The ITO, Ward-2(4),, PORBANDAR v. Shri Rambhai S. Godhania,, PORBANDAR

ITA 243/RJT/2016 | 2009-2010
Pronouncement Date: 05-05-2021 | Result: Allowed

Appeal Details

RSA Number 24324914 RSA 2016
Assessee PAN AJWPG0480F
Bench Rajkot
Appeal Number ITA 243/RJT/2016
Duration Of Justice 4 year(s) 9 month(s) 21 day(s)
Appellant The ITO, Ward-2(4),, PORBANDAR
Respondent Shri Rambhai S. Godhania,, PORBANDAR
Appeal Type Income Tax Appeal
Pronouncement Date 05-05-2021
Appeal Filed By Department
Order Result Allowed
Bench Allotted DB
Tribunal Order Date 05-05-2021
Last Hearing Date 24-03-2021
First Hearing Date 24-03-2021
Assessment Year 2009-2010
Appeal Filed On 14-07-2016
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH RAJKOT BEFORE: SHRI AMARJIT SINGH ACCOUNTANT MEMBER AND MS. MADHUMITA ROY JUDICI AL MEMBER [CONDUCTED THROUGH E-COURT AT AH MEDABAD] ITO WARD-2(4) JR PORBANDAR (APPELLANT) VS SHRI RAMABHAI S GODHANIA PORBANDAR PAN: AJWPG0480F (RESPONDENT) SHRI RAMABHAI S GODHANIA PORBANDAR PAN: AJWPG0480F (APPELLANT) VS ITO WARD-2(4) JR PORBANDAR (RESPONDENT) REVENUE BY: SHRI GURUPRIT SINGH SR. D.R. ASSESSEE BY: SHRI SAGAR SHAH A.R. DATE OF HEARING : 24-03-2021 DATE OF PRONOUNCEMENT : 05-05- 2021 ITA NO. 243/RJT/2016 ASSESSMENT YEAR 2009-10 C.O. NO. 10/RJT/2016 (IN ITA NO. 243/RJT/2016) ASSESSMENT YEAR 2009-10 I.T.A NO. 243/RJT/2016 & CO NO.10/RJT/2016 A. Y. 2009-10 PAGE NO ITO VS. M/S. SHRI RAMABHAI S. GODHANIA 2 /ORDER PER : AMARJIT SINGH ACCOUNTANT MEMBER:- THIS APPEAL FILED BY REVENUE AND CROSS OBJECTION FI LED BY ASSESSEE FOR A.Y. 2009-10 ARISE FROM ORDER OF THE CIT(A) JAMNAGAR D ATED 18-04-2016 IN PROCEEDINGS UNDER SECTION 144 R.W.S. 147 OF THE IN COME TAX ACT 1961; IN SHORT THE ACT. 2. THE SOLITARY ISSUE IN THE APPEAL OF THE REVENUE IS PERTAINED TO DELETING THE ADDITION OF RS. 2 11 88 730/- ON ACCOUNT OF DISALLO WANCE U/S. 40(A)(IA) OF THE ACT. 3. THE BRIEF FACT OF THE CASE IS THAT RETURN OF INC OME DECLARING INCOME OF RS. 4 64 630/- WAS FILED ON 30 TH SEP 2009. IN THIS CASE ASSESSMENT U/S. 143(3) O F THE ACT WAS MADE ON 19 TH DECEMBER 2011 AND TOTAL INCOME WAS ASSED AT RS. 4 99 950/-. SUBSEQUENTLY THE CASE WAS REOPENED ON 19 TH MARCH 2014 BY ISSUING OF NOTICE U/S. 148 OF THE ACT ON THE GROUND THAT AS SESSEE HAS NOT DEDUCTED TAX UNDER THE PROVISION OF SECTION 194I OF THE ACT IN R ESPECT OF TRANSPORT RENT EXPENSES TO THE AMOUNT OF RS. 2 11 88 780/-. DURING THE COU RSE OF RE-ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER ISSUED A NUMBER OF NOTICES AS ELABORATED AT PAGE NO. 3 OF THE ASSESSMENT PROCEEDINGS. HOWEVER THE ASSESSEE HAS FAILED TO MAKE ANY COMPLIANCE. UNDER THE CIRCUMSTANCES THE ASSESSING OFFICER COMPLETED THE ASSESSMENT U/S. 144 R.W.S. 147 OF THE ACT HOLDI NG THAT ASSESSEE HAS FAILED TO MAKE COMPLIANCE WITH SECTION 194I OF THE ACT THERE FORE CORRESPONDING RENT EXPENSES OF RS. 2 11 88 780/- WAS DISALLOWED U/S. 4 0(A)(IA) OF THE ACT AND ADDED TO THE TOTAL INCOME OF THE ASSESSEE. 