Dy. CIT, Circle-3(1), Hyderabad V. Seaways Shipping and Logistics Ltd.,(formerly Seaways Shipping Ltd), Hyderabad

ITA 1093/HYD/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 66371 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 16-07-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMISHA S GUPT
• Assessee Lawyers: V SIVA KUMAR
• Section: 40A(3); 143(3); 28

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1093 AND 1094/HYD/2012 ASSESSMENT YEARS: 2007-08 & 2008-09 DY. COMMISSIONER OF INCOME-TAX, ... APPELLANT CIRCLE 3(1), HYDERABAD. VS. SEAWAYS SHIPPING AND LOGISTICS LTD., RESPO NDENT (FORMERLY SEAWAYS SHIPPING LTD.) HYDERABAD. (PAN AADCS0845B) APPELLANT BY : SMT. AMISHA S. GUPT RESPONDENT BY : SHRI V. SIVAKUMAR DATE OF HEARING : 18/10/2012 DATE OF PRONOUNCEMENT : /1 0/2012 ORDER PER ASHA VIJAYARAGHAVAN, J.M.: BOTH THESE APPEALS BY THE REVENUE ARE DIRECTED AGA INST THE RESPECTIVE ORDERS OF CIT(A)-IV, HYDERABAD DATED 30/ 04/2012 FOR THE ASSESSMENT YEARS 2007-08 AND 2008-09. SINCE IDE NTICAL ISSUE IS INVOLVED IN BOTH THESE APPEALS, THEY WERE HEARD TOGETHER AND THEREFORE A COMMON ORDER IS PASSED FOR THE SAKE OF CONVENIENCE. ITA NO. 1093/HYD/2012 FOR AY 2007-08 2. THE ASSESSEE IS A DOMESTIC COMPANY ENGAGED IN TH E BUSINESS OF SHIPPING AND INTERMEDIARY SERVICES FILE D ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 31/10/20 07 DECLARING 2 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. AN INCOME OF RS. 5,10,76,935/-. THE CASE WAS SELECT ED FOR SCRUTINY AND AFTER ISSUING STATUTORY NOTICES THE AS SESSMENT WAS COMPLETED U/S 143(3). WHILE COMPLETING THE ASSESSME NT, THE AO DISALLOWED THE EXPENDITURE U/S 40(A)(IA) FOR THE F OLLOWING PAYMENTS:- 1. PAYMENTS MADE TO MAXICON SHIPPING AGENCIES (P) L TD. RS. 1,43,63,000/- 2. PAYMENT TO M/S JMD TRAVELS RS. 55,095/- 3. PAYMENT TO LCL AGENCIES (INDIA) (P) LTD. RS. 2 ,24,648/- 4. PAYMENT TO LOCK HEET ROAD LINES RS. 31,467/- 5. PAYMENT TO MSC AGENCY INDIA PVT. LTD. RS. 5,35 ,398/- 3. THE AO ALSO DISALLOWED AN AMOUNT OF RS. 63,00,64 8/- ON ACCOUNT OF TDS AMOUNT OUTSTANDING TOWARDS RENT. 4. THE AO ALSO MADE AN ADDITION OF RS. 10,00,480/- TOWARDS DEDUCTION OF TAX AT SOURCE ON THE GROUND THAT IN AN NEXURE-3 TO FORM 3CD, THE ASSESSEE HAD DECLARED THAT IT DID NOT EFFECT TDS ON AN AMOUNT OF RS. 10,00,480/-. 5. THE AO ALSO DISALLOWED CASH PAYMENTS OF RS. 1,43 ,366/- U/S 40A(3) ON THE GROUND THAT THE ASSESSEE COMPANY HAD MADE THE CASH PAYMENTS TO ITS ASSOCIATED CONCERN M/S MAXICON IN VIOLATION OF PROVISIONS UNDER SECTION 40A(3), THEREFORE, 20% OF THE PAYMENTS OF RS. 7,16,833/- I.E. RS. 1,43,366/- DISA LLOWED. 6. AGGRIEVED, THE ASSESSEE CARRIED THE MATTER IN AP PEAL BEFORE THE CIT(A). 