COMMISSIONER OF INCOME-TAX Vs. SHRIDHAR SHANTINATH PATRAVALI

JUDGEMENT

(1.) Aggrieved by the order dated 19.11.2014 passed by the Income Tax Appellate Tribunal, Panaji Bench, Panaji, whereby the learned Tribunal has set aside the order of the Commissioner of Income Tax (Appeals) ('CIT', for short) and has upheld the disallowance claimed by the assessee, the revenue has approached this Court.

(2.) The Revenue has raised the following substantial questions of law before this Court:

(3.) Briefly the facts of the case are that the assessee, Mr. Shridhar S. Patravali, the Proprietor of Arihant Transport, is engaged in the business of hiring/plying of trucks for transporting the goods. For the assessment year 2008-09, the assessment was completed under section 143(3) of the Income-tax Act, 1961 ('the Act', for short). However, subsequently, the Commissioner of Income-tax initiated the proceedings against the assessee under Sec. 263 of the Act, ostensibly on the ground that the assessment order passed by the Assessing Officer was found to be erroneous as well as prejudicial in the interest of Revenue. Since the assessee had paid truck hire charges of Rs. 30,35,515.00 to one Mr. Shantinath B. Patravali, and had also paid Rs. 17,80,639.00 to Smt. Savita S. Patravali, the assessee was required to submit Form No. 15J before the appropriate Authority. However, as the assessee had failed to submit the said Forms before the appropriate Authority, it was felt that the payment made to these two persons was in violation of section 194C(3) of the Act.