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TMI Blog2023 (5) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... e there is no compliance on the 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 i.e. to obtain PAN of the payees. Considering the case of Sunbeam Auto Ltd. [ 2009 (9) TMI 633 - DELHI HIGH COURT ] we set aside the order of the PCIT and restore that of the AO - Decided in favour of assessee. - ITA No. 500/DEL/2021 - - - Dated:- 28-4-2023 - Shri N.K. Billaiya, Accountant Member, And Shri Anubhav Sharma, Judicial Member For the Assessee : Shri Manish Jain, C.A. For the Revenue : Ms Sapna Bhatia, CIT-DR ORDER PER N. K. BILLAIYA, ACCOUNTANT MEMBER : This appeal by the assessee is preferred against the order of the Pr. Commissioner of Income Tax, Ghaziabad dated 25.03.2021 framed u/s 263 of the Act pertaining to assessment year 2015-16. 2. The grievance of the assessee read as under : 1) That each ground of appeal is without prejudice to each other. 2) On the facts and circumstances of the case and in law, the Ld. PCIT has erred in exercising the revisionary powers by passing the order u/s 263 of the Inc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, disallowance cannot be made on procedural lapse. Appellant prays order so passed u/s 263 may please be held as bad in law. 8) That the Learned PCIT failed to consider the observation of the Hon'ble ITAT in the case of ACIT, Circle-I vs Mr. Mohammed Suhail in ITA no: 1536/Hyd/2014, wherein it has been categorically observed by the Hon'ble ITAT that the provisions of section 194C(6) are independent of section 194C(7), and just because there is violation of provisions of section 194C(7), disallowance under section 40(a)(ia) does not arise if the assessee complies with the provisions of section 194C(6), Relief may please be granted by quashing the revision order of ld. PCIT passed u/s 263. 9) The appellant craves leave to add, alter, amend or delete any other grounds on or before hearing of the appeal 3. The sum and substance of the grievance of the assessee is that the ld. PCIT erred in assuming the jurisdiction conferred upon him by provision of Section 263 of the Act and further erred in holding that the assessment order dated 25.08.2017 framed u/s 143(3) of the Act is not only erroneous but also prejudicial to the interest of the Revenue. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and added to the total income of the assessee firm. 3. In view of the above, the assessment order passed by the ITO, Ward-1(2). Meerut is erroneous and prejudicial to the interest of revenue and may be cancelled or modified by invoking the provisions of section 263 of the Income Tax Act, 1961. 4. Accordingly, you are hereby required to show cause as to why an appropriate order under section 263 of the Income-tax Act, 1961, may not be passed in your case in the light of the facts mentioned in the foregoing paragraphs For this purpose you are hereby required to appear before me at my office at Room No. 101, 1 Floor, CGO Complex-1, Hapur Chungi, Ghaziabad on 24200.21 at 1:30 pm either in person or through an authorized representative and furnish your explanation, with documentary evidences in support of your contention, by way of complete books of accounts, all vouchers, registers copies of bank statements etc., an maintained by you: Please note that in case of non compliance, it would be presumed that you have nothing to offer in this regard and necessary order shall be passed u/s 263 of the income-tax Act, 1961, on the basis of material available on record. 7. A ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not to be required deducted at source. Transport operators are reporting problem in obtaining TDS certificates as these are not issued immediately by clients and ITA No. 2586/Bang/2018 they are not able to approach the client again as they may have to move across the country for their business B) It is, therefore, the Act has been amended to exempt payments to transport operators (as defined in section 44AE) from the purview of TDS. However, this would only apply in cases where the operator furnishes his Permanent Account Number (PAN) to the deductor. Deductors who make payments to transporters without deducting TDS (as they have quoted PAN) will be required to intimate these PAN details. to the Income tax Department in the prescribed format. 14. Further we notice that the provisions of sec.194C(6) was amended w.e.f 1.6.2015 by Finance Act, 2015, restricting the applicability of this provision to those transport contractors who own not more than 10 goods carriages. The purpose of amendment was explained by the CBDT in its Circular No.19/2015 dated 27-11-2015 as under: 43.2 The Finance (No.2) Act 2009 substituted section 194 of the Income tax Act with effect from 1. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Tribunal does not call for any interference [paras 16,18 21] .. the AO having made enquiries, elicited replies and thereafter allowed the expenditure . it cannot be said that it is a case of lack of enquiry. 12. The second allegation of PCIT is that assessee has not furnished the requisite declaration. We do not find any force in this contention of the PCIT. Firstly; the provisions have been amended with effect from 01.06.2015 and therefore not applicable for the year under consideration and secondly; the only obligation on the assessee was that to obtain the PAN number of the payees which he has obtained. In our considered view merely because there is no compliance on the 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 i.e. to obtain PAN of the payees. Considering the facts of the case in totality in the light of the decision of the Hon ble Delhi High Court in the case of Sunbeam Auto Ltd. (supra), we set aside the order of the PCIT dated 25.06.2021 and restore that of the AO dated 25.08.2017. 13. In the result ..... X X X X Extracts X X X X X X X X Extracts X X X X
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