7. BEFORE THE CIT(A), IT WAS AVERRED THAT IN THE CA SES, WHERE NO DEDUCTION WAS MADE, THE EXPENSES HAD ACTUALLY BE EN INCURRED BY MAKING PAYMENTS AND DEBITING TO THE PROFIT AND L OSS ACCOUNT, 3 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. AND THEREFORE, NO ADDITION CALLED FOR, AS THE AMOUN TS HAD ALREADY BEEN PAID AND SUCH PAYMENTS WERE GENUINE. THE ASSES SEE ARGUED THAT THIS PRINCIPLE HAS BEEN SETTLED BY THE DECISIO N OF THE ITAT. 8. WITH REGARD TO THE CASES OF SHORT DEDUCTION ALSO , THE ASSESSEE ARGUED THAT THE EXPENSES WERE INCURRED BY MAKING PAYMENT AND DEBITED TO PROFIT & LOSS ACCOUNT. HE AV ERRED THAT THE GENUINENESS OF SUCH PAYMENTS WAS NOT DOUBTED BY THE AO AND THEREFORE IN VIEW OF THE DECISION OF THE HONBLE JU RISDICTIONAL ITAT, SUCH EXPENSES WERE ALLOWABLE. 9. WITH REGARD TO THE DELAYED REMISSION OF TDS, IT WAS SUBMITTED THAT THE SAME HAD ALSO BEEN INCURRED AND DEBITED IN THE PROFIT AND LOSS ACCOUNT AND THE SAME COULD ALSO HAVE NOT BEEN DISALLOWED. 10. THE AR OF THE ASSESSEE FURTHER SUBMITTED THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF FORWARDING THE CARGO, MOSTLY ON THE VESSELS OWNED BY THE NON-RESIDENTS. HE SUBMITTED TH AT UNDER THE IT ACT, SHIPPING BUSINESS OF NON RESIDENTS IS ASSES SED U/S 172 OF THE ACT. REFERRING TO THE PROVISIONS OF SECTION 172 , HE AVERRED THAT THE FREIGHT PAID BY THE ASSESSEE IS A DIRECT E XPENDITURE OF THE COMPANY, WHICH IS DEDUCTED IN ARRIVING AT THE P ROFIT/GAINS OF THE BUSINESS, WHICH IS TAXED U/S 28. IT WAS AVERRED THAT THE PAYMENT OF RS. 1,43,63,000/- HAD BEEN MADE TO M/S M AXICON SHIPPING AGENCIES LTD., WHO IN TURN HAD PAID THESE AMOUNTS TO VARIOUS SHIPPING COMPANIES AND THE CARGO WAS MOVED BY ISSUING THE BILLS OF LADING BY THE NRI SHIPPING COMPANIES. HE REITERATED THAT THE PAYMENT OF FREIGHT BY THE COMPANY HAS NOT BEEN DISPUTED, BUT HAS BEEN DISALLOWED ON GROUND OF NON DEDUCTION OF TDS, THOUGH THE SAME IS A DIRECT EXPENDITURE. 4 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. 11. THE AR OF THE ASSESSEE AVERRED THAT THE AMOUNTS TO BE DISALLOWED U/S 40(A)(IA) ARE APPLICABLE ONLY TO ITE MS COVERED BY SEC. 30 TO 38 AND NOT TO SECTION 28 AND THAT ALL TH E DIRECT COST/EXPENDITURE COVERED BY SEC. 28 ARE BEYOND THE SCOPE OF SUCH DISALLOWANCE. HE MAINTAINED THAT THE FREIGHT PAID B Y THE ASSESSEE IS NOT COVERED BY SEC. 30 TO 38, SO AS TO ATTRACT T HE PROVISIONS OF SEC. 40(A)(IA). THE AR OF THE ASSESSEE REITERATED T HAT SINCE FREIGHT HAD ALREADY BEEN PAID AND DEBITED TO PROFIT AND LOSS ACCOUNT, THE SAME WAS NOT OUTSTANDING/PAYABLE AS ON THE DATE OF BALANCE SHEET. 