Sunrise Victuals Pvt Ltd, SONIPAT v. ITO (TDS), ROHTAK

ITA 1949/DEL/2020 | 2017-2018
Pronouncement Date: 10-03-2021 | Result: Allowed

Appeal Details

RSA Number 194920114 RSA 2020
Assessee PAN AAQCS2057J
Bench Delhi
Appeal Number ITA 1949/DEL/2020
Duration Of Justice 2 month(s) 26 day(s)
Appellant Sunrise Victuals Pvt Ltd, SONIPAT
Respondent ITO (TDS), ROHTAK
Appeal Type Income Tax Appeal
Pronouncement Date 10-03-2021
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted G
Tribunal Order Date 10-03-2021
Assessment Year 2017-2018
Appeal Filed On 14-12-2020
Judgment Text
I.T.A.NO.1949/DEL/2020 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH G NEW DELHI BEFORE SHRI BHAVNESH SAINI JUDICIAL MEMBER AND SHRI B.R.R. KUMAR ACCOUNTANT MEMBER . . /. I.T.A NO.1949/DEL/2020 / ASSESSMENT YEAR: 2017-18 M/S SUNRISE VICTUALS P. LTD. 16 HSIIDC PHASE-IV KUNDLI DISTT. SONEPAT HARYANA. VS. ITO (TDS) ROHTAK. PAN NO. AAQCS2057J APPELLANT / RESPONDENT /ASSESSEE BY SH. KAILASH KHEMANI CA /REVENUE BY SH. PRAKASH DUBEY SR. DR / DATE OF HEARING: 10 .03.2021 /PRONOUNCEMENT ON 10 .03.2021 /O R D E R PER BHAVNESH SAINI J.M. THIS APPEAL BY ASSESSEE HAS BEEN DIRECTED AGAINST THE ORDER OF LD. CIT(A)-ROHTAK DATED 22.01.2020 FOR AY 2017-18 CHAL LENGING THE DEMAND ARISES U/S 201(1) AND 201(1A) OF THE I.T. ACT. 2. WE HAVE HEARD LD. REPRESENTATIVES OF BOTH THE PA RTIES AND PERUSED THE MATERIAL ON RECORD. 3. BRIEFLY THE FACTS OF THE CASE ARE THAT AS PER TH E INFORMATION AVAILABLE WITH THE AO ASSESSEE PR HAS NOT FILED QU ARTERLY E-TDS RETURNS FOR ASSESSMENT YEAR UNDER APPEAL AND DEPOSITED NIL TDS. ON THE BASIS OF ABOVE INFORMATION AN INSPECTION/SURVEY U/S 133A(2A) WAS CONDUCTED AND IT WAS NOTICED THAT ASSESSEE COMPANY HAD NOT MADE T AX DEDUCTION AT I.T.A.NO.1949/DEL/2020 2 SOURCE ON THE PAYMENTS OF INTEREST U/S 194A OF THE ACT AND COMMISSION (SALES PROMOTION/DISCOUNT) U/S 194H OF THE I.T. ACT . THE AO FURTHER NOTED THAT ASSESSEE HAS CREDITED/PAID INTEREST AT R S. 7 89 301/- TO NON BANKING FINANCE COMPANIES MENTIONED IN THE ASSESSME NT ORDER. THE AO NOTED THAT SINCE NO TDS WAS MADE ON THIS PAYMENT T HEREFORE SAME IS DISALLOWABLE U/S 194A(1) OF THE I.T. ACT. THE AO THEREFORE NOTED THAT ASSESSEE IS DEEMED TO BE IN DEFAULT U/S 201(1) FOR AN AMOUNT OF RS. 78 930/- AND CONSEQUENTIAL INTEREST OF RS. 18 936/- U/S 201(1A) OF THE I.T. ACT FOR FAILURE TO DEDUCT TAX AT SOURCE ON PAY MENT OF INTEREST. THE AO FURTHER NOTED THAT ASSESSEE HAS CREDITED/PAID RS . 