DCIT, Circle-3(1), Hyd, Hyderabad V. Rotex Petrochem (P) Ltd., Hyd, Hyderabad

ITA 1266/HYD/2016

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 2459 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 4 month(s) 28 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 30-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUMAN MALIK

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO. 1266/HYD/2016 ASSESSMENT YEAR: 2012-13 DY. COMMISSIONER OF INCOME- TAX, CIRCLE 3(1), HYDERABAD. VS. ROTEX PETROCHEM (P) LTD., HYDERABAD. PAN AAACR 9637 D (APPELLANT) (RESPONDENT) REVENUE BY : SMT. SUMAN MALIK ASSESSEE BY : NONE DATE OF HEARING 28/02/2018 DATE OF PRONOUNCEMENT 28/02/2018 O R D E R PER S. RIFAUR RAHMAN, A.M.: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER DATED 15/07/2016 OF LD. CIT(A) 3, HYDERABAD RELAT ING TO AY 2012-13 WHEREIN THE REVENUE HAS RAISED THE FOLLOWING GROUND S OF APPEAL: . 1. THE LD. CIT (A) ERRED BOTH IN LAW AND ON FACTS O F THE CASE. 2. THE LD. CIT (A) OUGHT TO HAVE UPHELD THE DISALLO WANCE OF RS.13,10,137/- MADE BY INVOKING THE PROVISIONS OF S EC. 40(A)(IA) OF THE I.T. ACT. 3. THE LD. CIT (A) OUGHT TO HAVE APPRECIATED THE FA CT THAT THE HON'BLE HIGH COURT OF ANDHRA PRADESH HAS PLACED THE ORDER OF SPECIAL BENCH OF ITAT IN THE CASE OF M/S MERILYN SH IPPING & TRANSPORTS UNDER SUSPENSION. 4. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIM E OF HEARING. 2 ITA NO. 1266 /HYD/2016 ROTEX PETROCHEM (P) LTD.. 2. BRIEFLY THE FACTS OF THE CASE ARE, ASSESSEE A CO MPANY, ENGAGED IN THE BUSINESS OF TRADING IN LUBRICANTS, FILED ITS RETURN OF INCOME OF RS. 52,69,478/- ON 28/09/2012. THE AO DISALLOWED IN TEREST PAYMENTS MADE TO THE FOLLOWING NBFCS ON THE GROUND THAT NO TDS WAS DEDUCTED: 1. BAJAJ CAPITAL RS. 2,54,203 2. RELIGARE FINVEST LTD. RS. 4,37,579 3. BARCLAYS FINANCE RS. 5,22,078 4. RELIANCE CAPITAL LTD. RS. 96,277 TOTAL RS.13,10,137/- 3. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) DELETED THE DISALLOWANCE MADE BY THE AO U/S 40(A)(IA) OF THE ACT FOLLOWING VARIOUS DECISIONS INCLUDING THE SPECI AL BENCH DECISION OF THE ITAT, VISAKHAPATNAM IN THE CASE OF MERYLIN SHIPPING AND TRANSPORT VS. ADDL. CIT, 136 ITD 23. 4. AGGRIEVED BY THE ORDER OF CIT(A), THE REVENUE IS IN APPEAL BEFORE US. 5. NONE APPEARED ON BEHALF OF THE RESPONDENT-ASSESS EE AT THE TIME OF HEARING OF THIS APPEAL. HOWEVER, WE PROCEED TO DISPOSE OF THE APPEAL BY HEARING THE LD. DR AND ON MERITS AS THE I SSUE IN DISPUTE IS SQUARELY COVERED. 6. CONSIDERED THE SUBMISSIONS OF THE LD. DR AND PE RUSED THE MATERIAL ON RECORD. IT IS EVIDENT FROM THE FINDINGS OF THE CIT(A) THAT SHE HAD FOLLOWED DECISION OF SPECIAL BENCH IN THE C ASE OF MERLYN SHIPPING AND DELETED THE DISALLOWANCE MADE BY THE A O. SINCE THE LAW HAS CHANGED AS PER THE LATEST DECISION OF THE HONB LE SUPREME COURT IN THE CASE OF PALAM GAS VS. CIT, (CIVIL APPEAL NO. 5512 OF 2017, JUDGMENT DATED 03/05/2017) THE PAID/PAYABLE ISSUE W AS PUT TO REST, HENCE, THE CASE OF MERLYN SHIPPING IS NOT APPLICABL E. THEREFORE, WE REMIT THE ISSUE BACK TO THE FILE OF THE LD. CIT(A) TO ADJUDICATE THE ISSUE ON MERIT AFTER GIVING PROPER OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. 3 ITA NO. 1266 /HYD/2016 ROTEX PETROCHEM (P) LTD.. 7. IN THE RESULT, APPEAL OF THE REVENUE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2018. SD/- SD/- (D. MANMOHAN) (S. RIFAUR RAHMAN) VICE PRESIDENT A CCOUNTANT MEMBER HYDERABAD, DATED: 28 TH FEBRUARY, 2018 KV COPY TO:- 1) DCIT, CIRCLE 3(1), ROOM NO. 714, 7 TH FLOOR, SIGNATURE TOWERS, KONDAPUR ROAD, HYD. 2) M/S ROTEX PETROCHEM (P) LTD., 9-4-77/3/11, YUSU F TEKDI, TOWLICHOWKI ROAD, HYD. 3) CIT(A) 3, HYDERABAD 4) PR. CIT 3, HYD. 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD. 6) GUARD FILE