12. WITH REGARD TO THE PAYMENT TO JMD TRAVELS, M/S LCL AGENCIES, M/S LOCK HEET ROADLINES, M/S MSC AGENCIES P. LTD. ASO, IT WAS SUBMITTED THAT THE PAYMENTS HAD ALREADY BEEN MADE AND DEBITED TO P&L ACCOUNT. 13. REGARDING THE DISALLOWANCE OF RS. 63,00,648/- O N ACCOUNT OF RENT, IT WAS SUBMITTED THAT SUCH RENT HAD ALSO BEEN PAID AND DEBITED TO THE P&L ACCOUNT. THE TDS COULD NOT BE RE MITTED IN TIME AS PER THE PROVISIONS OF THE IT ACT. HOWEVER, SECTION 40(A)(IA) CAN BE APPLIED ONLY IN RESPECT OF EXPENSE S WHICH REMAIN PAYABLE AS ON THE DATE OF BALANCE SHEET, I.E. 31/ 03/2007, I THE PRESENT CASE. ACCORDINGLY, IT WAS SUBMITTED THAT NO SUCH DISALLOWANCE COULD HAVE BEEN MADE. 14. THE AR OF THE ASSESSEE CITED THE DECISION OF HO NBLE JURISDICITONAL ITAT, HYDERABAD IN THE CASE OF M/S T EJA CONSTRUCTION IN ITA NO. 308/HYD/2009, SUBMITTING TH AT AS PER THE SAID DECISION, IF THE AMOUNT OF EXPENDITURE IS ACTU ALLY PAID AND NOT PAYABLE AT THE YEAR END / ON THE DATE OF BALA NCE SHEET, THE PROVISIONS OF SECTION 40(A)(IA) ARE NOT APPLICABLE. 5 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. 15. WITH REGARD TO THE AMOUNT OF RS. 10,00,480/- ME NTIONED IN THE FORM NO. 3CD ALSO, HE CLAIMED THAT THE SAME WAS NOT OUTSTANDING AS ON THE DATE OF BALANCE SHEET AND THE REFORE COULD NOT HAVE BEEN DISALLOWED. 16. IT WAS FURTHER SUBMITTED THAT THE ABOVE AMOUNT COMPRISED OF PAYMENTS MADE AT MUMBAI TOWARDS RENT AND AMENITI ES FOR THE MUMBAI OFFICE, WHEREIN OUT OF THE TOTAL AMOUNT OF R S. 18,000/- PER MONTH PAID TO KAILASHBEN AND ASHWIN D. GUDKA, R S. 8,750/- ONLY WAS PAID TOWARDS RENT, WHILE RS. 9,250/- ONLY PAID TOWARDS THE COST OF AMENITIES, WHICH WOULD NOT ATTRACT TH E PROVISIONS OF TDS. IT WAS FURTHER SUBMITTED THAT SIMILARLY IN RES PECT OF RENT OF RS. 18,500/- PER MONTH PAID TO DEVRAJ D. GUDKA AND RATANBEN D. GUDKA, RS. 9,250/- WAS TOWARDS RENT, WHILE THE REMA INING RS. 9,250/- WERE PAID TOWARDS AMENITIES. COPIES OF RELE VANT EXTRACTS OF LEDGER WERE ALSO FURNISHED. IT WAS AVERRED THAT THE TOTAL EXPENDITURE FOR THE PREMISES HAD BEEN BOOKED UNDER THE HEAD RENT ALTHOUGH THE AMOUNTS PERTAINED TO BOTH RENT AND AMENITIES. 17. THE AR OF THE ASSESSEE FILED FURTHER SUBMISSION S DATED 14/07/2010, GIVING THE BREAK UP OF THE FREIGHT TOTA LING RS. 1,43,63,000/- PAID TO MAXICON SHIPPING AGENCIES P. LTD. AS UNDER: TOTAL FREIGHT AMOUNT DISALLOWED 1,43,63,000 LESS: AMOUNT PAID BEFORE 31/03/2007 1,26,11,512 OUTSTANDING AS ON 31/03/2007 17,51,488 LESS: AMOUNT PERTAINS TO MARCH 07 PAID IN APRIL 07 9,85,136 OUTSTANDING AMOUNT 7,66,352 18. WITH REGARD TO THE PAYMENTS OF RS. 31,468/- DIS ALLOWED ON ACCOUNT OF PAYMENT WITHOUT TDS TO M/S LOCK HEET ROA DLINES, IT 6 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. WAS SUBMITTED THAT THE ASSESSEE HAD DEDUCTED TDS @ 2.244% ON THE PAYMENTS AND REMITTED THE SAME AS UNDER:- S.NO. CH.NO. DATE OF PAYMENT BSR CODE 1. 