DCIT (TDS), Jaipur V. NATIONAL SOCIETY OF ENGINEERING RESEARCH & DEVELOPMENT, Jaipur

ITA 892/JPR/2016

• Counselvise Citation: [2017] 128 COUNSELVISE.COM (IT) 2173 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 07-10-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Tax effect
• Section: 201(1)

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 892/JP/2016 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2012-13. THE DY. COMMISSIONER OF INCOME - TAX, (TDS), JAIPUR. CUKE VS. M/S NATIONAL SOCIETY FOR ENGINEERING RESEARCH & DEVELOPMENT, SHREE RAM KI NANGAL, OPP. EPIP, TONK ROAD, JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. JDHN01255C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI MANISH AGGARWAL (CA) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 11.04.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 17 /04/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-III, JAIPUR, RAJASTHAN, DATED 27.07.2016 PERTAINING TO A .Y. 2012-13. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE, THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN HOLDING THAT THE ASSES EE IS NOT REQUIRED TO DEDUCT TDS U/S 1941 OF THE IT ACCT, 1961 ON PAYMENT TO RIICO ON ACCOUNT OF LEASE RENT. 2. FURTHER, THE LD. CIT(A) HAS ERRED ON FACTS AND I N LAW IN RELYING ON THE DECISION IN THE CASE OF M/S GUPTA FABTEX PVT. LTD. VIDE ITA NO. 647 & 648/JP/2013, AS, THE DEPARTMENT HAS NOT ACCEPTED TH AT DECISION ON MERITS, HOWEVER, KEEPING IN VIEW THE TAX EFFECT AS BELOW THE PRESCRIBED LIMIT NO FURTHER APPEAL HAS FILED. 2 ITA NO. 892/JP/2016 M/S NATIONAL SOCIETY FOR ENGINEERING RESEARCH& DEVE LOPMENT. 2. BRIEFLY STATED THE FACTS ARE THAT THE ASSESSING OFFICER CARRIED OUT A SPOT VERIFICATION ON 31/10/2012 FOR THE PURPOSE OF TDS V ERIFICATION AT THE OFFICE PREMISES OF THE ASSESSEE. ON VERIFICATION OF THE ACCOUNTS O F THE SOCIETY IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE DID NOT DEDUCT TAX ON THE AMOUNT PAID TO RIICO. THEREFORE, HE TREATED THE ASSESSEE IN DEFAULT AND C OMPUTED TAX LIABILITY AND INTEREST THEIR ON U/S 201(1) AND 201(1A) OF THE ACT. AGGRIEVED BY THIS, THE ASSESSEE PREFERRED AN APPEAL BEFORE LD. CIT(A), WHO AFTER CONSIDERING THE SUBMISSIONS PARTLY ALLOWED THE APPE AL. THEREBY, THE DEMAND RAISED U/S 201(1) AND SECTION 201(1A) OF THE ACT WAS DELET ED. NOW, THE REVENUE IS IN APPEAL. 3. AT THE OUTSET, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THE HONBLE TRIBUNAL RENDERED IN THE CASE OF M/S TIJARIA POLYPIPES LTD. VS. DCIT IN ITA NO. 14 & 22/JP/2014 DATED 30/05/2016 AND IN THE CASE OF M/S GUPTA FABTEX PVT. LTD. VS. DCIT IN ITA NO. 647 & 648/JP/2013 DATED 16/12/2015. THE LD. COUNSEL FOR THE ASSESSEE ALSO PLACED RELIANCE ON THE CIRCULAR ISSUED BY THE CENTRAL BOAR D OF DIRECT TAXES NO. 35/2016 DATED 13/10/2016 IN SUPPORT OF THE CONTENTION THAT NO TAX IS REQUIRED TO BE DEDUCTED ON SUCH PAYMENTS. LD. DEPARTMENTAL REPRES ENTATIVE SUBMITTED THAT ALTHOUGH THE ISSUE HAS BEEN DECIDED BY THIS HONBLE TRIBUNAL AGAINST THE REVENUE. THE REVENUE HAS NOT FILED AN APPEAL ON THE BASIS TH AT, TAX EFFECT WAS LESS THAN THE MONETARY LIMIT PRESCRIBED IN THIS BEHALF. THEREFOR E, THE REVENUE IS CONTESTING THIS ISSUE ON MERIT. HE SUBMITTED THAT THE LD. CIT(A) F AILED TO APPRECIATED THAT THE ASSESSEE WAS REQUIRED TO DEDUCT TAX. 3 ITA NO. 892/JP/2016 M/S NATIONAL SOCIETY FOR ENGINEERING RESEARCH& DEVE LOPMENT. 4. WE HAVE HEARD THE RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF THE AUTHORITIES BELOW . THE CO-ORDINATE BENCH IN THE CASE OF M/S GUPTA FABTEX PVT. LTD.(SUPRA), UNDER TH E IDENTICAL FACTS, AFTER CONSIDERING THE SUBMISSIONS AND FOLLOWING THE DECIS ION OF THE CO-ORDINATE BENCH HELD THAT THE ASSESSEE WAS NOT LIABLE FOR DEDUCTION OF TAX ON THE PAYMENT MADE TO THE RIICO. THIS DECISION OF THE TRIBUNAL IS FOLLOW ING BY THE CO-ORDINATE BENCH IN THE CASE OF M/S TIJARIA POLYPIPES LTD. VS. DCIT(SUPRA). THE REVENUE HAS NOT BROUGHT TO OUR NOTICE ANY CONTRARY BINDING PRECEDENTS BY THE J URISDICTIONAL HIGH COURT IN THE HONBLE SUPREME COURT. THEREFORE, TAKING A CONSIST ENT VIEW, WE DO NOT SEE ANY REASON TO INTERFERE INTO THE ORDER OF THE LD. CIT(A ), SAME IS HEREBY AFFIRMED. THUS, THE GROUNDS RAISED IN THE REVENUES APPEAL ARE REJE CTED. 5. IN THE RESULT, APPEAL OF THE REVENUE IN ITA NO. 892/JP/2016 IS DISMISSED. ORDER IS PRONOUNCED IN THE OPEN COURT ON MONDAY , THE 17 TH DAY OF APRIL 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 17 /04/2017. POOJA/ VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- DY. COMMISSIONER OF INCOME-TAX, (TDS), JAIPUR. 2. THE RESPONDENT M/S NATIONAL SOCIETY FOR ENGINE ERING RESEARCH & DEVELOPMENT, JAIPUR. 3. THE CIT(A). 4. THE CIT, 4 ITA NO. 892/JP/2016 M/S NATIONAL SOCIETY FOR ENGINEERING RESEARCH& DEVE LOPMENT. 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 892/JP/2016) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR