ITO, Trichy V. M/s. Jayalakshmy Engineering Works, Trichy

ITA 1253/CHNY/2012

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64211 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 28-08-2012
• Assessment Year: 2006-2007
• Appeal Filed On: 06-06-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: T VASUDEVAN

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A.NO. 1253/MDS/2012 ASSESSMENT YEAR : 2006-07 THE INCOME-TAX OFFICER, WARD-IV(1), TRICHY 620 001. (APPELLANT) VS. M/S. JAYALAKSHMY ENGINEERING WORKS, E/C-& & C-8, DEVELOPED PLOT ESTATE, THUVAKUDI, TRICHY 620 015. PAN AAAFJ4467G (RESPONDENT) APPELLANT BY : SHRI K.E.B.RENGARAJAN, JR. STANDING COUNSEL RESPONDENT BY : SHRI T. VASUD EVAN, ADVOCATE DATE OF HEARING : 28 TH AUGUST, 2012 DATE OF PRONOUNCEMENT : 28 TH AUGUST, 2012 O R D E R PER DR. O.K.NARAYANAN, VICE PRESIDENT THIS APPEAL IS FILED BY THE REVENUE. THE RELEVANT ASSESSMENT YEAR IS 2006-07. THE APPEAL IS DIRECTED AGAINST THE ITA 1253/12 :- 2 -: ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) A T TIRUCHIRAPALLI DATED 19.3.2012. THE APPEAL ARISES OUT OF THE ASSESSMENT COMPLETED UNDER SEC.143(3) OF THE INCOME -TAX ACT, 1961. 2. THE GROUNDS RAISED IN THIS APPEAL RELATE TO THE DISALLOWANCES MADE BY THE ASSESSING OFFICER UNDER S EC.40(A)(IA) FOR THE REASON THAT THE ASSESSEE HAD NOT DEDUCTED T AX AT SOURCE WHILE MAKING THE PAYMENTS. THE PAYMENTS RELATE TO A SUM OF ` 9,88,746/- TOWARDS SUBCONTRACTING CHARGES AND ANOTH ER SUM OF ` 1,81,390/- TOWARDS FREIGHT CHARGES. 3. IN THIS CASE, THE ASSESSEE HAS ALREADY MADE THE PAYMENTS BEFORE THE END OF THE RELEVANT PREVIOUS YEAR. THER EFORE, THE PROVISIONS OF LAW STATED IN SEC.40(A)(IA) WILL NOT APPLY TO THE ASSESSEES CASE. THE SAID LAW APPLIES ONLY TO THE CASES WHERE THE AMOUNTS ARE PAYABLE. IN VIEW OF THE DECISION OF THE INCOME- TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SPECIAL BENCH RENDERED IN THE CASE OF MERILYN SHIPPING & TRANSPORTS VS. ADDL. CIT (16 ITR (TRIB) 1), THE DISALLOWANCES MADE BY THE ASSESSING AUTHORITY ITA 1253/12 :- 3 -: CANNOT BE ENDORSED. THEREFORE, THE FINDINGS OF THE COMMISSIONER OF INCOME-TAX(APPEALS) ON THESE POINTS ARE UPHELD. 4. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF H EARING ON TUESDAY, THE 28 TH OF AUGUST, 2012. SD/- SD/- (CHALLA NAGENDRA PRASAD) JUDICIAL MEMBER (DR. O.K.NARAYANAN) VICE-PRESIDENT CHENNAI, DATED THE 28 TH AUGUST, 2012 MPO* COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR 6. GUARD FILE