The ITO,S.K.Ward-2,, Himatnagar v. M/s. Murlidhar Ginning & Pressing, Dist.Sabarkantha

ITA 2629/AHD/2008 | 2005-2006
Pronouncement Date: 19-08-2010 | Result: Dismissed

Appeal Details

RSA Number 262920514 RSA 2008
Assessee PAN AAGFM7911C
Bench Ahmedabad
Appeal Number ITA 2629/AHD/2008
Duration Of Justice 2 year(s) 28 day(s)
Appellant The ITO,S.K.Ward-2,, Himatnagar
Respondent M/s. Murlidhar Ginning & Pressing, Dist.Sabarkantha
Appeal Type Income Tax Appeal
Pronouncement Date 19-08-2010
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 19-08-2010
Date Of Final Hearing 17-08-2010
Next Hearing Date 17-08-2010
Assessment Year 2005-2006
Appeal Filed On 21-07-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH C BEFORE SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AND SHRI A.N.PAHUJA ACCOUNTANT MEMBER DATE OF HEARING : 17/08/2010 DRAFTED ON: 17/08 /2010 ITA NO.2629/AHD/2008 ASSESSMENT YEAR : 2005-06 THE ITO SK WARD-2 HIMATNAGAR VS. M/S.MURLIDHAR GINNING & PRESSING NEAR SADATPURA STAND IDAR TA: IDAR DIST. SABARKANTHA PAN/GIR NO. : AAGFM 7911 C (APPELLANT) .. (RESPONDENT) APPELLANT BY : SHRI K.M.MAHESH SR. D.R. RESPONDENT BY: SHRI P.R.SHAH O R D E R PER SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER : THIS IS AN APPEAL AT THE BEHEST OF THE REVENUE WHI CH HAS EMANATED FROM THE ORDER OF THE LEARNED CIT(APPEALS)-X AHMED ABAD DATED 06/05/2008 PASSED FOR ASSESSMENT YEAR 2005-06 AND T HE ONLY SUBSTANTIVE GROUND IS GROUND NO.1; REPRODUCED BELO W:- 1. THE LD. CIT(A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN RESTRICTING THE DISALLOWANCE OF RS.7 36 055/- U/S.4 0(A)(IA) TO RS.18 400/- AFTER ADMITTING FRESH EVIDENCE IN VIOL ATION OF RULE 46A WHICH WAS CONTRARY TO THE SUBMISSION DATED 21. 12.2007 MADE BY THE ASSESSEE DURING THE ASSESSMENT PROCEEDI NGS. 2. ON THE DATE OF HEARING FROM THE SIDE OF THE APP ELLANT LEARNED DEPARTMENTAL REPRESENTATIVE MR.K.M.MAHESH APPEARED AND FROM THE ITA NO.2629/AHD /2008 ITO VS. M/S.MURLIDHAR GINNING & PRESSING ASST.YEAR 2005-06 - 2 - SIDE OF THE RESPONDENT-ASSESSEE LEARNED AUTHORISED REPRESENTATIVE OF THE ASSESSEE MR.P.R.SHAH APPEARED. 3. THE ISSUE IN BRIEF AS EMERGED FROM THE CORRESPO NDING ASSESSMENT ORDER PASSED U/S. 143(3) OF THE I.T. ACT 1961 DAT ED 28/12/2007 WERE THAT WHETHER THE PROVISIONS OF SECTION 40(A)(IA) OF THE I.T. ACT 1961 HAVE RIGHTLY BEEN INVOKED IN THE PRESENT CASE IN RESPECT OF THE EXPENSES; NAMELY GINNING EXPENSES AND INTEREST EXPENSES WITH OUT DEDUCTION OF TAX AT SOURCE. AS PER ASSESSING OFFICER IN THE ABSENC E OF THE DETAILS OF TDS WHETHER DEDUCTED OR NOT THE DISALLOWANCE WAS MADE. THE SAID ACTION OF THE ASSESSING OFFICER WAS CHALLENGED HOWEVER BEFO RE THE LEARNED CIT(APPEALS) IT WAS VEHEMENTLY CONTESTED THAT THE REQUISITE DETAIL OF DEDUCTION OF TDS WAS VERY MUCH BEFORE THE REVENUE A UTHORITIES MORE PARTICULARLY IT WAS FILED BEFORE THE ASSESSING OFF ICER THEREFORE THE ACTION OF THE ASSESSING OFFICER WAS TO BE REVERSED. THE LEARNED CIT(APPEALS) HAS NOTED ALL THOSE FACTS VIDE PARAGRA PH NOS.3.2 AND 3.3; REPRODUCED BELOW:- 3.2. BEFORE ME THE A.R. SUBMITTED A COPY OF ANNUA L RETURN OF TDS IN FORM NO.26 AND SUBMITTED THAT TDS HAS BEEN M ADE ON 31.3.2005 IN RESPECT OF INTEREST PAID TO DIAMOND SE EDS AND THE SAID AMOUNT HAS BEEN DEPOSITED INTO THE