Income Tax Appellate Tribunal - Chandigarh
Sh. Kamal Deen Shekh, Chamba vs Acit, Circle, Palampur on 2 August, 2018
ITA No. 1151/Chd/2017- Sh Kamal Deen Sheikh, Palampur 2 assessee has contended that whether the tax was deductible at source or not in respect to payments made by the assessee on account of machinery hiring charges was a debatable issue. That the addition could not be made u/s 154 of the Act in respect of the debatable issue as the same does not constitute the mistake apparent on record. The Ld. counsel has further invited our attention to the observation made by the Assessing officer as well as the CIT(A) on the basis of the audit report in form No. 3CD, from the perusal of which the Assessing officer formed an opinion that a mistake apparent on record had occurred in not making disallowance u/s 40(a)(ia) because of the failure of the assessee to deduct TDS on the payments made for hiring charges. The Ld. counsel has submitted that the lower authorities have wrongly interpreted the relevant column in audit report in form 3 CD. In fact, in column No.27, the auditor had reported that assessee had not deducted TDS and further in relation to the question : "if the provisions of Chapter XVII-B have not been complied with, please give the following details". The assessee has answered as "N.A.", which means 'not applicable'. Therefore, it was mentioned in the audit report that the provisions of Chapter XVII- B were not applicable to the case of assessee. However, the lower authorities wrongly interpreted this information to form an opinion that it was mentioned in the form 3CD that TDS was deducible but the assessee had not deducted the same. The Ld. Counsel, therefore, has submitted that the lower authorities have exceeded their jurisdiction in making the impugned addition on the debatable issue under the provisions of section 154 of the Act. ITA No. 1151/Chd/2017-
Sh Kamal Deen Sheikh, Palampur 4 The appeal of the assessee is hereby allowed.
Order pronounced in the Open Court on 02.08.2018 Sd/- Sd/-
(B.R.R KUMAR) (SANJAY GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 02.08. 2018 Rkk Copy to: • The Appellant • The Respondent • The CIT • The CIT(A) • The DR