M/s. Bhargava Constructions, Nellore V. ITao, Ward-2, Nellore

CO 61/HYD/2011

• Counselvise Citation: [2012] 122 COUNSELVISE.COM (IT) 7670 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 1 day(s)
• Appeal Type: Cross Objection
• Pronouncement Date: 10-08-2012
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2008-2009
• Appeal Filed On: 09-09-2011
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: PHANI RAJU
• Assessee Lawyers: CH SURYANARAYANA RAO
• Keywords: Tax effect

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A', HYDERABAD BEFORE SRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1105/HYD/2011 ASSESSMENT YEAR 2008-09 INCOME TAX OFFICER WARD-3, NELLORE VS. M/S. BHARGAVA CONSTRUCTIONS NELLORE; PAN: AAEFB0903F APPELLANT RESPONDENT CO NO. 61/HYD/2011 ARISING OUT OF I.T.A. NO. 1105/HYD/2011 ASSESSMENT YEAR 2008-09 M/S. BHARGAVA CONSTRUCTIONS NELLORE; PAN: AAEFB0903F VS. INCOME TAX OFFICER WARD-3, NELLORE APPELLANT RESPONDENT REVENUE BY: SRI PHANI RAJU ASSESSEE BY: SRI CH. SURYANARAYANA RAO DATE OF HEARING: 30 .07.2012 DATE OF PRONOUNCEMENT: 10.08.2012 O R D E R PER CHANDRA POOJARI, AM: THE APPEAL BY THE REVENUE AND THE CO BY THE ASSESS EE ARE DIRECTED AGAINST THE ORDER OF THE CIT(A), GUNTU R DATED 27.4.2011. 2. THE REVENUE RAISED THE GROUND THAT THE CIT(A) OUGHT NOT HAVE ALLOWED APPEAL OF THE ASSESSEE SINCE THE C IRCULAR ISSUED BY THE BOARD WAS PRIOR TO AMENDMENT TO SECTI ON 194(I) OF THE INCOME-TAX ACT, 1961 WITH EFFECT FROM 13.7.2 006. 3. IN THE CO FILED BY THE ASSESSEE IT IS STATED THAT T HE APPEAL OF THE REVENUE IS NOT MAINTAINABLE IN VIEW O F THE ITA NO. 1105 & CO. NO. 61 /HYD/20 11 M/S. BHARGAVA CONSTRUCTIONS ============================== 2 CBDT INSTRUCTION NO. 3/2011 (F. NO. 279/MISC. 142/2 007-ITJ) DATED 9.2.2011 WHEREIN THE MONETARY LIMIT FOR FILIN G APPEALS BY THE DEPARTMENT BEFORE THE ITAT, HIGH COURTS AND THE SUPREME COURT WAS REVISED. IN OTHER WORDS, THE CO FILED BY THE ASSESSEE IS SUPPORTIVE OF THE CIT(A)'S ORDER. 4. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSEE IS E NGAGED IN EXECUTION OF CIVIL CONTRACT WORKS. IT FILED THE E- RETURN OF INCOME ON 2.12.2008 FOR THE A.Y. 2008-09, ADMITTING TOTAL INCOME AT RS. 3,04,430. DURING THE YEAR UNDER CONS IDERATION, IT HAS RECEIVED GROSS RECEIPTS OF RS. 2,71,88,950. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFF ICER HAS OBSERVED THAT THE ASSESSEE HAS CLAIMED HIRE CHARGES ON VEHICLES TAKEN ON FINANCE TO THE TUNE OF RS. 20,44, 364. THESE PAYMENTS WERE MADE TO TATA MOTORS (P) LTD., SUNDARA M FINANCE (P) LTD., AND ICICI BANK TOWARDS THE CHARGE S ON EXCAVATORS AND PROCLAINERS TAKEN ON HIRE FINANCE. HOWEVER, THE ASSESSING OFFICER HAS OPINED THAT THE PAYMENTS MADE TO TATA MOTORS (P) LTD., AMOUNTING TO RS. 7,24,378 FAL L UNDER THE TDS PROVISIONS AND AS THE ASSESSEE HAS NOT DEDUCTED ANY TDS ON HIRE PAYMENTS, THE ASSESSING OFFICER HAS BROUGHT THE TOTAL AMOUNT OF RS. 7,24,378 TO TAX U/S. 40(A)(IA) OF THE ACT. ON APPEAL THE CIT(A) DELETED THE ADDITION. 5. WE HAVE HEARD BOTH THE PARTIES ON THIS ISSUE. THE TAX EFFECT IN THIS CASE AS QUANTIFIED IN THE CIT(A) ORD ER IS RS. 2,65,424 WHICH IS LESS THAN THE MONETARY LIMIT SPEC IFIED BY CBDT INSTRUCTION NO. 3/2011 (F. NO. 279/MISC. 142/2 007-ITJ) DATED 9.2.2011. BEING SO, WE ARE INCLINED TO DISMI SS THE APPEAL FILED BY THE REVENUE AS NOT MAINTAINABLE. ACCORDINGLY, THE ORDER OF THE CIT(A) IS CONFIRMED. ITA NO. 1105 & CO. NO. 61 /HYD/20 11 M/S. BHARGAVA CONSTRUCTIONS ============================== 3 6. THE CO FILED BY THE ASSESSEE IS IN SUPPORT OF THE CIT(A)'S ORDER. AS WE HAVE CONFIRMED THE ORDER OF THE CIT(A), THE CO BY THE ASSESSEE BECOMES INFRUCTUOUS. 7. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED A ND THE CO FILED BY THE ASSESSEE IS ALSO DISMISSED BEING IN FRUCTUOUS. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH AUGUST, 2012. SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED 10 TH AUGUST, 2012 TPRAO COPY FORWARDED TO: 1. THE INCOME TAX OFFICER, WARD - 2, # 24 - 2 - 438, GNT ROAD, NELLORE 2. M/S. BHARGAVA CONSTRUCTIONS, # 26 - 11 - 3382, SIMHAPURI CENTRE, VEDAYAPALEM, NELLORE 3. THE CIT (A) , GUNTUR 4. THE CIT, GUNTUR 5. THE DR A BENCH, ITAT, HYDERABAD