Income Tax Appellate Tribunal - Jaipur
Jasbir Singh, Jaipur vs Ito, Jaipur on 26 December, 2016
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IN THE INCOME TAX APPELLATE TRIBUNAL,
JAIPUR BENCHES (SMC), JAIPUR
Jh Hkkxpan] ys[kk lnL;] ds le{k
BEFORE: SHRI BHAGCHAND, ACCOUNTANT MEMBER
vk;dj vihy la-@ITA No. 775/JP/2016
fu/kZkj.k o"kZ@Assessment Year : 2007-08
Jasbir Singh, cuke ITO,
Prop.- M/s Jasbir Roadways, Vs. Ward 5(3),
J-12, Transport Nagar, Jaipur.
Jaipur.
LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: ADUPS 0129 D
vihykFkhZ@Appellant izR;FkhZ@Respondent
fu/kZkfjrh dh vksj ls@ Assessee by : Shri P.C. Parwal (CA).
jktLo dh vksj ls@ Revenue by : Shri Narendra Singh.
lquokbZ dh rkjh[k@ Date of Hearing : 22/12/2016
mn?kks"k.kk dh rkjh[k@ Date of Pronouncement : 26/12/2016
vkns'k@ ORDER
PER: BHAGCHAND, A.M. This is an appeal filed by the assessee against the order dated 10/06/2016 passed by the ld CIT(A)-5, Jaipur for the A.Y. 2007-08, wherein the assessee has raised sole ground of the appeal, which is as under:-
"1. The ld. CIT(A) has erred on facts and in law in holding that the assessee who is engaged in arranging the transport and assessed on commission income for such arrangement as also on the TDS amount retained by him at Rs. 7,80,382/-
2 ITA 775/JP/2016_ Jasbir Singh Vs ITO (292000+19726+468656) can be allowed credit of only proportionate TDS in the ratio of the transportation receipt of Rs. 2,33,08,617/- on which tax is deducted at source and the income assessed at Rs. 7,80,382/- and thereby restricting the credit of TDS at Rs. 15,691/- U/s 199 of the Act as against Rs. 4,68,656/- claimed by the assessee."
2. Brief facts of the case are that the assessee derived income from commission earned from supplying goods vehicle for transportation. The bills are raised in assessee's name and the TDS was deducted. As per past practice, the assessee was declaring the income of 50% TDS in assessee's own income as all the transporters, whose trucks were used were not paid TDS amount. For the year under consideration, the Assessing Officer added the total income of the TDS to the income of the assessee.
3. The ld. CIT(A) in his order has observed that the Assessing Officer has added the entire amount of TDS to the income of the assessee whereas the assessee has already included Rs. 2,18,704/- in his income. The ld. CIT(A) also held that the Assessing Officer has given credit of the TDS of the entire amount of Rs. 4,68,656/- despite that transportation receipt is not shown as income and therefore notice U/s 146 of the Act was issued to withdrawn the said tax credit considering the provision of Section 199 of the Act. The ld. CIT(A) in paragraph No. 5.2 of his order has held 3 ITA 775/JP/2016_ Jasbir Singh Vs ITO that income assessable on account of commission and retained TDS is Rs. 7,80,382/- which is 3.34% of the total transportation receipt of Rs. 2,33,08,617/- and therefore, he directed the Assessing Officer to allow credit for the proportionate amount of TDS at Rs. 15,691/- as against Rs. 4,68,656/- allowed by the Assessing Officer.
4. Now the assessee is in appeal before me. The ld. AR of the assessee has reiterated the submissions as made out before the ld. CIT(A) and he further submitted that the entire TDS of Rs. 4,68,656/- is assessed in the hands of the assessee. As per Section 199 relevant for the assessment year under consideration "Any deduction made in accordance with the provisions of this chapter and paid to the Central Government shall be treated as payment of tax on behalf of the person on whose income the deduction was made." Therefore, once the amount of TDS is included in the income, the assessee is entitled for the credit of the entire amount of TDS. There is no provision in the Act to allow the proportionate credit as done by the ld. CIT(A). Therefore, he prayed to allow the credit of TDS of Rs. 4,68,656/-.
5. At the outset, the ld DR has vehemently supported the orders of the authorities below.
4 ITA 775/JP/2016_ Jasbir Singh Vs ITO
6. I have heard both the parties and perused the material available on the record. The entire TDS deducted of Rs. 4,68,656/- was assessed in the hands of the assessee. Now if the credit of TDS is not allowed to the assessee then it will definitely cannot be made part of the income to be assessed in his hand. The ld. CIT(A)'s direction to restrict the TDS credit only to the proportionate to the commission income of the assessee, which is also not as per law. The deduction of TDS from the commission income is under the separate provision of law. Therefore, such direction is not according to the provisions of law. Since the total amount of TDS has been added to the income of the assessee, therefore, in the interest of justice, it shall be justified that he should have been given credit for the same otherwise the income will never come in the hands of the assessee in the form of the credit of the TDS. Therefore, I direct to allow the credit of TDS in the hands of the assessee.
7. In the result, the appeal of the assessee is allowed.
Order pronounced in the open court on 26/12/2016.
Sd/-
¼Hkkxpan½ (BHAGCHAND) ys[kk lnL;@Accountant Member Tk;iqj@Jaipur fnukad@Dated:- 26th December, 2016 *Ranjan 5 ITA 775/JP/2016_ Jasbir Singh Vs ITO vkns'k dh izfrfyfi vxzsf'kr@Copy of the order forwarded to:
1. vihykFkhZ@The Appellant- Shri Jasbir Singh, Jaipur.
2. izR;FkhZ@ The Respondent- The ITO, Ward 5(3), Jaipur.
3. vk;dj vk;qDr@ CIT
4. vk;dj vk;qDr¼vihy½@The CIT(A)
5. foHkkxh; izfrfuf/k] vk;dj vihyh; vf/kdj.k] t;iqj@DR, ITAT, Jaipur
6. xkMZ QkbZy@ Guard File (ITA No. 775/JP/2016) vkns'kkuqlkj@ By order, lgk;d iathdkj@Asst. Registrar