Maa Baishnab Devi Fuel Industry, Burnpur V. ITO, Ward-1(4), Durgapur, Durgapur

ITA 929/KOL/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 6697 (ITAT-KOLKATA)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-01-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 08-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATHACHARYA
• Section: 143(3); 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH SMC KOLKATA BEFORE SHRI S.S, GODARA, JUDICIAL MEMBER ITA NO.929/KOL/2018 ASSESSMENT YEAR:2009-10 MAA BAISHNAB DEVI FUEL INDUSTRIES, 8, NO. NEPALI DHAWRA, SANTA, BURNPUR-713325 [ PAN NO.AAFFM 4936 Q ] / V/S . INCOME TAX OFFICER, WARD-1(4), AYKAR BITHI CITY CENTRE, DURGAPUR-713216, DIST. PASCHIM BARDHAMAN /APPELLANT .. /RESPONDENT /BY APPELLANT NONE /BY RESPONDENT SHRI ARINDAM BHATHACHARYA, ADDL. CIT-DR /DATE OF HEARING 03-01-2019 /DATE OF PRONOUNCEMENT 23-01-2019 /O R D E R THIS ASSESSEES APPEAL FOR ASSESSMENT YEAR 2009-10 , ARISES AGAINST THE COMMISSIONER OF INCOME-TAX (APPEALS) DURGAPURS ORD ER DATED 23.02.2018 PASSED IN CASE NO.163/CIT(A)/DGP/2014-15, INVOLVING PROCEEDI NGS U/S. 143(3) OF THE INCOME TAX ACT, 1961; IN SHORT THE ACT. CASE CALLED TWICE. NONE APPEARS AT ASSESSEES BEHES T. IT IS ACCORDINGLY PROCEEDED EX PARTE . THE CASE IS TAKEN UP FOR ADJUDICATION ON MERITS. 2. THE ASSESSEE PLEADS THE FOLLOWING SUBSTANTIVE GR OUNDS IN ITS APPEAL:- 1. THAT UNDER FACT & CIRCUMSTANCES OF THE CASE LD. C.IT.(.A), DGP ERRED IN CONFIRMING THE DISALLOWANCE OF RS.1,41,334/- MADE B Y THE AO U/S 40(A)(IA) WHERE AS PROVISION CONTAINED 40(A)(IA) IS NOT APPLI CABLE IN THE CASE OF APPELLANT AS FORM NO-15G WAS FILED BEFORE LD. CIT,A SN WITH REQUEST NOT TO DEDUCT TAX AT SOURCE AS PROVISION CONTAINED U/S. 18 7A OF THE I.T. ACT61. ITA NO.929/KOL/2018 A.Y. 2009-10 MAA BAISHNAB DEVI FUEL INDUSTRIES VS. ITO WD-1( 40, DGP PAG E 2 (2) THAT UNDER FACT & CIRCUMSTANCES OF THE CASE LEA RNED. C.I.T(A), DGP ERRED IN PASSING THE ORDER THAT TDS NOT REQUIRED WH EN FORM NO. 15G HAS BEEN SUBMITTED. 3) THE INTEREST RECEIVERS INCOME TAX PAYABLE/PAID IS VERY NEGLIGIBLE & MARGINAL. THEY NOT MAINTAINED BOOKS OF ACCOUNTS RET URN FILED ON ESTIMATED BASIS. WHEN THEY FILED 15G, INCOME TAX LIABILITY WA S NIL. SO, THEY HAVE FILED THE 15G. 3. I HAVE HEARD MR. BHATACHARYA, LEARNED ADDL. CIT- DR STRONGLY SUPPORTING BOTH THE LOWER AUTHORITIES ORDERS MAKING THE IMPUGN ED DISALLOWANCE(S) / ADDITION(S). CASE FILE PERUSED. THE CIT(A)S DETAILED DISCUSSION UNDER CHALLENGE READS AS FOLLOWS:- 6. I HAVE CAREFULLY CONSIDERED THE FACTS OF THE CA SE. DURING THE APPELLATE PROCEEDING THE APPELLANT FURNISHED COPIES OF FORM N O. 15G SUBMITTED BEFORE THE COMMISSIONER OF INCOME TAX, ASANSOL. HOWEVER, T HE DATE OF SUBMISSION WAS NOT FOUND RECORDED ON ANY OF THE DOCUMENTS. THE APPELLANT ALSO FURNISHED THE COPIES OF RETURN OF INCOME OF ALL THE ITS LENDE RS. THE RELEVANT DETAILS CULLED OUT OF THE SUBMISSIONS MADE BY THE APPELLANT ARE PRESENTED IN A TABULAR FORM AS BELOW:- NAME OF THE RECEIVER OF INTEREST AMOUNT OF LOAN & INTEREST RECEIVED (AS PER FORM 15G) INTEREST TOTAL INCOME AS PER ROI (AFTER CH. VIA DEDUCTION) TAX PAID ASHOK KUMARA AGARWAL HUF 2.06,157 6% 1,51,196 134 ASHOK KUMR AGARWAL 1,50,000 6% 1,47,246 1,913 BIMAL KUMAR NAREDI 1,82,907 6% 1,49,727 NIL NANGI DEVI AGARWAL 2,48,253 6% 2,07,830 2,802 NAWAL KISHORE AGARWAL 1,25,000 6% 1,47,578 1,913 NAWAL KISHORE AGARWAL HUF 2,06,157 6% 1,50,955 107 SATYA NARAYAN NAREDI HUF 6,05,865 6% 1,54,942 105 USHA AGARWAL 2,45,568 6% 1,95,282 1,800 LAL BAHADUR WADAV HUF 4,68,427 6% 1,52,623 143 6% 1,46,298 8. AS CAN BE SEEN FROM THE ABOVE TABLE ALL THE LEND ERS HAD A TAXABLE INCOME EXCEPT SHRI BIMAL KUMR NAREDI. THE PROVISIONS OF SE CTION 197A(1B) REQUIRE THAT A PERSON ELIGIBLE FOR CLAIMING A RELIEF BY FIL ING FORM 15G SHOULD NOT HAVE HIS ESTIMATED TOTAL INCOME FOR THAT YEAR EXCEEDING THE MINIMUM LIMIT NOT LIABLE TO BE TAXED. SINCE ALL EXCEPT ONE PERSON HAS TOTAL INCOME NOT EXCEEDING THE MINIMUM LIMIT NOT LIABLE TO BE TAXED, ONLY HE I.E. SHRI BIMMAL KUMAR NAREDI QUALIFIES FOR A BENEFIT U/S. 197A(1B). THE OTHERS D O NOT QUALIFY FOR THIS BENEFIT. THEREFORE, THE APPELLANT SHOULD HAVE DEDUCTED TDS O N INTEREST PAID TO ALL OTHER PERSONS EXCEPT SHRI BIMALKUMAR NAREDI. IN VIEW OF T HE ABOVE FACTS, IT IS HELD ITA NO.929/KOL/2018 A.Y. 2009-10 MAA BAISHNAB DEVI FUEL INDUSTRIES VS. ITO WD-1( 40, DGP PAG E 3 THAT THE APPELLANT WAS LIABLE TO BE PROCEEDED AGAIN ST U/S.40(A)(IA) OF THE ACT. THEREFORE, THE ACTION OF THE AO IS HELD TO BE JUSTI FIED. THE AO IS DIRECTED TO RECALCULATE THE DISALLOWANCE U/S 40(A)(IA) AFTER AL LOWING A RELIEF TO THE EXTENT OF INTEREST PAID BY THE APPELLANT TO SHRI BIMAL KUMR N AREDI. 4. IT THEREFORE TRANSPIRES THAT THE ASSESSEE HAD FU RNISHED COPIES OF FORM 15G BEFORE CIT(A), ASANSOL WHICH HAVE NOWHERE BEEN CONS IDERED ORDER FACTUALLY VERIFIED. I THEREFORE RESTORE THE INSTANT LIS BACK TO THE ASS ESSING OFFICER TO DO THE NEEDFUL AFTER AFFORDING ADEQUATE OPPORTUNTY OF HEARING TO THE ASS ESSEE. 5. THIS ASSESSEES APPEAL IS ACCEPTED FOR STATISTIC AL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 23/01/2019 SD/- (S.S. GODARA) JUDICIAL MEMBE R KOLKATA, *DKP/SR.PS - 23/01/2019 / COPY OF ORDER FORWARDED TO:- 1. /APPELLANT-MAA BAISHNAB DEVI FUEL INDUSTRIES, 8 NO. NEPALI DHAWRA SANTA, BURN PUR-713325 2. /RESPONDENT-ITO WARD-1(4), DGP AYKAR BITHI CITY C ENTRE, DURGAPUR 713216, PASCHI M BARDHAMAN 3. ' % / CONCERNED CIT 4. % - / CIT (A) 5. & ))' , ' / DR, ITAT, KOLKATA 6. + / GUARD FILE. BY ORDER/ , /TRUE COPY/ / ',