ACIT, CHENNAI V. M/s. Allied Exim Foods (Firm), CHENNAI

ITA 1197/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61190 (ITAT-CHENNAI)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-06-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 13-06-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 24-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANRIRUDH RAI
• Assessee Lawyers: V S JAYAKUMAR
• Keywords: Non-deduction of tax
• Section: 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D B ENCH C HENN AI BEFORE SHRI AB RAHAM P.GEORGE ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD , JUDICIAL MEMBER .. ITA NO. 1197 /MDS./ 20 11 ASSESSMENT YEAR S : 2007 - 0 8 ASSISTANT COMMISSIONER OF INCOME TAX, BUSINESS CIRCLE X , CHENNAI 600 006 . VS. M/S. ALLIED EXIM FOODS (FIRM) , 11 - A, NEW THIRUVALLUVAR NAGAR, KASIMEDU ROYAPRUAM, CHENNAI 600 013 . PAN AAKFA 3085 H (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI ANRIRUDH RAI, C.I.T D.R. RESPONDENT BY : SHRI V.S.JAYAKUMAR , ADVOCATE DATE OF HEARING : 13 .0 6 .12 DATE OF PRONOUNCEMENT : 13 .0 6 .12 O R D E R PER AB RAHAM P.GEORGE ACCOUNTANT MEMBER : THIS IS AN APPEAL FIL ED BY THE REVENUE AGAINST ORDER DATED 11.03.2011 OF COMMIS SIONER OF INCOME TAX(APPEALS) - I V , CHENNAI BY WHICH HE DELETED THE DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 (IN SHORT THE A CT ). ITA . 1197 /MDS/ 11 2 2. SHORT FACTS APROPOS ARE THAT ASSESSEE ENGAGED IN THE BUSINESS OF SEA FOODS TRADING, CLEARING & FORWARDING, HAD CLAIMED A SUM OF ` 70,74,933/ - AS FR E IGHT, CLEARING AND FORWARDING FOR THE IMPUGNED ASSESSMENT YEAR . FOR A REASON THAT ASSESSEE HAD FAILED TO DEDUCT TAX AS PRESCRIBED UNDER SECTION 194C THE WHOLE OF THE CLAIM WAS DISALLOWED. AS PER ASSESSING OFFICER, FAILURE TO DEDUCT TAX ATTRACTED THE RIGOURS OF SECTION 40(A)(IA) OF THE ACT. 3. ASSESSEE MOVED IN AP PEAL BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) , AND THE COMMISSIONER OF INCOME TAX (APPEALS) AGREED WITH THE CONTENTION OF ASSESSEE THAT SECTION 40(A)(IA) WAS APPLICABLE ONLY FOR EXPENDITURE, WHICH WAS DUE FOR PAYMENT AND SHOWN AS PAYABLE AT THE END OF THE RELEVANT PREVIOUS YEAR. ACCORDING TO HIM, THE SAID SECTION COULD NOT BE APPLIED FOR EXPENDITURE ALREADY PAID DURING THE RELEVANT PREVIOUS YEAR. LD. COMMISSIONER OF INCOME TAX(APPEALS) THUS, DELETED THE DISALLOWANCE AND DIRECTED THE ASSESSING OFFICER TO DISALLOW ONLY THOSE AMOUNT WHICH REMAINED PAYABLE AS ON 31.03.2007. 4. NOW, BEFORE US DEPARTMENTAL REPRESENTATIVE STRONGLY ASSAILING THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) SUBMITTED THAT SECTION 40(A)(IA) COVERED NOT ONLY PAYABLE AMOUNTS BUT ALSO PAID AMOUNTS. PER CONTRA AUTHORISED REPRESENTATIVE OF THE ASSESSEE SUBMITTED THAT THE MATTER STOOD COVERED IN FAVOUR OF ASSESSEE BY THE DECISION OF SPECIAL BENCH OF TRIBUNAL IN THE CASE OF M/S.MERILYN S HIPPING & TRANSPORTS [2012] 16 ITR (TRIB. ) 1 (SB) . ITA . 1197 /MDS/ 11 3 5. WE HAVE PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND HEARD THE RIVAL CONTENTIONS . AN OUR OPINION, THE MATTER STANDS DECIDED IN FAVOUR OF ASSESSEE BY THE DECISION OF SPECIAL BENCH OF TRIBUNAL IN T HE CASE OF M/S.MERILYN SHIPPING & TRANSPORTS (SUPRA). IT WAS HELD BY THE SPECIAL BENCH THAT SECTION 40(A)(IA) WAS ATTRACTED ONL Y IN CASE OF AMOUNTS STANDING PAYABLE AT THE END OF THE PREVIOUS YEAR AND NOT ON THE AMOUNTS PAID DURING THE YEAR. COMMISSIONER OF INCOME TAX(APPEALS) HAD TAKEN VERY SAME VIEW, THOUGH PRIOR TO THE DECISION OF THE SPECIAL BENCH OF TRIBUNAL IN THE CASE OF M/S.MERILYN SHIPPING & TRANSPORTS (SUPRA). WE THEREFORE, FIND NO REASON TO INTERF ERE WITH THE ORDER OF COMMISSIONER OF INCOME TAX(APPEALS). 6 . IN THE RESULT, THE APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AF TER CONCLUSION OF HEARING ON WEDNESDAY, THE 13 TH JUNE , 2012. SD/ - SD/ - (CHALLA NAGENDRA PRASAD) (ABRAHAM P.GEORGE) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED 13 TH JUNE , 2012 . K S SUNDARAM COPY TO: ASSESSEE / AO / CIT (A) / CIT / D.R. / GUARD FILE ITA . 1197 /MDS/ 11 4