LILY MINERALS, MUMBAI v. ACIT CIR 13(3), MUMBAI

ITA 256/MUM/2011 | 2007-2008
Pronouncement Date: 30-09-2016

Appeal Details

RSA Number 25619914 RSA 2011
Assessee PAN AAAFL2252K
Bench Mumbai
Appeal Number ITA 256/MUM/2011
Duration Of Justice 5 year(s) 8 month(s) 18 day(s)
Appellant LILY MINERALS, MUMBAI
Respondent ACIT CIR 13(3), MUMBAI
Appeal Type Income Tax Appeal
Pronouncement Date 30-09-2016
Appeal Filed By Assessee
Bench Allotted A
Tribunal Order Date 30-09-2016
Date Of Final Hearing 21-01-2016
Next Hearing Date 21-01-2016
Assessment Year 2007-2008
Appeal Filed On 11-01-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH MUMBAI BEFORE SHRI D. KARUNAKARA RAO ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY JUDICIAL MEMBER I.T.A. NO.256/M/2011 (ASSESSMENT YEAR: 2007 - 2008 ) M/S. LILY MINERALS 1 ST FLOOR MAHESH CHAMBERS 391 NARSI NATHA STREET MASJID BUNDER (W) MUMBAI - 09. / VS. ACIT 13(3) AAYAKAR BHAVAN MUMBAI 400 020. ./ PAN : AAAFL2252K ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI VIJAY KOTHARI / RESPONDENT BY : SHRI A. RAMACHANDRAN DR / DATE OF HEARING : 29.08.2016 / DATE OF PRONOUNCEMENT : 30 .09.2016 / O R D E R PER D. KARUNAKARA RAO AM: THIS APPEAL FILED BY THE ASSESSEE ON 11.1.2011 IS AGAINST THE ORDER OF THE CIT (A) - 24 MUMBAI DATED 30.11.2010 FOR THE ASSESSMENT YEAR 2007 - 2008. IN THIS APPEAL ASSESSEE RAISED THE FOLLOWING GROUNDS WHICH READ AS UNDER: - 1. THE LD CIT (A) ERRED IN DISALLOWING U/S 40(A)(IA) AN AMOUNT OF RS. 8 18 201/ - BEING THE AMOUNT OF TRANSPORTATION CHARGES PAID TO THE FOLLOWING TRANSPORTERS. 1. SHIVSHAKTI ROADWAYS RS. 1 780/ - 2. RAJA ROADWAYS RS. 3 706/ - 3. KAKA ROADWAYS RS. 42 340/ - 4. PEARL SHIPPING RS. 7 70 375/ - TOTAL RS. 8 18 201/ - 2. THE LD CIT (A) ERRED IN CONFIRMING THE INTEREST CHARGED U/S 234B AND 234C OF THE ACT AND IN THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE APPELLANT DENIES ITS LIABILITY FOR PAYMENT OF INTEREST UNDER AN Y OF THE PROVISIONS OF THE ACT. 2. BRIEFLY STATED RELEVANT FACTS OF THE CASE ARE THAT THE ASSESSEE WHO IS ENGAGED IN THE BUSINESS OF EXPORT TRADE OF PROCESSED MINERALS FILED THE RETURN OF INCOME DECLARING THE TOTAL INCOME OF RS. 90 91 430/ - . ASSESSME NT WAS COMPLETED U/S 143(3) OF THE ACT AND DETERMINED THE ASSESSED INCOME OF RS. 99 09 630/ - . IN THE ASSESSMENT AO MADE DISALLOWANCE OF RS. 8 18 201/ - U/S 40(A)(IA) OF THE ACT IN RESPECT OF PAYMENTS OF TRANSPORTATION CHARGES. AGGRIEVED ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE FIRST APPELLATE AUTHORITY. 2 3. DURING THE PROCEEDINGS BEFORE THE FIRST APPELLATE AUTHORITY AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESSEE CIT (A) DISMISSED THE APPEAL . AGAIN AGGRIEVED WITH THE DECISION OF THE CIT (A) ASSESSEE IS IN FURTHER APPEAL BEFORE THE TRIBUNAL BY RAISING THE ABOVE MENTIONED GROUNDS. 4. DURING THE PROCEEDINGS BEFORE US AT THE OUTSET LD COUNSEL FOR THE ASSESSEE BRINGING OUR ATTENTION TO THE GR OUNDS MENTIONED THAT AO INVALIDLY INVOKED THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT IGNORING THE PROVISIONS OF SECTION 194(5) AND ITS PROVISO. THE PROVISO PROVIDES FOR QUANTUM LIMITS FOR NON - APPLICABILITY OF THE TDS PROVISIONS AND THEREFORE THE PRO VISIONS OF SECTION 40(A)(IA) ARE NOT APPLICABLE IF THE PAYMENTS ARE BELOW SUCH LIMITS . FURTHER LD COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE AO ADDED THE SUM OF RS. 8 18 201/ - IN AGGREGATION. SUBMITTING THAT IT HAS 4 DIFFERENT ITEMS AND AMOUNTS LD AR MENTIONED THAT THE PAYMENTS OF RS. 1 780/ - ; RS. 3 706/ - AND RS. 42 340/ - ARE BELOW THE APPLICABLE LIMITATION OF RS. 50 000/ - RELEVANT FOR THE YEAR UNDER CONSIDERATION. LD DR AGREES WITH THE SAME. ACCORDINGLY WE GRANT RELIEF TO THE ASSESSEE. 5. REFERRING TO THE PAYMENT OF 4 TH ITEM OF RS. 7 70 375/ - LD AR SUBMITTED THAT THIS ISSUE CAN BE REMANDED TO THE FILE OF THE AO FOR EXAMINING THE SET PRINCIPLE IE NO TDS PROVISIONS APPLY IF THE PAYMENT IN QUESTION CONSTITUTES REIMBURSEMENTS. REFERRING TO PAGE 6 O F THE ASSESSEES PAPER BOOK LD AR SUBMITTED THAT IF REMANDED THE AO WILL COME TO THE CONCLUSIONS THAT THE AMOUNT IN QUESTION CONSTITUTES A PAYMENT BY VIRTUE OF REIMBURSEMENT. AFTER HEARING BOTH THE PARTIES WE FIND THAT THE ISSUE SHOULD BE REMANDED TO T HE FILE OF THE AO FOR FRESH CONSIDERATION AND ASSESSMENT. AO SHALL GRANT A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AS PER THE SET PRINCIPLES OF NATURAL JUSTICE. THUS GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT APPEAL OF THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3 0 T H SEPTEMBER 2016. S D / - S D / - ( SAKTIJIT DEY ) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 3 0 .09.2016 . . ./ OKK SR. PS 3 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. / DR ITAT MUMBAI 6. / GUARD FILE . //TRUE COPY// / BY ORDER / (DY./ASSTT. REGISTRAR) / ITAT MUMBAI