M/s. AGRAWAL LAND & FINANCE CO., Dewas V. THE ITO, Dewas

ITA 96/IND/2015

• Counselvise Citation: 9622714 RSA 2015
• Duration Of Justice: 10 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-12-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-12-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 13-02-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R A VERMA
• Assessee Lawyers: S S DESHPANDE

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE (SINGLE MEMBER CASE) BEFORE SHRI D.T. GARASIA, JUDICIAL MEMBER I.T.A.NO. 96/IND/2015 A.Y. : 2007-08 M/S.AGRAWAL LAND & FINANE CO., DEWAS ITO, DWAS VS. APPELLANT RESPONDENT PAN NO. ANFPS2393N A PPELLANT S BY : SHRI S.S. DESHPANDE, C. A. RESPONDENT BY : SHRI R. A. VERMA, DR O R D E R THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A), UJJAIN, DATED 07.11.2014 FOR THE ASSESSM ENT YEAR 2007-08. 2. THE ONLY GROUND RAISED IN THIS APPEAL IS THAT THE L D. CIT(A) HAS ERRED IN MAINTAINING THE ADDITION OF RS. DATE OF HEARING : 03.12. 2015 . DATE OF PRONOUNCEMENT : 21 . 1 2 .2015 M/S. AGRAWAL LAND & FINANCE CO., DEWAS VS. ITO, DEW AS I.T.A.NO. 96/IND/2015 2 2 10,23,640/- BEING DISALLOWANCE OF EXPENDITURE BEING PAYMENT MADE TO THE CONTRACTOR. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED THE RETURN OF INCOME ON 31.3.2008 AND THE RE WAS SURVEY OPERATION IN THE CASE OF THE ASSESSEE, W HEREIN SOME PAPERS WERE FOUND. THE ASSESSEE FIRM ENGAGED I N DEVELOPING THE COLONIES AND CONSTRUCTION OF BUILDIN G AND ROW HOUSES. DURING THE COURSE OF SURVEY STATEMENT O F CONTRACTOR SHRI MUSTAKIM SHAH HAS BEEN RECORDED TO WHOM THE ASSESSEE HAS PAID A SUM OF RS. 10,23,640/- ON ACCOUNT OF HOUSE CONSTRUCTION. SHRI MUSTAKIM SHAH STATED THAT HE HAS CARRIED OUT SOME CONSTRUCTION WO RK. A BOGUS CERTIFICATE IN THE NAME OF THE CONTRACTOR WAS PREPARED AND ASSESSEE HAS MADE THIS ARRANGEMENT JUS T TO DEFRAUD THE REVENUE. THEREFORE, THE AO HAS DISAL LOWED THE EXPENDITURE OF RS. 10,23,640/-. 4. THE MATTER CARRIED TO THE LD. CIT(A) AND THE LD. CIT (A) HAS DISMISSED THE APPEAL. 5. THE LD. AUTHORIZED REPRESENTATIVE DURING THE COURSE OF HEARING HAS SUBMITTED THAT THE ASSESSEE H AS ALREADY DEDUCTED TDS ON THIS AMOUNT AND THE ASSESSE E M/S. AGRAWAL LAND & FINANCE CO., DEWAS VS. ITO, DEW AS I.T.A.NO. 96/IND/2015 3 3 HAS ACTUALLY CARRIED OUT THE WORK. THEREFORE, THIS EXPENDITURE MAY BE ALLOWED. 6. ON THE OTHER HAND, THE LD. DR RELIED UPON THE ORDER OF CIT(A). 7. I HAVE HEARD THE RIVAL CONTENTIONS OF BOTH THE PARTIES. LOOKING TO THE FACTS AND CIRCUMSTANCES OF THE CASE, I FIND THAT IF THE ASSESSEE HAS DEDUCTED TDS AMOUNT AND WHICH HAS BEEN ALREADY SHOWN BY THE RECIPIENT, THEN NO DEDUCTION CAN BE MADE. I FIND TH AT THIS REQUIRES VERIFICATION AT THE END OF THE AO AND AFTE R VERIFYING THE SAME, THE AO IS AT LIBERTY TO DECIDE THE MATTER AFRESH AFTER HEARING BOTH THE PARTIES. 8. IN THE RESULT, THE APPEAL IS ALLOWED FOR STATISTICA L PURPOSES. THIS ORDER HAS BEEN PRONOUNCED IN THE OPEN COURT ON 21 ST DECEMBER, 2015. SD/- ( D.T.GARASIA) JUDICIAL MEMBER M/S. AGRAWAL LAND & FINANCE CO., DEWAS VS. ITO, DEW AS I.T.A.NO. 96/IND/2015 4 4 DATED : 21 ST DECEMBER, 2015. CPU* 3.12.