516028 07/07/2006 6360063 2. 421156 06/01/2007 6360063 3. 421282 07/02/2007 6360063 19. THE CIT(A) AT PARA 12.2 OF HIS ORDER ADJUDICATE D UPON THE DISALLOWANCE OF RS. 10,00,480/- ON ACCOUNT OF NON D EDUCTION OF TDS BY THE ASSESSEE. SINCE IT WAS CONTENDED BY THE ASSESSEE THAT A SUM OF RS. 8,76,000/- WAS ALREADY PAID AND AN AMO UNT OF RS. 1,24,480/- WAS PAYABLE AS ON 31/03/2007, THE CIT(A) FOLLOWING THE SPECIAL BENCH DECISION OF THE VIZAG BENCH IN TH E CASE OF MERLYIN SHIPPING TRANSPORT & OTHERS, 136 ITD 23(SB)(VIZAG) DIRECTED THE AO TO VERIFY THE ABOVE CONTENTION OF THE ASSESSEE A ND IF FOUND CORRECT, HELD THAT THE DISALLOWANCE UNDER THIS HEAD SHOULD BE RESTRICTED TO RS. 1,24,480/- ONLY. 20. WITH REGARD TO DISALLOWANCE OF RS. 63,00,648/-, THE CIT(A) DEALT THE ISSUE AT PARAS 11 TO 12.1 OF HIS ORDER. H E CONCLUDED THAT IT IS SEEN THAT VIDE THE ORDER DATED 08/03/2011, TH E AO HAS REDUCED THE DISALLOWANCE OF RS. 63,00,648/- MADE IN THE AY 2007-08 FORM THE INCOME OF RS. 5,79,26,520/- ASSESS ED IN THE ORDER U/S 143(3) FOR THE AY 2008-09. THE CIT(A) THE REFORE HELD THAT THE GROUND WITH REGARD TO THE DISALLOWANCE OF RS. 63,00,648/- ALREADY STANDS WITHDRAWN BY THE ASSESSE E AND NECESSARY EFFECT IN THIS REGARD HAS ALREADY BEEN GI VEN BY THE AO AND, HENCE, NO REASON TO INTERFERE IN THE DISALLOWA NCE SO MADE IN THE ASSESSMENT ORDER FOR THE AY 2007-08 ON THIS ACC OUNT. 21. AGGRIEVED, THE REVENUE IS IN APPEAL BEFORE US R AISING THE FOLLOWING GROUNDS OF APPEAL:- 7 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. 1. THE LEARNED CIT(A) ERRED BOTH IN LAW AND ON FACT S OF THE CASE. 2. THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ADDI TION MADE BY THE AO ON ACCOUNT OF DISALLOWANCE U/S 40(A) (IA) AS THE ASSESSEE FAILED TO DEDUCT THE TAX AS PER THE PR OVISIONS OF INCOME TAX ACT. 22. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SHRI V. SHIVAKUMAR FILED PAPER BOOK CONTAINING THE FOLLOWIN G: 1. COPY OF ANNUAL REPORT FOR FY 2006-07. 2. DETAILS OF OCEAN FREIGHT CHARGES PAID TO M/S MAX ICON SHIPPING AGENCIES PVT. LTD. 3. DETAILS OF CAR HIRE CHARGES PAID TO M/S JMD TRAV LES., MUMBAI. 4. DETAILS OF PAYMENTS MADE TO M/S LCL AGENCIES (IN DIA) PVT. LTD., MUMBAI 5. DETAILS OF PAYMENTS MADE TO LOCK-HEET ROAD LINES , MUMBAI. 6. DETAILS OF PAYMENTS MADE TO MSC AGENCY INDIA PVT . LTD., MUMBAI. 