Sri Anandraj Jhawar, V. DCIT, CIR-2, JALPAIGURI, Jalpaiguri

ITA 941/KOL/2015

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6308 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-06-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 25-06-2015
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL

Judgement Text

ITA NO.1014 & 941/KOL/2015 SRI ANANDRAJ JHAWAR A.Y. 2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL, BENCH A KOL KATA [BEFORE HONBLE SHRI J.SUDHAKAR REDDY, AM & SMT. MADHUMITA ROY, JM ] ITA.NO.1014/KOL//2015 ASSESSMENT YEAR : 2012-13 D.C.I.T., CIRCLE-2, -VERSUS- SHRI ANAND RAJ JHAWAR JALPAIGURI KOLKATA (PAN: ACOPJ 1967 H) (APPELLANT) (RESPONDENT) ITA.NO.941/KOL//2015 ASSESSMENT YEAR : 2012-13 SHRI ANAND RAJ JHAWAR -VERSUS- D.C.I.T., CIR CLE-2, KOLKATA JALPAIGURI (PAN: ACOPJ 1967 H) (APPELLANT) (RESPONDENT) FOR THE DEPARTMENT: SHRI SALLONG YADEN, ADDL. C IT FOR THE ASSESSEE : SHRI ANIL KOCHAR, ADVOCATE DATE OF HEARING : 31.05.2018. DATE OF PRONOUNCEMENT : 01.06.2018. ORDER PER BENCH THESE ARE CROSS APPEALS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX-JALPAIGURI RELATING TO A.Y.2012-13. 2. THE ASSESSEE IS AN INDIVIDUAL AND IS ENGAGED IN THE TRADING OF SUGAR, RICE, WHEAT AND BAJRA AS WELL AS UNDERTAKES CONTRACT WORK OF GO ODS CARRIAGE AND PULSE PROCESSING UNDER THE NAME AND STYLE OF M/S R.R.AGROTECH AND M/ S. ANAND RAJ JHAWAR. IN BOTH THE APPEALS THE ISSUE RELATES TO DISALLOWANCE MADE U/S 40(A)(IA) OF THE ACT FOR NON DEDUCTION OF TAX AT SOURCE OF (A) RENTAL PAYMENT (B ) TRANSPORTATION CHARGES PAID AND (C) INTEREST PAYMENT. ON DISALLOWANCE MADE ON ACCOUNT OF RENTAL PAYMENT AND INTEREST PAYMENT, THE LD. FIRST APPELLATE AUTHORITY CONFIRME D THE DISALLOWANCE AND THE ASSESSEE IS IN APPEAL. IN THE CASE OF TRANSPORTATIO N CHARGES, THE DISALLOWANCE MADE BY THE AO WAS DELETED BY THE LD. CIT(A) AND HENCE THE REVENUE HAS FILED THIS APPEAL. ITA NO.1014 & 941/KOL/2015 SRI ANANDRAJ JHAWAR A.Y. 2012-13 2 3. WE HAVE HEARD MR. SALLONG YADEN, LD. DEPARTMENTA L REPRESENTATIVE ON BEHALF OF THE REVENUE AND SHRI ANIL KOCHAR, LD. COUNSEL FOR T HE ASSESSEE. 4. ON A CAREFUL CONSIDERATION OF THE FACTS AND CIRC UMSTANCES OF THE CASE, PERUSAL OF THE PAPERS ON RECORD AND ORDERS OF THE AUTHORITIES BELOW AS WELL AS CASE LAWS CITED WE HOLD AS FOLLOWS :- THE LD. COUNSEL FOR THE ASSESEE RELIED ON THE SECON D PROVISO TO SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 (ACT) AND SUBMITTED THA T THE JUDICIAL PRONOUNCEMENTS THAT THIS PROVISO IS RETROSPECTIVE IN NATURE HAVE C OME LATER AND HENCE REQUESTED THAT THE ISSUE BE SET ASIDE TO THE FILE OF THE AO, WITH THE DIRECTION TO VERIFY, WHETHER THE RECIPIENTS OF THE RENT, AS WELL AS INTEREST, HAVE D ISCLOSED THE SAID AMOUNT AS THEIR INCOME, IN THE RETURN OF INCOME FILED BY THEM AND W HETHER THEY PAID TAXES ON THE SAME. THE LD. DEPARTMENTAL REPRESENTATIVE DID NOT H AVE ANY OBJECTION TO THIS SUBMISSION OF THE LD. COUNSEL FOR THE ASSESSEE. HEN CE WE RESTORE THE APPEAL OF THE ASSESSEE TO THE FILE OF THE AO WITH THE DIRECTION T O VERIFY WHETHER THE RECIPIENTS OF THE RENT AND INTEREST IN QUESTION HAVE OFFERED THIS INC OME TO TAX AND PAID TAXES THEREON. THE ISSUE SHOULD BE ADJUDICATED DE NOVO IN ACCORDAN CE WITH LAW. THUS THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. COMING TO THE REVENUES APPEAL THE LD. DR SUBMIT TED THAT, NO VERIFICATION WAS DONE AS TO WHETHER THE PAN NO. BELONGS TO THE PARTI CULAR TRANSPORTER OR NOT AND WHETHER THE SECOND PROVISO TO SECTION 40(A)(IA) OF THE ACT CAN BE APPLIED IN THE CASE OF PAYMENT OF TRANSPORTATION CHARGES. HE PRAYED FOR R ESTORING THE MATTER TO THE FILE OF THE AO FOR FRESH ADJUDICATION. 6. THE LD. COUNSEL FOR THE ASSESSEE HAD NO OBJECTIO N FOR THE SAME. HENCE THIS ISSUE IS SET ASIDE TO THE FILE OF THE AO FOR FRESH ADJUDI CATION IN ACCORDANCE WITH LAW. ITA NO.1014 & 941/KOL/2015 SRI ANANDRAJ JHAWAR A.Y. 2012-13 3 7. IN THE RESULT BOTH THE APPEALS ARE ALLOWED FOR S TATISTICAL PURPOSES. O RDER PRONOUNCED IN THE COURT ON 01.06.2018. SD/- SD/- [J.SUDHAKAR REDDY] [ MADHUMITA ROY ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 01.06.2018. [RG SR.PS] COPY OF THE ORDER FORWARDED TO: 1.SHRI ANAND RAJ JHAWAR, MARWARI PATTY, P.O.& DIST. ALIPURDUAR-736121. 2. D.C.I.T., CIRCLE-2, JALPAIGURI. 3. C.I.T.(A)- JALPAIGURI 4. C.I.T-JALPAIGURI 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER, SENIOR PRIVATE SECRETARY HEAD OF OFFICE/D.D.O, ITAT KOLKATA BENCHES