Dy. Commissioner of Income Tax, Circle-1(1), Hyderabad V. AGA Publications Limited, Hyderabad

ITA 1025/Hyd/2017

• Counselvise Citation: [2018] 121 COUNSELVISE.COM (IT) 6052 (ITAT-HYDERABAD)
• Duration Of Justice: 11 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-06-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-06-2018
• Assessment Year: 2010-2011
• Appeal Filed On: 16-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K SRINIVAS REDDY
• Assessee Lawyers: P MURALI MOHAN RAO

Judgement Text

ITA NO 1025 OF 2017AGA PUBLICATIONS LTD HYDERABAD. PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.1025/HYD/2017 (ASSESSMENT YEAR: 2010-11) DY. COMMISSIONER OF INCOME TAX, CIRCLE 1(1) HYDERABAD VS AGA PUBLICATIONS LIMITED HYDERABAD PAN: AABCA8511G (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI K. SRINIVAS REDDY, DR FOR ASSESSEE: SHRI P. MURALI MOHAN RAO O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2010-11 AGAINS T THE ORDER OF THE CIT (A)-1, HYDERABAD, DATED 21.02. 2017, DELETING THE DISALLOWANCE MADE BY THE AO U/S 40(A)(IA) OF TH E ACT, ON THE GROUND THAT THE RECIPIENT HAS OFFERED THE INCOME IN ITS RETURN OF INCOME AND PAID THE TAX. 2. WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON'BLE SUPREME COU RT IN THE CASE OF CIT VS. CALCUTTA EXPORT COMPANY REPORTED IN (201 8) 93 TAXMANN.COM 51 (S.C) WHEREIN IT WAS HELD THAT AMENDED PROVISION OF SECTION 40( A)( IA) SHOULD BE INTERPRETED LIBERALLY AND EQUITABLE AND APPLIES RETROSPECTIVELY FROM THE DATE WHEN SECTION 40( A)( IA) WAS INSERTED I:E., WITH EFFECT FROM THE ASSESSMENT YEAR 2005- DATE OF HEARING: 01.06 . 201 8 DATE OF PRONOUNCEMENT: 06.06.2018 ITA NO 1025 OF 2017AGA PUBLICATIONS LTD HYDERABAD. PAGE 2 OF 2 06 SO THAT AN ASSESSEE SHOULD NOT SUFFER UNINTENDED AND DELETERIOUS CONSEQUENCES BEYOND WHAT THE OBJECT AND PURPOSE OF THE PROVISION MANDATES. AS THE DEVELOPME NTS WITH REGARD TO SECTION RECORDED ABOVE SHOWS THAT TH E AMENDMENT WAS CURATIVE IN NATURE, IT SHOULD BE GIVE N RETROSPECTIVE OPERATION AS IF THE AMENDED PROVISION EXISTED EVEN AT THE TIME OF ITS INSERTION. 3. WE FIND THAT IN THE CASE OF THE ASSESSEE, IT HAS BEEN HELD THAT THE RECIPIENT HAS OFFERED THE TAX IN ITS RETURN OF INCOME AND PAID TAXES, AND THEREFORE, NO DISALLOWANCE U/S 40(A)(IA) OF THE ACT IS TO BE MADE AND FOR COMING TO THIS CONCLUSION , THE CIT (A) HAS FOLLOWED THE CORRECT LEGAL POSITION AND ALSO TH E DECISION OF ITAT IN ASSESSEES OWN CASE FOR THE EARLIER A.YS. T HEREFORE, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT (A ). 3. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH JUNE, 2018. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 6 TH JUNE 2018. VINODAN/SPS COPY TO: 1 DY. CIT, CIRCLE 1(1) 8 TH FLOOR, C BLOCK, ROOM NO.836, IT TOWERS, HYDERABAD 500004 2 M/S. AGA PUBLICATIONS LTD, 396, VARTHA BUILDINGS, LOWER TANK BUND ROAD, HYDERABAD 500080 3 CIT (A)-1, HYDERABAD 4 PR. CIT 1, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER