CHIRANJI LAL GAGDISH NARAIN, Dausa V. ITO, Dausa

ITA 936/JPR/2013

• Counselvise Citation: 93623114 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: B
• Assessment Year: 2008-2009
• 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. 936/JP/2013 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2008-09 SHRI CHIRANJI LAL JAGDISH NARAIN A-15, NEW ANAJ MANDI DAUSA CUKE VS. THE ITO WARD- DAUSA DAUSA LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAEFC 1424 G 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 2008-09. CONCISE GROUNDS RA ISED ARE THAT LD. CIT(A) ERRED IN LAW AND ON FACTS IN SUSTAINING FOLL OWING ADDITIONS/ DISALLOWANCES:- 1. SHOP, MOTOR CYCLE, S T AND VAT EXPENSES RS. 11,603/ - 2. INTEREST AMOUNTING TO RS. 42,500/- OUT OF RS. 4,05, 000/- MADE BY AO. 3. DISALLOWANCE OF RS. 2,94,009/- U/S 40(A)(IA) FOR NO N DEDUCTION OF TDS ON RENT PAID TO RAJASTHAN WARE HOUSING CORPN.(R SWC). ITA NO. 936//JP/2013 M/S. CHIRANJI LAL JAGDISH NARAIN VS. ITO,WARD- DAUS A . 2 2.1 I HAVE HEARD BOTH THE PARTIES AND PERUSED MATER IAL AVAILABLE ON RECORD. APROPOS GROUND NO. 1, I FIND NO INFIRMITY I N THE ORDER OF LD. CIT(A) FOR RETAINING THESE SMALL DISALLOWANCE, THIS GROUND IS DISMISSED. 2.2 ADVERTING TO GROUND NO 2 LD. CIT(A) ALLOWED SUB STANTIAL RELIEF AND RETAINED THIS PARTIAL DISALLOWANCE IN RESPECT OF IN TEREST FREE ADVANCES TO SUNRISE COMPLEX PVT. LTD., RAMAVATAR CHAUDHARY AND PNG HOLDINGS BY OBSERVING THAT ASSESSEE FAILED TO PRODUCE NECESSARY EVIDENCE TO SUPPORT ITS CONTENTIONS WHICH ARE MENTIONED IN THE APPELLA TE ORDER. NO EVIDENCE AS POINTED OUT BY LD. CIT(A) IS PRODUCED BEFORE ME ALSO. THUS THERE IS NO IMPROVEMENT IN THE MATERIAL AVAILABLE ON RECORD. IN VIEW OF THESE FACTS AND CIRCUMSTANCES GROUND NO. 2 IS ALSO DISMISSED. 2.3 APROPOS GROUND NO. 3 LD. COUNSEL CONTENDS RELIE D 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 W.E.F. 1-4-13 TO THIS EFFECT. THEREFORE, DISALLOWANCE U/S 40(A)(IA) IS UNCALLED FOR. ITA NO. 936//JP/2013 M/S. CHIRANJI LAL JAGDISH NARAIN VS. ITO,WARD- DAUS A . 3 2.4 LD. DR QUA 3 RD GROUND CONTENDS THAT FROM THE RECORD THE FACT THAT RENT WAS ACTUAL PAID RSWC IN THE YEAR AND THERE WAS NOTHING PAYABLE IS NOT EMERGING FROM THE RECORD, THEREFORE, THIS ISSUE MAY BE SET ASIDE FOR NECESSARY VERIFICATION TO AO. LD. COUNSEL FOR ASSES SEE HAS NO OBJECTION. LD. DRS PROPOSITION DESERVES MERIT, CONSEQUENTLY T HE GROUND ABOUT APPLICABILITY OF SEC. 40(A)(IA) IS SET ASIDE AND RE STORED BACK TO LD. AO TO VERIFY AND APPLY SEC. 40(A)(IA) ONLY TO AMOUNTS REM AINING PAYABLE TO RSWC AT THE YEAR END AND NOT ON AMOUNT ACTUALLY PAI D. 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. CHIRANJI LAL JAGDISH NARAIN, DA USA, 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. 936/JP/2013) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR