VIKASH OIL PRODUCT, Dausa V. ITO, Dausa

ITA 934/JPR/2013

• Counselvise Citation: 93423114 RSA 2013
• Duration Of Justice: 2 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2015
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 29-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: RAJ MEHRA JCIT LD DR DHK

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES (SMC), JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JUDICIAL MEMBER VK;DJ VIHY LA-@ ITA NO. 934/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 M/S. VIKAS OIL PRODUCT H-1-71,72,73 RIICO INDUSTRIAL AREA DAUSA CUKE VS. THE ITO WARD- DAUSA DAUSA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAAFV 7709 F VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJEEV SOGANI, CA JKTLO DH VKSJ LS@ REVENUE BY :SHRI RAJ MEHRA, JCIT-. LD. DR LQUOKBZ DH RKJH[K@ DATE OF HEARING : 26/11/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 30 /11/2015 VKNS'K@ ORDER PER R.P. TOLANI, JM THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF LD. CIT(A) ALWAR, DATED 17-09-2013 FOR AY 2009-10. CONCISE GROUNDS RA ISED ARE THAT LD. CIT(A) ERRED IN LAW AND ON FACTS IN SUSTAINING FOLL OWING ADDITIONS/ DISALLOWANCES:- 1. DISALLOWANCE OF RS. 2,05,443/- U/S 40(A)(IA) FOR NO N DEDUCTION OF TDS ON RENT PAID TO RAJASTHAN WARE HOUSING CORPN.(R SWC). 2. PARTLY SUSTAINING TRADING ADDITION OF RS. 20,000/- OUT OF 50,000/- MADE BY LD. AO. ITA NO. 934//JP/2013 M/S. VIKAS OIL PRODUCT VS. ITO,WARD- DAUSA . 2 2.1 I HAVE HEARD BOTH THE PARTIES AND PERUSED MATER IAL AVAILABLE ON RECORD. APROPOS GROUND NO. 2 I.E PART RETENTION OF TRADING ADDITION OF RS. 20,000/-, I FIND NO INFIRMITY IN THE ORDER OF LD. C IT(A) FOR RETAINING THESE SMALL DISALLOWANCE, THIS GROUND IS DISMISSED. 2.3 APROPOS 1 ST GROUND LD. COUNSEL CONTENDS RELIED ON HONBLE ALLAHABAD HIGH COURT JUDGMENT IN THE CASE OF CIT V VECTOR SHIPPING SERVICES 262 CTR 545 FOR THE PROPOSITION THAT SEC. 40(A)(IA) AS IT STOOD AT THAT TIME WAS APPLICABLE TO ONLY PAYABLE I.E. OUTST ANDING AMOUNTS. THE RENT IS ACTUALLY PAID TO RSWC AND THERE WAS NO AMOU NT PAYABLE AT THE END OF THE YEAR. SUBSEQUENTLY A LEGISLATIVE AMENDME NT IN I T ACT HAS ALSO BEEN MADE WEF 1-4-13 TO THIS EFFECT. THEREFORE, DIS ALLOWANCE U/S 40(A)(IA) IS UNCALLED FOR. 2.4 LD. DR QUA 1 ST GROUND CONTENDS THAT FROM THE RECORD THE FACT THA T RENT WAS ACTUALLY PAID TO RSWC IN THE YEAR AND THER E WAS NOTHING PAYABLE IS NOT EMERGING FROM THE RECORD, THEREFORE, THIS ISSUE MAY BE SET ASIDE FOR NECESSARY VERIFICATION TO AO. LD. COUNSEL FOR ASSESSEE HAS NO OBJECTION. 2.5 LD. DRS PROPOSITION DESERVES MERIT, CONSEQUENT LY THE GROUND ABOUT APPLICABILITY OF SEC. 40(A)(IA) IS SET ASIDE AND RESTORED BACK TO LD. ITA NO. 934//JP/2013 M/S. VIKAS OIL PRODUCT VS. ITO,WARD- DAUSA . 3 AO TO VERIFY AND APPLY SEC. 40(A)(IA) ONLY TO AMOUN TS REMAINING PAYABLE TO RSWC AT THE YEAR END AND NOT ON AMOUNT ACTUALLY PAID. 3.0 IN THE RESULT ASSESSEES APPEAL IS PARTLY ALLOW ED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 30/11/ 2015 SD/- VKJ-IH-RKSYKUH (R.P.TOLANI) U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 30 /11/ 2015 *MISHRA VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ@ THE APPELLANT- M/S. VIKAS OIL PRODUCT, DAUSA, 2. IZR;FKHZ@ THE RESPONDENT- THE ITO, WARD- DAUSA 3. VK;DJ VK;QDRVIHY@ CIT(A). 4. VK;DJ VK;QDR@ CIT, 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ@ DR, ITAT, JAIPUR 6. XKMZ QKBZY@ GUARD FILE (ITA NO. 934/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR