SHRI VINSHNU KUMAR JALAN,RANCHI vs. ACIT CIR-3, RANCHI

IN THE INCOME TAX APPELLATE TRIBUNAL, RANCHI BENCH, RANCHI

BEFORE SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER

ITA No.98/Ran/2017 Assessment Year: 2013-2014

Shri Vishnu Kumar Jalan, Vs. ACIT, Circle-3, Ranchi M/s. Jalan Food Product, Ranglal Jalan Road, Upper Bazar, Ranchi. PAN/GIR No. AAWPJ 3994 J (Appellant) .. ( Respondent)

Assessee by: Shri S.K.Poddar/Devesh Poddar, Adv Revenue by : Shri P.K.Mondal, JCIT

Date of Hearing : 22/05/ 2018 Date of Pronouncement : 23 /05/ 2018

O R D E R Per N.S.Saini, AM

This is an appeal filed by the assessee against the order of CIT(A),

Ranchi, dated 1.3.2017, for the assessment year 2013-14.

“1. For that the CIT(A) was not justified in confirming the disallowance made by the AO out of the freight & cartage expenses on the ground

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that provisions of section 40(a)(ia) were attracted since the appellant was liable for making deduction u/s.194C which was not done. 2. For that as per the amended provisions of section 194(6) appellant was not liable to make deduction of TDS on the expenses incurred for transportation if the transporter provides the PAN No. The PAN number was provided and was mentioned in the submissions filed before the CIT(A). As such no disallowance is called for and should be deleted.” 3. The brief facts of the case are that the Assessing officer observed that

the assessee has made payments of freight charges without deducting tax

u/.194C of the Act as under:

Sl. Payment made to Date Total amount No. paid(Rs.) 1. Freight incurred for purchase of 6.10.12 30,640/- chana from Vinayak Trading Co. Satna, UJP 63 H 9073 2. Freight incurred for purchase of 10.10.12 30,350/- chana from Vinayak Trading Co. Satna, UJP 63 H 9390 3. Freight incurred for purchase of 29.10.12 32,240/- chana from Sunil Kr. Sushil Kr. Satna 4. Freight incurred for purchase of 1.11.12 33,240/- chana from Vinayak Trading Co. Satna, UJP 63 D 9625 5. Freight incurred for purchase of 5.11.12 33,850/- chana from Sunil Kr Sushil Kr, Satna 6. Freight paid to Gopal Roadways 26.11.12 31,730/-

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13 Freight to North Bihar 12.2.13 32,000/- Roadways 14. Freight to North Bihar 2.3.13 30,960/- Roadways 15. Freight to North Bihar 19.3.13 34,240/- Roadways Total: 4,84,980/-

deduction in absence of TDS only if the assessee had furnished Form 15J to

the department within time. Section 40(a)(ia) of the Act calls for

disallowance of any amount paid without deducting TDS which was liable for

such deduction. The assessee was liable to deduct TDS on transport

payments made if Form 15J was not submitted. As the assessee failed to do

so, amount of Rs.4,84,980/- was disallowed u/s.40(a)(ia) r.w. Section 194C

of the Act and added back to the total income of the assessee.

Officer on the ground that sub-sections (6) & (7) of Section 194C provides

that non-deduction of tax at source is permissible only under the condition

that the person responsible for paying furnishes to the prescribed income tax

authority in such information as may be prescribed. The provisions do not

envisage a situation where the payee furnishes PAN to the payer in complete

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fulfilment of its obligation under the Act and no details are filed before the

Income tax Authorities. This provision of the Act is to ensure that there is a

check on the payments made without deducting tax at source and the same

is subject to verification by the income tax authorities. In the present case,

admittedly, no details were filed. The appellant was also not able to produce

PAN details filed by the transporters, as claimed in its submissions.

the CIT(A) in his order that no PAN details were filed is wrong as the

assessee has filed all PAN numbers of the transporters to whom payments

were made by the assessee. Hence, he prayed that in the interest of justice,

one more opportunity should be granted to the assessee to produce the PAN

of the transporters before the CIT(A) in terms of section 194C of the Act.

assessee.

orders of lower authorities and remand the matter back to the file of the

CIT(A) for adjudicating the issue afresh as per the discussions made

hereinabove after allowing reasonable opportunity of hearing to the

assessee.

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“3. For that the entire transportation expenses stands paid as on 31.3.13. As such following the decision of CIT vs. Vector Shipping, 357 ITR 642 no disallowance is called for. 4. For that interest u/s.234Aand 234B can only be charged on the returned income and not on the assessed income following the decision of Hon’ble Jharkhand High Court. 5. For that other grounds in detail will be argued at the time of hearing. 10. Ld A.R. of the assessee did not press these grounds and hence same

are dismissed as not pressed.

statistical purposes.

Order pronounced in the open court on 23 /05/2018

Sd/- sd/- (PAVAN KUMAR GADALE) (N.S Saini) JUDICIAL MEMBER ACCOUNTANT MEMBER Ranchi; Dated 23 /05 /2018 B.K.Parida, SPS Copy of the Order forwarded to : 1. The Appellant : Shri Vishnu Kumar Jalan, M/s. Jalan Food Product, Ranglal Jalan Road, Upper Bazar, Ranchi. 2. The respondent: ACIT, Circle-3, Ranchi 3. The CIT(A), Ranchi 4. Pr. CIT, Ranchi 5. DR, ITAT, Ranchi 6. Guard file. BY ORDER, //True Copy//

SR.PS, ITAT, CAMP AT RANCHI