M/s. uttara Broilers Breeders & Hatcheries, Chikhli v. The Income tax Officer,Ward-4,, Navsari

ITA 3053/AHD/2011 | 2007-2008
Pronouncement Date: 30-04-2015 | Result: Allowed

Appeal Details

RSA Number 305320514 RSA 2011
Assessee PAN AABFU6347D
Bench Ahmedabad
Appeal Number ITA 3053/AHD/2011
Duration Of Justice 3 year(s) 4 month(s) 25 day(s)
Appellant M/s. uttara Broilers Breeders & Hatcheries, Chikhli
Respondent The Income tax Officer,Ward-4,, Navsari
Appeal Type Income Tax Appeal
Pronouncement Date 30-04-2015
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted A
Tribunal Order Date 30-04-2015
Date Of Final Hearing 21-04-2015
Next Hearing Date 21-04-2015
Assessment Year 2007-2008
Appeal Filed On 05-12-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH AHMEDABAD BEFORE SHRI PRAMOD KUMAR ACCOUNTANT MEMBER AND SHRI S.S. GODARA JUDICIAL MEMBER ITA NO . 30 53 /AHD/201 1 A. Y. 200 8 - 0 9 M/S. UTTARA BROILERS BREEDERS & HATCHERIES OPP. IRRIGATION COLONY COLLEGE ROAD AT & PO;KUNDH CHIKLI. PAN: AABFU 6347D VS ITO NAVSARI (APPELLANT) (RESPONDENT) REVENUE BY : S HRI P.L. KUREEL SR. D.R. ASSESSEE(S) BY : NONE / DATE OF HEARING : 2 1 / 0 4 /201 5 / DATE OF PRONOUNCEMENT: 30 / 0 4 /201 5 / O R D E R PER SHRI S.S. GODARA JUDICIAL MEMBER TH IS ASSESSEE S APPEAL FOR A.Y S . 200 7 - 0 8 ARISE S FROM ORDER OF THE CIT (A) VALSAD DATED 10 .09.2011 PASSED I N CASE NO. 251 / 09 - 10 AFFIRMING THE ASSESSING OFFICER S ACTION IN DISALLOW ING SALARY AND WAGES OF RS.5 66 600/ - FOR NON DEDUCTION OF TDS IN PROCEEDINGS U/S. 143 (3) OF THE INCOME TAX ACT IN SHORT THE ACT . 2. THE ASSE SSEE - FIRM IS IN POULTRY AND HATCHERY BUSINESS. IT FILED RETURN ON 10.10.2007 ADMITTING INCOME OF RS.3 89 290/ - . THE SAME WAS PROCESSED. THE ASSESSING OFFICER TOOK UP SCRUTINY. THE ITA NO. 30 53 /AHD/201 1 M/S. UTTARA BROILERS BREEDERS & HATCHERIES FOR A.Y. 200 7 - 0 8 - 2 - ASSESSEE HAD CLAIMED WAGES AND SALARY EXPENSES AT RS.15 60 664/ - DEBITED/PAI D TO CONTRACT BREEDING FARM WORKERS.. NO TDS HAD BEEN DEDUCTED. THE ASSESSING OFFICER SOUGHT TO INVOKE SECTION 40(A)(IA). HE QUOTED ASSESSEE S FAILURE IN FILING A REASONABLE EXPLANATION FOR NON TDS DEDUCTION ON THE AFORESAID PAYMENT AND MADE THE IMPUGNED D ISALLOWANCE OF RS.15 60 664/ - U/S.40(A)(IA) ACCORDINGLY IN ASSESSMENT ORDER DATED 18.12.2009. 3. THE ASSESSEE PREFERRED AN APPEAL. THE CIT(A) UPHOLDS THE ASSESSING OFFICER S ACTION APPLYING SECTION 194C OF THE ACT QUA THE IMPUGNED SALARY AND WAGES PAYMENT S. HE OBSERVES THAT THE PAYEES IN QUESTION ARE ASSESSEE S REGULAR EMPLOYEES GETTING YEARLY REMUNERATION. HOWEVER HE HAS RESTRICTED THE IMPUGNED DISALLOWANCE OF RS.15 60 664/ - TO RS.5 66 600/ - BY OBSERVING THAT ONLY NINE WORKERS HAVE RECEIVED SALARY A ND WAGES EXCEEDING TO RS.50 000/ - IN EACH CASE. THIS LEAVES THE ASSESSEE AGGRIEVED. 4. CASE CALLED TWICE. THE ASSESSEE S AUTHORIZED REPRESENTATIVE HAD FILE AN ADJOURNMENT LETTER ON 18.4.2015. HOWEVER THERE IS NO ONE TO PURSUE THE SAME. THUS WE REJECT THE ADJOURNMENT PRAYER AND PROCEED TO DECIDE THE CASE ON MERITS. 5. WE HAVE HEARD THE REVENUE AND GONE THROUGH THE CASE FILE. IT STRONGLY SUPPORTS THE CIT(A) S ORDER . IT IS EVIDENT FROM THE LOWER APPELLATE ORDER THAT THE PAYEES IN QUESTION ARE THE ASSESSEE S REGULAR EMPLOYEES GETTING YEARLY REMUNERATION. THIS MAKES US TO OBSERVE THAT THE CLAIM OF WAGES IN QUESTION IS THEIR SALARY AMOUNTS. THAT ITA NO. 30 53 /AHD/201 1 M/S. UTTARA BROILERS BREEDERS & HATCHERIES FOR A.Y. 200 7 - 0 8 - 3 - BEING THE CASE THERE IS HARDLY ANY SCOPE OF A SECOND OPINION THAT TDS DEDUCTION ON SALARY PAYMENTS IS COVERED BY A S PECIFIC STATUTORY PROVISION I.E. SECTION 192 INSTEAD OF THAT INVOKED BY THE LOWER AUTHORITIES I.E. SECTION 194C. IT IS NOT THE REVENUE S CASE THAT ANY OF THE ASSESSEE S EMPLOYEE EARNS SALARY INCOME MORE THAN THE EXEMPTION LIMIT IN THE IMPUGNED ASSESSMENT Y EAR. THEREFORE WE DIFFER WITH THE LOWER AUTHORITIES ON THIS LEGALITY PRINCIPLE AND DELETE THE IMPUGNED DISALLOWANCE MADE U/S.194C R.W.S 40(A)(IA). WE REITERATE THAT WE ARE DEALING WITH A CHARGING PROVISION IN A FISCAL STATUTE LIABLE TO BE LITERALLY INTERPR ETED. THE ASSESSEE S GROUNDS ON MERITS SUCCEED. 6. THE ASSESSEE S APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE COURT ON THIS DAY THE 30 TH APRIL 201 5 AT AHMEDABAD. SD/ - SD/ - ( PRAMOD KUMAR ) ( S.S. GODARA ) ACCOUNTANT MEMBER JUDICIAL MEMBER AHMEDABAD; DATED 30 / 0 4 / 20 1 5 PRABHAT KR. KESARWANI SR. P . S . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / CONCERNED CIT 4. ( ) / THE CIT(A) - III AHMEDABAD 5. / DR ITAT AHMEDABAD 6. / GUARD FILE . / BY ORDER / ( DY./ASSTT.REGISTRAR) / ITAT AHMEDABAD