Ace Engineers, Coimbatore v. ITO, Coimbatore

ITA 56/CHNY/2015 | 2012-2013
Pronouncement Date: 29-04-2015 | Result: Partly Allowed

Appeal Details

RSA Number 5621714 RSA 2015
Assessee PAN AAMFA0989J
Bench Chennai
Appeal Number ITA 56/CHNY/2015
Duration Of Justice 3 month(s) 17 day(s)
Appellant Ace Engineers, Coimbatore
Respondent ITO, Coimbatore
Appeal Type Income Tax Appeal
Pronouncement Date 29-04-2015
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 29-04-2015
Date Of Final Hearing 29-04-2015
Next Hearing Date 29-04-2015
Assessment Year 2012-2013
Appeal Filed On 12-01-2015
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH CHENNAI . !' # $% BEFORE SHRI CHANDRA POOJARI ACCOUNTANT MEMBER & SHRI V. DURGA RAO JUDICIAL MEMBER ./ I.T.A. NOS. 55 & 56 /MDS/2015 ( / ASSESSMENT YEARS : 2011-2012 & 2012-2013) M/S. ACE ENGINEERS 190 SATHY MAIN ROAD SAKAR SAMAKULAM KOVILPALAYAM COIMBATORE 641 107. [PAN: AAMFA 0989J ] ( &' /APPELLANT) VS THE INCOME TAX OFFICER WARD II(2) COIMBATORE ( ()&' /RESPONDENT) / APPELLANT BY : SHRI. A.S. SRIRAMAN ADVOCATE / RESPONDENT BY : SHRI. S. DASGUPTA IRS JCIT. /DATE OF HEARING : 29.04.2015 ! /DATE OF PRONOUNCEMENT : 29.04.2015 * / O R D E R PER CHANDRA POOJARI ACCOUNTANT MEMBER THESE TWO APPEALS BY ASSESSEE ARE DIR ECTED AGAINST DIFFERENT ORDERS OF COMMISSIONER OF INCOME TAX (APPEALS)-I C OIMBATORE DATED 17.11.2014 FOR THE ABOVE ASSESSMENT YEARS. SINCE TH E ISSUE IN THESE TWO APPEALS IS COMMON IN NATURE HENCE THESE APPEAL S ARE COMBINED I.T.A.NOS. 55 & 56/MDS/2015 :- 2 -: HEARD TOGETHER AND DISPOSED OF BY A COMMON ORDER F OR THE SAKE OF CONVENIENCE. 2. THE SOLE GRIEVANCE OF THE ASSESSEE IN THESE APPEAL S IS WITH REGARD TO DISALLOWANCE MADE U/S.40A(IA) OF THE ACT. SINCE THE ISSUE IS COMMON IN NATURE IN BOTH APPEALS WE CONSIDER THE F ACTS AS NARRATED IN ITA NO.55/MDS/2015 FOR ADJUDICATION. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE W AS CARRYING ON FABRICATION OF EQUIPMENTS AND HEAVY STRUCTURAL AN O THER CUSTOM BUILT MACHINERIES ON JOB ORDER BASIS. THE ASSESSING OFFIC ER DISALLOWED A SUM OF F66 59 517/- BEING PAYMENTS MADE BY THE ASSESSEE TO M/S. NACHIAR STEELS ON THE GROUND THAT NO TDS WAS MADE BY THE A SSESSEE AS REQUIRED U/S.194C OF THE ACT. AGGRIEVED THE ASSESSEE PREFER RED AN APPEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEA LS). THE COMMISSIONER OF INCOME TAX (APPEALS) CONFIRMED THE ORDER OF THE ASSESSING OFFICER DISALLOWING THE CLAIM MADE BY THE ASSESSEE. AGAINST THIS THE ASSESSEE IS IN APPEAL BEFORE US. 4. WE HAVE HEARD BOTH THE SIDES AND PERUSED THE MATERI AL ON RECORD. WE FIND THAT THE SPECIAL BENCH OF THE TRIBU NAL IN THE CASE OF MERILYN SHIPPING AND TRANSPORTS VS. ACIT (2012) 136 ITD 23 (VISAKHAPATNAM) AND JUDGMENT OF GUJARAT HIGH COURT IN THE CASE OF CIT VS. M/S. VECTOR SHIPPING SERVICES (P) LTD IN IT A NO.122 OF 2013 DATED 09.7.2013 HELD THAT SEC 40(A)(IA) IS NOT APPLICABLE WHEN THERE IS I.T.A.NOS. 55 & 56/MDS/2015 :- 3 -: NO OUTSTANDING BALANCE AT THE END OF THE CLOSE OF T HE YEAR RELEVANT TO THE ASSESSMENT YEA IN RESPECT OF THESE PAYMENT. HO WEVER THE ASSESSEE HAS NOT BROUGHT ON RECORD THE DETAILS OF OUTSTANDING EXPENSES OR SCHEDULE OF SUNDRY CREDITORS SHOWING WH ETHER THE IMPUGNED AMOUNT IS OUTSTANDING AT THE END OF THE C LOSE OF THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR EITHE R IN THE NAME OF THE PARTY OR OUTSTANDING EXPENSES. HENCE IN THE I NTEREST OF JUSTICE WE ARE REMITTING THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER WITH DIRECTION TO VERIFY THE CLAIM OF THE ASSESSEE AND T HE ASSESSEE SHALL PLACE NECESSARY EVIDENCE IN SUPPORT OF ITS CLAIM. 5. FURTHER WE MAKE IT CLEAR THAT IF THE IMPUGNED AMOU NT IS NOT OUTSTANDING AT THE END OF THE CLOSE OF THE ASSESSME NT YEAR IN RESPECT OF THE EXPENSES EITHER AS OUTSTANDING EXPENSES OR AS SUNDR Y CREDITORS THIS AMOUNT CANNOT BE DISALLOWED. THIS GROUND IS R EMITTED BACK TO THE ASSESSING OFFICER FOR FRESH CONSIDERATION. 6. IN THE RESULT THE APPEAL OF THE ASSESSEE IN ITA NO S.55 & 56/MDS/2015 ARE PARTLY ALLOWED FOR STATISTICAL PURP OSES. ORDER PRONOUNCED IN THE OPEN COURT AT THE TI ME OF HEARING ON WEDNESDAY THE 29 TH OF APRIL 2015 AT CHENNAI SD/- SD/- ( . !' ) V. DURGA RAO # / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER '# /CHENNAI. $% /DATED:29.04.2015. I.T.A.NOS. 55 & 56/MDS/2015 :- 4 -: KV %& '( )( /COPY TO: 1. * APPELLANT 2. / RESPONDENT 3. + ( )/CIT(A) 4. + /CIT 5. ( - . /DR 6. -/ 0 /GF.