Appeal details
Counselvise Citation
[2019] 118 COUNSELVISE.COM (IT) 6999 (ITAT-MUMBAI)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
5 year(s) 9 month(s) 6 day(s)
Appellant
Respondent
Appeal Type
Cross Objection
Pronouncement Date
08-01-2019
Appeal Filed By
Assessee
Order Result
Dismissed
Bench Allotted
Not Allotted
Next Hearing Date
26-03-2014
Assessment Year
2006-2007
Appeal Filed On
01-04-2013
Judgement Text
IN THE INC OME TAX APPELLATE TRIBUNAL B BENCH, MUMBAI BEFORE HONBLE SH . SANDEEP GOSAIN, JM & HONBLE SH. G. MANJUNATHA, A M ./ I.T.A. NO . 5432/MUM/2010 ( / ASSESSMENT YEAR: 2006 - 07 ) DCIT CIR 4(2) R. NO. 642, 6 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400 020 / VS. MEHA EQUITIES LTD. (EARLIER KNOWN AS RENISSANCE SECURITIES LTD.) 24, NANABHAI CHAMBERS, 3 RD FLOOR, RUSTOM SIDHWA RD. FORT, MUMBAI - 400 001 ./ ./ PAN/GIR NO. A A ACR4143C ( / APPELLANT ) : ( / RESPONDENT ) CROSS OBJECTION NO . 75/MUM/2013 ( / ASSESSMENT YEAR: 2006 - 07 ) MEHA EQUITIES LTD. (EARLIER KNOWN AS RENISSANCE SECURITIES LTD.) 24, NANABHAI CHAMBERS, 3 RD FLOOR, RUSTOM SIDHWA RD. FORT, MUMBAI - 400 001 / VS. DCIT CIR 4(2) R. NO. 642, 6 TH FLOOR, AAYAKAR BHAVAN, M. K. ROAD, MUMBAI - 400 020 / APPELLANT BY : SHRI C. S. SHARMA,D R / RESPONDENTBY : NONE 2 I.T.A. NO. 5432/MUM/2010 & CO NO. 75/MUM/2013 MEHA EQUITIES LTD. / DATE OF HEARING : 03 /01 /201 9 / DATE OF PRONOUNCEMENT : 08.01.2019 / O R D E R PER SANDEEP GOSAIN, J UDICIAL MEMBER : THE PRESENT A PPE AL AS WELL AS CO HAVE BEEN FILED BY THE REVENUE AND ASSESSEE RESPECTIVELY AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 8 , MUMBAI DATED 23.04.2009 FOR AY 20 06 - 06. 2. AT THE VERY OUTSET, OUR ATTENTION W AS DRAWN TOWARDS LETTER DATED 03.01.2019 , WHEREIN THE REVENUE HAS REQUESTED TO WITHDRAW THE PRESENT APPEAL ON THE GROUND THAT THE TAX EFFECT IN THE PRESENT APPEAL IS BELOW THE PRESCRIBED MO NITORY LIMIT FOR FILING APPEAL BEFORE ITAT. 3. CONSIDERING THE CONTENTS OF THE LETTER AS MENTIONED ABOVE, WE A LLOW THE REQUEST OF THE REVENUE FOR WITHDRAWING THE PRESENT APPEAL. 3 I.T.A. NO. 5432/MUM/2010 & CO NO. 75/MUM/2013 MEHA EQUITIES LTD. 4 . CONSEQUENTLY, THE PRESENT APPEAL FILED BY THE REVENUE STANDS DISMISSED AS WITHDRAWN. 5. NOW WE DECIDE CO FILED BY THE ASSESSEE BEARING CO NO. 75/MUM/2013. 6. IT IS NOTICED THAT NOBODY HAD APPEARED WHEN THE CASE WAS CALLED OUT. FROM THE RECORDS, WE NOTICED THAT EVEN ON THE LAST DATE OF HEARINGS ASSESSEE HAD BEEN SEEKING ADJ OURNMENT ON THE ONE PRETEXT ON THE OTHER AND THE BENCH HAD GRANTED TO THE LAST OPPORTUNITY TO THE ASSESSEE FOR ADDRESSING THE ARGUMENTS ON 23.07.18 AND 21.07.18. EVEN TODAY, NOBODY HAS APPEARED ON BEHALF OF THE ASSESSEE OR NO APPLICATION FOR ADJOURNMENT WA S MOVED. ON THE OTHER HAND L D. DR IS PRESENT IN THE COURT AND IS READY WITH ARGUMENTS. THEREFORE WE HAVE DECIDED TO PROCEED WITH THE HEARING OF THE CASE EX - PA RTE WITH THE ASSISTANCE OF THE L D. DR AND THE MATERIAL PLACED ON RECORD. 