Shri Vinshnu Kumar Jalan, Ranchi V. ACIT CIR-3, Ranchi

ITA 98/RAN/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 7774 (ITAT-RANCHI)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 16-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K MONDAL
• Assessee Lawyers: S K PODDARDEVESH PODDAR
• Section: 234B; 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO.98 /RAN/201 7 ASSESSMENT YEAR : 2013 - 2014 SHRI VISHNU KUMAR JALAN, M/S. JALAN FOOD PRODUCT, RANGLAL JALAN ROAD, UPPER BAZAR, RANCHI. VS. ACIT, CIRCLE - 3, RANCHI PAN/GIR NO. AAWPJ 3994 J (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY: SHRI S.K.PODDAR/DEVESH PODDAR, ADV REVENUE BY : SHRI P.K.MONDAL, JCIT DATE OF HEARING : 22 /05 / 201 8 DATE OF PRONOUNCEMENT : 23 /05/ 2018 O R D E R PER N.S.SAINI, AM THIS IS AN APPEAL FILED BY T HE ASSESSEE AGAINST THE ORDER OF CIT(A), RANCHI, DA TED 1.3.2017 , F OR THE ASSESSMENT YEAR 2013 - 14. 2. GROUND NOS.1 & 2 READ AS UNDER: 1. FOR THAT THE CIT(A) WAS NOT JUSTIFIED IN CONFIRMING THE DISALLOWANCE MADE BY THE AO OUT OF THE FREIGHT & CARTAGE EXPENSES ON THE GROUND 2 ITA NO.98/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 THAT PROVISIONS OF SECTION 40(A)(IA) WERE ATTRACTED SINCE THE APPELLANT WAS LIABLE FOR MAKING DEDUCTION U/S.194C WHI CH WAS NOT DONE. 2. FOR THAT AS PER THE AMENDED PROVISIONS OF SECTION 194(6) APPELLANT WAS NOT LIABLE TO MAKE DEDUCTION OF TDS ON THE EXPENSES INCURRED FOR TRANSPORTATION IF THE TRANSPORTER PROVIDES THE PAN NO. THE PAN NUMBER WAS PROVIDED AND WAS MENTIONE D IN THE SUBMISSIONS FILED BEFORE THE CIT(A). AS SUCH NO DISALLOWANCE IS CALLED FOR AND SHOULD BE DELETED. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS MADE PAYMENTS OF FREIGHT CHARGES WITHOUT DEDUCTING TAX U/.194C OF THE ACT AS UNDER: SL. NO. PAYMENT MADE TO DATE TOTAL AMOUNT PAID (RS.) 1. FREIGHT INCURRED FOR PURCHASE OF CHANA FROM VINAYAK TRADING CO. SATNA, UJP 63 H 9073 6.10.12 30,640/ - 2. FREIGHT INCURRED FOR PURCHASE OF CHANA FROM VINAYAK TRADING CO. SATNA, UJP 63 H 9390 10.10.12 30,350/ - 3. FREIGHT INCURRED FOR PURCHASE OF CHANA FROM SUNIL KR. SUSHIL KR. SATNA 29.10.12 32,240/ - 4. FREIGHT INCURRED FOR PURCHASE OF CHANA FROM VINAYAK TRADING CO. SATNA, UJP 63 D 9625 1.11.12 33,240/ - 5. FREIGHT INCURRED FOR PURCHASE OF CHANA FROM SUNIL KR SUSHIL KR, SATNA 5.11.12 33,850/ - 6. FREIGHT PAID TO GOPAL ROADWAYS 26.11.12 31,730/ - 7. FREIGHT PAID TO GOPAL ROADWAYS 19.12.12 34,550/ - 8. FREIGHT PAID TO GOPAL ROADWAYS 24.12.12 32,530/ - 9. FREIGHT PAID TO GOPAL ROADWAYS 24.12.12 32,530/ - 10. FREIGHT PAID TO GOPAL ROADWAYS 17.1.13 32,580/ - 3 ITA NO.98/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 11. FREIGHT PAID TO GOPAL ROADWAYS 19.1.13 32,960/ - 12. FREIGHT PAID TO GOPAL ROADWAYS 22.1.13 30,380/ - 13 FREIGHT TO NORTH BIHAR ROADWAYS 12.2.13 32,000/ - 14. FREIGHT TO NORTH BIHAR ROADWAYS 2.3.13 30,960/ - 15. FREIGHT TO NORTH BIHAR ROADWAYS 19.3.13 34,240/ - TOTAL: 4,84,980/ - 4. THE ASSESSING OFFICER OBSERVED THAT SAID AMOUNT COULD BE ALLOWED AS DEDUCTION IN ABSENCE OF TDS ONLY IF THE ASSESSEE HAD FURNISHED FORM 15J TO THE DEPARTMENT WITHIN TIME. SECTION 40(A)(IA) OF THE ACT CALLS FOR DISALLOWANCE OF ANY AMOUNT PAID WITHOUT DEDUC TING TDS WHICH WAS LIABLE FOR SUCH DEDUCTION. THE ASSESSEE WAS LIABLE TO DEDUCT TDS ON TRANSPORT PAYMENTS MADE IF FORM 15J WAS NOT SUBMITTED . AS T HE ASSESSEE FAILED TO DO SO, AMOUNT OF RS.4,84,980/ - WAS DISALLOWED U/S.40(A )(IA) R.W. SECTION 194C OF THE A CT AND ADDED BACK TO THE TOTAL INCOME OF THE ASSESSEE. 