Income Tax Appellate Tribunal - Chandigarh
Behari Lal Steel Co., Mandi Gobindgarh vs Dcit, Mandi Gobindgarh on 11 January, 2017
IN THE INCOME TAX APPELLATE TRIBUNAL
'SMC' BENCH, CHANDIGARH
BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER
ITA No. 966/CHD/2016
Assessment Year: 2010-11
M/s Behari Lal Steel Co., Vs The DCIT,
Old Central Bank Street, Circle,
Near Main Chowk, Mandi Gobindgarh.
Mandi Gobindgarh.
PAN: AAFFB5788B
(Appellant) (Respondent)
Appellant by : Shri Rajiv Datta,CA
Respondent by : Shri S.K.Mittal, DR
Date of Hearing : 03.01.2017
Date of Pronouncement : 11.01.2017
O R D E R
Thi s appeal by assessee has been di rected agai nst the order of l d. CI T( Appeal s) Meer ut Camp at Pat i al a dated 13.07.2016 for assessment year 2010-11 chal l engi ng the addi ti on of Rs. 6,23,928/- under secti on 40A( 3) of I ncome Ta x Act.
2. The Assessi ng Offi cer noti ced that pa yments of Rs. 20,000/- have been made to same transporter on account of frei ght i n a si ngl e da y whi ch was i n vi ol ati on of p rovi si ons of Secti on 40A( 3) of the Act. Some pa yments are made above Rs. 35,000/- aft er amendment i n Secti on 40A( 3) . Detai l s are noted i n order. The assessee fai l ed to gi ve any pl ausi bl e repl y before Assessi ng Offi cer, therefore, the amount of Rs. 6,23,928/- was di sal l o wed.
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3. The assessee submi tted before l d. CI T( Appeal s) that i n fact, no pa yme nts have been made for the parti cul ar e xpendi ture e xceedi ng the prescri bed l i mi t on the same da y. The pa yments made on behal f of the other truck dri ver for the transportati on to the same dri ver have bee n cl ubbed together to di sal l o w the pa yment. The i ndi vi dual pa yments shoul d have been consi dered. I n the present case, the transportati on charges rel ate to di fferent trucks wi th di fferent bi l l s but the pa yments have been made on behal f of one person to other truck dri ver who has col l ected hi s o wn pa yment al so for the transportati on servi ces provi ded by hi m. The assessee fi l ed d etai l s of such pa yments al ong wi th truck numbers and copi es of the transportati on bi l l s and bi l i ti es to sho w that pa yment di d not e xceed the prescri bed amount. The l d. CI T( Appeal s) , ho wever, noted that there was no speci fi c authori zati on brought on record to prove that one dri ver has taken mone y on behal f of the other. Therefore , addi ti on was confi rmed.
4. After consi deri ng ri val submi ssi o ns, I am of the vi e w matter requi res re-consi derati on at the l evel of the Assessi ng Offi cer. The l d. counsel for the assessee has fi l ed detai l s of frei ght pai d to sho w that though pa yments have been made to one person but truck numbers are di fferent. I t ma y sho w that there i s some substance i n the e xpl anati on of the assessee that one truck i s hired for a parti cul ar da y but pa yment i s made to another dri ver on behal f of other dri ver. Ho wever, no such authori zati on was 3 fi l ed on record. The assessee, ho wever, fi l ed detai l s of the truck numbers and copi es of the transportati on bi l ls wi th bi l i t y etc. whi ch ma y support e xpl anati on of the assessee. Therefore, the m atter requi res re-consi derati on at the l evel of the Assessi ng Offi cer. The assessee i s, therefore, requi red to prod uce some materi al before Assessi ng Offi cer to prove that one dri ver have been authori zed to col l ect pa yments on be hal f of the other s. The assessee ma y al so furni sh evi dence before Assessi n g Offi cer i n supp ort of the above e xpl anati on.
5. I n thi s vi e w of the matter, I set asi de the orders of authori ti es bel o w and restore the matter i n i ssue t o the fi l e of Assessi ng Officer wi th di recti on to re-deci de this i ssue by gi vi ng reasonabl e suffi ci ent opportuni t y of bei ng heard to the assessee.
6. I n the resul t, appeal of the ass essee i s al l o wed for stati sti cal purposes.
Order pronounced i n the Open Court.
Sd/-
(BHAVNESH SAINI) JUDICIAL MEMBER Dated : 11 t h January,2017.
'Poonam' Copy to:
1. The Appellant
2. The Respondent
3. The CIT(A)
4. The CIT,DR Assistant Registrar, I TAT Chandigarh