7. DETAILS OF PAYMENTS MADE TOWARDS RENT. 23. AFTER HEARING THE LEARNED DR SMT. AMISHA S. GUP T AND PERUSING THE RECORD, WE FIND NO INFIRMITY IN THE OR DER OF THE CIT(A) AS THE CIT(A) HAS MERELY DIRECTED THE AO TO VERIFY THE AMOUNTS PAID/PAYABLE BY THE ASSESSEE IN THE LIGHT O F THE SPECIAL BENCH DECISION OF THE VIZAG BENCH OF ITAT IN THE CA SE OF MERLYIN SHIPPING TRANSPORT & OTHERS, 136 ITD 23(SB)(VIZAG). THEREFOR E, WE UPHOLD THE ORDER OF THE CIT(A) ON THIS COUNT AND DISMISS T HE GROUND RAISED BY THE REVENUE IN THIS REGARD. 24. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. ITA NO. 1094/HYD/2012 FOR AY 2008-09 25. BRIEFLY THE FACTS OF THE CASE ARE THAT THE AO O BSERVED FROM THE DETAILS FURNISHED THAT THE ASSESSEE HAD DEFAULT ED IN MAKING PAYMENTS TO THE TUNE OF RS. 1,12,85,265/- IN CONTR AVENTION TO THE PROVISIONS OF SECTION 40(A)(IA). HE NOTICED THA T IN RESPECT OF 8 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. PAYMENTS TO THE TUNE OF RS. 1,12,85,265/- THOUGH TD S WAS DEDUCTED BETWEEN 01/04/2007 TO 29/02/2008, THE SAME WAS PAID AFTER 31/03/2008. ACCORDINGLY, THE AO DISALLOWED TH E AMOUNT OF RS. 1,12,85,265/-. 26. IT WAS FURTHER NOTICED FORM THE DETAILS THAT TH E ASSESSEE HAD DEFAULTED IN REMITTING THE TDS ON EXPENDITURE AMOUN TING TO RS. 52,86,693/- TO THE GOVERNMENT ACCOUNT. THE AO NOTED THAT THOUGH THE AMOUNTS WERE PAID IN THE MONTH OF FEBRUA RY, 2008, TDS DEDUCTED THEREON WAS REMITTED DURING APRIL-SEPT EMBER, 2008. ACCORDINGLY, THE AO DISALLOWED THE AMOUNT OF RS. 52,86,693/- U/S 40(A)(IA) OF THE ACT. 27. ON APPEAL, BEFORE THE CIT(A) IT WAS SUBMITTED T HAT THE DISALLOWANCES WERE MADE BY INCORRECT APPLICATION OF LAW. IT WAS SUBMITTED THAT IN SOME CASES THERE WAS DELAY IN REM ISSION OF TDS AMOUNTS. HOWEVER, EXPENDITURE HAD INDEED BEEN INCUR RED BY WAY OF PAYMENT AND DEBITED TO THE P&L A/C. WITH REGARD TO THE CASES WHERE NO DEDUCTIONS WERE MADE, IT WAS SUBMITTED THA T THE EXPENSES HAD ACTUALLY BEEN INCURRED AND DEBITED THE P&L A/C. THEREFORE, NO ADDITION COULD HAVE BEEN MADE IN THE LIGHT OF THE DECISION OF THE HONBLE JURISDICTIONAL ITAT. 28. AFTER CONSIDERING THE SUBMISSIONS OF THE ASSESS EE, THE CIT(A) OBSERVED SO FAR AS THE PAYMENTS OF RS. 1,12, 85,265/- AND RS. 52,86,693/- ARE CONCERNED THAT THE AO HAD NOT D ISPUTED THAT ALL SUCH AMOUNTS WERE SUBJECTED TO TDS. HE, HOWEVER , DISALLOWED THE PAYMENTS OF RS. 1,12,85,685/- FOR THE REASON TH AT TDS IN RESPECT OF SUCH PAYMENTS WAS DEDUCTED DURING THE PE RIOD 01/04/2007 TO 29/02/2008. HOWEVER, SUCH TDS WAS PAI D ONLY AFER 31/03/2008. THE CIT(A) FURTHER NOTED THAT TH E AO DISALLOWED THE EXPENDITURE OF RS. 52,86,693/- ON AC COUNT OF THE 9 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. FACT THAT THOUGH THE ASSESSEE HAD TDS THEREON, WHIL E MAKING THE PAYMENTS IN THE MONTH OF FEBRUARY, 