Harjinder Singh, Jamshepur v. ITO, Jamshepur

ITA 126/RAN/2012 | 2005-2006
Pronouncement Date: 25-11-2014

Appeal Details

RSA Number 12625114 RSA 2012
Bench Ranchi
Appeal Number ITA 126/RAN/2012
Duration Of Justice 1 year(s) 11 month(s) 15 day(s)
Appellant Harjinder Singh, Jamshepur
Respondent ITO, Jamshepur
Appeal Type Income Tax Appeal
Pronouncement Date 25-11-2014
Appeal Filed By Assessee
Bench Allotted DB
Tribunal Order Date 25-11-2014
Assessment Year 2005-2006
Appeal Filed On 10-12-2012
Judgment Text
1 ITA NO.126/RAN/2012 SH.HARJINDER SINGH INCOME TAX APPELLATE TRIBUNAL CIRCUIT BENCH RANCHI BEFORE HON'BLE SHRI H.L. KARWA PRESIDENT AND HON'BLE SHRI B.R. BASKARAN ACCOUNTANT MEMBER ITA NO. 126/RAN/12 A.Y 2005 - 06 HARJINDER SINGH JSR VS. INCOME - TAX OFFICER WARD 3(3) JSR ( APPELLANT ) ( RESPONDENT ) FOR THE APPELLANT : SHRI P.S.PAUL LD.AR FOR THE RESPONDENT : SHRI RAKESH KR. DAS JCIT/LD.DR DATE OF HEARING : 25 - 11 - 2014 DATE OF PRONOUNCEMENT: 25 - 11 - 2014 ORDER SHRI B.R. BASKARAN ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL CHALLENGING THE ORDER DATED 30 - 09 - 2011 PASSED BY LD CIT(A) JAMSHEDPUR FOR ASSESSM ENT YEAR 2005 - 06 CONFIRMING THE ADDITION OF RS.23 65 347/ - MADE BY THE ASSESSING OFFICER U/S 40(A)(IA) OF THE ACT. 2. THE APPEAL IS BARRED BY LIMITATION BY 405 DAYS AND THE ASSESSEE HAS MOVED A PETITION REQUESTING THE BENCH TO CONDONE THE DELAY. WE HEARD THE PARTIES ON THIS PRELIMINARY ISSUE. HAVING REGARD TO THE SUBMISSIONS MADE IN THE PETITION WE CONDONE THE DELAY AND ADMIT THE APPEAL FOR HEARING. 3. WE HEARD THE PARTIES AND PERUSED THE RECORD. WE NOTICE THAT THE ASSESSEE IS A TRANSPORT OPERATER. H E HAS HIRED LORRIES FROM THE MARKET PAID THE TRUCK HIRE CHARGES. THE ASSESSEE DID NOT DEDUCT ANY TDS FROM THE HIRE CHARGES PAID BY HIM. THE LD CIT INITIATED REVISION PROCEEDINGS AND DIRECTED THE AO TO DISALLOW THE TRUCK HIRE CHARGES U/S 40(A)(IA) OF THE ACT FOR NON - 2 ITA NO.126/RAN/2012 SH.HARJINDER SINGH DEDUCTION OF TAX AT SOURCE. ACCORDINGLY THE AO DISALLOWED A PORTION OF TRUCK HIRE CHARGES BY COMPUTING THE SAME ON SOME BASIS U/S 40(A)(IA) FOR NON - DEDUCTION OF TAX AT SOURCE U/S 194C OF THE ACT. THE LD CIT(A) ALSO CONFIRMED THE SAID ADDIT ION AND HENCE THE ASSESSEE HAS FILED THIS APPEAL BEFORE US. 4. ACCORDING TO THE ASSESSEE IT IS A CASE OF SIMPLE HIRING OF VEHICLES WHICH WILL NOT FALL IN THE CATEGORY OF CARRYING OUT ANY WORK IN PURSUANCE OF CONTRACT AS CONTEMPLATED IN SEC. 194C OF THE ACT. WE FIND FORCE IN THE SAID CONTENTIONS AS IT IS IN ACCORDANCE WITH THE DECISION RENDERED BY HON BLE MADRAS HIGH COURT IN THE CASE OF CIT VS. POOMPUHAR SHIPPING CORPORATION LTD. (282 ITR 3). IN THE SAID CASE THE ASSESSEE THEREIN WAS ENGAGED IN THE BUSINESS OF TRANSPORTATION OF COAL UNDER A CONTRACT EXECUTED WITH