M/s. Sri Annapurna Rice Mills, Sambalpur V. DCIT, Circle-1(1), Sambalpur, Sambalpur

ITSSA 9/CTK/2013

• Counselvise Citation: [2017] 122 COUNSELVISE.COM (IT) 3025 (ITAT-CUTTACK)
• Duration Of Justice: 3 year(s) 10 month(s) 25 day(s)
• Appeal Type: Income Tax (Search & Seizure) Appeal
• Pronouncement Date: 17-02-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 14-02-2017
• Assessment Year: 2007-2008
• Appeal Filed On: 22-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

2 IT(SS)A NO.9 & 10 /CTK/2013 ASSESSMENT YEARS: 2007 - 08 & 2008 - 09 A.Y. 2008 - 09 OUT OF ACCOUNTING CHARGES PAID TO AN ACCOUNTANT WITHOUT DEDUCTING TDS U/S.194J BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 3. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE ORDERS OF LOWER AUTHORITIES AND MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE, THE ASSESSING OFFICER FOUND THAT THE ASSESSEE HAS PAID RS.96,000/ - UNDER ACCOUNTING CHARGES IN ASSESSMENT YEAR 2007 - 08 AND 2008 - 09 AS WELL. THE ASSESSING OFFICER OBSERVING THAT SINCE NO TAX HAS BEEN DEDUCTED ON S UCH PROFESSIONAL SERVICES RENDERED, BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA), HE MADE DISALLOWANCE OF RS.96,000/ - IN A.Y. 2007 - 08 & 2008 - 09, RESPECTIVELY. 4. ON APPEAL, THE CIT(A) CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 5. BEFORE US, LD A.R. OF THE ASSESSEE ARGUED AND SUBMITTED THAT IT IS NOT IN DISPUTE THAT RS.96,000/ - WAS PAID AS ACCOUNTING CHARGES IN A.Y. 2007 - 08 AND 2008 - 09 AND NO AMOUNT WAS OUTSTANDING AS PAYABLE AND, THEREFORE, FOLLOWING THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN TH E CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD., (2013) 357 ITR 642(ALL), WHEREIN, IT HAS BEEN HELD THAT FOR DISALLOWING EXPENSES FROM BUSINESS AND PROFESSION ON THE GROUND THAT TAX HAS NOT BEEN DEDUCTED AT SOURCE, THE AMOUNT SHOULD BE PAYABLE AND NOT IT HAS BEEN PAID BY THE END OF THE YEAR , NO DISALLOWANCE U/S.40(A)(IA) WAS WARRANTED IN THE CASE OF THE ASSESSEE . HE FURTHER SUBMITTED THAT THE SLP FILED AGAINST THE JUDGMENT OF HONBLE ALLAHABAD HIGH 4 IT(SS)A NO.9 & 10 /CTK/2013 ASSESSMENT YEARS: 2007 - 08 & 2008 - 09 COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT :M/S. SRI ANNAPURNA RICE MILLS. GUDKATIKRA, PO: GODBHAGA, SAMBALPUR 2. THE RESPONDENT. DCIT, CIRCLE 1(1), SAMBALPUR 3. THE CIT(A) SAMBALPUR 4. CIT , SAMBALPUR 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//