Kamal Kanti Pattanayak, Purba Medinipur v. ACIT, Circle-Haldia, Purba Medinipur

ITA 1910/KOL/2014 | 2009-2010
Pronouncement Date: 28-09-2016

Appeal Details

RSA Number 191023514 RSA 2014
Assessee PAN AFEPP7192K
Bench Kolkata
Appeal Number ITA 1910/KOL/2014
Duration Of Justice 1 year(s) 11 month(s) 15 day(s)
Appellant Kamal Kanti Pattanayak, Purba Medinipur
Respondent ACIT, Circle-Haldia, Purba Medinipur
Appeal Type Income Tax Appeal
Pronouncement Date 28-09-2016
Appeal Filed By Assessee
Bench Allotted SMC
Tribunal Order Date 28-09-2016
Date Of Final Hearing 21-07-2016
Next Hearing Date 21-07-2016
Assessment Year 2009-2010
Appeal Filed On 13-10-2014
Judgment Text
I.T.A. NO. 1910/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 1 OF 5 IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA C(SMC) BENCH KOLKATA BEFORE SHRI P.M. JAGTAP ACCOUNTANT MEMBER I.T.A. NO. 1910 /KOL/ 2014 ASSESSMENT YEAR: 2009-2010 KAMAL KANTI PATTANAYAK ............................ ...........................APPELLANT VILL. JHAUPATHRA CHANPI (HALDIA) PURBA MEDINIPUR [PAN : AFEPP 7192 K] -VS.- ASSISANT COMMISSIONER OF INCOME TAX ............... ...................RESPONDENT CIRCLE-HALDIA BASUDEVPUR KHANJANCHAK HALDIA PURBA MEDINIPUR-721 602 APPEARANCES BY: SHRI K.L. BHOWMICK A.R. FOR THE ASSESSEE SHRI RAJAT KUMAR KUREEL JCIT D.R. FOR THE DEPARTMENT DATE OF CONCLUDING THE HEARING : JULY 21 2016 DATE OF PRONOUNCING THE ORDER : SEPTEMBER 28 2016 O R D E R THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-XXXIII KO LKATA DATED 11.07.2014 FOR THE ASSESSMENT YEAR 2009-10. 2. THE FIRST ISSUE RAISED IN GROUND NO. 1 RELATES T O THE DISALLOWANCE OF RS.10 67 800/- MADE BY THE ASSESSING OFFICER AND CO NFIRMED BY THE LD. CIT(APPEALS) UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT 1961. 3. THE ASSESSEE IN THE PRESENT CASE IS AN INDIVIDUA L WHO IS ENGAGED IN THE BUSINESS OF LABOUR CONTRACTOR AND SUB-CONTRACTO R IN THE NAME OF HIS PROPRIETARY CONCERN M/S. KIRAN CONSTRUCTION. HE ALS O CARRIES ON THE BUSINESS OF RUNNING OF A PETROL PUMP IN THE NAME OF HIS OTHER PROPRIETARY CONCERN M/S. SHIVAM FILLING STATION. THE RETURN OF INCOME FOR THE YEAR I.T.A. NO. 1910/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 2 OF 5 UNDER CONSIDERATION WAS FILED BY THE ASSESSEE ON 05 .10.2009 DECLARING TOTAL INCOME OF RS.13 43 140/-. DURING THE COURSE O F ASSESSMENT PROCEEDINGS IT WAS NOTICED BY THE ASSESSING OFFICE R THAT THE ASSESSEE HAS PAID LABOUR CHARGES TOTALLING TO RS.10 67 800/- TO SEVEN PARTIES THAT EXCEEDED RS.50 000/-. ACCORDING TO THE ASSESSING OF FICER THE ASSESSEE WAS LIABLE TO DEDUCT TAX AT SOURCE FROM THE SAID PA YMENTS UNDER SECTION 194C OF THE ACT AND SINCE THERE WAS FAILURE ON THE PART OF THE ASSESSEE TO DO SO HE DISALLOWED THE LABOUR CHARGES OF RS.10 67 800/- UNDER SECTION 40(A)(IA). 4. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER U NDER SECTION 40(A)(IA) WAS DISPUTED BY THE ASSESSEE IN THE APPEA L FILED BEFORE THE LD. CIT(APPEALS). DURING THE COURSE OF APPELLATE PROCEE DINGS BEFORE THE LD. CIT(APPEALS) IT WAS SUBMITTED BY THE ASSESSEE THAT THE RELEVANT PAYMENTS ON ACCOUNT OF LABOUR CHARGES HAD NOT BEEN MADE BY HIM TO ANY CONTRACTOR BUT THE SAME WERE MADE TO THE WORKERS W HO HAD CHOSEN REPRESENTATIVES AMONGST THEM FOR THE PURPOSE OF REC EIVING AND DISBURSING THEIR WAGES. IN THIS REGARD OPPORTUNITY WAS GIVEN BY THE LD. CIT(APPEALS) TO THE ASSESSEE TO PRODUCE THE WAGE RE GISTER OR WAGE-SHEETS TO ESTABLISH HIS CASE THAT THE PAYMENTS HAD BEEN MA DE TO THE REPRESENTATIVES OF THE LABOURS AND NOT TO THE CONTR ACTORS. THE ASSESSEE HOWEVER FAILED TO COMPLY WITH THIS REQUIREMENT OF THE LD. CIT(APPEALS) AND KEEPING IN VIEW THE SAME THE LD. CIT(APPEALS) PROCEEDED TO CONFIRM THE DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDE R SECTION 40(A)(IA). 5. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES ON THIS ISSUE AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUNSEL FOR THE ASSESSEE HAS FURNISHED BEFORE ME THE DETAILS OF LAB OUR CHARGES PAID AT PAGE NO. 5 OF THE PAPER BOOK ALONG WITH THE CORRESP ONDING WAGE REGISTER TO SHOW THAT THE AMOUNTS IN QUESTION PAID BY THE AS SESSEE ON ACCOUNT OF LABOUR CHARGES WERE ACTUALLY MEANT FOR THE WORKERS WHICH WAS PAID TO THEIR GROUP LEADERS AND NOT TO ANY INDEPENDENT CONT RACTOR. HE SUBMITTED THAT THIS EVIDENCE WAS PRODUCED BY THE ASSESSEE BEF ORE THE LD. I.T.A. NO. 1910/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 3 OF 5 CIT(APPEALS) DURING THE COURSE OF APPELLATE PROCEED INGS ON 14.02.2014 BUT THE SAME HAS NOT BEEN CONSIDERED BY THE LD. CIT (APPEALS). KEEPING IN VIEW THIS SUBMISSIONS MADE BY THE LD. COUNSEL FOR T HE ASSESSEE I CONSIDER IT FAIR AND PROPER AND IN THE INTEREST OF JUSTICE T O SET ASIDE THE IMPUGNED ORDER OF THE LD. CIT(APPEALS) ON THIS ISSUE AND REM IT THE MATTER BACK TO HIM FOR DECIDING THE SAME AFRESH IN THE LIGHT OF TH IS EVIDENCE WHICH ACCORDING TO THE ASSESSEE IS ALREADY AVAILABLE ON RECORD BEFORE HIM. GROUND NO. 1 IS ACCORDINGLY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 6. THE ISSUE RAISED IN GROUND NO. 2 RELATES TO THE DISALLOWANCE OF RS.78 031/- MADE BY THE ASSESSING OFFICER AND CONFI RMED BY THE LD. CIT(APPEALS) ON ACCOUNT OF ASSESSEES CLAIM FOR DED UCTION UNDER SECTION 24(B) OF THE ACT. 7. DURING THE YEAR UNDER CONSIDERATION THE ASSESSE E HAD RECEIVED RENT OF RS.2 60 046/- FOR THE LAND GIVEN ON LEASE TO ESS AR OIL LIMITED. AGAINST THE SAID INCOME DEDUCTION UNDER SECTION 24(B) WAS CLAIMED BY THE ASSESSEE AMOUNTING TO RS.78 031/-. ACCORDING TO THE ASSESSING OFFICER THE LEASE RENT OF LAND RECEIVED BY THE ASSESSEE WAS CHARGEABLE TO TAX UNDER THE HEAD INCOME FROM OTHER SOURCES AND NOT UNDER THE HEAD INCOME FROM HOUSE PROPERTY AND THEREFORE THE AS SESSEE WAS NOT ENTITLED FOR DEDUCTION UNDER SECTION 24(B) OF THE A CT. ACCORDINGLY THE CLAIM OF THE ASSESSEE FOR DEDUCTION UNDER SECTION 2 4(B) WAS DISALLOWED BY HIM. 8. