Disallowance for non-deduction of tax at source under the Income Tax Act, 1961

INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH “I”: NEW DELHI
BEFORE SHRI AMIT SHUKLA, JUDICIAL MEMBER
AND
SHRI PRASHANT MAHARISHI, ACCOUNTANT MEMBER
(Through Video Conferencing)
ITA No. 2484/Del/2014 (Assessment Year: 2009-10)
ITA No. 1687/Del/2016 (Assessment Year: 2011-12)

JAS Forwarding Worldwide Pvt.
Ltd,
1st Floor, A-Wing, Commercial
Complex, Radisson Hotel, New
Delhi
PAN: AABCJ5564A

(Appellant)

Vs.

DCIT,
Circle-4(1),
New Delhi

(Respondent)

Assessee by : Shri Salil Kapoor advocate
Ms Ananya Kapoor advocate
Shri Sumit Lal Chandani, Adv
Revenue by: Shri M. Barnwal, Sr. DR
Date of Hearing 21/05/2021
Date of pronouncement 26/07/2021

O R D E R

These are the two appeals filed by the assessee Jas Forwarding worldwide private limited for assessment year 2009 – 10 and 2011 – 12. Certain common grounds are involved. Both the parties argued these two appeals together and therefore both these appeals are disposed of by this common order.

2. The appeal for assessment year 2009 – 10 is filed by assessee against the order of the deputy Commissioner of income tax, Circle – 4 (1) New Delhi dated 28th of February 2014 passed u/s 143 (3) read with Section 144C of the income tax act 1961 on 28 February 2014 determining the total income of the assessee at ₹ 332,007,303/– against the returned income of the assessee at ₹ 41,027,920/–.

3. The learned assessing officer has made total disallowance/addition to the extent of ₹ 290,979,383/– comprising of following three additions to the total income of the assessee :-
a. addition on account of transfer pricing adjustment of Rs 4,41,43,790/–
b. disallowance u/s 40 (a) (ia) of ₹ 245,582,264
c. disallowance for non-deduction of tax at source of ₹ 12,53,329 /-

4. Assessee would take responsibility for the entire segment depending upon the terms of the contract and understanding with the shippers et cetera illustrative lead depending upon the terms of the contract or understanding, the freight forwarder shall arrange for loading and unloading, transportation, fixing air or shipping lines through which
consignment cell be sent and four other ancillary or incidental matters.

5. The next comparable challenged by the assessee is Arcadia shipping Ltd which is engaged in sipping operation and also own ships and barges relevant to sipping business. It was also stated that the above company is also claiming deduction u/s 33AC. The various points of the annual accounts were also stated.

6. The learned departmental representative filed the comments received from the transfer pricing officer dated 10/9/2018. He further supported the orders of the learned transfer pricing officer and the learned assessing officer on all these grounds.

7. Contesting the appeal for assessment year 2011 – 12 the learned authorised representative submitted that all these issues are similar to the issues in appeal of the assessee for assessment year 2009 – 10. He also submitted
that his arguments also remain the same.

8. In the result appeal of the assessee for assessment year 2011 – 12 is allowed for statistical purposes.
Order pronounced in the open court on 26/07/2021.

Please find attached the enclosed file for the full judgement