4. AGGRIEVED ASSESSEE HAS FILED APPEAL BEFORE THE L D. CIT(A). THE LD. CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE HOLDING THAT ASS ESSEE HAS NOT TAKEN ANY TRUCK ON I.T.A NO. 243/RJT/2016 & CO NO.10/RJT/2016 A. Y. 2009-10 PAGE NO ITO VS. M/S. SHRI RAMABHAI S. GODHANIA 3 RENT OR HIRE AND ALL THE PAYEES WERE HAVING PAN. D URING THE COURSE OF APPELLATE PROCEEDINGS BEFORE US THE LD. DEPARTMENTAL REPRESE NTATIVE VEHEMENTLY CONTENDED THAT DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN SPITE OF ISSUING A NUMBER OF NOTICES THE ASSESSEE HAS NEITHER MADE ANY COMPLIANC E AND NOR FURNISHED ANY SUPPORTING MATERIAL TO SUBSTANTIATE THAT NO TDS WAS REQUIRED TO BE DEDUCTED IN RESPECT OF PAYMENT OF TRANSPORT RENT EXPENSES. HE HAS ALSO SUBMITTED THAT THE LD. CIT(A) HAS MADE ERRONEOUS DECISION AS HE HAS NEITHE R ADMITTED ANY EVIDENCE UNDER RULE 46A NOR CALLED ANY REMAND REPORT FROM TH E ASSESSING OFFICER. ON THE OTHER HAND THE LD. COUNSEL HAS SUPPORTED THE ORDER OF LD. CIT(A). 5. HEARD BOTH THE SIDES AND PERUSED THE MATERIAL ON RECORD. IT IS UNDISPUTED FACT THAT ASSESSMENT IN THE CASE OF THE ASSESSEE WA S FINALIZED U/S. 144 R.W.S. 147 OF THE ACT SINCE THE ASSESSEE HAS FAILED TO MAKE ANY C OMPLIANCE IN SPITE OF ISSUING OF NUMBER OF NOTICES BY THE ASSESSING OFFICER DURING T HE COURSE OF RE-ASSESSMENT PROCEEDINGS. BECAUSE OF NON-COMPLIANCE THE ASSESS ING OFFICER COULD NOT VERIFY THE RELEVANT MATERIAL FOR NOT DEDUCTING TAX ON TRAN SPORT RENT EXPENSES OF RS. 2 11 88 780/- AS PRESCRIBED IN THE PROVISION OF SEC TION194I OF THE ACT. HOWEVER IT IS NOTICED THAT LD. CIT(A) HAS DELETED THE DISAL LOWANCE HOLDING THAT ASSESSEE HAS NOT TAKEN THE TRUCKS ON RENT AND ALL THE PAYEES WER E HAVING PAN NO. IN THIS REGARD THE LD. CIT(A) HAS ALSO NOT ADMITTED ANY EV IDENCES UNDER RULE 46A SINCE ASSESSEE HAS NOT MADE ANY COMPLIANCE BEFORE THE ASS ESSING OFFICER. THE LD. CIT(A) HAS ALSO NOT CALLED ANY REMAND REPORT FROM THE ASSESSING OFFICER IN RESPECT OF THE EVIDENCES PRODUCED BY THE ASSESSEE. SECTION 250(6) OF THE ACT CONTEMPLATES THAT FIRST APPELLATE AUTHORITY WOULD S TATE THE POINTS IN DISPUTE AND THEREAFTER RECORD REASONS IN SUPPORT OF HIS FINDING ON THESE POINTS IN DISPUTE. NORMALLY WHENEVER ANY IRREGULARITY CREPT IN THE PRO CEEDINGS THEN AFTER REMOVING THE IRREGULARITIES PROCEEDINGS IS TO BE INITIATED FROM THAT STAGE BUT BY REMITTING THE ISSUE TO THE LD. FIRST APPELLATE AUTHORITY WE WOULD BE MULTIPLYING THE LITIGATION I.T.A NO. 243/RJT/2016 & CO NO.10/RJT/2016 A. Y. 2009-10 PAGE NO ITO VS. M/S. SHRI RAMABHAI S. GODHANIA 4 BECAUSE THE LD. CIT(A) WOULD CALL FOR A REMAND REPO RT FROM THE ASSESSING OFFICER AND PROCEEDINGS WOULD COMMENCE ON TWO STAGES IN ORD ER TO AVOID THAT SITUATION WE WOULD DEEM IT PROPER TO SET ASIDE ORDER OF BOTH THE REVENUE AUTHORITIES AND REMIT ALL THE ISSUES TO THE ASSESSING OFFICER. IT IS NEEDLESS TO SAY THAT OBSERVATION MADE BY US WILL NOT INJURE OR IMPAIR THE CASE OF TH E ASSESSING OFFICER AND WILL NOT CAUSE ANY PREJUDICE TO THE DEFENSE/EXPLANATION OF T HE ASSESSEE. THEREFORE WE REFER THIS ISSUE TO THE FILE OF ASSESSING OFFICER D ECIDING AFRESH AFTER EXAMINATION AND VERIFICATION OF THE RELEVANT SUPPORTING MATERIA L ON THIS ISSUE. ACCORDINGLY THIS APPEAL OF THE REVENUE IS ALLOWED FOR STATISTIC AL PURPOSE. CO NO. 10/RJT/2016 FILED BY ASSESSEE 6. THE LD. COUNSEL HAS NOT PRESSED THE CROSS OBJECT ION THEREFORE THE SAME IS DISMISSED AS NOT PRESSED. 7. IN THE RESULT THE APPEAL OF THE REVENUE IS ALLO WED FOR STATISTICAL PURPOSES AND CROSS OBJECTION FILED BY THE ASSESSEE IS DISMIS SED. ORDER PRONOUNCED IN THE OPEN COURT ON 05-05-2021 SD/- SD/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 05/05/2021 / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. I.T.A NO. 243/RJT/2016 & CO NO.10/RJT/2016 A. Y. 2009-10 PAGE NO ITO VS. M/S. SHRI RAMABHAI S. GODHANIA 5 BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL RAJKOT