AJMERA ENTERPRISES, MUMBAI V. ACIT RG 12(1), MUMBAI

ITA 8893/MUM/2010

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3402 (ITAT-MUMBAI)
• Duration Of Justice: 5 year(s) 3 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 07-01-2016
• Assessment Year: 2007-2008
• Appeal Filed On: 20-12-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, MUMBAI . . , !' , # , $ BEFORE S/SHRI B.R.BASKARAN, ACCOUNTANT MEMBER AND AMARJIT SINGH, JUDICIAL MEMBER / I .T.A. NO.8893/MUM/2010 ( # % &% / ASSESSMENT YEAR: 2007-08) AJMERA ENTERPRISES 6-A, AMBALA DOSHI MARG, HAMAM STREET, FORT, MUMBAI - 400001 / VS. THE COMMISSIONER OF INCOME TAX (APPEALS) 23 MUMBAI ./ ./ PAN/GIR NO. : AAGFA2600N ( / APPELLANT ) .. ( / RESPONDENT ) ASSESSEE BY: SHRI PRAKASH JOTWANI DEPARTMENT BY: SHRI GANESH BARE / DATE OF HEARING: 14.01.2016 /DATE OF PRONOUNCEMENT: 23.03.2016 ! / O R D E R PER AMARJIT SINGH, JM: THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST THE ORDER DATED 16.09.2010 PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS)-23, MUMBAI [HEREINAFTER REFERRED TO AS THE CIT(A)] RE LEVANT TO THE ASSESSMENT YEAR 2007-08. 2. THE SOLE POINT WHICH HAS BEEN RAISED BEFORE US I S THAT THE LEARNED CIT(A) HAS WRONGLY CONFIRMED THE DISALLOWANCE OF RS .40,41,790/- U/S. 40(A)(IA). THE CONTENTION OF THE ASSESSEE IS THAT HE DID NOT MAKE ANY ITA NO.8893/MUM/2010 ASSESSMENT YEAR: 2007-08 2 PAYMENT DIRECTLY TO ANY PARTY BUT HE REIMBURSED THE PAYMENT TO CLEARING AGENT AND CLEARING AGENT WAS UNDER OBLIGATION TO MA KE THE PAYMENT FURTHER TO THE PARTIES AS THE PARTIES WERE KNOWN TO HIM AND CONTRACTED WITH HIM HENCE TDS HAS NOT BEEN DEDUCTED WHEREAS CL EARING AGENT ON PAYMENT TO THE PARTIES WAS UNDER OBLIGATION TO DEDU CT TDS THEREFORE, THE ASSESSEE WAS NOT UNDER OBLIGATION TO DEDUCT THE TDS AND PLACED RELIANCE UPON THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH TITLED AS INCOME TAX OFFICER VS. JAYPEE ALLOY & CAS TING PVT. LTD. IN ITA NO.1656/KOL/2010 FOR A.Y.2006-07 DECIDED ON 09. 04.2015 . HOWEVER THE LEARNED REPRESENTATIVE OF THE DEPARTMEN T STRONGLY RELIED UPON THE FINDING OF THE LEARNED CIT(A). ON THE ABO VE SAID FACTS AND CIRCUMSTANCES MATTER OF CONTROVERSY HAS ALREADY BEE N DECIDED BY THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH TITLED AS INCOME TAX OFFICER VS. JAYPEE ALLOY & CASTING PVT. LTD. IN ITA NO.1656/KOL/2010 FOR A.Y.2006-07 DECIDED ON 09.04.2 015. WHEREIN IT HAS BEEN DECIDED THAT WHEN THE PAYMENT WAS MADE TO THE CLEARING AGENT THEN IN THE SAID CIRCUMSTANCES THE ASSESSEE I S NOT UNDER OBLIGATION TO DEDUCT THE TDS. THEREFORE IN VIEW OF THE SAID L AW WE ARE OF THE VIEW THAT THE LEARNED CIT(A) HAS WRONGLY CONFIRMED THE D ISALLOWANCE OF RS.40,41,790/- U/S. 40(A)(IA) OF THE ACT AND THE SA ID ADDITION IS HEREBY ORDERED TO BE DELETED. 3. IN RESULT THE APPEAL OF THE ASSESSEE IS HEREBY A LLOWED ACCORDINGLY. ITA NO.8893/MUM/2010 ASSESSMENT YEAR: 2007-08 3 ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD MARCH, 2016 SD/- SD/- (B.R.BASKARAN) (AMARJIT SINGH) / ACCOUNTANT MEMBER #$ /JUDICIAL MEMBER % & MUMBAI; ' DATED : 23 RD MARCH, 2016 MP MP MP MP ' ( )# !* +*& / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ( ) / THE CIT(A)- 4. ( / CIT 5. )*+ $$,- , ,- , % & / DR, ITAT, MUMBAI 6. +./ 0 / GUARD FILE. ' / BY ORDER, ) $ //TRUE COPY// , / ' (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI