The DCIT, Circle-3,, Ahmedabad v. M/s. J & J Enterprise, Ahmedabad

ITA 536/AHD/2013 | 2009-2010
Pronouncement Date: 11-10-2013 | Result: Dismissed

Appeal Details

RSA Number 53620514 RSA 2013
Assessee PAN AAFBJ3063D
Bench Ahmedabad
Appeal Number ITA 536/AHD/2013
Duration Of Justice 7 month(s) 12 day(s)
Appellant The DCIT, Circle-3,, Ahmedabad
Respondent M/s. J & J Enterprise, Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 11-10-2013
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 11-10-2013
Date Of Final Hearing 03-10-2013
Next Hearing Date 03-10-2013
Assessment Year 2009-2010
Appeal Filed On 28-02-2013
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH BEFORE: SRI D.K TYAGI JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI ACCOUNTAN T MEMBER DY COMMISSIONER OF INCOME TAX CIRCLE-3 ROOM NO. 109 B WING IST FLOOR PRATYAKSHYAKAR BHAVAN PANJRAPOLE AMBAWADI AHMEDABAD- 380015 PAN: AAFBJ 3063 D (APPELLANT) VS M/S. J.J. ENTERPRISE 4 GROUND FLOOR RAVI CHAMBERS NEAR RELIEF CINEMA AHMEDABAD- 380001 (RESPONDENT) REVENUE BY: SRI O.P. BATHEJA SR.D.R. ASSESSEE BY: SRI S.N. DIVATIA A.R. DATE OF HEARING : 03-10-2013 DATE OF PRONOUNCEMENT : 11-10-20 13 / ORDER PER : D.K. TYAGI JUDICIAL MEMBER:- THIS IS THE REVENUES APPEAL AGAINST THE ORDER OF LD. CIT(A)-6 AHMEDABAD DATED 31-01-2013. ITA NO. 536/AHD/2013 ASSESSMENT YEAR 2009-10 I.T.A NO.536/AHD/2013 A.Y. 2009-10 PAGE N O DCIT VS. M/S. J.J.ENTERPRISE 2 2. THE REVENUE HAS TAKEN FOLLOWING GROUNDS OF APPEA L:- 1. THAT THE CIT(A) HAS ERRED IN LAW AND ON FACTS I N HOLDING THAT THE SALES INCENTIVES PAID TO DEALERS IS NOT COMMISS ION LIABLE TO TDS U/S. 194H. 2. THAT THE CIT(A) OUGHT TO HAVE CONSIDERED THE SAL ES INCENTIVES AS COMMISSION IN VIEW OF EXPLANATION (I) & (II) TO SECTION 194H AS PER WHICH SUCH PAYMENTS ARE ALSO TO BE REGARDED AS COMMISSION/BROKERAGE FOR THE PURPOSE OF SECTION 194 H. 3. BRIEF FACTS OF THE CASE ARE THAT DURING THE ASSE SSMENT PROCEEDINGS AO OBSERVED THAT ASSESSEE WAS A DISTRIBUTOR OF SHEELA FOAM PVT LTD WITH VARIOUS DEALERS IN DIFFERENT PLACES. ASSESSEE DEBITED THE AMOUNT OF RS. 74 97 447/- AS SALES INCENTIVES PAID TO THE DEALERS. THIS EXPE NDITURE ACCORDING TO AO WAS IN THE NATURE OF COMMISSION. THEREFORE ASSESSE E SHOULD HAVE DEDUCTED TAX U/S. 194H WHICH ASSESSEE HAS FAILED TO DO THER EFORE HE PROCEEDED TO DISALLOW THIS EXPENDITURE BY INVOKING THE PROVISION S U/S. 40(A)(IA). IT WAS FURTHER OBSERVED BY THE AO THAT SIMILAR DISALLOWANC E WAS MADE IN THE CASE OF BOMBAY SALES CORPORATION IN ASSESSMENT YEAR 2008 -09 AND THAT ORDER OF THE LD. CIT(A) DELETING THE DISALLOWANCE IN THE CAS E OF BOMBAY SALES CORPORATION WAS NOT ACCEPTED BY THE DEPARTMENT AND APPEAL WAS FILED BEFORE THE TRIBUNAL. LD. CIT(A) HOWEVER FOLLOWING HIS ORDER IN THE CASE OF BOMBAY SALES CORPORATION DELETED THIS DISALLOWANCE. SINCE TRIBUNAL VIDE ITS ORDER DATED 02-08-2013 IN ITA NO. 1835/AHD/2011 A.Y. 2008-09 HAS UPHELD THE ORDER PASSED BY LD. CIT(A) IN THE CASE O F BOMBAY SALES CORPORATION WE FEEL NO NEED TO INTERFERE WITH THE ORDER PASSED BY LD. CIT(A) AND THE SAME IS HEREBY UPHELD. I.T.A NO.536/AHD/2013 A.Y. 2009-10 PAGE N O DCIT VS. M/S. J.J.ENTERPRISE 3 4. IN THE RESULT REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (ANIL CHATURVEDI) ( D.K. TYAGI) ACCOUNTANT MEMBER J UDICIAL MEMBER AHMEDABAD : DATED 11/10/2013 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR ITAT AHMEDABAD 6. GUARD FILE. BY ORDER/ /