89 52 069/- ON ACCOUNT OF SALES PROMOTION AND RS. 27 13 341/- ON A CCOUNT OF DISCOUNT RESPECTIVELY DURING ASSESSMENT YEAR UNDER APPEAL. IT WAS FOUND THAT ASSESSEE HAS NOT MADE TDS. THE AO THEREFORE TREA TED ASSESSEE TO BE DEEMED TO BE IN DEFAULT U/S 201(1) FOR AN AMOUNT OF RS. 11 66 539/- AND CONSEQUENTIAL INTEREST THEREON AT RS. 2 79 960/- U/ S 201(1A) OF THE I.T. ACT FOR FAILURE TO DEDUCT TAX AT SOURCE ON THE PAYM ENT OF COMMISSION/SUSPENSION ACCOUNT U/S 194H(IV) OF THE I .T. ACT. THE AO ACCORDINGLY PASSED THE ORDER. THE LD. CIT(A) IN A BSENCE OF ANY EXPLANATION OR DOCUMENTARY EVIDENCE DISMISS THE APP EAL OF THE ASSESSEE. 4. AFTER CONSIDERING THE RIVAL SUBMISSIONS WE ARE OF THE VIEW THAT MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE AO. 5. LD. COUNSEL FOR ASSESSEE SUBMITTED THAT DURING A SSESSMENT YEAR UNDER APPEAL INTEREST PAYMENT HAS BEEN MADE TO NBFC S WHICH HAD DULY FILED THEIR INCOME TAX RETURNS U/S 139(1) AND PAID THE TAXES. THE CERTIFICATE OF THE ACCOUNTANT SHALL BE SUBMITTED FR OM THE PARTIES. HE HAS FURTHER SUBMITTED THAT LD. CIT(A) HAS WRONGLY TREAT ED ASSESSEE TO BE IN DEFAULT FOR NOT DEDUCTED TDS U/S 194H OF THE I.T. A CT BY TREATING THE SALES PROMOTION AND CASH DISCOUNT EXPENSES AS COMMI SSION EXPENSES WITHOUT CONSIDERING THE FACT THAT THE ASSESSEE MAY NOT BE CONSIDERED AS ASSESSEE IN DEFAULT U/S 201 OF THE I.T. ACT. AS PE R THE SETTLED LAW SALES I.T.A.NO.1949/DEL/2020 3 PROMOTION AND CASH DISCOUNT EXPENSES INCURRED ON PR INCIPAL TO PRINCIPAL BASIS DO NOT MEET THE DEFINITION OF COMMISSION OR B ROKERAGE AS PER THE PROVISIONS OF SECTION 194H OF THE I.T. ACT. LD. CO UNSEL FOR ASSESSEE SUBMITTED THAT SIMILAR SUBMISSIONS MADE BEFORE LD. CIT(A) AND REQUEST FOR ADJOURNMENT WAS ALSO MADE. THEREFORE IN ABSEN CE OF THE EVIDENCES THE APPEAL OF ASSESSEE STANDS DISMISSED. HE HAS T HEREFORE SUBMITTED THAT ONE MORE CHANCE MAY BE GIVEN TO ASSESSEE TO FI LE THE DOCUMENTARY EVIDENCE BEFORE THE LD. CIT(A) TO EXPLAIN THE ABOVE ISSUE WHICH MAY PROVE THAT ASSESSEE IS NOT DEEMED TO BE IN DEFAULT ON ACCOUNT OF NON DEDUCTION OF TDS. 6. IN VIEW OF THE ABOVE EXPLANATION OF ASSESSEE AND THAT THE EXPLANATION OF THE ASSESSEE FILED BEFORE THE AUTHOR ITIES BELOW HAVE NOT BEEN CONSIDERED IN PROPER PERSPECTIVE WE ARE OF TH E VIEW THAT THE MATTER REQUIRES RECONSIDERATION AT THE LEVEL OF THE LD. CIT(A). WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER IN ISSUE TO HIS FILE WITH DIRECTION TO RE-DECIDE TH E APPEAL OF ASSESSEE AS PER LAW BY GIVING REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS DIRECTED TO FILE RELEVANT DO CUMENTARY EVIDENCES BEFORE THE LD. CIT(A) FOR FINAL DISPOSAL OF THE APP EAL. 7. IN THE RESULT THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 10/03/2021 SD/- SD/- (B.R.R. KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 10.03.2021 * KAVITA ARORA SR. P.S. COPY OF ORDER SENT TO- ASSESSEE/AO/PR. CIT/ CIT (A) / ITAT (DR)/GUARD FILE OF ITAT. BY ORDER I.T.A.NO.1949/DEL/2020 4 ASSISTANT REGISTRAR ITAT: DELHI BENCHES-DELHI