Unison Insurance Broking Services Pvt. Ltd., Vadodara V. The DCIT, Circle-2(1)(1), Baroda

ITA 912/AHD/2018

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6294 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 11 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 12-04-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S S SHUKLA
• Assessee Lawyers: M J SHAH
• Keywords: TDS
• Section: 143(3); 40(a)(ia); 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH (CONDUCTED THROUGH VIRTUAL COURT) BEFORE: SHRI RAJPAL YADAV, VICE PRESIDENT AND SHRI AMARJIT SINGH, ACCOUNTANT MEM BER UNISON INSURANCE BROKING SERVICES PVT. LTD, 601-602, 6 TH FLOOR, AURUM, NEAR VASNA H.P. PETROL PUMP, VADODARA-390015 PAN: AAACU2865Q (APPELLANT) VS THE DEPUTY CIT, CIRCLE-2(1)(1), VADODARA (RESPONDENT) REVENUE BY: SHRI S.S. SHUKLA, SR. D.R. ASSESSEE BY: SHRI M.J. SHAH, A.R. DATE OF HEARING : 22-03-2021 DATE OF PRONOUNCEMENT : 09-04-2021 /ORDER PER : AMARJIT SINGH, ACCOUNTANT MEMBER:- THIS ASSESSEES APPEAL FOR A.Y. 2014-15, ARISES FRO M ORDER OF THE CIT(A)-2, VADODARA DATED 24-01-2018, IN PROCEEDING S UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. 2. THE BRIEF FACT OF THE CASE IS THAT RETURN OF INC OME DECLARING TOTAL INCOME AT RS. 2,06,34,900/- WAS FILED ON 16 TH DECEMBER, 2016. THE CASE WAS SUBJECT TO SCRUTINY ASSESSMENT AND NOTICE U/S. 143(2) OF THE ACT WAS ITA NO. 912/AHD/2018 ASSESSMENT YEAR 2014-15 I.T.A NO. 912/AHD/2018 A.Y. 2014-15 PAGE NO UNISON INSURANCE BROKING SERVICES PVT. LTD. VS. DCI T 2 ISSUED ON 28 TH AUGUST, 2015. THE ASSESSMENT U/S. 143(3) OF THE A CT WAS FINALIZED ON 16 TH DECEMBER, 2016 AND TOTAL INCOME WAS DETERMINED AT RS. 2,42,17,920/-. FURTHER FACTS PERTAINING TO THE ISS UES CONTESTED IN THE INSTANT APPEAL ARE DISCUSSED WHILE ADJUDICATING THE GROUNDS OF APPEAL OF THE ASSESSEE AS FOLLOWS. GROUND NO. 1(ADDITION OF RS. 12,03,693/- U/S. 36(1) (VA) OF THE ACT ) 3. DURING THE COURSE OF ASSESSMENT, THE ASSESSING O FFICER NOTICED THAT ASSESSEE HAS DEPOSITED EMPLOYEES CONTRIBUTION TOWAR DS PROVIDENT FUND AT RS. 11,80,210/- AND EMPLOYEES CONTRIBUTION TOWARDS ESIC AMOUNTING TO RS. 23,483/- BEYOND THE PERIOD PRESCRIBED IN THE SPECIF IED ACT. CONSEQUENTLY, THE ASSESSING OFFICER HAS DISALLOWED THE TOTAL AMOU NT OF RS. 12,03,693/- PERTAINING TO EMPLOYEES CONTRIBUTION TOWARDS EPF AN D ESIC U/S. 36(1)(VA) OF THE ACT 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE REI TERATING THE FACT AND REASON FOR DISALLOWANCE STATED BY THE ASSESSING OFF ICER. 5. