Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (4) TMI 438 - ITAT JAIPURTDS u/s 194C - Addition u/s 40(a)(ia) - Payment on account of freight expense - assessee has claimed that the PAN details were furnished by the transporters at the time of payment of freights - HELD THAT:- Similar identical issue has also been decided by the Coordinate Bench of this Tribunal in the case of ACIT Vs M/s Arihant Trading Co.[2019 (3) TMI 1251 - ITAT JAIPUR] in favour of the assessee and against the Revenue by observing that non-deduction of TDS on payment to the transporter is that the latter furnishes his PAN number to the person responsible for paying or crediting the amount to him. The primary onus is thus on the recipient to furnish his PAN to the payer and the payer, on receipt of such PAN number, is under statutory obligation not to deduct TDS on such payments. The payer is also under a statutory obligation to furnish the said information in prescribed forms to the Income tax authority. To our mind, the statutory obligation to furnish the information regarding receipt of PAN and non-deduction of TDS is a fall out of and consequent of the first statutory obligation to not deduct TDS on receipt of PAN - merely because there is non-compliance on part of the assessee to furnish the prescribed information to the Revenue authorities, the same cannot lead to a conclusion that the assessee has not complied with the first statutory obligation. There are separate penal provisions for non-compliance thereof and the AO has in fact invoked those penal provisions whereby show-cause has been issued to the assessee. We observe that the case laws relied on by the ld DR are not applicable in the facts of the present case. The ld. CIT(A) has passed a speaking and reasoned order discussing all the facts and circumstances as well as legal propositions of law therefore, considering the totality of facts and circumstances and case laws exactly similar to the facts and circumstances of the present case, we find no reason to interfere in the order of the ld. CIT(A) qua this issue, hence, we uphold the same. Correct head of income - rental income received from M/s L&T Ltd.- income from house property as against of income from business or profession taxed by the A.O. - HELD THAT:- We observe that the ld. CIT(A) has given relief to the assessee by holding that the annual value of property consisting of any buildings or lands appurtenant thereto of which the assessee is the owner, other than such portions of such property as he may occupy for the purposes of any business or profession carried on by him the profits of which are chargeable to income-tax, shall be chargeable to income-tax under the head "Income from house property" In this case the assessee had got lease right from the Rajasthan govt. on the land for a period of 20 years and therefore covered by the provision of section 27(iiib) and section 269UA(f) of the Act. Therefore, for the purpose of section 22 of the Act, the assessee is the deemed owner of the land and the assessee 's contention that sub-letting this land to L&T is to be considered as 'income from house property'. The ld. CIT(A) has further held that preceding year case i.e A.Y. 2014-15 was also assessed u/s 143(3) of the Act where the rent income received from the same tenant has been accepted by the department. CIT(A) has passed a speaking and reasoned order discussing all the facts and circumstances as well as legal propositions of law therefore, considering the totality of facts and circumstances and case laws, we find no reason to interfere in the order of the ld. CIT(A) qua this issue, hence, we uphold the same. Addition of printing and stationary expenses and workmen and staff welfare expenses - HELD THAT:- From perusal of the impugned order, we observe that any expenditure is allowed under section 37(1) of the Act only if such expenditures are incurred or expended wholly and exclusively for business purposes. Telephone and travelling expenses come under the purview of personal expenses but being a firm office expenses and expenditure related to printing and stationary, staff welfare etc is a reasonable business expenses. Therefore, considering the totality of facts and circumstances of the case, we find no reason to interfere in the order of the ld. CIT(A) qua this issue, hence, we uphold the same. Appeal of the Revenue is dismissed.
|