Dolphin Metals, Nagpur V. Commissioner of IncomeTax, Nagpur

ITA 103/NAG/2010

• Counselvise Citation: [2012] 119 COUNSELVISE.COM (IT) 9567 (ITAT-NAGPUR)
• Duration Of Justice: 2 year(s) 2 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2006-2007
• Appeal Filed On: 06-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAMESH DUWANDE
• Assessee Lawyers: P T CHHABRIA

Judgement Text

ITA NO. 103/NAG/2010 DOLPHIN METALS, NAGPUR IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , NAGPUR BEFORE: SHRI P.K. BANSAL , ACCOUNTANT MEMBER AND SHRI D.T. GARASIA , JUDICIAL MEMBER ITA NO. 103 / NAG / 20 10 ASSESSMENT YEAR : 2006 - 07 DOLPHIN METALS NAGPUR VS. ITO WARD - 7(1) NAGPUR ( APPELLANT) (RESPONDENT) PAN NO.AABFD 0833F APPELLANT BY: SHRI P.T. CHHABRIA RESPONDENT BY: SHRI RAMESH DUWANDE, SR. DR. DATE OF HEARING: 11.10.2012 DATE OF PRONOUNCEMENT: 15.10.2012 ORDER PER P.K. BANSAL, ACCOUNTANT MEMBER: - THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATE TO THE DISALLOWANCE U/S 40(A)(IA) AMOUNTING TO RS.32,021/ - . THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE PAID THE INTEREST AMOUNTING TO RS.32,021/ - TO TWO PERSONS BUT NO TDS HAS BEEN DEDUCTED IN ACCORDANCE WITH THE SECT ION 194A. WHEN THE ASSESSING OFFICER ASKED FOR THE SAME, THE ASSESSEE SUBMITTED FORM 15H FROM THE TWO PERSONS AND STATED THAT THE FORM WAS RECEIVED FROM THESE PERSONS BUT WAS NOT FILED BEFORE THE CIT. ACCORDINGLY, THE TDS WAS NOT DEBITED. THE ASSESSING OFFICER SINCE THE FORM NO.15H WAS NOT FILED BEFORE THE CIT , TOOK THE VIEW THAT THE ASSESSEE HAS COMMITTED THE DEFAULT U/S 194A AND DISALLOWED THE SAME OF RS.32,021/ - . THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) WHO ALSO CONFIRMED THE ORDER OF THE ASSESS ING OFFICER. BEFORE US, THE LD. A.R. CONTENDED THAT THE ASSESSEE MADE THE PAYMENT OF THE INTEREST AND HAS ALSO COLLECTED FORM 15H , BUT FAILED TO SUBMIT THE COPIES TO THE COMMISSIONER OF INCOME - TAX AS THE ASSESSEE WAS NOT AWARE OF THE PROVISIONS OF THE ACT . IN THE ALTERNATE , IT WAS CONTENDED THAT THE ASSESSEE HAS PAID THE INTEREST AND NO INTEREST WAS OUTSTANDING AS ON 31.3.2006 AND THEREFORE , NO DISALLOWANCE U/S 40(A)(IA) CAN BE MADE. THE LD. D.R. ON THE OTHER HAND RELIED ON THE ORDER OF THE CIT(A). WE H AVE ITA NO.103/NAG/2010 DOLPHIN METALS, NAGPUR 2 CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS ALONG WITH THE ORDER OF THE TAX AUTHORITIES BELOW. WE NOTED THAT SPECIAL BENCH OF THIS TRIBUNAL RECENTLY HAS TAKEN THE VIEW IN THE CASE OF MERILYN SHIPPING AND TRANSPORT VS. ADDITIONAL CIT RANGE - 1 THAT THE DI SALLOWANCE U/S 40(A)(IA) CAN BE RESTRICTED ONLY IN RESPECT OF AMOUNT WHICH REMAINS PAYABLE AS ON 31 ST MARCH OF THE PREVIOUS YEAR RELEVANT TO THE FINANCIAL YEAR. IN THIS CASE, WE NOTED THAT THE ASSESSEE HAD PAID THE INTEREST TO BOTH THE PERSONS AND NO AMOU NT REMAINS OUTSTANDING AS ON 31.3.2006. WE RESPECTFULLY , FOLLOWING THE DECISION OF THE SPECIAL BENCH, SET ASIDE THE ORDER OF THE CIT(A) AND DELETE THE DISALLOWANCE MADE BY THE ASSESSING OFFICER. 2 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOW ED. PRONOUNCED IN THE OPEN COURT ON 15.10 .20 1 2 SD/ - SD/ - ( D.T. GARASIA ) (P.K. BANSAL) JUDICIAL MEMBER ACCOUNTANT MEMBER VG/SPS NAGPUR DATED 15 TH OCTOBER , 20 1 2 COPY TO 1 M/S. DOLPHIN METALS , U - 90, M.I.D.C., HINGNA, NAGPUR - 440 016. 2 ITO WARD - 7(1), NAGPUR 3 THE CIT, NAGPUR 4 THE CIT (A) , NAGPUR 5 THE DR, ITAT, NAGPUR 6 GUARD FILE. BY ORDER SR. PRIVATE SECRETAR Y INCOME TAX APPELLATE TRIBUNAL NAGPUR