ITO, Tuticorin V. M/s. Asthalakshmi Logistics, Tuticorin

ITA 1239/CHNY/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61028 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 8 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-04-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 16-04-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 02-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR STAND ING
• Assessee Lawyers: G BASKAR
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO.1239(MDS)/2010 ASSESSMENT YEAR: 2007-08 THE INCOME-TAX OFFICER, WARD I(1), TUTICORIN. VS. M/S.ASHTALAKSHMI LOGISTICS, 51/8-H/1, MUNIASAMYPURAM EXTN., 2 ND ST., TUTICORIN. PAN AALFA5553H. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KEB RENGARAJAN, JR. STA NDING COUNSEL RESPONDENT BY : SHRI G.BASKAR, ADVOCATE DATE OF HEARING : 16 TH APRIL, 2012 DATE OF PRONOUNCEMENT : 16 TH APRIL, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVA NT ASSESSMENT YEAR IS 2007-08. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-I AT MADURAI, DATED 11-5-2010. - - ITA 1239 OF 2010 2 2. THE FIRST GROUND RAISED BY THE REVENUE IS AGAIN ST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS ) DELETING THE ADDITION MADE BY THE ASSESSING AUTHORITY UNDER SECTION 40A(3) OF THE INCOME-TAX ACT, 1961. THE COMMISSION ER OF INCOME-TAX(APPEALS) HAS DELETED THE DISALLOWANCE BY APPLYING CLAUSE(K) OF RULE 6DD OF THE INCOME-TAX RULES, 1962 . THE COMMISSIONER OF INCOME-TAX HAS APPLIED THAT PROVISI ON OF EXCEPTION ON THE BASIS OF THE FACT THAT THE SITUATI ON WARRANTED CASH PAYMENTS ALONE. THE ASSESSEE IS CARRYING ON T RANSPORTING BUSINESS. EXPENSES WERE MAINLY INCURRED BY THE DRI VERS OF THE ASSESSEE FOR CHANGING THE TYRES OF THE TRUCKS AND U NDERTAKING OTHER REPAIR WORKS, EN ROUTE. WE AGREE WITH THE FI NDINGS OF THE COMMISSIONER OF INCOME-TAX(APPEALS) THAT THE PAYMEN TS WERE MADE FOR GENUINE REASONS. THE COMMISSIONER OF INCO ME- TAX(APPEALS) IS JUSTIFIED IN DELETING THE DISALLOWA NCE MADE UNDER SECTION 40A(3). 3. THE NEXT GROUND RAISED BY THE REVENUE IS THAT T HE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN DE LETING THE ADDITION OF ` 19,43,265/- MADE UNDER SECTION 40(A)(IA) OF THE INCOME-TAX ACT, 1961. THE INCOME-TAX APPELLATE TRI BUNAL, VIZAG - - ITA 1239 OF 2010 3 SPECIAL BENCH, IN THE CASE OF MERLIN SHIPPING ENTER PRISES IN ITA NO.477(VIZ)/2008 THROUGH THEIR ORDER DATED 29-3-201 2 HAS HELD THAT SECTION 40(A)(IA) APPLIES ONLY TO THOSE AMOUNT S PAYABLE AS ON THE LAST DAY OF THE PREVIOUS YEAR AND NOT APPLIC ABLE TO THE AMOUNTS PAID WITHIN THE PREVIOUS YEAR. IN VIEW OF THE ABOVE DECISION OF THE SPECIAL BENCH, THE ORDER OF THE COM MISSIONER OF INCOME-TAX(APPEALS) ON THIS POINT IS FOUND TO BE LA WFUL. IT IS TO BE UPHELD. 4. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON MONDAY, THE 16 TH OF APRIL, 2012 AT CHENNAI. SD/- SD/- (V.DURGA RAO) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 16 TH APRIL, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.