2015 (10) TMI 171 - AT - Income Tax

Reopening of the assessment u/s 148 - Held that - It is not in dispute that the assessment was reopened within four years by issuing a notice on 24-04- 2012. After completion of the assessment u/s 143(3) the assessing officer received AIR information in respect of freight charges paid to M/s Geep Batteries India Pvt Ltd, Acme Chemicals (P) Ltd and Vikram Sarabhai Space Centre (VSSC). The assessee has not deducted tax for payment of freight charges. This Tribunal is of the considered opinion that excess allowance has been granted to the assessee. Therefore, the assessing officer has rightly reopened the assessment by issuing notice u/s 148 on the basis of the information received. Hence, this Tribunal do not find any infirmity in the order of the lower authority. Disallowance of difference of amount received from Geep Batteries India Pvt Ltd. - Held that - The only claim of the assessee before this Tribunal is that certain receipts pertaining to earlier year was not accounted in the books of account. The fact remains is that the assessee has received ₹ 18,970 during the year under consideration. To this extent, the AIR information available before the assessing officer can be considered. The assessee could not explain why the amount received during the year under consideration should be taken as receipt in the next accounting year. In the absence of any such explanation, this Tribunal is of the considered opinion that the CIT(A) has rightly confirmed the addition of ₹ 18,970. This Tribunal do not find any infirmity in the order of the CIT(A). Accordingly, the same is confirmed. Difference of the amount received and the AIR information from Acme Chemicals Pvt Ltd. - Held that - As in the case of Geep Batteries India Pvt Ltd, the ld.senior counsel for the assessee claims that certain receipts relating to next accounting year was not accounted in the ledger. Therefore, the difference occurred. As already observed, when an amount is received during the year under consideration and it is not the claim of the assessee that it was advance received for the work to be carried out in the next accounting year, this Tribunal is of the considered opinion that the CIT(A) has rightly confirmed the addition. Disallowance of lorry hire charges - non deduction of TDS - CIT(A) restricted part disallowance - Held that - Admittedly, the assessee has not filed form 15-I. The ld.senior counsel now claims that the assessee could not collect form 15-I for lapse of time. It is not for the assessee to collect form 15-I; it is for the recipient of the amount to furnish form 15-I to the assessee if the amount received is not taxable in their hands. Therefore, form 15-I has to be furnished before making the payment. The assessee now cannot collect form 15-I from the recipients of the amounts. Therefore, the claim of the assessee that due to lapse of time they could not collect form 15-I is not justified. Unless and until it is shown to the satisfaction of the assessing officer that the amounts in the hands of the recipients are not taxable, this Tribunal is of the considered opinion that the assessee is liable to deduct tax. Therefore, failure to deduct tax would attract disallowance u/s 40(a)(ia) of the Act. Hence, the CIT(A) has rightly restricted the disallowance to the extent of ₹ 60,74,224. This Tribunal do not find any infirmity in the order of the lower authority. Accordingly, the same is confirmed. - Decided against revenue.

Summary

Issues:
Reopening of assessment u/s 148 of the Act.
Disallowance of amount received from Geep Batteries India Pvt Ltd.
Disallowance of amount received from Acme Chemicals Pvt Ltd.
Disallowance of lorry hire charges.

Reopening of assessment u/s 148:
The Tribunal upheld the decision to reopen the assessment based on the information received regarding non-deduction of tax for freight charges paid to certain entities. The Tribunal found no infirmity in the assessing officer's action, stating that excess allowance had been granted to the assessee.

Disallowance of amount received from Geep Batteries India Pvt Ltd:
The assessing officer disallowed an amount based on a difference in freight charges accounted by the assessee and as per AIR information. The Tribunal held that the assessee failed to provide a satisfactory explanation for the difference, leading to the confirmation of the addition by the CIT(A).

Disallowance of amount received from Acme Chemicals Pvt Ltd:
Similar to the previous issue, the Tribunal confirmed the addition made by the CIT(A) concerning the difference in the amount received and AIR information from Acme Chemicals Pvt Ltd. The Tribunal emphasized that unless the amount received was advance for future work, the addition was justified.

Disallowance of lorry hire charges:
The Tribunal addressed the disallowance of lorry hire charges, where the CIT(A) restricted the disallowance to a certain amount based on the submission of form 15-I by the assessee. The Tribunal highlighted the importance of form 15-I in determining tax liability and upheld the disallowance where the form was not provided, emphasizing the assessee's responsibility to deduct tax.

In conclusion, the Tribunal dismissed both the appeals of the assessee and the revenue, confirming the orders made by the CIT(A) regarding the various issues raised in the case.