2008, THE TDS WA S REMITTED DURING THE MONTHS OF APRIL TO SEPTEMBER, 2008. IN V IEW OF THE ABOVE FACTS, THE CIT(A) HELD THAT EVEN IF THERE WAS A DELAY IN REMITTANCE OF TDS MADE ON THE ABOVE PAYMENTS, SUCH TDS WAS INDEED REMITTED TO THE GOVERNMENT ACCOUNT BEFORE TH E DUE DATE OF FILING OF RETURN OF INCOME, IN THE LIGHT OF DECI SION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. VIRGIN C REATIONS (ITA NO. 302 OF 2011 DT. 23/11/2011), HE HELD THAT SUCH PAYMENT WAS IN CONFORMITY WITH THE PROVISIONS OF SEC. 40(A)(IA) ALSO, AND THEREFORE, THE PAYMENTS IN WHOS RESPECT THE SAME WA S MADE COULD NOT BE HAVE BEEN DISALLOWED. HE, THEREFORE, D ELETED THE DISALLOWANCES OF RS. 1,12,85,265/- AND RS. 52,86,69 3/-. 29. AGGRIEVED THE ASSESSEE IS IN APPEAL BEFORE US R AISING THE FOLLOWING GROUND OF APPEAL:- THE LEARNED CIT(A) OUGHT TO HAVE UPHELD THE ADDITIO N MADE BY THE AO ON ACCOUNT OF DISALLOWANCE U/S 40(A)(IA) AS THE ASSESSEE FAILED TO REMIT THE TAX DEDUCTED AT SOURCE INTO THE CENTRAL GOVERNMENT ACCOUNT WITHIN THE PRESCRIBED TI ME ALLOWED AS PER THE PROVISIONS OF INCOME TAX ACT. 30. BEFORE US, THE LEARNED COUNSEL FOR THE ASSESSEE SHRI V. SHIVAKUMAR FILED COPIES OF BALANCE SHEET, ANNUAL RE PORT, DETAILS OF TDS REMITTANCES INTO GOVERNMENT ACCOUNT FOR FY 2007 -08 AND DETAILS OF REMITTANCES OF TDS DURING THE APRIL TO S EPTEMBER, 2008. 31. AFTER HEARING THE LEARNED DR SMT. AMISHA S. GUP T AND PERUSING THE RECORD, WE DO NOT FIND ANY INFIRMITY I N THE ORDER OF THE CIT(A) IN DELETING THE DISALLOWANCES OF RS. 1,1 2,85,265/- AND RS. 52,86,693/- MADE BY THE AO ON ACCOUNT OF NON-RE MITTANCE OF TDS INTO THE GOVERNMENT ACCOUNT WITHIN THE DUE DATE , ON THE GROUND THAT THE REMITTANCE WAS MADE BEFORE THE DUE DATE OF FILING 10 ITA NOS. 1093 & 1094/HYD/2012 SEAWAYS SHIPPING & LOGISTICS LTD. OF RETURN OF INCOME. FOR THIS PROPOSITION, THE CIT( A) RELIED UPON THE DECISION OF THE HONBLE CALCUTTAL HIGH COURT IN THE CASE OF CIT VS. VIRGIN CREATIONS (SUPRA). WE, THEREFORE, UPHOLD THE ORDER OF THE CIT(A) ON THIS ISSUE AND DISMISS THE GROUND OF APPEAL OF THE REVENUE. 32. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISS ED. 33. TO SUM UP, BOTH THE APPEALS OF THE REVENUE ARE DISMISSED. PRONOUNCED IN THE OPEN COURT ON 18 TH OCTOBER, 2012. SD/- SD/- ( CHANDRA POOJARI) (ASHA VIJAYARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 18 TH OCTOBER, 2012. KV COPY TO:- 1) DCIT, CIRCLE 3(1), 7 TH FLOOR, B BLOCK, IT TOWERS, AC GUARDS, HYDERABAD. 2) SEAWAYS SHIPPING & LOGISTICS LTD., PLOT NO. 731, ROAD N0. 36, JUBILEE HILLS, HYDERABAD 500 034. 3) THE CIT (A)-IV, HYDERABAD 4) CIT-III, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDER ABAD.