M/S MOHAN PODDAR, V. JCIT, RANGE 2M, BILASPUR(CG)

ITA 92/BIL/2015

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3523 (ITAT-RAIPUR)
• Duration Of Justice: 3 year(s) 9 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2010-2011
• Appeal Filed On: 06-07-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S R RAO
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAIPUR BENCH, RAIPUR (BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER & SHRI RAM LAL NEGI, JUDICIAL MEMBER) ITA. NO: 92/RPR/2015 (ASSESSMENT YEAR: 2010-11) MOHAN PODDAR AGRAWAL LODGE ROAD P.O. MAHENDRAGARH DISTT. KOREA V/S JCIT, RANGE 2M MAHIMA COMPLEX, VYAPAR VIHAR, BILASPUR (C.B) (APPELLANT) (RESPONDENT) PAN: AAJFM8244P APPELLANT BY : SHRI S. R. RAO, ADV. RESPONDENT BY : SHRI SANJAY KUMAR, D.R. ( )/ ORDER DATE OF HEARING : 09-03-2018 DATE OF PRONOUNCEMENT : 16 -04-2018 PER N.K. BILLAIYA, ACCOUNTANT MEMBER: 1. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)- BILASPUR, DATED 30.01.2015 PERTAINING TO A.Y. 2010 -11. ITA NO. 92/R PR/2015 . A.Y. 2010-1 1 2 2. THE ONLY GRIEVANCE OF THE ASSESSEE IS THAT THE LD. CIT(A) ERRED IN CONFIRMING THE DISALLOWANCE OF RS. 4,72,019/- MADE BY THE A.O. U/S. 40(A)(IA) OF THE ACT. 3. THE ASSESSEE IS ENGAGED IN THE BUSINESS OF CIVIL CO NTRACT AND HAS OBTAINED CONTRACT WORKS DURING THE YEAR FROM STATE GOVERNMEN T, CSIDC, PRIME MINISTER GRAMIN SADAK YOJANA, SECL AND WCL FOR CONS TRUCTION OF BUILDING & ROADS. THE RETURN FOR THE YEAR WAS FILED ON 15.10.2 010 DECLARING TOTAL INCOME OF RS. 75,52,120/-. 4. DURING THE COURSE OF THE SCRUTINY ASSESSMENT PROCEE DINGS, THE A.O. NOTICED THAT THE ASSESSEE HAS PAID RS. 4,72,019/- BEING FIN ANCE CHARGES TO MAGMA SHRACHI FINANCE LTD. AND TATA CAPITAL FINANCE LTD. THE A.O. FOUND THAT NO TDS HAS BEEN MADE ON THIS AMOUNT. THE A.O. ACCORDIN GLY DISALLOWED RS. 4,72,019/- U/S. 40(A)(IA) OF THE ACT. 5. ASSESSEE CARRIED THE MATTER BEFORE THE LD. CIT(A) B UT WITHOUT ANY SUCCESS. 6. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE STATED THAT FINANCE CHARGES HAVE BEEN PAID TO NBFCS WHO HAVE SHOWN THE FINANCE CHARGES AS INCOME IN THEIR RESPECTIVE RETURNS AND THEREFORE THE ASSESSEE IS NO T LIABLE TO DEDUCT TAX AT SOURCE AS PER THE AMENDMENT BROUGHT IN THE RELEVANT PROVISIONS OF THE ACT. 7. WE HAVE CAREFULLY CONSIDERED THE ORDERS OF THE AUTH ORITIES BELOW. THERE IS NO DISPUTE THAT THE FINANCE CHARGES HAVE BEEN PAID TO NBFC. DRAWING SUPPORT FROM THE DECISION OF THE HONBLE HIGH COURT OF DELH I IN THE CASE OF ANSAL HOUSING FINANCE AND LEASING COMPANY LTD. IN 354 ITR 180 . WE DEEM IT FIT TO RESTORE THE MATTER TO THE FILES OF THE A.O. THE ASS ESSEE IS DIRECTED TO FURNISH ITA NO. 92/R PR/2015 . A.Y. 2010-1 1 3 NECESSARY DETAILS TO SHOW THAT THE NBFCS HAVE INCLU DED THE FINANCE CHARGES IN THEIR RESPECTIVE RETURNS OF INCOME. THE A.O. IS DIR ECTED TO VERIFY THE SAME AND DECIDE THE ISSUE AFRESH AS PER THE PROVISIONS OF TH E LAW. 8. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON 16 - 04- 20 18 SD/- SD/- (RAM LAL NEGI) (N. K. BILLAIYA) JUDICIAL MEMBER TRUE COPY ACCOUNTANT MEMBER RAIPUR: DATED 16/04/2018 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER SR. P.S. ITAT ,RAIPUR