5. ON APPEAL, THE CIT(A) ALSO CONFIRMED THE ACTION OF THE ASSESSING OFFICER ON THE GROUND THAT SUB - SECTION S (6) & (7) OF SE C TION 194C PROVIDES THAT NON - DEDUCTION OF TAX AT SOURCE IS PERMISSIBLE ONLY UNDER THE CONDITION THAT THE PERSON RESPONSIBLE FOR PAYING FURNISHES TO THE PRESCRIBED INCOME TAX AUTHORITY IN SUCH INFORMATION AS MAY BE PRESCRIBED. THE PROVISIONS DO NOT ENVISAGE A SITUATION WHERE THE PAYEE FURNISHES PAN TO THE PAYER IN COMPLETE 4 ITA NO.98/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 FULFIL MENT OF ITS OBLIGATION UNDER THE ACT AND NO DETAILS ARE FILED BEFORE THE INCOME TAX AUTHORITIES. THIS PROVISION OF THE ACT IS TO ENSURE THAT THERE IS A CHECK ON THE PAYMENTS MADE WITHOUT DEDUCTING TAX AT SOURCE AND THE SAME IS SUBJECT TO VERIFICATION BY T HE INCOME TAX AUTHORITIES. IN THE PRESENT CASE, ADMITTEDLY, NO DETAILS WERE FILED. THE APPELLANT WAS ALSO NOT ABLE TO PRODUCE PAN DETAILS FILED BY THE TRANSPORTERS, AS CLAIMED IN ITS SUBMISSIONS. 6. BEFORE US, LD A.R. OF THE ASSESSEE SUBMITTED THAT THE OBSERVATIONS OF THE CIT(A) IN HIS ORDER THAT NO PAN DETAILS WERE FILED IS WRONG AS THE ASSESSEE HAS FILED ALL PAN NUMBERS OF THE TRANSPORTERS TO WHOM PAYMENTS WERE MADE BY THE ASSESSEE. HENCE, HE PRAYED THAT IN THE INTEREST OF JUSTICE, ONE MORE OPPORTUNIT Y SHOULD BE GRANTED TO THE ASSESSEE TO PRODUCE THE PAN OF THE TRANSPORTERS BEFORE THE CIT(A) IN TERMS OF SECTION 194C OF THE ACT. 7. LD D.R. HAD NO OBJECTION TO THE ABOVE SUBMISSION OF LD A.R. OF THE ASSESSEE. 8. IN THE GIVEN FACTS AND CIRCUMSTANCES OF THE CASE, WE SET ASIDE THE ORDERS OF LOWER AUTHORITIES AND REMAND THE MATTER BACK TO THE FILE OF THE CIT(A) FOR ADJUDICATING THE ISSUE AFRESH AS PER THE DISCUSSIONS MADE HEREINABOVE AFTER ALLOWING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 9. GROUND N OS.3 TO 5 OF THE APPEAL ARE AS UNDER: 5 ITA NO.98/RAN/2017 ASSESSMENT YEAR: 2013 - 2014 3. FOR THAT THE EN TIRE TRANSPORTATION EXPENSES STA NDS PAID AS ON 31.3.13. AS SUCH FOLLOWING THE DECISION OF CIT VS. VECTOR SHIPPING, 357 ITR 642 NO DISALLOWANCE IS CALLED FOR. 4. FOR THAT INTEREST U/S.234AAND 234B CAN ONLY BE CHARGED ON THE RETURNED INCOME AND NOT ON THE ASSESSED INCOME FOLLOWING THE DECISION OF HONBLE JHARKHAND HIGH COURT. 5. FOR THAT OTHER GROUNDS IN DETAIL WILL BE ARGUED AT THE TIME OF HEARING. 10. LD A.R. OF THE ASSESSEE DID NOT PRESS THESE GROUND S AND HENCE SAME ARE DI SMISSED AS NOT PRESSED. 11 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 23 /05 /201 8 SD/ - SD/ - (PAVAN KUMAR GADALE) (N.S SAINI) JUDICIAL MEMBER A CCOUNTANT MEMBER RANCHI; DATED 23 /05 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PS, ITAT, CAMP AT RANCHI 1. THE APPELLANT : SHRI VISHNU KUMAR JALAN, M/S. JALAN FOOD PRODUCT, RANGLAL JALAN ROAD, UPPER BAZAR, RANCHI. 2. THE RES PONDENT: ACIT, CIRCLE - 3, RANCHI 3. THE CIT(A), RANCHI 4. PR. CIT , RANCHI 5. DR, ITAT, RANCHI 6. GUARD FILE. //TRUE COPY//