Income Tax Appellate Tribunal - Chennai
K2 Cranes & Components P Ltd., Chennai vs Ito Corporate Ward 4(4), Chennai on 19 December, 2018
आयकर अपील य अ धकरण ,' डी' यायपीठ,चे नई
IN THE INCOME TAX APPELLATE TRIBUNAL
"D" BENCH, CHENNAI
ी एन.आर.एस .गणेशन, या यक सद य एवं
ी एस जयरामन, लेखा सद य के सम#
BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND
SHRI S. JAYARAMAN, ACCOUNTANT MEMBER
आयकर अपील सं/.I.T.A. No. 2804/Chny/2017
नधारण वष/Assessment Year : 2014-15
K2 Cranes & Components P. Ltd., The Income Tax Officer,
No. 14A, Telugu Brahmin Street, Vs. Corporate Ward 4(4),
Velacherry, Chennai - 600 042. Nungambakkam,
Chennai - 600 034.
[PAN: AADCK 3625M]
(अपीलाथ /Appellant) ($%यथ'/Respondent)
Assessee by : Shri. T. T. Durairaj Kandiar, FCA
Revenue by : Shri. M. Mathivanan, JCIT
सुनवाईक0तार ख/Date of Hearing : 06.12.2018
घोषणाक0तार ख/Date of Pronouncement : 19.12.2018
आदे श/ O R D E R
PER S. JAYARAMAN, ACCOUNTANT MEMBER:
The assessee filed this appeal against the consolidated order of the Commissioner of Income Tax (Appeals)-8, Chennai in ITA No. 126 & 279/16-17 dated 15.09.2017 for assessment year 2014-15.
:-2-: ITA No: 2804/Chny/2017
2. While making the assessment for assessment year 2014-15, the Assessing Officer disallowed crane hire charges and freight charges u/s. 40(a)(ia) which did not suffer TDS. Aggrieved, the assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal. Aggrieved, the assessee filed this appeal.
3. The Ld. AR inviting our attention to the paper book submitted that the ld. CIT(A) grossly erred in confirming the disallowance on the crane hire charges paid to Om Sai Ram Cranes, PAN: AAZPE 3424 D, at Rs. 4,12,450/- on which the assessee had duly deducted TDS. With regard to disallowances of Rs. 1,58,300/- in the name of Shri Jagan Muthu Kumar and Rs. 41,000/- in the name of Smt. Vijayalakshmi, PAN:
BODPD 7289 E, they have admitted these payments in their respective returns and paid taxes thereon within the stipulated time. Hence, as per second proviso to section 40(a)(ia) w.e.f. 01.04.2013, these payments would not attract the provisions of section 40(a)(ia).
4. With regard to the disallowances on freight charges at Rs. 35,87,735/- made u/s. 40(a)(ia), the Ld. AR inviting our attention to the Pan Nos and the amount given to the 8 parties in the paper book submitted that the Ld. CIT(A) grossly erred in disallowing these claims without considering the fact that for all the 8 parties, the assessee has :-3-: ITA No: 2804/Chny/2017 given Pan No and the amount paid to them. In this regard, the Ld. AR relied on the Hon'ble ITAT Hyderabad B Bench decision in the case of ACIT, Circle 1, Kurnool vs Mr. Mohammed Suhail, Kurnool in ITA No. 1536/Hyd/2014 dated 13.02.2015 which was subsequently relied on by the Hon'ble ITAT Kolkata B Bench in the case of Soma Rani Ghosh vs DCIT, Kolkata in ITA No. 1420/Kol/2015 dated 09.09.2016 also. Per contra, the Ld. DR supported the orders of the lower authorities.
5. We heard the rival submissions and gone through the relevant material. It is clear that the assessee has deducted TDS in one case and in other two cases, it is submitted that the recipients have paid the taxes and filed their returns. In the case of the 8 parties, the assessee has given Pan numbers. In the facts and circumstances, we are of the view that these issues require a fresh examination and hence we remit the issues back to the AO for a fresh examination. The assessee shall lay all materials in support of its contention and comply with the requirements of the AO in accordance with law. The Assessing Officer after giving adequate opportunity to the assessee shall decide the issues in accordance with law. The assessee's appeal is treated as allowed for statistical purposes.
:-4-: ITA No: 2804/Chny/2017
6. In the result, the assessee's appeal is treated as allowed for statistical purposes.
Order pronounced on Wednesday, the 19th day of December, 2018 at Chennai.
Sd/- Sd/-
(एन.आर.एस .गणेशन) (एसजयरामन)
(N.R.S. GANESAN) (S. JAYARAMAN)
या यकसद य/Judicial Member लेखासद य/Accountant Member
चे नई/Chennai,
5दनांक/Dated: 19th December, 2018
JPV
आदे शक0$ त6ल7पअ8े7षत/Copy to:
1. अपीलाथ'/Appellant 2. $%यथ'/Respondent 3. आयकरआय:
ु त) अपील(/CIT(A)
4. आयकरआयु:त/CIT 5. 7वभागीय$ त न ध/DR 6. गाड<फाईल/GF