ACIT, Circle-1(2), Hyderabad V. M/s. Dharti Dredging & Infrastructure Ltd, Hyderabad

ITA 1290/HYD/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 59330 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-03-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 07-07-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: G V HEMALATHA
• Assessee Lawyers: MRUNJHUNWALA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B', HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1290/HYD/2011 (ASSESSMENT YEAR : 2007-08) ASST. COMMISSIONER OF INCOME-TAX, CIRCLE-1(2) HYDERABAD VS. M/S. DHARTI DREDGING & INFRASTRUCTURE LTD., HYDERABAD PAN: AABCD6612M APPELLANT RESPONDENT APPELLANT BY: MS. G.V. HEMALATHA RESPONDENT BY: MR. R.K. JHUNJHUNWALA DATE OF HEARING: 1 9 .03.2012 DATE OF PRONOUNCEMENT: 19.03.2012 O R D E R PER CHANDRA POOJARI, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-II, HYDERABAD DATED 27.4.2011. 2. THE REVENUE RAISED THE GROUND WITH REGARD TO DELETI ON OF ADDITION MADE U/S. 40(A)(IA) OF THE INCOME-TAX ACT, 1961. 3. BRIEF FACTS OF THE ISSUE ARE THAT THE ASSESSING OFF ICER DISALLOWED THE FOLLOWING PAYMENT MADE TO NON-RESIDE NTS: I) PAYMENT TO EAST MARINE - RS. 11,69,22,876 II) PAYMENT TO MACON ASIA - RS. 3,45,10,000 ---------------------- TOTAL RS. 15,14,32,876 ============== 4. ON APPEAL, THE CIT(A) DELETED THE ADDITION HOLDING THAT THE IMPUGNED PAYMENTS ARE NOT LIABLE FOR DEDUCTION OF T AX. BEING SO THERE IS NO APPLICATION OF PROVISIONS OF SECTION 40 (A)(IA) OF THE ACT. AGAINST THIS THE REVENUE IS IN APPEAL BEFORE US. I.T.A. NO. 1290/HYD/2011 M/S. DHARTI DREDGING & INFRASTRUCTURE LTD. =============================== 2 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATE RIAL ON RECORD. THE PAYMENT MADE TO M/S. MACON ASIA IS THE SUBJECT MATTER OF APPEAL BEFORE THE TRIBUNAL IN ASSESSEES OWN CASE IN ITA NOS. 605 & 606/HYD/ 2010 FOR A.YS. 2006-07 AND 2007 -08. THE TRIBUNAL VIDE ORDER DATED 17.9.2010 HELD THAT THE P ROVISIONS OF SECTION 195 ARE NOT APPLICABLE TO THESE PAYMENTS AN D HELD THAT THERE IS NO NECESSITY OF TDS ON THESE PAYMENTS. SI MILARLY PAYMENTS TO M/S. EAST MARINE PVT. LTD. IS THE SUBJ ECT MATTER OF APPEAL IN ASSESSEES OWN CASE IN I.T.A. NO. 396/HYD /2010 FOR A.Y. 2005-06 AND 2006-07. THE TRIBUNAL VIDE ORDER DATED 15 TH FEBRUARY, 2012 HELD THAT THE ASSESSEE IS NOT LIABLE FOR DEDUCTION OF TDS. BEING SO, AS OF NOW, AS DECIDED BY THE TRIBUN AL ON EARLIER OCCASION, IN OUR OPINION, THE IMPUGNED PAYMENTS ARE NOT LIABLE FOR TDS. HENCE THE PROVISIONS OF SECTION 40(A)(IA) ARE NOT APPLICABLE. ACCORDINGLY, THE ORDER OF THE CIT(A) IS CONFIRMED O N THIS ISSUE. 6. IN THE RESULT, APPEAL OF THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 19 TH MARCH, 2012. SD/ - (SAKTIJIT DEY) JUDICIAL MEMBER SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER HYDERABAD, DATED THE 19 TH MARCH, 2012 COPY FORWARDED TO: 1. THE ASST. COMMISSIONER OF INCOME - TAX, CIRCLE - 1(2), 4 TH FLOOR, AAYAKAR BHAVAN, HYDERABAD. 2. M/S. DHARTI DREDGING & INFRASTRUCTURE LTD., 6 - 3 - 1113/2, 1 ST FLOOR, POINT OF VIEW, B.S. MAKTHA, BEGUMPET, HYDERABAD-500 016 3. THE CIT(A) - I I , HYDERABAD 4. THE CIT - I, HYDERABAD. 5. THE DR B BENCH, ITAT, HYDERABAD. TPRAO