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER O N ACCOUNT OF HIS CLAIM FOR DEDUCTION UNDER SECTION 24(B) WAS DISPUTE D BY THE ASSESSEE IN THE APPEAL FILED BEFORE THE LD. CIT(APPEALS). DURIN G THE COURSE OF APPELLATE PROCEEDINGS A COPY OF FRANCHISE AGREEMEN T ENTERED INTO BETWEEN M/S. ESSAR OIL LIMITED AND HIS PROPRIETARY CONCERN M/S. SHIVAM FILLING STATION WAS PRODUCED BY THE ASSESSEE IN SUP PORT OF HIS CLAIM THAT WHAT WAS GIVEN BY HIM TO M/S. ESSAR OIL LIMITED WAS NOT JUST THE LAND BUT EVEN THE OTHER FACILITIES INCLUDING THE BUILDING CO NSTRUCTED ON THE LAND AS I.T.A. NO. 1910/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 4 OF 5 PER THE SPECIFICATION OF M/S. ESSAR OIL LIMITED. TH E LD. CIT(APPEALS) HOWEVER FOUND THAT THE FRANCHISE AGREEMENT PRODUCE D BY THE ASSESSEE WAS NOT IN RESPECT OF LEASING OUT OF ANY IMMOVABLE PROPERTY BELONGED TO THE ASSESSEE. HE HELD THAT THE ASSESSEE THUS HAD FU RNISHED A COMPLETELY DIFFERENT AGREEMENT WHICH WAS NEITHER RELEVANT NOR SUFFICIENT TO SUPPORT HIS CASE ON THE ISSUE. ACCORDINGLY THE DISALLOWANC E MADE BY THE ASSESSING OFFICER ON ACCOUNT OF ASSESSEES CLAIM FO R DEDUCTION UNDER SECTION 24(B) WAS CONFIRMED BY THE LD. CIT(APPEALS) . 9. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES ON THIS ISSUE AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS SUBMITTED BY THE ASSESSEE THE FRANCHISE AGREEMENT ENTERED INTO WITH M/S. ESSAR OIL LIMITED WAS INADVERTENTLY FILED BY HIM BEFORE THE L D. CIT(APPEALS) INSTEAD OF THE LEASE AGREEMENT. HE HAS FILED A COPY OF THE LEASE AGREEMENT DATED 05.01.2006 ENTERED INTO BETWEEN HIM AND M/S. ESSAR OIL LIMITED AT PAGE NOS. 77 TO 93 OF HIS PAPER BOOK AS ADDITIONAL EVIDENCE AND HAS ALSO FILED AN APPLICATION SEEKING ADMISSION OF THE SAID ADDITIONAL EVIDENCE. KEEPING IN VIEW THE REASONS GIVEN BY THE ASSESSEE I N THE SAID APPLICATION AND HAVING REGARD TO THE RELEVANCE OF THE LEASE DEE D FILED BY THE ASSESESE AS THE ADDITIONAL EVIDENCE I ADMIT THE SAME AND RE MIT THIS MATTER TO THE FILE OF THE LD. CIT(APPEALS) FOR DECIDING THE SAME AFRESH IN THE LIGHT OF THE SAID ADDITIONAL EVIDENCE. GROUND NO. 2 IS ACCORDING LY TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 10. IN THE RESULT THE APPEAL OF THE ASSESSEE IS TR EATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON SEPTEMBER 28 2016. SD/- (P.M. JAGTAP) ACCOUNTANT MEMBER KOLKATA THE 28 TH DAY OF SEPTEMBER 2016 COPIES TO : (1) SHRI KAMAL KANTI PATTANAYAK VILL. JHAUPATHRA CHANPI (HALDIA) PURBA MEDINIPUR I.T.A. NO. 1910/KOL./2014 ASSESSMENT YEAR: 2009-2010 PAGE 5 OF 5 (2) ASSISANT COMMISSIONER OF INCOME TAX CIRCLE-HALDIA BASUDEVPUR KHANJANCHAK HALDIA PURBA MEDINIPUR-721 602 (3) COMMISSIONER OF INCOME TAX (APPEALS)-XXXIII K OLKATA; (4) COMMISSIONER OF INCOME TAX- (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCHES KOLKATA LAHA/SR. P.S.