Laxminarayan Mallick, Cuttack v. ITO, Ward-2(4), Cuttack, Cuttack

ITA 322/CTK/2014 | 2009-2010
Pronouncement Date: 05-10-2016 | Result: Allowed

Appeal Details

RSA Number 32222114 RSA 2014
Assessee PAN AFCPM7300F
Bench Cuttack
Appeal Number ITA 322/CTK/2014
Duration Of Justice 2 year(s) 2 month(s)
Appellant Laxminarayan Mallick, Cuttack
Respondent ITO, Ward-2(4), Cuttack, Cuttack
Appeal Type Income Tax Appeal
Pronouncement Date 05-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 05-10-2016
Date Of Final Hearing 05-10-2016
Next Hearing Date 05-10-2016
Assessment Year 2009-2010
Appeal Filed On 05-08-2014
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK SMC BENCH CUTTACK BEFORE SHRI N. S SAINI ACCOUNTANT MEMBER ITA NO. 322/CTK/2014 ASSESSMENT YEAR : 2009 - 2010 SHRI LAXMINARAYAN MALLICK C/O. RABI PHARMACEUTICALS AT: MOHANTY PARA TULSIPUR CUTTACK - 8 VS. ITO WARD 2(4) CUTTACK PAN/GIR NO. AFCPM 7300 F (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI AMBICA PRASAD MOHANTY REVENUE BY : SHRI SUVENDU DUTTA DR DATE OF HEARING : 05 /10/ 2016 DATE OF PRONOUNCEMENT : 05 /10/ 2016 O R D E R THIS I S AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF CIT(A) - CUTTACK DATED 6.6.2014 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. THE SOLE ISSUE INVOLVED IN THIS APPEAL IS THAT THE LD CIT(A) ERRED IN CONFIRMING THE ADDITION OF RS.16 00 500/ - MADE BY THE AO U/S.40(A)(IA) OF THE ACT ON ACCOUNT OF NON - DEDUCTION OF TDS UNDER SECTION 194 - I OF THE ACT FOR HIRING CHARGES OF EXCAVATOR PAID DURING THE YEAR BY THE ASSESSEE. 3. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIALS AVAILABLE ON RECORD. IN THE INSTANT CASE THE AO OBSERVED THAT DURING THE YEAR THE ASSESSEE HAS PAID HIRING CHARGES FOR EXCAVATOR OF RS.16 00 500/ - ON WHICH HE HAS FAILED TO DEDUCT TAX AS 2 ITA NO.322/CTK/2014 ASSESSMENT YEAR :2009 - 2010 PER PROVISIONS OF SECTION 194 - I OF THE ACT AND THEREFORE BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT HE DISALLOWED THE DEDUCTION OF RS.16 00 500/ - CLAIMED BY THE ASSESSEE. ON APPEAL LD CIT(A) CONFIRMED THE ACTION OF THE AO. 4. BEFORE ME LD A.R. OF THE ASSESSEE SUBMITTED THAT IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VICTOR SHIPPING SERVICES (P) LTD. (2013) 357 ITR 642(ALL) WHEREIN IT HAS BEEN HELD THAT FOR DISALLOWING EXPENSES FROM BUSINESS AND PROFESSION ON THE GROUND THAT TAX HAS NOT BEEN DEDUCTED AT SOURCE THE AMOUNT SHOULD BE PAYABLE AND NOT IT HAS BEEN PAID BY THE END OF THE YEAR AND ARGUED THAT IN THE CASE OF THE ASSESSEE THERE WAS NO AMOUNT OUTSTANDING AND PAYABLE ON ACCOUNT OF EXCAVATOR HIRING CHARGES AT THE YEAREND BY THE ASSESSEE. THEREFORE IN VIEW OF THE DECISION OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF VICTOR SHIPPING SERVICES (P) LTD (SUPRA) THE DISALLOWANCE MADE BY THE AO AND CONFIRMED BY THE LD CIT(A) IS NOT SUSTAINABLE. HE FURTHER SUBMITTED THAT THE SLP FILED AGAINST THE JUDGMENT OF HONBLE ALLAHABAD HIGH COURT HAS BEEN DISMISSED BY THE HONBLE SUPREME COURT VIDE JUDGMENT DATED 2.7.2014 IN CC NO.(S) 8068/2014. 5. ON THE OTHER HAND LD D.R. DID NOT RAISE ANY SERIOUS ARGUMENTS DURING THE COURSE OF HEARING. 6. ` AFTER CONSIDERING THE RIVAL SUBMISSION AND PERUSING THE MATERIAL AVAILABLE ON RECORD I AM OF THE VIEW THAT AS THERE WAS NO AMOUNT OUTSTANDING AND PAYABLE FOR EXCAVATOR HIRING CHARGES AS AT THE END OF YEAR NO DISALLOWANCE OF RS.16 00 500/ - U/S.40(A)(IA) OF THE ACT COULD BE MADE IN VIEW OF THE DECI SION OF HONBLE ALLAHABAD HIGH COURT IN THE CASE OF VICTOR SHIPPING SERVICES (P) LTD (SUPRA) HENCE I SET ASIDE THE ORDER OF LD CIT(A) AND DELETE THE DISALLOWANCE OF RS.16 00 500/ - MADE BY THE AO U/S.40(A)(IA) AND CONFIRMED BY THE LD CIT(A). 3 ITA NO.322/CTK/2014 ASSESSMENT YEAR :2009 - 2010 7. IN THE RE SULT APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 /10/2016 IN THE PRESENCE OF PARTIES. ( N. S SAINI) A CCOUNTANT MEMBER CUTTACK; DATED 05 /10 /2016 B.K.PARIDA SPS COPY OF THE ORDER FORWARDED TO : BY ORDER ASST.REGISTRAR ITAT CUTTACK 1. THE APPELLANT :SHRI LAXMINARAYAN MALLICK C/O. RABI PHARMACEUTICALS AT: MOHANTY PARA TULSIPUR CUTTACK - 2. THE RESPONDENT. ITO WARD 2(4) CUTTACK 3. THE CIT(A) CUTTACK 4. CIT CUTTACK 5. DR ITAT CUTTACK 6. GUARD FILE. //TRUE COPY//