ITO, Hyderabad V. M/s Liluram&Sons, Hyderabad

ITA 1219/HYD/2010

• Counselvise Citation: 121922514 RSA 2010
• Duration Of Justice: 1 year(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-09-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 01-03-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 13-09-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B V PRASAD REDDY
• Assessee Lawyers: A V RAGHURAM

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBER ITA NO.1219/HYD/2010 ASSESSMENT YEAR 2007-08 INCOME - TAX OFFICER, WARD - 8(2), HYDERABAD. VS M/S. LILURAM & SONS, HYDERABAD. (PAN: AABFL 3657 R) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI B.V. PRASAD REDDY RESPONDENT BY : SHRI A.V. RAGHU RAM DATE OF HEARING:14-9-2011 DATE OF PRONOUNCEMENT: 27-9-2011 O R D E R PER AKBER BASHA, ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT (A)-III, HYDERABAD, DATED 2 9-6-2010 AND IT PERTAINS TO THE ASSESSMENT YEAR 2007-08. 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APP EAL BEFORE US: 1. THE ORDER OF THE CIT IS NOT ACCEPTABLE AS THE C IT(A) COULD HAVE APPRECIATED THE ORDER OF THE AO. 2. THE CIT(A) ERRED IN HOLDING THAT THE ADDITION OF RS.19,67,852 IS NOT THE COMMISSION AMOUNT AND DELET ED THE ADDITION MADE BY THE ASSESSING OFFICER FOR AMOUNT O F RS.19,67,852/- TOWARDS COMMISSION PAID TO M/S LEPAK SHI ITA 1219/HYD/2010- M/S LILURAM & SONS, L.L HYDERABAD 2 STATING THAT THE ASSESSEE HAS NOT COMPLIED WITH THE TDS PROVISIONS. 3. THE CIT (A) FAILED TO APPRECIATE THE WORK DONE B Y THE ASSESSING OFFICER IN BRINGING THE FACTS TO THE FILE THAT THE ASSESSEE IS REQUIRED TO DEDUCT THE TAX UNDER SECTIO N 194H AND UNDERSTOOD THE AFTERTHOUGHT OF THE ASSESSEE IN FURNISHING OF INFORMATION WHEN THE ASSESSING OFFICE R CALLED FOR. IT IS ABSOLUTELY AFTER THOUGHT OF THE ASSESSE E AS THE ASSESSEE COULD HAVE RECTIFIED ON ITS OWN BEFORE NOT ICING IT BY THE ASSESSING OFFICER. 4. THE APPELLANT CRAVES, LEAVES TO ADD OR AMEND THE GROUND OF APPEAL AS THE OCCASION MAY REQUIRE. 3. AT THE OUTSET, WE FIND THAT THE ISSUES RAISED IN THIS APPEAL WERE DEALT WITH BY THE TRIBUNAL IN ITS ORDER PASSED IN I TA NO.703/HYD/2009 DATED 14 TH MAY, 2010 IN THE CASE OF THE SAME ASSESSEE WHEREIN THE TRIBUNAL HELD AS FOLLOWS:- WE HAVE CAREFULLY GONE THROUGH BOTH THE JUDGMENTS. WE FIND FORCE IN THE ARGUMENT OF THE ASSESSEES COUNSEL. ADMITTEDLY , IN THIS CASE, THE ASSESSEE IS NOT MAKING ANY PAYMENT TO M/S LEPAKSHI HANDLOOM EMPORIUM , HYDERABAD INSTEAD OF M/S LEPAKSHI HANDLOOM EMPORI UM IS MAKING PAYMENT TO THE ASSESSEE. THE ASSESSEE HAS O NLY SUPPLIED MATERIAL TO THIS CONSIGNEE. AS PER SEC. 194H OF THE INCOME-TAX ACT, ANY PERSON RESPONSIBLE FOR PAYMENT IS TO DEDUCT TDS. I N THE PRESENT CASE, THE ASSESSEE IS NOT RESPONSIBLE TO MAKE PAYMENT. A S SUCH IN OUR HUMBLE OPINION, SECTION 194H IS NOT APPLICABLE IN T HIS CIRCUMSTANCE. 4. WE HAVE GONE THROUGH THE ORDER OF THE TRIBUNAL M ENTIONED SUPRA AND FIND THAT THE FACTS AND THE CIRCUMSTANCES OF BO TH THESE CASES ARE ITA 1219/HYD/2010- M/S LILURAM & SONS, L.L HYDERABAD 3 QUITE SIMILAR AND IDENTICAL. THE DECISION RELIED ON BY HE LEARNED DR IN THE CASE OF VODOFONE ESSAR CELLULAR LIMITED VS. ACI T IN ITA NO.1742 OF 2009 AND OTHERS IS DISTINGUISHABLE ON THE FACTS OF THIS CASE AND HENCE NOT APPLICABLE. IN VIEW THE FINDING OF THE TRIBUN AL MENTIONED SUPRA, RESPECTFULLY FOLLOWING THE SAME, WE DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE FIRST APPELLATE AUTHORITY AND THEREFORE THE ORDER OF THE FIRST APPELLATE AUTHORITY IS CONFIRMED FOR THE YEAR UNDER CONSIDERATION. 5. IN THE RESULT, APPEAL FILED BY THE REVENUE STAN DS DISMISSED. ORDER PRONOUNCED IN THE COURT ON 28-9- 2011. SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/- 28-9-2011. COPY FORWARDED TO: 1. ITO, WARD - 8(2), D - BLOCK, AC TOWERS, NEAR MASAF TANK, HYDERABAD. 2. M/S. LILURAM & SONS, 21 - 2 - 227, CHARKAMAN, HYDERABAD. 3. CIT (A)-III, HYDERABAD. 4. CIT, AP, HYDERABAD. 5. THE D.R., ITAT, HYDERABAD. JMR*