M/s Prosim Research and Development Private Limited , Bangalore V. The Income Tax Officer Ward-5(1)(3), Bangalore

ITA 1314/BANG/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 2221 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 24-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI
• Keywords: Non-deduction of tax
• Section: 40(a)(ia); 195

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: BENGALURU BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER I.T.A NO.1314/BANG/2018 (ASSESSMENT YEAR: 2014-15) M/S. PROSIM RESEARCH AND DEVELOPMENT PVT. LTD., #21/B, 9 TH MAIN, MAHALAKSHMIPURAM, SHANKARANAGAR, BENGALURU 560 096. [PAN: AADCP 1815A] VS. THE INCOME TAX OFFICER, WARD-5(1)(3), BENGALURU. ( /APPELLANT ) ( /RESPONDENT ) / ASSESSEE BY : SHRI NARENDRA SHARMA, ADVOCATE / RESPONDENT BY : SMT. R. PREMI, JCIT / DATE OF HEARING : 27.11.2019 /DATE OF PRONOUNCEMENT : 29.11.2019 O R D E R PER D.S. SUNDER SINGH, A.M. : THIS APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-5, BENG ALURU (HEREAFTER REFERRED AS CIT(A)) IN ITA NO.262/W(1) (3)CIT(A)BNG- 5/2016-17 DATED 27/02/2018 FOR THE ASSESSMENT YEAR 2014-15. 2. ALL THE GROUNDS OF APPEAL ARE RELATED TO THE ADD ITION OF RS. 1,13,59,703/- U/S. 40(A)(IA) OF THE INCOME TAX ACT, 1961 ('THE ACT'). THE ASSESSEE FILED RETURN OF INCOME DECLARI NG AT TOTAL ITA NO.1314/BANG/2018 :- 2 -: INCOME OF RS. 60,68,280/- ON 29.11.2014 AND THE ASS ESSMENT WAS COMPLETED ON TOTAL INCOME OF RS. 1,74,27,983/- BY AN ORDER DATED 26.12.2016. THE ASSESSING OFFICER (AO) MADE THE ADDITION OF RS. 1,13,59,703/- FOR THE ASSESSEES FAILURE TO DEDUCT TAX AT SOURCE U/S. 195 OF THE ACT. THE ASSESSEE WENT ON A PPEAL BEFORE THE LD. CIT(A) AND THE LD. CIT(A) DECIDED THE APP EAL EXPARTE FOLLOWING THE DECISION OF HONBLE HIGH COURT OF DEL HI IN THE CASE OF CIT V. MULTIPLAN INDIA LTD. 38 ITD 320. AGAINST WH ICH, THE ASSESSEE FILED APPEAL BEFORE US. 3. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL PLACED ON RECORD. IN THE INSTANCE CASE, THE LD. CI T(A) DECIDED THE APPEAL EXPARTE FOLLOWING THE DECISION OF MULTIPLAN INDIA LTD., SUPRA AND THE LD. CIT(A) DID NOT CONSIDER THE MERI TS WHILE DISPOSING THE APPEAL. AS PER THE PROVISIONS OF THE ACT, THE LD. CIT(A) IS BOUND TO PASS ORDER ON MERITS EVEN THERE IS NO RESPONSE FROM THE ASSESSEE. THEREFORE, IN THE INTEREST OF J USTICE, WE REMIT THE MATTER BACK TO THE FILE OF LD. CIT(A) TO AFFOR D OPPORTUNITY TO THE ASSESSEE TO DECIDE THE APPEAL ON MERITS. THE L D. DR ASSURED THAT HE WILL CO-OPERATE WITH THE LD. CIT(A) AND FUR NISH ALL THE INFORMATION REQUIRED FOR DISPOSAL OF THE APPEAL. A CCORDINGLY, THE APPEAL IS ALLOWED FOR STATISTICAL PURPOSE. ITA NO.1314/BANG/2018 :- 3 -: 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH NOVEMBER, 2019. SD/- SD/- (N.V. VASUDEVAN) (D.S. SUNDER SINGH) VICE PRESIDENT ACCOUNTANT MEMBE R BENGALURU, DATED: 29-11-2019 EDN COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME-TAX APPELLATE TRIBUNAL BANGALORE