THE TAMIL NADU ELECTRICITY BOARD. IT HIRED SHIPS BELONGING TO OTHER SHIPPING COMPANIES AND PAID HIRE CHARGES TO THEM FOR USING THEIR SHIPS. THE ASSESSEE DID NOT DEDUCT TAX AT SOURCE U/S. 194C OF THE ACT ON THE PAYMENTS SO MADE. THE HON BLE MADRAS HIGH COURT HELD THAT THE PAYMENT OF HIRE CHARGES OF TAKING TEMPORARY POSSESSION OF SHIPS BY THE ASSESSEE - COMPANY WOULD NOT FALL WITHIN THE PROVISIONS OF SEC. 194C OF THE ACT AND HENCE NO TAX AT SOURCE WAS REQUIRED TO BE DEDUCTED. IT WAS FURTHER HELD THAT HIRING OF SHIPS FOR THE PURPOSE OF USING THEM IN THE ASSESSEE S BUSINESS DID NOT AMOUNT TO A CONTRACT FOR CARRYING OUT ANY WORK AS CONTEMPLATED IN THE PROVISIONS OF SEC. 194C OF THE ACT. 6. IN THE INSTANT CASE ALSO THE ASSESSEE HAS HIRED LORRIES FOR HIS TRANSPORT BUSINESS. ACCORDINGLY IN VIEW OF THE DECISION RENDERED IN THE CASE OF POOMPUHAR SHIPPING CORPORATION LTD.(SUPRA) THE SAID PAYMENTS CANNOT BE CONSIDERED AS PAYMENTS MADE FO R CARRYING OUT ANY WORK AS CONTEMPLATED U/S. 194C OF THE ACT AND HENCE THE ASSESSEE IS NOT LIABLE TO DEDUCT TAX AT SOURCE 3 ITA NO.126/RAN/2012 SH.HARJINDER SINGH FROM THE TRUCK HIRE CHARGES U/S 194C OF THE ACT. ACCORDINGLY WE SET ASIDE THE ORDER OF LD CIT(A) ON THIS ISSUE AND DIRECT THE AO TO DELETE THE IMPUGNED DISALLOWANCE. 7. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 25 - 11 - 2014 SD/ - SD/ - [ H.L. KARWA ] [ B.R. BASKARAN ] PRESIDENT ACCOUNTANT MEMBER DA TE: 25. 11.2014 PLACE : RANCHI PP SPS COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT : SHRI HARJINDER SINGH NEW TATA LINE QTR. NO.49 POST: GOLMURI JSR - 831003. 2 THE RESPONDENT: I T O W 1(2) JSR 3..THE CIT 4.THE CIT(A) 5.DR ITAT CIRCU IT BENCH RANCHI 6. GUARD FILE. TRUE COPY BY ORDER ASSTT. REGISTRAR 4 ITA NO.126/RAN/2012 SH.HARJINDER SINGH 1. DATE OF DICTATION .............25 - 11 - 2014....................... 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEM BER ........................OTHER MEMBER .......26 - 11 - 2014........................ 3. DATE ON WHICH THE APPROVED DRAFT COMES TO THE SR. P.S./P.S. ..................... 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER FOR PRONOUNCEMENT. ..................25 - 11 - 14 .................................................................. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE SR. P.S./P.S ................ 6. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK ................................. ...... 7. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK ......................................... 8. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER ..................................................................... ............................ 9. DATE OF DESPATCH OF THE ORDER ..............................................................