Case Law Details
Paradeep Paribahan (P) Ltd Vs ACIT (ITAT Cuttack)
The Assessing Officer in the course of original assessment proceedings has made additions only in respect of TCS on the sale of minerals and the addition on account of non-deduction of TDS in respect of interest on borrowed capital paid by the assessee to NBFC. Admittedly, the assessee has prayed that the issues may be restored to the file of the Assessing officer so as to enable the assessee to produce the evidences in respect of same having been disclosed by the purchasers in respect of purchase of iron & steel and recipients of the interest. In view of the principles lay down by Hon’ble Supreme Court in the case of Hindustan Coca Cola Beverage (P.) Ltd. Vs. CIT (2007) 293 ITR 226(SC), the issues in respect of TCS on the sale of minerals and the issues in respect of non-deduction of interest on the borrowed capital paid to NBFC are restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to substantiate its claims. In respect of other issues being TDS on repairs and maintenance, TDS in respect of labour charges, TDS in respect of tours and travels, TDS in respect of rent, port levy charges & wharfage charges and TDS in respect of business promotion, etc, which are fresh issues raised by the ld CIT(A) on account of the fact that no enhancement notice has been issued by the ld CIT(A) before making the addition, the additions as made by the ld CIT(A) stand deleted.
FULL TEXT OF THE ORDER OF ITAT CUTTACK
These are appeals filed by the assessee against the separate orders of the CIT(A) -1, Bhubaneswar dated 26.2.2020 for the financial years 2014-15 to 2016 -17, relevant to assessment years 2015 -16 to 2017-18, respectively .
2. Shri K.K.Bal, ld AR appeared for the assessee and Shri S.C.Mohanty, ld Sr DR appeared for the revenue.
3. It was submitted by ld AR that there are two issues, which had been raised by the Assessing Officer in the course of assessment proceedings, one being non-deduction of TCS in respect of sale of minerals and second issue was the non-deduction of TDS in respect of interest paid on the borrowed capitals paid to NBFCs. It was the submission that in respect of TCS on the sale of minerals, the assessee has the certificates from the various purchasers confirming that the purchases are disclosed in their turnover. It was the prayer that the assessee may be granted an opportunity to produce the evidences before the AO. In respect of interest on borrowed capitals, it was the submission that this interest has also been disclosed by various NBFCs in their returns of income. It was the prayer that the assessee may be granted an opportunity to produce the evidences before the AO. It was the submission that various other issues like TDS on repairs and maintenance, TDS in respect of labour charges, TDS in respect of tours and travels, TDS in respect of rent, port levy charges & wharfage charges and TDS in respect of business promotion, etc. had been raised by the Assessing Officer in the remand proceedings and the ld CIT(A) had made the addition therein. It was the submission that the ld CIT(A) has not issued any enhancement notice for making the addition. It was the prayer that these additions as made by the ld CIT(A) are liable to be deleted as the same are without issuance of enhancement of notice.
4. In reply, ld Sr DR submitted that if the assessee desires to produce the evidence before the AO as per section 206C(6A) r.w 37J of the Income tax Act, the assessee is to comply with the notification No.12/2016 dated 8.12.2016. It was the submission that in respect of other issues, where allegedly no enhancement notice has been issued, the assessee has been put to notice insofar as the remand report of the Assessing Officer brings out these issues. It was the submission that the order of the ld CIT(A) be upheld.
5. We have considered the rival submissions. The Assessing Officer in the course of original assessment proceedings has made additions only in respect of TCS on the sale of minerals and the addition on account of non-deduction of TDS in respect of interest on borrowed capital paid by the assessee to NBFC. Admittedly, the assessee has prayed that the issues may be restored to the file of the Assessing officer so as to enable the assessee to produce the evidences in respect of same having been disclosed by the purchasers in respect of purchase of iron & steel and recipients of the interest. In view of the principles lay down by Hon’ble Supreme Court in the case of Hindustan Coca Cola Beverage (P.) Ltd. Vs. CIT (2007) 293 ITR 226(SC), the issues in respect of TCS on the sale of minerals and the issues in respect of non-deduction of interest on the borrowed capital paid to NBFC are restored to the file of the AO for re-adjudication after granting the assessee adequate opportunity to substantiate its claims. In respect of other issues being TDS on repairs and maintenance, TDS in respect of labour charges, TDS in respect of tours and travels, TDS in respect of rent, port levy charges & wharfage charges and TDS in respect of business promotion, etc, which are fresh issues raised by the ld CIT(A) on account of the fact that no enhancement notice has been issued by the ld CIT(A) before making the addition, the additions as made by the ld CIT(A) stand deleted.
6. In the result, appeals of the assessee partly allowed for statistical purposes.
Order dictated and pronounced in the open court on 13/7/2022.