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. IT IS UNDISPUTED FACT THAT ASSESSEE HAS PAID EMPLOYEES CO NTRIBUTION TO PF AND TOWARDS ESIC BEYOND THE PERIOD PRESCRIBED IN THE SP ECIFIED ACT. THEREFORE FOLLOWING THE DECISION OF HONBLE GUJARAT HIGH COUR T OF GUJARAT IN THE CASE OF GUJARAT STATE ROAD TRANSPORT CORPORATION 366 ITR 170 (GUJ), WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF LD. CIT(A). THEREFORE, THIS GROUND OF APPEAL OF THE ASSESSEE IS DISMISSED. I.T.A NO. 912/AHD/2018 A.Y. 2014-15 PAGE NO UNISON INSURANCE BROKING SERVICES PVT. LTD. VS. DCI T 3 GROUND NOS. 2 TO 4 (DISALLOWANCE OF INTEREST EXPENS ES OF RS. 4,21,348/- U/S 40(A)(IA) OF THE ACT) 6. DURING THE COURSE OF ASSESSMENT ON EXAMINATION O F THE DETAIL FILED BY THE ASSESSEE, THE ASSESSING OFFICER OBSERVED THAT A SSESSEE HAS NOT DEDUCTED ANY TAX IN RESPECT OF PAYMENT OF INTEREST MADE TO T HE FOLLOWING PARTIES. SL. NO. NAME OF THE NBFC FROM WHOM LOAN TAKEN AMOUNT OF INTEREST PAID DURING THE YEAR (IN RS.) WHETHER TDS DEDUCTED ON INTEREST PAYMENT 1 BAJAJ FINANCE LTD. 46,405/- NO 2 TATA CAPITAL LTD. 90,787/- NO 3 VOLKSWAGON FINANCE LTD. 2,84,156/- NO TOTAL 4,21,348/- 7. DURING THE COURSE OF ASSESSMENT, THE COUNSEL OF THE ASSESSEE VOLUNTARILY AGREED BEFORE THE ASSESSING OFFICER FOR THE DISALLOWANCE OF AFORESAID INTEREST EXPENDITURE OF RS. 4,21,348/- AS THE ASSESSEE HAS NOT DEDUCTED TAX ON THE INTEREST PAYMENT. ACCORDINGLY , THE ASSESSING OFFICER HAS DISALLOWED THE AFORESAID PAYMENT OF INTEREST EX PENDITURE U/S. 40(A)(IA) OF THE ACT. 8. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE. 9. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. DURING THE YEAR UNDER CONSIDERATION, THE ASSESSEE HAS MADE INT EREST PAYMENT TO BAJAJ FINANCE LTD., TATA CAPITAL LTD. AND VOLKSWAGON F INANCE LTD TOTALING TO RS. 4,21,348/- LIABLE FOR DEDUCTION OF TAX U/S. 194 A OF THE ACT. THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF AFORESAI D INTEREST EXPENDITURE AS PER PROVISION OF SECTION 40(A)(IA) OF THE ACT ON TH E GROUND THAT ASSESSEE HAS FAILED TO DEDUCT TAX U/S. 194 OF THE ACT. THE ASS ESSEE HAS NOT FURNISHED ANY I.T.A NO. 912/AHD/2018 A.Y. 2014-15 PAGE NO UNISON INSURANCE BROKING SERVICES PVT. LTD. VS. DCI T 4 MATERIAL TO CONTROVERT THE AFORESAID FINDING OF THE ASSESSING OFFICER FOR NOT MAKING COMPLIANCE WITH THE PROVISION OF SECTION 40( A)(IA) OF THE ACT. IN ADDITION TO ABOVE, IT IS ALSO NOTICED THAT COUNSEL OF THE ASSESSEE HAS VOLUNTARILY AGREED FOR THE DISALLOWANCE OF INTEREST EXPENDITURE SINCE THE ASSESSEE HAS FAILED TO MAKE COMPLIANCE WITH THE PRO VISION OF SECTION 40(A)(IA) OF THE ACT. KEEPING IN VIEW OF THE AFOR ESAID UNDISPUTED FACTS AND CIRCUMSTANCES, WE DO NOT FIND ANY INFIRMITY IN THE DECISION OF LD. CIT(A). THEREFORE, THIS GROUND OF APPEAL OF THE ASSESSEE IS ALSO DISMISSED. 10. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DI SMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 09-04-2021 SD/- SD/- (RAJPAL YADAV) (AMARJIT SINGH) VICE PRESIDENT ACCOUNTANT MEMBER AHMEDABAD : DATED 09/04/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,