Empire Packages Private Limited Chandigarh v. Acit Chandigarh

1 In The Income Tax Appellate Tribunal Chandigarh Benches Chandigarh Before Shri Sanjay Garg Judicial Member Dr B R R Kumar Accountant Member Ita Nos 881 882 Chd 2016 Assessment Years 2006 07 2008 09 M S Empire Packages Private Limited Vs The Acit Circle 1 1 C 609 6 Th Floor Office Block Chandigarh Plot No 178 178 A Elante Mall Indl Area Phase 1 Chandigarh Pan No Aaace 5023 G Appellant Respondent Appellant By Sh Mohit Dhiman Respondent By Sh Manjit Singh Date Of Hearing 28 12 2017 Date Of Pronouncement 28 12 2017 Order Per Sanjay Garg Judicial Member The Present Appeals Have Been Preferred By The Asse Ssee Against The Separate Orders Of The Commissioner Of Income Tax Appeals Hereinafter Referred To As Cit A 1 Chandigarh Dated 19 5 201 6 13 5 2016 Relating To Assessment Years 2006 07 And 2008 09 Respectivel Y 2 The Sole Issue Raised By The Assessee Is Regarding The Disal Lowance Made By The Lower Authorities U S 40 A Ia Of The Income Tax Act 1961 In 2 Short The Act For Non Compliance Of Provisions Of Section 194 C With Respect To Non Deduction Of Tds On The Freight Cha Rges Paid 3 The Main Contention Of The Ld Counsel For The A Ssessee Is That The Invoice Purchase Price Of The Goods Was Inclusive Of The Freight Charges Therefore It Cannot Be Inferred That The Assessee Had Separately Paid Any Freight Charges The Case Of The Assessee Was That The Goods Was Inclusive Of The Freight Charges And Hence There Was No Lia Bility On The Assessee For Deduction Of Tax In Respect Of Freight Charges 4 The Ld Counsel In This Respect Has Also Relied Upon The Decision Of The Honble Punjab Haryana High Court In The Case Of Cit Exemptions Vs Asstt Manager Accounts Food Co Rporation Of India 326 Itr 106 P H And Further In The Case Of Cit V S Bhagwati Steel 2011 198 Taxman 275 P H 5 The Ld Dr On The Other Hand Has Submitted Tha T It Is Not Established On The File That The Price Of The Goods Was Inclusive Of The Freight Charges He Has Submitted That In Some Case S Freight Charges Have Been Paid Directly By The Assessee To The Concerned Transporter And In Some Other Cases The Freight Charges Have Been Separatel Y Billed 6 We Have Considered The Rival Submissions No Sa Mple Copies Of The Invoices Freight Charges Bills Have Been Placed B Efore Us However Both The Ld Representatives Have Relied Upon Certain Ob Servations Made By The Lower Authorities I E Assessing Officer And The Ci T A Either In The First Round Of Appeal Or In The Second Round Of Appeal 7 After Considering The Submission Of Ld Represen Tatives Of The Parties And Going Through The Record We Find That There Are Disputes 3 Relating To The Payments Made On Account Of Freight Charges After Considering The Law Laid Down By The Honble Punjab Haryana High Court In The Case Of Cit Exemptions Vs Asstt M Anager Accounts Food Corporation Of India Supra We Restore The Issue To The File Of The Assessing Officer And Direct The Assessing Officer To Re Examine The Case Of The Assessee With Respect To Bills Invoices Pr Oduced Etc And Wherein The Price Of The Goods Is Inclusive Of Freight Char Ges No Disallowance U S 40 A Ia Will Be Attracted However Wherein The Freight Charges Have Been Charged Extra Or Have Been Directly Paid To Th E Concerned Transporter The Provisions Of Section 194 C Read With Section 40 A Ia Of The Act Will Be Attracted Except The Amounts Which Are Below Th E Prescribed Limit As Per The Provisions Of Law At This Stage The Ld Counsel For The Assessee Has Made A Statement At Bar That There Is Another Issue In Relation Of T He Disallowance For Non Compliance Of Provisions Of Section 194 A Of The Act And He Does Not Press The Same The Said Issue Is Dismissed As Not Presse D No Other Issue Is Pressed Or Agitated Before Us Ita No 882 Chd 2016 Assessment Year 2008 09 8 Both The Ld Representatives Of The Parties Have Stated At Bar That The Issue Involved In The Present Appeal Is Identical T O That Has Been Raised In The Appeal For Assessment Year 2006 07 9 In View Of Our Discussion Made Above This Matte R Is Restored To The File Of The Assessing Officer On Similar Terms As D Iscussed Above 4 10 In The Result Both The Appeals Of The Assessee Are Treated As Allowed For Statistical Purposes Order Pronounced In The Open Court Sd Sd Dr B R R Kumar Sanjay Garg Accountant Member Judicial Member Dated 28 12 2017 Rkk Copy To 1 The Appellant 2 The Respondent 3 The Cit 4 The Cit A 5 The Dr