REMAND REPORT DATED 30.01.2018 SENT BY THE LD. ASSESSING OFFICER IN REGARD TO FIRST ISSUE, THE A.O HAS CATEG ORICALLY GIVEN A FINDING THAT THOUGH AT SL.NO.4, IT WAS MENTIONED AS TRANSPORT CH ARGES, ACTUALLY THIS PAYMENT WAS CONTRACT WAGES PAID TO A CONTRACTOR FOR PAYMENT TO HIS MEN. THIS WAS ALSO VERY MUCH WITHIN THE THRESHOLD ITA NO.842/CHNY/2018 :- 3 -: LIMITS U/S.194C AND HENCE THE REQUIREMENT TO DEDUCT TDS DOES NOT ARISE AND IN REGARD TO SECOND ISSUE, THE A.O HAS CATEG ORICALLY GIVEN A FINDING THAT SINCE THE ABOVE AMOUNTS WERE ONLY ADVANCES RECEIVED FROM CUSTOMER AND THE SAME HAS BEEN REPAID BACK, AP PLICATION OF SEC.68 DOES NOT ARISE . IT WAS A SUBMISSION THAT THE LD. ASSESSING OFFICER HAS GIVEN THE REMAND REPORT IN FAVOUR OF TH E ASSESSEE AND WITHOUT CONSIDERING THE REMAND REPORT, THE LD.CIT(A ) HAS HELD THE ISSUES AGAINST THE ASSESSEE. IT WAS A PRAYER BY THE LD.A.R THAT THE ORDER OF THE CIT(APPEALS) BE REVERSED AND THE TWO A DDITIONS MAY BE DELETED. 4. IN REPLY, LD.D.R VEHEMENTLY SUPPORTED THE ORDER OF LD.CIT(A). 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. A PE RUSAL OF THE REMAND REPORT OF THE ASSESSING OFFICER IN ASSESSEE S CASE SHOWS THAT BOTH THE ISSUES IN THE APPEAL HAVE BEEN REPORTED BY THE LD. ASSESSING OFFICER IN FAVOUR OF ASSESSEE AFTER VERIFICATION OF THE EVIDENCES. THIS BEING SO, WE ARE OF THE VIEW THAT ADDITIONS MADE BY THE LD. ASSESSING OFFICER AND CONFIRMED BY THE LD.CIT(A) IN RESPECT O F BOTH THE ISSUES ITA NO.842/CHNY/2018 :- 4 -: ARE LIABLE TO BE DELETED, AND WE DO SO. IN THE CIRC UMSTANCES BOTH THE ISSUES FOR ASSESSMENT YEAR 2006-07 STAND ALLOWED. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT AFTER CONCLUSION OF HEARING ON 17 TH SEPTEMBER, 2018, AT CHENNAI. SD/ - SD/ - ( () . +,+ ) ( ABRAHAM P GEORGE) ! / ACCOUNTANT MEMBER ( % ) (GEORGE MATHAN) * ! / JUDICIAL MEMBER . ' / CHENNAI / / DATED: 17 TH SEPTEMBER, 2018. K S SUNDARAM 0 #12 3 2# / COPY TO: 1 . / APPELLANT 3. ! 4# () / CIT(A) 5. 267 #8 / DR 2. / RESPONDENT 4. ! 4# / CIT 6. 79 :' / GF