Real Talent Engineering Ltd., CHENNAI V. DCIT, CHENNAI

ITA 1018/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 90299 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 13-04-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 23-04-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S DASGUPTA
• Assessee Lawyers: C NARESH

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . . . , . !'# ! , % !& BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ ITA NO.1018/MDS/2014 ( )( / ASSESSMENT YEAR : 2008-09 M/S REAL TALENT ENGINEERING LTD., NO.67, CHAMIERS ROAD, CHENNAI - 600 028. PAN : AAACR 3651 H V. THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE V(3), CHENNAI - 600 034. (+,/ APPELLANT) (-.+,/ RESPONDENT) +, / 0 / APPELLANT BY : SH. C. NARESH, CA -.+, / 0 / RESPONDENT BY : SH. S. DAS GUPTA, JCIT 1 / 2% / DATE OF HEARING : 13.04.2015 3') / 2% / DATE OF PRONOUNCEMENT : 17.04.2015 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-V, CHENNAI , DATED 25.02.2014 AND PERTAINS TO ASSESSMENT YEAR 2008-09. 2 I.T.A. NO.1018/MDS/14 2. SHRI C. NARESH, THE LD. REPRESENTATIVE OF THE AS SESSEE, SUBMITTED THAT THE ASSESSING OFFICER DISALLOWED THE LEASE RENT PAID BY THE ASSESSEE ON THE GROUND THAT TAX WAS NOT DEDU CTED AT THE TIME OF PAYMENT. REFERRING TO THE CERTIFICATE SAID TO BE ISSUED BY THE ADDL. CIT (TDS), THE LD. REPRESENTATIVE SUBMITTED T HAT BY AN ORDER DATED 18.04.2007, THE ADDITIONAL COMMISSIONER AUTHO RIZED ALL THE PAYERS OF LEASE RENTAL TO M/S SUNDARAM FINANCE LIMI TED TO PAY LEASE RENTAL WITHOUT DEDUCTION OF TAX. IN VIEW OF THIS ORDER OF ADDITIONAL COMMISSIONER, ACCORDING TO THE LD. REPRE SENTATIVE, THERE IS NO REASON FOR DISALLOWING THE LEASE RENTAL PAID BY THE ASSESSEE. EVEN OTHERWISE, ACCORDING TO THE LD. REPRESENTATIVE , M/S SUNDARAM FINANCE LIMITED, THE RECIPIENT OF LEASE RENTAL PAID THE TAXES ON ITS INCOME. THEREFORE, THERE IS NO REASON FOR DISALLOW ING THE CLAIM OF THE ASSESSEE UNDER SECTION 40(A)(IA) OF THE INCOME- TAX ACT, 1961 (IN SHORT 'THE ACT'). 3. ON THE CONTRARY, SHRI DAS GUPTA, THE LD. DEPARTM ENTAL REPRESENTATIVE, SUBMITTED THAT UNDER SECTION 197 OF THE ACT, THE ASSESSING OFFICER WAS EMPOWERED TO GRANT A CERTIFIC ATE FOR NON- DEDUCTION OF TAX. IN THIS CASE, THE ADDITIONAL COM MISSIONER, TDS RANGE, IS NOT THE ASSESSING OFFICER. ACCORDING TO THE LD. D.R., ADMITTEDLY, THE ASSESSING OFFICER FOR THE ASSESSEE WAS DEPUTY 3 I.T.A. NO.1018/MDS/14 COMMISSIONER, COMPANY CIRCLE V(3), THEREFORE, THE C ERTIFICATE SAID TO BE ISSUED BY THE ADDITIONAL COMMISSIONER DATED 1 8.04.2007 IS WITHOUT JURISDICTION. HENCE, IT CANNOT BE ACTED UP ON. REFERRING TO THE CONTENTION OF THE ASSESSEE THAT THE TAXES WERE ALREADY PAID BY M/S SUNDARAM FINANCE LIMITED, THE RECIPIENT OF THE LEASE RENTAL, THE LD. D.R. SUBMITTED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY WHETHER M/S SUND ARAM FINANCE LIMITED HAS ACTUALLY PAID THE TAXES. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL ON RECORD. UNDER SEC TION 197 OF THE ACT, THE OFFICER WHO IS EMPOWERED TO GRANT A CERTIF ICATE FOR NON- DEDUCTION OF TAX IS ASSESSING OFFICER. NOW, THE AS SESSEE CLAIMS THAT THE RECIPIENT M/S SUNDARAM FINANCE LIMITED HAS PAID THE TAXES. THEREFORE, IT HAS TO BE VERIFIED WHETHER M/S SUNDAR AM FINANCE LIMITED HAS PAID THE TAX ON THE LEASE RENTAL RECEIV ED FROM THE ASSESSEE. THE LD. D.R. HAS NO SERIOUS OBJECTION TO REMIT BACK THE MATTER TO THE FILE OF THE ASSESSING OFFICER FOR VER IFICATION. ACCORDINGLY, THE ORDERS OF THE LOWER AUTHORITIES AR E SET ASIDE AND THE ISSUE OF DISALLOWANCE UNDER SECTION 40(A)(IA) OF TH E ACT IS REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER. THE ASS ESSING OFFICER SHALL VERIFY WHETHER M/S SUNDARAM FINANCE LIMITED H AS PAID TAX ON 4 I.T.A. NO.1018/MDS/14 THE LEASE RENTAL RECEIVED FROM THE ASSESSEE. IT IS OPEN TO THE ASSESSEE TO PRODUCE MATERIALS TO PROVE THAT M/S SUN DARAM FINANCE LIMITED HAS ACTUALLY PAID THE TAXES. THE ASSESSING OFFICER SHALL THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WI TH LAW, AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. WITH THE ABOVE OBSERVATION, THE APPEAL OF THE AS SESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 17 TH OF APRIL, 2015 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) (N.R.S. GANESAN) (. !'# ! ) ( . . . ) % / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 5 /DATED, THE 17 TH APRIL, 2015. KRI. / -267 87)2 /COPY TO: 1. +, /APPELLANT 2. -.+, /RESPONDENT 3. 1 92 () /CIT(A)-V, CHENNAI 4. 1 92 /CIT-V, CHENNAI-34 5. 7: -2 /DR 6. ;( < /GF.