Baba Infotech Pvt.Ltd., Pune V. Asstt.CIT,Cir.1(1), Pune, Pune

ITA 130/PUN/2012

• Counselvise Citation: 13024514 RSA 2012
• Duration Of Justice: 1 year(s) 3 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2013
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 23-01-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANN KAPTHUAMA
• Assessee Lawyers: GOPAL ASWANI

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A, PUNE BEFORE: SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI R.S. PADVEKAR, JUDICIAL MEMBER ITA NO.130/PN/2012 ASSESSMENT YEAR : 2007 - 08 BABA INFOTECH PVT. LTD., 149A, M.G. ROAD, NEAR TIRANGA HOTEL, CAMP, PUNE VS. ASSTT. CIT, CIR.1(1), PUNE (APPELLANT) (RESPONDENT) PAN NO. AABCB5731H APPELLANT BY: SHRI GOPAL ASWANI RESPONDENT BY: MS. ANN KAPTHUAMA DATE OF HEARING : 04-04-2013 DATE OF PRONOUNCEMENT : 29-04-2013 ORDER PER R.S. PADVEKAR, JM:- THIS APPEAL IS FILED BY THE ASSESSEE CHALLENGING THE IMPUGN ED ORDER OF THE LD.CIT (A)-I, PUNE DATED 29-07-2011 FOR TH E A.Y. 2007-08. THE ASSESSEE HAS TAKEN THE FOLLOWING EFFECTIVE GROUND: ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE HON'BLE CIT (APPEALS) I, PUNE ERRED IN CONFIRMING T HE DISALLOWANCE OF INTEREST OF RS.5,20,822/- U/S.40(A) (IA) OF THE INCOME TAX ACT 1961 ON ACCOUNT OF NON DEDUCTION OF TDS ON INTEREST PAYMENTS UNDER SECTION 1941 OF THE INCOME TAX ACT 1961 WITHOU T APPRECIATING THE FACTS OF THE CASE. THE APPELLANT HEREBY PRAYS TH AT THE PENALTY MAY PLEASE BE DELETED. 2. IN RESPECT OF THE ISSUES ARISING FROM THIS APPEAL THE R ELEVANT FACTS AS PER RECORD ARE AS UNDER. THE ASSESSEE IS DEALING IN COMPUTER AND COMPUTER PARTS. IT WAS NOTICED BY THE ASSESSING OFFICER THAT THE ASSESSEE COMPANY HAS PAID INTEREST ON UNSECURED LOANS WITHOUT DEDUCTING ANY TDS FROM INTEREST TO THE 14 PARTIES, WHICH DETAILS ARE GIVEN ON PAGE NO. 4 OF THE ASSESSMENT ORDER. 3. IN THE OPINION OF THE ASSESSING OFFICER, THE ASSESSEE SH OULD HAVE DEDUCTED THE TAX AT SOURCE AND AS THE ASSESSEE HAS NOT DEDUCTED THE TAX 2 ITA NO.130/PN/2012, BABA INFOTECH PVT. LTD., PUNE AS PER PROVISIONS OF SECTION 194 OF INCOME-TAX ACT, THE ENTIRE CLAIM OF TH E INTEREST OF RS.5,20,822/- WAS NOT ALLOWABLE. THE ASSESSEE STATED BEFORE THE ASSESSING OFFICER THAT ALL THE SAID DEPOSITORS HAD GIVEN FORM NO. 15 G VERIFYING THAT THE RESPECTIVE DEPOSITORS DO NOT HAVE TH E INCOME ABOVE TAXABLE LIMIT. IT WAS FURTHER STATED THAT THE COPIES OF TH E FORM NO. 15G EVEN THOUGH OBTAINED FROM THE DEPOSITORS WERE NOT SUBM ITTED TO THE INCOME TAX DEPARTMENT THROUGH OVERSIGHT. THE ASSESSE E THEREFORE PLEADED THAT NO DISALLOWANCE SHOULD BE MADE. THE EXPLANAT ION OF THE ASSESSEE WAS REJECTED BY THE ASSESSING OFFICER AND ASSE SSING OFFICER MADE DISALLOWANCE OF THE INTEREST MADE BY THE ASSESSEE T O THE EXTENT OF RS.5,20,822/- BY INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 4. THE ASSESSEE CHALLENGED THE DISALLOWANCE BEFORE THE LD .CIT(A). THE LD.CIT(A) DECIDED THE ASSESSEES APPEALS EXPARTE. IT IS SEEN THAT THE NOTICE OF HEARING TO THE ASSESSEE WAS ISSUED ON 04-07-2 011 FIXING THE DATE OF HEARING ON 26-07-2011. ON THAT DATE, AS NOTED BY THE LD.CIT(A), NONE APPEARED NOR ANY PETITION FOR SEEKING ADJOURNMENT OF THE CASE WAS MOVED. THE LD.CIT(A), THEREFORE, DISPOSED OF THE APPEAL EX -PARTE DISMISSING THE CLAIM OF THE ASSESSEE. 5. NOW THE ASSESSEE IS IN APPEAL BEFORE US. WE HAVE HE ARD THE PARTIES AND PERUSED THE RECORD. IN OUR OPINION, THE LD.C IT(A) WITH UNDUE HASTE HAS DECIDED THE APPEAL FILED BY THE ASSESSEE . NOTHING IS ON RECORD TO SHOW WHETHER THE NOTICE OF HEARING SENT BY THE LD.CIT(A) WAS SERVED ON THE ASSESSEE. IN OUR OPINION, THE LD.CIT(A) CO ULD HAVE GIVEN ONE MORE OPPORTUNITY TO THE ASSESSEE BEFORE DECIDING TH E APPEAL EX- PARTE. WE, THEREFORE, CONSIDER IT FIT TO RESTORE THE APPEA L TO FILE OF LD.CIT(A) TO DECIDE THE SAME ON MERIT AFTER GIVING OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, THE ORDER OF THE C IT(A) IS SET ASIDE. THE MATTER IS RESTORED BACK TO THE FILE OF CIT(A). 3 ITA NO.130/PN/2012, BABA INFOTECH PVT. LTD., PUNE 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR ST ATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 29-04-2013. SD/- SD/- (G.S. PANNU) (R.S. PADVEKAR) ACCOUNTANT MEMBER JUDICIAL MEMBER RK/PS PUNE, DATED: 29 TH APRIL, 2013 COPY TO 1 ASSESSEE 2 DEPARTMENT 3 THE CIT(A) - I, PUNE 4 THE C C IT , PUNE 5 THE DR, ITAT, A BENCH, PUNE . 6 GUARD FILE. //TRUE COPY// BY ORDER PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL PUNE