7. WE HAVE HEARD LD. DR ON THE GROUNDS RAISED BY THE ASSESSEE IN THE CROSS OBJECTION AND WE HAVE ALSO PERUSED THE 4 I.T.A. NO. 5432/MUM/2010 & CO NO. 75/MUM/2013 MEHA EQUITIES LTD. ORDERS PASSED BY THE REVENUE AUTHORITIES. THE LD. CIT(A) AFTER CONSIDERING THE FACTS OF THE PRESENT CASE AS WELL AS TAKING INTO CONSIDERATION THE ORDER PASSED BY AO, HAD RIGHTLY HELD THAT ASSESSEE HAD DEDUCTED TDS WITH RESPECT TO FOUR PARTIES OUT OF SIX PARTIES, THEREFORE ADDITION WAS MADE ON ACCOUNT OF NON - DEDUCTION OF TDS ON THE PAYMENTS MADE TO M. M. RANJAN AND RAJENDRA MEHTA TO THE EXTENT OF 1,50,000/ - . THE ASSESSE E MADE THE PAYMENTS IN THE NATURE OF CONTRACT AND THUS THE TDS WAS DEDUCTABLE, THEREFORE THE ADDITIONS OF RS. 3,89,271 WAS RIGHTLY CONFIRMED. WITH REGARD TO DISALLOWANCE MADE BY AO WITH RESPECT TO 10 PARTIES OF SOFTWARE DEVELOPMENT CHARGES ARE CONCERNED, T HE BILLS OF THOSE PARTIES SHOWS THAT PAYMENTS WERE MADE WITH RESPECT TO PURCHASE OF COMPUTER SOFTWARE AND HARDWARE. THEREFORE IT WAS RIGHTLY CONCLUDED THAT TDS WAS NOT DEDUCTABLE AND THUS, THE ADDITIONS WERE CONFIRMED TO THE EXTENT OF RS. 3,12,596/ - . 8. LD. CIT(A) HAD CONFIRMED THE ADDITIONS U/S 14A BY HOLDING THAT PROVISIONS OF RULE 8D MADE IN VIEW OF SECTION 14A(2) SHALL APPLY FOR DETERMINING THE AMOUNT OF EXPENDITURE IN 5 I.T.A. NO. 5432/MUM/2010 & CO NO. 75/MUM/2013 MEHA EQUITIES LTD. RELATION TO EXEMPT INCOME FOR ALL PENDING PROCEEDINGS. THE LD. CIT(A) HAD ALSO CORR ECTLY APPRECIATED THAT ADDITIONS U/S 36(1)(VA) WAS SUSTAINABLE AS THE ASSESSEE HAD MADE PAYMENT BEYOND GRACE PERIOD. 9. MOREOVER, N O NEW FACTS O R CONTRARY JUDGMENTS HAVE B EEN BROUGHT ON RECORD I N ORDER TO CONTROVERT OR REBUT THE FINDINGS SO RECORDED BY L D. CIT(A). THEREFORE, THERE ARE NO REASON S FOR US TO INTERFERE INTO OR DEVIATE FROM THE FINDINGS SO RECORDED BY THE LD.CIT(A). HENCE , WE ARE OF THE CONSIDERED VIEW THAT THE FINDINGS SO RECORDED BY THE LD. CIT (A) ARE JUDICIOUS AND ARE WE LL REASONED. 10. IN THE NET RESULT , THE APPEAL FILED BY THE ASSESSEE STANDS DISMISSED WITH NO ORDER AS TO COST. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH JAN , 201 9 SD/ - SD/ - ( G. MANJUNATHA ) (SANDEEP GOSAIN ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI ; DATED : 08 . 01 .201 9 SR.PS . DHANANJAY 6 I.T.A. NO. 5432/MUM/2010 & CO NO. 75/MUM/2013 MEHA EQUITIES LTD. / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT - CONCERNED 5. , , / DR, ITAT, MUMBAI 6. / GUARD F I LE / BY ORDER, . / (DY./ASSTT.REGISTRAR) , / ITAT, MUMBAI
