M/s. Asha Silk Mills, Surat v. The Income tax Officer,Ward-2(4),, Surat

ITA 812/AHD/2011 | 2005-2006
Pronouncement Date: 30-04-2015 | Result: Allowed

Appeal Details

RSA Number 81220514 RSA 2011
Assessee PAN AAJFA9711D
Bench Ahmedabad
Appeal Number ITA 812/AHD/2011
Duration Of Justice 4 year(s) 1 month(s) 15 day(s)
Appellant M/s. Asha Silk Mills, Surat
Respondent The Income tax Officer,Ward-2(4),, Surat
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 28-04-2015
Next Hearing Date 28-04-2015
Assessment Year 2005-2006
Appeal Filed On 15-03-2011
Judgment Text
ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD A BENCH AHMEDABAD [CORAM: PRAMOD KUMAR AM AND S.S. GODARA JM] ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 M/S. ASHA SILK MILLS ...............APPELLAN T ASHA HOUSE 21 ST CENTURY BUSINESS CENTRE RING ROAD SURAT. [PAN: AAJFA 9711 D] VS. INCOME TAX OFFICER .................RESPONDEN T WARD 2(4) SURAT. APPEARANCES BY: M.J. SHAH FOR THE APPELLANT DINESH SINGH FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : APRIL 28 2015 DATE OF PRONOUNCING THE ORDER : APRIL 30 2015 O R D E R PER PRAMOD KUMAR AM: THIS APPEAL FILED BY THE ASSESSEE IS. DIRECTED AGAI NST THE ORDER DATED 27.01.2011 PASSED BY THE LD. CIT(A) IN THE MATTER O F ASSESSMENT UNDER SECTION 144 READ WITH SECTION 147 OF THE INCOME TAX ACT 19 61 (HEREINAFTER REFERRED TO AS THE ACT) . FOR THE A.Y. 2005-06 ON THE FOLLOWING GROUNDS:- ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AS WELL AS LAW ON THE SUBJECT THE LEARNED COMMISSIONER OF THE INCO ME TAX (APPEALS) HAS ERRED CONFIRMING THE ACTION OF THE ASSESSING OF FICER IN MAKING ADDITION OF RS.15 24 677/- ON ACCOUNT OF DISALLOWAN CE OF JOB CHARGES ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 2 OF 3 PAID TO ASIAN DYEING AND PRINTING MILLS PVT. LTD. U /S. 40(A)(IA) OF THE INCOME TAX ACT 1961. 2. TO ADJUDICATE ON THIS ISSUE ONLY A FEW MATERIAL FACTS NEEDS TO BE TAKEN NOTE OF. DURING THE COURSE OF ASSESSMENT PROCEEDIN GS THE A.O. NOTED THAT THERE IS A SHORT DEDUCTION OF TAX AT SOURCE FROM THE PAYM ENT OF JOB WORK CHARGES TO M/S ASIAN DYEING AND PRINTING MILLS PVT. LTD. IT W AS ON THIS BACK DROP THE A.O. DISALLOWED THE RELATED PAYMENT OF RS.15 24 677/- BY INVOKING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. AGGRIEVED THE ASSES SEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) BUT WITHOUT ANY SUCCES S. THE ASSESSEE IS NOT SATISFIED AND IS IN FURTHER APPEAL BEFORE US. 3. WE HAVE HEARD THE RIVAL CONTENTIONS PERUSED THE MATERIAL ON RECORD AND DULY CONSIDERED FACTS OF THE CASE IN THE LIGHT OF T HE APPLICABLE LEGAL POSITION. WE FIND THAT THE ISSUE AS TO WHETHER THE DISALLOWANCE UNDER SECTION 40(A)(IA) CAN BE INVOKED IN A CASE AND SHORT DEDUCTION OF TAX AT SOU RCE IS NOW COVERED IN FAVOUR OF THE ASSESSEE BY THE HONBLE CALCUTTA HIGH COURT DECISION IN THE CASE OF CIT VS. S.K. TEKRIWAL (361 ITR 432 (CAL)) WHEREIN IT IS HEL D THAT THERE IS NOTHING IN THE SAID SECTION TO TREAT INTER ALIA THE ASSESSEE AS A DEFAULTER WHEN THERE IS SHORTFALL IN THE DEDUCTION. OUR ATTENTION IS ALSO INVITED TO THE JUDGEMENT OF HONBLE JURISDICTIONAL HIGH COURT IN THE CASE OF CI T VS. PRAYAS ENGINEERING LIMITED (TAX APPEAL NO.1237 OF 2014 JUDGEMENT DATED 17.11.2014 WHEREIN THEIR LORDSHIPS HAVE TAKEN THE SAME APPROACH. IN T HIS VIEW OF THE MATTER AND RESPECTFULLY FOLLOWING THE ESTEEMED VIEWS OF JURISD ICTIONAL HIGH COURT WE HOLD THAT THE A.O. WAS INDEED UNJUSTIFIED IN INVOKING SE CTION 40(A)(IA) OF THE ACT. ACCORDINGLY THE A.O. IS DIRECTED TO DELETE THE IMP UGNED DISALLOWANCE OF RS.15 24 677/-. THE ASSESSEE GETS THE RELIEF ACCOR DINGLY. ITA NO.812/AHD/2011 ASSESSMENT YEAR: 2005-06 PAGE 3 OF 3 4. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS A LLOWED. PRONOUNCED IN THE OPEN COURT TODAY ON THE 30 TH DAY OF APRIL 2015. SD/- SD/- S. S. GODARA PRAMOD KUM AR (JUDICIAL MEMBER) (ACCOUNTANT MEMBER) AHMEDABAD THE 30 TH DAY OF APRIL 2015 COPIES TO: (1) THE APPELLANT (2) THE RESPOND ENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ETC ASSISTANT/DEPUTY REGISTRAR INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCHES AHMEDABAD