IN THE INCOME TAX APPELLATE TRIBUNAL
(DELHI BENCH `G ', NEW DELHI)
BEFORE SHRI I. C. SUDHIR, JUDICIAL MEMBER AND
SHRI T.S. KAPOOR, ACCOUNTANT MEMBER
I.T.A. No. 5422/Del/2010
Assessment year : 2005-06
DCIT, Circle 22(1), Vs. Shri Sidharth Sahni,
New Delhi F-89/5, Okhla Indl. Area,
Phase I, New Delhi.
GIR / PAN:AAPRS6372G
(Appellant) (Respondent)
Appellant by : Shri BRR Kumar, Sr. DR
Respondent by : Shri Kapil Goel, Adv.
ORDER
PER T.S. KAPOOR, AM:
This is an appeal filed by the Revenue against the order of Ld. CIT(A)
dated 21.09.2010. The revenue is aggrieved with the action of Ld. CIT(A)
by which he had deleted the addition of Rs.9,13,562/- made by the A.O. u/s
40(a)(ia) for non deduction of TDS.
2. At the outset, the Ld. D.R. submitted that Ld. CIT(A) has wrongly
allowed the relief and he heavily relied upon the order of the A.O.
3. On the other hand, Ld. A.R. heavily relied upon the order of Ld.
CIT(A) and submitted that Ld. CIT(A) after having noted that provisions for
tax deduction at source were not applicable to the individual in the year
under consideration, has rightly deleted the addition.
4. We have hard rival parties and have gone through the material placed
on record. We find that the assessee in this appeal is an individual. During
2 ITA No.5422/Del/2010
ht year under consideration, he made certain contractual payments. The
A.O. disallowed the payments holding that the assessee had not deducted tax
at source. Ld. CIT(A) on the other hand has given relief holding that
provisions of Section 40(a)(ia) were not applicable to individual in the year
under consideration. Ld. CIT(A) has deleted the addition by holding as
under:
"{6} During the course of appellate proceedings the Authorized
Representative of the appellant submitted that the provisions of
section 194C governing the deduction of tax at source are not
applicable to individual assesses for Assessment Year 2005-06 and
the amendment to section 194C has been brought about w.e.f.
01.06.2007. I have gone through the provisions of section 194C and it
is apparent that the claim of the assessee in this regard is absolutely
correct. The onus to deduct tax at source has been put on the
individuals only from Assessment Year 2008-09 in respect of any
payment to contractors. Therefore, the Assessing Officer has
erroneously applied the provisions of section 194C in the case of the
assessee for ay 2004-05 and a such addition made u/s 40(a) to the
tune of Rs.9,13,652/- is deleted."
5. From the perusal of the above, we find that Ld. CIT(A) has passed a
reasoned and speaking order and has rightly deleted the addition, which
requires no interference.
6. In view of the above, appeal filed by the Revenue is dismissed.
7. Order pronounced in the open court on 31st Oct., 2014.
Sd./- Sd./-
( I. C. SUDHIR) (T.S. KAPOOR)
JUDICIAL MEMBER ACCOUNTANT MEMBER
Date: 31st Oct., 2014
Sp
3 ITA No.5422/Del/2010
Copy forwarded to:-
1. The appellant
2. The respondent
3. The CIT
4. The CIT (A)-, New Delhi.
5. The DR, ITAT, Loknayak Bhawan, Khan Market, New Delhi.
True copy.
By Order
(ITAT, New Delhi).
S.No. Details Date Initials Designation
1 Draft dictated on 29.10.14 Sr. PS/PS
2 Draft placed before author 29.10.14 Sr. PS/PS
Draft proposed & placed
3 JM/AM
before the Second Member
Draft discussed/approved
4 AM/AM
by Second Member
Approved Draft comes to the
5 Sr. PS/PS
Sr. PS/PS
6 Kept for pronouncement Sr. PS/PS
7 File sent to Bench Clerk 31/10/2014 Sr. PS/PS
Date on which the file goes
8
to Head Clerk
Date on which file goes to
9
A.R.
10 Date of Dispatch of order
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