Sunil Kumar Muthyala , Secunderabad V. Dy. Commissioner of Income Tax , Circle-10(1), Hyderabad

ITA 1037/Hyd/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 1625 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-02-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 24-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M V ANIL KUMAR
• Keywords: Retrospective amendment; TDS
• Section: 143(3); 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO. A.Y. APPELLANT RESPONDENT 1036/HYD/19 2012-13 SUNIL KUMAR MUTHYALA, SECUNDERABAD [PAN: AGOPM6239K] ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE-10, HYDERABAD 1037/HYD/19 2014-15 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-10(1), HYDERABAD FOR ASSESSEE : SHRI M.V.ANIL KUMAR, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 01-02-2021 DATE OF PRONOUNCEMENT : 16-02-2021 O R D E R PER BENCH : THESE TWO ASSESSEES APPEALS FOR AYS.2012-13 & 2014 -15 ARISE FROM THE CIT(A)-6, HYDERABADS ORDER DATED 01-0 3-2019 PASSED IN APPEAL NOS.0622/2014-15/B1/CIT(A)-6 & 10525/2016-17/A3/CIT(A)-6, INVOLVING PROCEEDINGS U/ S. 143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT] HEARD BOTH THE PARTIES AND CASE FILES PERUSED. 2. THE ASSESSEES FORMER SUBSTANTIVE GROUND IN AY.201 2-13 APPEAL NO.1036/HYD/2019 AND SOLE SUBSTANTIVE GRIEVAN CE IN ITA NO.1036 & 1037/HYD/2019 :- 2 -: LATTER YEAR 2014-15 APPEAL NO.1037/HYD/2019 CHALLENGE S CORRECTNESS OF BOTH THE LOWER AUTHORITIES ACTION INVOKIN G SECTION 40(A)(IA) DISALLOWANCE OF INTEREST PAYMENTS MADE TO VEHICLE FINANCERS IN VEHICLE HIRING BUSINESS FOR HA VING NOT DEDUCTED TDS THEREUPON. IT IS NOT IN DISPUTE THAT THE ASS ESSEE HAS INDEED NOT DEDUCTED THE TDS. LEARNED COUNSELS O NLY CASE DURING THE CASE OF HEARING IS THAT THE INSTANT FORMER I SSUE REQUIRES ASSESSING OFFICERS FACTUAL VERIFICATION IN LIGHT OF SECTION 40(A)(IA) 2 ND PROVISO THAT THE IMPUGNED DISALLOWANCE DOES NOT COME INTO PLAY IN CASE THE CONCERNED ASSESSEE IS NOT THE ASSESSEE IN DEFAULT ON ACCOUNT OF THE FACT THAT THE PAYEE/RECIPIENT(S) ALREADY STANDS ASSESSED QUA THE SAME. HON'BLE DELHI HIGH COURTS DECISION CIT VS. ANSAL LA ND MARK TOWNSHIP (P) LTD., (2016) [279 CTR 384] (DEL) HOLDS THE SAME TO BE A CURATIVE PROVISO HAVING RETROSPECTIVE EFFECT. 3. LEARNED COUNSEL NEXT SUBMITTED THAT THE ASSESSEE HAD ALSO DEDUCTED/PAID THE RELEVANT TDS IN ISSUE IN THE SUCCEEDING ASSESSMENT YEAR BEFORE THE DUE DATE OF FIL ING OF RETURN. WE THUS RESTORE THIS FORMER ISSUE BACK TO THE ASSESSING OFFICER IN VIEW OF OUR OBSERVATIONS FOR HI S FRESH VERIFICATION IN THE LIGHT OF SECTION 40(A)(IA) 1 ST AND 2 ND PROVISO. THIS FIRST SUBSTANTIVE GROUND AS FAR AS APPEAL ITA NO.1036/HYD/2019 AS WELL AS LATTER APPEAL ITA NO.1037/HYD/2019 RAISING THE SOLE ISSUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 4. WE NOW ADVERT TO THE ASSESSEES LATTER SUBSTANTIVE GROUND IN AY.2012-13, SEEKING TO DELETE EXCESS DEPRE CIATION DISALLOWANCE OF RS.6,76,419/- DENIED THE GROUND THAT TH E ITA NO.1036 & 1037/HYD/2019 :- 3 -: VEHICLES IN QUESTION HAD BEEN TRANSFERRED FROM THE FI RM TO THE ASSESSEES PARTNER. 5. LEARNED COUNSEL VEHEMENTLY ARGUED DURING THE COUR SE OF HEARING THAT THE ASSESSEE HAD IN FACT PAID THE IMPUGNED CONSIDERATION AMOUNT IN VIEW OF CONVERSION OF THE FIRM TO A PROPRIETARY CONCERN IN THE RELEVANT PREVIOUS YEAR. THE REVENUE FAIRLY STATED THAT THIS ISSUE MAY ALSO REQUIRE FACTUAL VERIFICATION. WE THUS RESTORE THE INSTANT LATTER ISSUE AS WELL TO THE ASSESSING OFFICER. 6. BOTH THESE ASSESSEES APPEALS ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. A COPY OF THIS CO MMON ORDER BE PLACED IN THE RESPECTIVE CASE FILES. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH FEBRUARY, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.GO DARA) ACCOUNTANT MEMBER JUDICIAL MEMB ER HYDERABAD, DATED: 16-02-2021 TNMM ITA NO.1036 & 1037/HYD/2019 :- 4 -: COPY TO : 1.SUNIL KUMAR MUTHYALA, C/O.M.ANANDAM & CO., CHARTERED ACCOUNTANTS, FLAT NO.7A, SURYA TOWERS, S.P.ROAD, SECUNDERABAD. 2.THE ADDITIONAL COMMISSIONER OF INCOME TAX, RANGE- 10, HYDERABAD. 3.THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-10( 1), HYDERABAD. 4.CIT(APPEALS)-6, HYDERABAD. 5.PR.CIT-6, HYDERABAD. 6.D.R. ITAT, HYDERABAD. 7.GUARD FILE.