ITO,Ward-3(2), Kolkata, Kolkata V. M/s. Jalan Distributors (P)Ltd, Kolkata

MA 70/KOL/2012

• Counselvise Citation: [2012] 123 COUNSELVISE.COM (IT) 8735 (ITAT-KOLKATA)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 20-07-2012
• Appeal Filed By: Department
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 04-06-2012
• Court: TRIBUNAL
• Department Lawyers: S P LAHIRI
• Section: 194C

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL, BEN CH C, KOLKATA () BEFORE , , , , , SHRI MAHAVIR SINGH, JUDICIAL MEMBER. /AND . .. . ! ! ! !. .. . , '# SHRI C.D.RAO, ACCOUNTANT MEMBER $$ '% $$ '% $$ '% $$ '% & & & & / M.A.NO.70/KOL/2012 A/O ITA NO . 1574/KOL/2010 %' ()/ ASSESSMENT YEAR : 2005-06 (+, / APPELLANT ) I.T.O., WARD-3(2), KOLKATA - % - - VERSUS - . (./+,/ RESPONDENT ) M/S.JALAN DISTRIBUTORS PVT. LTD., KOLKATA. (PAN:AAACJ 6704 F) +, 0 1 '/ FOR THE APPELLANT: SHRI S.P.LAHIRI ./+, 0 1 '/ FOR THE RESPONDENT: SHRI RAVI TULSIYAN 2%3 0 !# /DATE OF HEARING : 20.07.2012 4( 0 !# /DATE OF PRONOUNCEMENT : 20.07.2012. '5 / ORDER ( (( ( . .. . ! ! ! !. .. . ) )) ), , , , '# PER SHRI C.D.RAO, AM THE ABOVE MISCELLANEOUS APPLICATION HAS BEEN FILED BY THE REVENUE TO RECTIFY THE ORDER OF TRIBUNAL DATED 13.04.2011 VIDE ITA NO. 1574/KOL/2010 PERTAINING TO A.YR. 2005-06. 2. AFTER HEARING THE RIVAL SUBMISSIONS THE BENCH P RONOUNCED AS UNDER :- M.A.ALLOWED FOR STATISTICAL PURPOSES. DETAILED ORD ER WILL FOLLOW. NOW THE DETAILED ORDER IS AS UNDER :- 3. BY THIS MISCELLANEOUS APPLICATION THE REVENUE WA NTS TO RECTIFY THE ORDER OF THE TRIBUNAL BY STATING AS UNDER :- 2 IN THIS CASE THE ITO MADE DISALLOWANCE U/S 40(A)(I A), IN RESPECT OF NON DEDUCTION OF TAX AT SOURCE AS PER PROVISION, OF SEC TION 194C OF THE I.T. ACT. THE CIT(A) CONFIRMED THE DISALLOWANCE HOLDING THAT THE ASSESSE E WAS LIABLE TO DEDUCT TAX ON RS. 193597/-. THE HONBLE ITAT, HOWEVER HAS REVERSED TH E ORDER THE A.O. AND THE CIT(A), HOLDING THAT PAYMENT OF RS. 193597/- WAS MADE FROM TIME TO TIME IN SUMS BELOW RS. 20000/-, THEREFORE THERE WAS NO LIABILITY OF TDS. AS THE CONTRACTUAL AGGREGATE VALUE WAS MORE THAT RS . 50,000/- DURING THE RELEVANT PREVIOUS YEAR THE ASSESSEE WAS REQUIRED TO DEDUCT TAX AT SOURCE AS PER PROVISIONS OF SECTION 194C(5) WHICH SAY THAT THE PE RSON RESPONSIBLE FOR PAYING SUCH SUMS SHALL BE LIABLE TO DEDUCT TAX IF THE AGGREGATE SUM EXCEEDS RS. 50,000/-. THEREFORE, THE HONBLE ITAT HAS ERRED IN DELETING THIS DISALLO WANCE. 4. ON THE OTHER HAND, THE LD. COUNSEL APPEARING ON BEHALF OF ASSESSEE HAS SUBMITTED THAT THE ARGUMENT OF THE ASSESSEE IS THAT AS REGARDING THE DISALLOWANCE OF RS.1,93,597/- ALL ARE RELATING TO THE PURCHASES MAD E. HENCE NO TDS IS REQUIRED. THEREFORE THERE IS NO MISTAKE APPARENT FROM RECORD IN THE ORDERS OF THE TRIBUNAL. 5. AFTER HEARING THE RIVAL SUBMISSIONS AND ON CARE FUL PERUSAL OF THE MATERIAL AVAILABLE ON RECORD, IT IS OBSERVED THAT THE TRIBUN AL IN PARA NO.5.4 HAS DELETED AN AMOUNT OF RS.1,93,597/- BY OBSERVING AS UNDER : IN REGARD TO THE OTHER, SINCE THE AMOUNTS INVOLVED ARE LESS THAN RS.20,000/- NO TDS IS REQUIRED TO BE DEDUCTED. WE CONFIRM THE DISALLOWANC E ON ACCOUNT OF THREE ITEMS I.E. NEGATIVE PROCESSING CHARGES, RUSH PRINTING CHARG ES AS WELL AS RELEASE PRINT CHARGES. 5.1. WE CHANGE THE FINDINGS IN RESPECT OF DELETION OF RS.1,93,597/- BY REPLACING THE SENTENCE IN REGARD TO THE OTHER, SINCE THE AMOUNTS INVOLVED ARE LESS THAN RS.20,000/- NO TDS IS REQUIRED TO BE DEDUCTED. WE CONFIRM THE D ISALLOWANCE ON ACCOUNT OF THREE ITEMS I.E. NEGATIVE PROCESSING CHARGES, RUSH PRI NTING CHARGES AS WELL AS RELEASE PRINT CHARGES WITH THE FOLLOWING SENTENCE : IN REGARD TO OTHERS SINCE THE AMOUNTS ARE RELATING TO THE PURCHASES OF ART PAPER FOR MAKING POSTERS AND THE SAME COMES UNDER THE CAT EGORY OF CONTRACT FOR THE PURCHASES OR SUPPLY IN ALLOWING THE SAME BY THE TRI BUNAL WE ARE OF THE VIEW THAT PROVISIONS OF SECTION 194C OF THE IT ACT IS NOT AP PLICABLE. 3 6. IN THE RESULT THE MISCELLANEOUS APPLICATION OF T HE REVENUE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20.07.2012. SD/- SD/- , , , , MAHAVIR SINGH, JUDICIAL MEMBER . .. . ! ! ! !. .. . , , , , '# '# '# '# , C.D.RAO, ACCOUNTANT MEMBER. ( (( (!# !# !# !#) )) ) DATE: 20.07.2012. '5 0 .$ 6'$(7- COPY OF THE ORDER FORWARDED TO: 1. M/S.JALAN DISTRIBUTORS PVT.LTD., 183/1, LENIN SARAN I, KOLKATA-13. 2 I.T.O., WARD-3(2), KOLKATA 3. THE CIT- I, KOLKATA, 4. THE CI T(A)-XIII, KOLKATA 5. DR, KOLKATA BENCHES, KOLKATA /$ ./ TRUE COPY, '5%2/ BY ORDER, DEPUTY /ASST. REGISTRAR , ITAT, KOLKATA BENCHES R.G.(.P.S.)