TMI Blog2012 (9) TMI 254X X X X Extracts X X X X X X X X Extracts X X X X ..... ducting TDS u/s 194C - Revenue contended applicability of Section 194I on ground that machineries have been used on hire basis - Held that:- CIT(A) rightly deleted the addition on ground that expression of Section 194C defines that for carrying on any work includes the use of labour, transportation and other miscellaneous activities jointly taken up for completion of the works. That being so deduction u/s.194C is very much right. Before the Tribunal the Department is merely contending that it was additional evidence but without establishing as to how the same is additional evidence, hence, the same is hereby dismissed - Decided against Revenue - ITA No.23/CTK/2012 and C.O.No.009/CTK/2012 - - - Dated:- 25-6-2012 - Shri K.K.Gupta, and Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ollowing grounds therein. 1. For that the appeal filed by the appellant, I.T.Department is devoid of merit and liable to be dismissed and as such the Second Appeal is not maintainable under the facts and the law settled so far. 2. For that, the Id. CTT (A) has rightly deleted the addition of Rs. 31,20,452 made by the Ld. AO in illegal manner that the liability can not be claimed for more than a year. 3. For that the id. CI 1A) has rightly deleted the addition made U/s.40(a)(ia) of the I.T. Act since the Ld. A.O. without verifying the details produced at the time of assessment proceedings had applied the provisions of Sec.194-I of the I.T. Act in the case of payments made to Sub-contractors, thus the appeal filed should be deleted entir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e two additions made by the Assessing Officer. Aggrieved by this order of the learned CIT(A), the Department is in appeal here before the Tribunal, whereas the assessee has filed the Cross objection supporting the order of the learned CIT(A). 7. During the course of hearing, the learned DR has vehemently argued that the learned CIT(A) is not justified in deleting the additions made by the Assessing Officer on the ground that he has not considered the latest decisions on the issues on hand and the learned CIT(A) has admitted additional evidence being the agreement entered into by the assessee with the sub-contractor without putting the same to the Assessing Officer to have his say. Therefore, the learned CIT(A) is not justified in deleting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , he added the said amount as recession liability u/s.41(1) of the I.T.Act. But the learned CIT(A) after considering the decision of Hon ble Supreme Court rendered in the case of CIT v. Sugauli Sugar Works (P) Ltd., (236 ITR 518) and the decision of Hon ble Gujarat High Court in the case CIT v. Silver Cotton Mills Co. Ltd. [254 ITR 728 (Guj)] has come to the conclusion that unless there is a cessation of liability, income cannot be added as per the provisions of Section 41(1) of the I.T.Act. Since the CIT(A) has rendered his decision following the above two dictums of Hon ble Supreme Court and Hon ble Gujrat High Court, we find that there is no infirmity in the order of the learned CIT(A) in directing deletion of the said addition of Rs.31, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re him by the assessee. It is not the case of the Department that this agreement Model was not before the Assessing Officer at the time of assessment and it is for the Department to establish this fact when it is contending that this is a new and additional evidence produced by the assessee before the learned CIT(A) of which no notice was given to the Assessing Officer by the CIT(A) to have his said on such agreement. But before the Tribunal the Department is merely contending that it was additional evidence but without establishing as to how the same is additional evidence. Therefore, the ground taken by the Department is found not established and hence, the issue raised by the Department is found devoid of merit and hence, the same is her ..... X X X X Extracts X X X X X X X X Extracts X X X X
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