Astt. Commissioner of Income Tax, Sitapur V. Kisan Sahkari Chini Mill Ltd., Lakhimpur-Kheri

ITA 92/LKW/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 4413 (ITAT-LUCKNOW)
• Duration Of Justice: 3 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-06-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-06-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 01-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI P.K. BANSAL, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ITA NO.92/LKW/2016 ASSESSMENT YEAR 2010-11 KISAN SAHKARI CHINI MILL LTD. SAMPURNANAGAR, LAKHIMPUR KHERI PAN AAAAK 1131 D VS ACIT, SITAPUR (RESPONDENT) (APPELLANT) SHRI O.P. MEENA, CIT DR APPELLANT BY S RI AKHILESH SRIVASTAVA, AR RESPONDENT BY 01/06/2015 DATE OF HEARING 08/06/2016 DATE OF PRONOUNCEMENT O R D E R PER P.K. BANSAL, AM. THIS APPEAL HAS BEEN FILED AGAINST THE ORDER OF THE LD. CIT(A) BAREILLY DATED 22.12.2015. THE ONLY EFFECTIVE GROUN D TAKEN BY THE REVENUE IS AS UNDER: 1. THAI THE COMMISSIONER OF INCOME TAX (APPEALS) H AS ERRED IN LAW AND ON FACTS IN DELETING THE ADDITION OF RS.1,07,72,736.10 MADE BY THE ASSESSING OFFICER ON ACCOUNT OF PAYMENT OF SUBSCRIPTION TO FEDERATION UN DER SECTION 40(A)(IA) OF THE I. T. ACT, 1961 BY IGNORIN G THE FACT BROUGHT ON RECORD BY THE ASSESSING OFFICER TH AT SUCH PAYMENTS ARE COVERED U/S 194J OF THE I.T. ACT, 1961 AND THE ASSESSEE HAS FAILED TO DEDUCT TAX ON S UCH PAYMENTS. 2 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY CONSIDERED THE SAME. AFTER HEARING BOTH THE SIDES WE NOTED THA T THE ISSUE INVOLVED IN THIS APPEAL IS DULY COVERED BY THE DECI SION OF THIS TRIBUNAL IN THE CASE OF THE ASSESSEE IN ITA NOS.406, 406, 40 8 /LKW/2013 FOR THE ASSESSMENT YEARS 2006-07, 2007-08 AND 2008-09 I N WHICH THIS TRIBUNAL VIDE ITS ORDER DATED 29.11.2013 UNDER THE SIMILAR FACTS HELD AS UNDER:- 10. HAVING GIVEN A THOUGHTFUL CONSIDERATION TO TH E RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER S OF THE AUTHORITIES BELOW, WE FIND THAT THE FEDERATION WAS FORMED TO KEEP A CHECK ON THE SUGAR FACTORIES AND ALSO TO PRO VIDE ASSISTANCE IN DIFFERENT FIELDS FOR THEIR PROPER FUN CTIONING. BUT IT HAS NOT RENDERED ANY PROFESSION OR TECHNICAL SERVIC ES FOR WHICH SUBSCRIPTION PAID TO THEM REQUIRES ANY DEDUCTION OF TAX AT SOURCE AS PER PROVISIONS OF SECTION 194J OF THE ACT . THE ASSESSEE HAS FURNISHED DETAILS OF THE ACTIVITIES PE RFORMED BY THE FEDERATION AND THE SAME HAS BEEN PROPERLY RECOR DED BY THE LD. CIT(A) IN HIS ORDER WHILE DELETING THE ADDITION MADE BY THE ASSESSING OFFICER HAVING EXAMINED THE PROVISIONS OF SECTION 40(A)(IA) OF! THE ACT. WE HAVE CAREFULLY EXAMINED T HE ORDER OF THE LD. CTT(A) AND WE FIND THAT UNDER THE GIVEN FAC TS AND CIRCUMSTANCES OF THE CASE, THE LD. CIT(A) HAS RIGHT LY DELETED THE ADDITION HAVING OBSERVED THAT THE SERVICES REND ERED BY THE FEDERATION DOES NOT COME WITHIN THE DEFINITION OF A NY SERVICES RENDERED UNDER SECTION 194J OF THE ACT. WE, THEREFOR E, FIND NO MERIT IN THE GROUND RAISED BY THE REVENUE WITH REGA RD TO THE SUBSCRIPTION TO THE FEDERATION AND HENCE WE CONFIRM THE ORDER OF THE LD. CIT(A) ON THIS ISSUE. 3. RESPECTFULLY FOLLOWING THE SAID ORDER OF THIS TR IBUNAL, WE CONFIRM THE ORDER OF THE LD. CIT(A) AND DELETE THE DISALLOWANCE OF RS.1,07,72,736.10. 3 4. IN THE RESULT, APPEAL OF THE REVENUE STANDS DISM ISSED. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/- SD/- (MAHAVIR PRASAD) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08/06/2016 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REG ISTRAR