The Commissioner of Income Tax vs Katwa Udyog Limited

K.L. Manjunath, J.—Heard Sri Y.V. Raviraj, learned Counsel appearing for the Revenue and Sri H.R. Kambiyavar, learned Counsel appearing for the respondent. Aggrieved by the concurrent findings of the Commissioner of Income Tax Appeals and the order of the Income Tax Appellate Tribunal, Panaji Bench, Panaji in No. 100/PNJ/2009 and C.O. No. 10/PNJ/12, dated 7-9-2012 for the assessment year 2006-2007 the present appeal is filed.

The admitted facts are as hereunder.--

The assessee filed return of income for the year 2006-2007 declaring a total income of Rs. 19,74,500/-. The assessee is a trader trading in coke and hollow bricks. The Assessing Officer after scrutiny of books of accounts determined income of the assessee at Rs. 4,72,17,475/- making certain additions. While passing the order of assessment manufacturing and other expenses in a sum of Rs. 4,47,69,975/- was ordered to be deleted and similarly a sum of Rs. 5.00 lakhs was also added under the head unexplained expenses. Aggrieved by the order of assessment the assessee filed an appeal before the Commissioner of Income Tax Appeals contending that the Assessing Officer committed an error in disallowing the claim of the assessee in regard to the freight charges paid by him to transport the goods. According to him under no circumstances the assessee paid the freight charges in excess of Rs. 20,000/-on any one of the occasions to warrant him to deduct tax at source or Rs. 50,000/- in an year to a particular career.

The Commissioner of Income Tax allowed the appeal of the appellant in part by granting major relief except disallowing a sum of Rs. 1,00,000/-. Aggrieved by the same the Revenue filed an appeal before the Income Tax Appellate Tribunal. Cross Objection was also filed by the assessee.

The Tribunal considering the appeal as well as the cross-objection together and dismissed the appeal of the revenue and allowed the cross objection of the assessee in part reducing the same from Rs. 1,00,000/- to Rs. 50,000/-. Challenging the concurrent findings of the Commissioner of Income Tax Appeals and the Tribunal the present appeal is filed. Having heard the Counsel for the parties we do not see any substantial question of law arising in this appeal because whether the assessee has failed to deduct T.D.S. from the careers to freight charges were paid by it in excess of Rs. 20,000/- in a particular transaction or in a sum of Rs. 50,000/- p.a. to a particular career, is a question of fact and not a question of law. The Commissioner of Income Tax Appeals as well as the Tribunal have concurrently held that the material placed by the assessee discloses that no payment has been made in excess of Rs. 20,000/- in regard to single transaction or in excess of Rs. 50,000/- p.a. to a particular career. Therefore, we do not see any reasons to interfere with the concurrent findings. Accordingly, the appeal is dismissed.

Sri H.R. Kambiyar is granted two weeks'' time to file vakalath.