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Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI
Before: SHRI R.C.SHARMA
This is an appeal filed by the assessee against the order of CIT(A)- Mumbai, for the assessment year 2005-2006 in the matter of order passed u/s 143(3) r.w.s. 147 of the I.T. Act,1961. 2. In this appeal the assessee is aggrieved for addition made by disallowing payment u/s.40(a)(ia) for assessee’s failure to deduct TDS at source u/s.194C.
From the record I found that assessee is a company filed the return of income for A.Y.2005-06 on 31.10.2005 declaring the total income of Rs.54,520/-. The return was selected for scrutiny assessment u/s.143(3) and assessment was completed on 27-9-2007. Notice issued u/s.154 dated 23-6-2009 for rectification of mistake along with details of mistake namely TDS not deducted on transport charges u/s.194C. In the order passed u/s.154 dated 10-11-2009 the AO disallowed Rs.14,73,759/- for not complying with the provision of section 194C. The assessee preferred appeal before CIT(A). The CIT(A) allowed the appeal of assessee vide order dated 26-9-2011. On 9-2-2012 the AO issued a notice u/s.148 seeking to reopen the case on the very same issue which was subject matter of appeal before CIT(A). Issuing notice u/s.148 dated 9-2-2012 on the reason recorded on the same issue relating to which earlier proceeding u/s.154 was initiated, therefore, once again initiating the proceeding u/s.147 on the very same issue is not justified more so when the earlier rectification proceeding had merged with the CIT(A) order dated 26-9-2011. Even on merits I found that each payment so made for transport charges was below Rs.20,000/-, no disallowance was warranted u/s.40(a)(ia) r.w.s194C. I also found that reopening was also not valid insofar as very same issue has already been decided by the CIT(A) u/s.154 and the CIT(A) has allowed assessee’s appeal on the plea that there is no mistake apparent on record so as to warrant proceedings u/s.154 of the Act. Accordingly, both on merit as well as on the legal ground, I do not find any merit in the order of lower authorities.
In the result, appeal of the assessee is allowed. Order pronounced in the open court on this 20/07/2016. (R.C.SHARMA) लेखा सद"य / ACCOUNTANT MEMBER मुंबई Mumbai; "दनांक Dated 20/07/2016 ".कु."म/pkm, "न.स/ PS आदेश क" ""त"ल"प अ"े"षत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant
""यथ" / The Respondent. आदेशानुसार/ BY ORDER, 3. आयकर आयु"त(अपील) / The CIT(A), Mumbai. 4. आयकर आयु"त / CIT "वभागीय ""त"न"ध, आयकर अपील"य अ"धकरण, मुंबई / DR, ITAT, Mumbai 5. उप/सहायक पंजीकार 6. गाड" फाईल / Guard file. (Asstt.