ITO, New Delhi V. M/s. Western India Shipyard Ltd., Goa

ITA 1167/DEL/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 7058 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 11 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: H
• Next Hearing Date: 29-01-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 28-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : H : NEW DELHI BEFORE SHRI R.S. SYAL, ACCOUNTANT MEMBER AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO.1167/DEL/2013 ASSESSMENT YEAR : 2009-10 ITO, WARD-18(3), NEW DELHI . VS. WESTERN INDIA SHIPYARD LTD., PRABHAKAR, MURMUGAO HARBOUR, VASCO, GOA. PAN: AAACW0117B ASSESSEE BY : NONE DEPTT. BY : SHRI RAJIV RANKA, SR. DR DATE OF HEARING : 29.01.2016 DATE OF PRONOUNCEMENT : 29.01.2016 ORDER PER R.S. SYAL, AM: THIS APPEAL BY THE REVENUE ARISES OUT OF THE ORDER PASSED BY THE CIT(A) ON 10.12.2012 IN RELATION TO THE ASSE SSMENT YEAR 2009-10. ITA NO.1167/DEL/2013 2 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE DELETION OF ADDITION OF RS.1,18,43,587/- MADE BY THE AO BY I NVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME-T AX ACT, 1961 (HEREINAFTER ALSO CALLED THE ACT). 3. BRIEFLY STATED, THE FACTS OF THE CASE ARE THAT T HE ASSESSEE MADE PAYMENTS OF RENT, PROFESSIONAL CHARGES AND CON TRACT RELATING TO THE MONTHS OF JANUARY AND FEBRUARY, 200 9, WHICH WERE LIABLE TO DEDUCTION OF TAX AT SOURCE. THE TAX WAS, IN FACT, DEDUCTED BUT, WAS DEPOSITED ON 16.4.2009. THE AO I NVOKED THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT AND MADE THE DISALLOWANCE FOR THE AMOUNT OF SUCH RENT AND PROFES SIONAL CHARGES ETC. THE LD. CIT(A) DELETED THE DISALLOWAN CE. 4. WE HAVE HEARD THE LD. DR AND PERUSED THE RELEVAN T MATERIAL ON RECORD. THERE IS NO APPEARANCE FROM TH E SIDE OF THE ASSESSEE DESPITE NOTICE. IT IS OBVIOUS THAT TH E ASSESSEE, IN FACT, DEDUCTED TAX AT SOURCE FROM THE PAYMENTS, BUT , DEPOSITED SUCH TAX IN THE EXCHEQUER BEYOND THE DUE DATE UNDER THE ITA NO.1167/DEL/2013 3 RELEVANT SECTIONS, BUT, BEFORE THE DUE DATE FOR FIL ING THE RETURN U/S 139(1) OF THE ACT. SUB-CLAUSE (IA) OF SECTION 40(A), AS SUBSTITUTED BY THE FINANCE ACT, 2010, CLEARLY PROVI DES FOR ALLOWING DEDUCTION WHERE THE AMOUNT OF TAX WITHHELD IS PAID BEFORE THE DUE DATE SPECIFIED IN SECTION 139(1). T HE HONBLE DELHI HIGH COURT IN CIT VS. NARESH KUMAR (2014) 326 ITR 256 , HAS HELD SUCH AMENDMENT TO BE RETROSPECTIVE AND APPLICABLE TO EARLIER YEARS AS WELL. IN VIEW OF TH E ENUNCIATION OF LAW BY THE HONBLE DELHI HIGH COURT IN THE AFORE -NOTED CASE READ ALONG WITH THE MANDATE OF SECTION 40(A)(IA), W E HOLD THAT THE LD. CIT(A) WAS JUSTIFIED IN DELETING THE DISALL OWANCE. 5. IN THE RESULT, THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 29.01.2016. SD/- SD/- [SUDHANSHU SRIVASTAVA] [R.S. SYAL] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 29 TH JANUARY, 2016. DK ITA NO.1167/DEL/2013 4 COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.