GOVERNMENT ACCOUNT ON 5.5.52005. SIMILARLY TDS OF RS.14 715/- HAS BEEN DEDUCTED FROM PAYMENT TO M/S.SHREYAS GINNING & PRESSING FACTORY U /S.194C OF THE ACT ON 31.3.2005 AND THE SAME HAS BEEN PAID TO THE GOVERNMENT ACCOUNT ON 2.4.2005. THE DEBIT IN RESPE CT OF GINNING EXPENSES IN RESPECT OF SHREYAS GINNING & PRESSING F ACTORY HAS BEEN RAISED BY JOURNAL ENTRY ON 31.3.2005 THE APPE LLANT HAS ALSO FURNISHED COPY OF CERTIFICATE OF TDS IN FORM NO.16A AND TDS CHALLANS FOR BOTH THE AMOUNTS. SIMILARLY INTEREST HAS BEEN ALSO ITA NO.2629/AHD /2008 ITO VS. M/S.MURLIDHAR GINNING & PRESSING ASST.YEAR 2005-06 - 3 - DEBITED BY JOURNAL ENTRY ON 31.3.2005 AS THE TDS AM OUNTS DEDUCTED HAVE BEEN PAID BY THE DUE DATES DISALLOWA NCE MADE BY THE A.O. SHOULD BE DELETED. 3.3. I HAVE CONSIDERED THE SUBMISSIONS OF THE A.R. CAREFULLY. I HAVE GONE THROUGH THE TDS CERTIFICATES AND TDS RETU RN IN FORM NO.26. AS THE APPELLANT HAD DEDUCTED THE TDS ON G INNING EXPENSES ON 31.3.2005 AND PAID THE SAME BEFORE 31.5 .2005 I.E. THE DUE DATE NO DISALLOWANCE IS REQUIRED TO BE MADE U/ S.40(A)(IA) OF THE ACT FOR RS.7 03 695/-. AS REGARDS DISALLOWANC E OF RS.32 360/- IT IS SEEN THAT TDS ON INTEREST OF RS.18 400/- CRED ITED IN OCTOBER 2004 HAS BEEN MADE ON 31.3.2005 AND TDS HAS BEEN PA ID ON 5.5.2005 WHICH IS BEYOND THE DUE DATE HENCE DISALL OWANCE OF INTEREST OF RS.18 400/- IS CONFIRMED. FOR BALANCE INTEREST OF RS.13 960/- AS CREDIT WAS MADE IN MARCH 2005 THE APPELLANT HAS PAID TDS IN TIME. HENCE DISALLOWANCE IS REDUCED T O RS.18 400/-. 4. FROM THE SIDE OF THE RESPONDENT-ASSESSEE A BRIEF COMPILATION IS FILED TO DEMONSTRATE THAT THE DETAILS OF DEDUCTION OF TDS WERE ALREADY BEFORE THE ASSESSING OFFICER AND THE REQUISITE FORM NO.26 HAS ALSO BEEN AVAILABLE WITH THE REVENUE RECORD THEREFORE THE A SSESSING OFFICER HAS WRONGLY INVOKED THE IMPUGNED PROVISIONS OF SECTION 40(A)(IA) OF THE I.T. ACT 1961. IN SUPPORT OF THIS CONTENTION A DECISI ON OF THE RESPECTED CO- ORDINATE BENCH B MUMBAI IN THE CASE OF BAPUSAHEB NANASAHEB DHUMAL IN ITA NO.6628/MUM/2009 DATED 25/06/2010 W HEREIN DECISION CITED ARE :- (I) CIT VS. APAR INDUSTRIES LTD. (323 ITR 411) (II) CIT VS. ALOM EXTRUSIONS LTD. (319 ITR 306) [S C] (III) ALLIED MOTORS (P) LTD. VS. CIT (224 ITR 677) ITA NO.2629/AHD /2008 ITO VS. M/S.MURLIDHAR GINNING & PRESSING ASST.YEAR 2005-06 - 4 - 5. RESPECTFULLY FOLLOWING THE ABOVE DECISIONS AND S PECIALLY WHEN THE RELEVANT FACTS AS WELL AS THE DETAILS OF DEDUCTION OF TDS WERE DULY AVAILABLE WITH THE REVENUE DEPARTMENT THEREFORE T HERE WAS NO JUSTIFICATION ON THE PART OF THE ASSESSING OFFICER TO INVOKE THE PROVISIONS OF SECTION 40(A)(IA) OF THE I.T. ACT 1961. ON APP RECIATION OF ALL THOSE FACTS THE LEARNED CIT(APPEALS) HAS RIGHTLY ALLOWED THE CLAIM OF THE ASSESSEE WHICH IS HEREBY AFFIRMED. 6. IN THE RESULT APPEAL OF THE REVENUE IS DISMISSE D. ORDER SIGNED DATED AND PRONOUNCED IN THE COURT ON 19/ 08 /2010. SD/- SD/- ( A.N. PAHUJA ) ( MUKUL KR. S HRAWAT ) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD; DATED 19/ 08 /2010 T.C. NAIR SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE ASSESSEE. 2. THE DEPARTMENT. 3. THE CIT CONCERNED 4. THE LD. CIT(APPEALS)-X AHMEDABAD 5. THE DR AHMEDABAD BENCH 6. THE GUARD FILE. BY ORDER //TRUE COPY// (DY./ASSTT.REGISTRAR) ITAT AHMEDABAD