M/S GOLDEN CHEMICAL TRANSPORT CO., Nagda v. THE ITO WARD 2(2), Ujjain

ITA 889/IND/2016 | 2011-2012
Pronouncement Date: 28-10-2016 | Result: Allowed

Appeal Details

RSA Number 88922714 RSA 2016
Assessee PAN AADFG7071J
Bench Indore
Appeal Number ITA 889/IND/2016
Duration Of Justice 2 month(s) 1 day(s)
Appellant M/S GOLDEN CHEMICAL TRANSPORT CO., Nagda
Respondent THE ITO WARD 2(2), Ujjain
Appeal Type Income Tax Appeal
Pronouncement Date 28-10-2016
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted SMC
Tribunal Order Date 28-10-2016
Assessment Year 2011-2012
Appeal Filed On 26-08-2016
Judgment Text
GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 1 IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH INDORE .. ..!' #$ # !% BEFORE SHRI D.T. GARASIA JUDICIAL MEMBER AND SHRI O.P. MEENA ACCOUNTANT MEMBER I.T.A. NO. 889/IND/2016 ASSESSMENT YEAR: 2011-12 GOLDEN CHEMICALS TRANSPORT COMPANY NAGDA PAN AADFG 7071J :: APPELLANT VS INCOME TAX OFFICER 2(2) UJJAIN :: RESPONDENT REVENUE BY SHRI SHARAD JAIN & SHRI ASHOK BHANUPRIYA ASSESSEE BY SHRI R.P.MORYA ! ' #$ DATE OF HEARING 6.10.2016 %&'( #$ DATE OF PRONOUNCEMENT 28.10.2016 * O R D E R PER SHRI D.T. GARASIA JM THE PRESENT APPEAL HAS BEEN DIRECTED BY THE ASSESSEE AGAINST THE ORDER DATED 30.5.2016 OF THE LEARNED CIT(A) UJJAIN. GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 2 2. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS DERIVING INCOME FROM BUSINESS OF TRANSPORT AND TRADING OF CHEMICAL. THE RETURN OF INCOME DECLARING INCOME AT RS.3 68 230/- HAS BEEN FILED ON 28.1.2010. THE ASSES SING OFFICER HAS MADE THE ADDITION OF RS.16 84 499/- ON ACCOUNT OF DISALLOWANCE FOR NON-DEDUCTION OF TDS U/S 40(A)(IA) OF THE ACT. THE MATTER WAS CARRIED IN APPEAL TO THE LEARNED CIT(A) AND THE LEARNED CIT(A) DISMISSED THE APP EAL OF THE ASSESSEE. NOW THE ASSESSEE IS IN APPEAL BEFORE T HE TRIBUNAL. 3. DURING THE COURSE OF HEARING THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE PAYEE HAS INCLUDE D THE INTEREST PAYMENT IN THEIR RETURN. THEREFORE IN VIE W OF SPECIAL PROVISION OF FIRST PROVISO TO SUB-SECTION (1 ) OF SECTION 201 OF THE ACT AND ALSO IN VIEW OF VARIOUS DEC ISIONS THE ABOVE INTEREST PAYMENT IS BIT LIABLE TO BE ADDED U /S 40(A)(IA) OF THE ACT. THE PAYEE HAS PROVIDED CERTIFIC ATE OF GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 3 CA WHISH SHOWS THAT THE PAYEE HAS INCLUDED THE ABOVE INTEREST PAYMENT IN THE INCOME TAX RETURN AND PAID TH E DUE TAXES THEREON. THE ISSUE IS ALSO COVERED BY THE DECI SION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. ANSAL LAND MARK TOWNSHIP VS. CIT; 61 TAXMAN.COM 45. THEREFORE THE APPEAL MAY BE ALLOWED. 4. ON THE OTHER HAND THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 5. WE HAVE HEARD BOTH THE SIDES. WE FIND THAT THE ISSUE UNDER APPEAL IS THE DISALLOWANCE OF RS.16 84 499/- U/S 40(A)(IA) OF THE ACT FOR NON-DEDUCTION OF TDS IN RESP ECT OF INTEREST PAYMENT TO MAGMA FIN CORP. LTD. TATA MOTORS FINANCE LTD. SUNDARAM FINANCE LIMITED. DURING THE COURSE OF HEARING THE LEARNED COUNSEL FOR THE ASSESS EE HAS FILED CERTIFICATE FROM CA WHEREIN IT IS SUBMITTED TH AT THE PAYEE HAS ALREADY SHOWN HIS INCOME IN THE RETURN OF INCOME THEREFORE AS PER THE DECISION OF THE HON'BL E DELHI GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 4 HIGH COURT IN THE CASE OF ANSAL LAND MARK TOWNSHIP (SUPRA) WHEREIN IT IS HELD THAT SECOND PROVISO TO SEC TION 40(A)(IA) OF THE ACT WAS INSERTED BY FINANCE ACT 2012 WITH EFFECT FROM APRIL 2013 AND THE ABOVE PROVISO HAS BEE N INSERTED TO BENEFIT THE ASSESSEE THEREFORE THE HON 'BLE DELHI HIGH COURT HAS HELD THAT IF THE PERSON FAILS TO DEDUCT TAX AT SOURCE ON THE SUM PAID TO RESIDENT OR SOME CRE DITOR THE ACCOUNT OF THE RESIDENT PERSON SHALL NOT BE DEEME D TO BE THE ASSESSEE IN DEFAULT IN RESPECT OF SUCH TAX IF SUCH RESIDENT HAS FURNISHED THE RETURN OF INCOME U/S 139 AND THIS PROVISO IS APPLICABLE FOR THE EARLIER ASSESSMENT YEAR ALSO. THEREFORE IT IS APPLICABLE FROM IST APRIL 200 5. THEREFORE RESPECTFULLY FOLLOWING THE SAME WE RESTO RE THIS ISSUE TO THE FILE OF THE ASSESSING OFFICER AND THE A SSESSING OFFICER SHALL VERIFY THE CERTIFICATE OF CA AND DECIDE THE MATTER AS PER LAW AFTER AFFORDING THE ASSESSEE REASONABLE OPPORTUNITY OF BEING HEARD. GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 5 6. IN THE RESULT THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER HAS BEEN PRONOUNCED IN OPEN COURT ON 28 OCTOBER 2016. SD/- SD/- ( ..!') (..) #$ (O.P.MEENA) (D.T.GARASIA) ACCOUNTANT MEMBER J UDICIAL MEMBER (') / DATED : 28 OCTOBER 2016. DN/ GOLDEN CHEMICALS TRANSPORT COMPANY ITA NO. 889/IND/2016 6