Jamkesh Vehicleades P. ltd., Jammu V. The Addl. Commissioner of Income tax, Jammu

ITA 136/ASR/2012

• Counselvise Citation: 13620914 RSA 2012
• Duration Of Justice: 3 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-08-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 31-07-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 01-05-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LAXMAN SINGH

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.136(ASR)/2012 ASSESSMENT YEAR:2008-09 PAN :AAACJ4126D M/S. JAMKASH VEHICLEADES PVT. LTD. VS. ADDL. COMMR. OF INCOME-TAX, JAMMU. RANGE-2, JAMMU. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. R.K. GUPTA, CA RESPONDENT BY:SH. LAXMAN SINGH CIT(DR) DATE OF HEARING:31.07.2012 DATE OF PRONOUNCEMENT:07/08/2012 ORDER PER BENCH ; THIS APPEAL OF THE ASSESSEE ARISES FROM THE ORDER OF THE CIT(A), JAMMU, DATED 19.03.2012 FOR THE ASSESSMENT YEAR 200 8-09. 2. THE ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APP EAL: 1. THAT THE WORTHY CIT(A) IS NOT JUSTIFIED IN CONF IRMING THE ADDITION OF LD. A.O. IN DISALLOWING A SUM OF RS.15, 60,000/- U/S 40(A)(IA) OF THE INCOME-TAX ACT, 1961 ON ACCOUNT OF NON- DEDUCTION OF TAX ON THIS SUM WHICH IS A LEASE RENT FULLY PAID OUT AND NO AMOUNT IS PAYABLE AS ON 31.03.2008. THE WORT HY CIT(A) HAS ERRED IN DISAGREE WITH OUR ARGUMENT THAT THE PR OVISIONS OF SECTION 40(A)(IA) OF THE INCOME-TAX ACT, 1961 ARE A PPLICABLE ITA NO.136(ASR)/2012 2 ONLY TO EXPENDITURE WHICH IS PAYABLE AS ON 31 ST MARCH, OF EVERY YEAR AND CANNOT BE INVOKED TO DISALLOW THE AMOUNTS WHICH HAVE ALREADY BEEN PAID DURING THE PREVIOUS YEAR THOUGH W ITHOUT DEDUCTION OF TAX. 2. THE APPELLANT CRAVES, LEAVES TO ALTER AND ADD TO SUBSTITUTE ANY GROUND OF APPEAL BEFORE OR AT THE TIME OF HEARING. 3. THE BRIE FACTS OF THE CASE ARE THAT THE ASSESSEE IS A DEALER OF M/S. MARUTI LIMITED. THE AO MADE A DISALLOWANCE AOF RS.1 5,60,000/- UNDER SECTION 40(A)(IA) OF THE ACT FOR NON DEDUCTION OF T AX ON A PAYMENT OF RENT MADE TO ONE SH. IRFAN AHGED NARWAROO. THE LD. CIT(A ), CONFIRMED THE ACTION OF THE ASSESSING OFFICER. 4. MR. R.K. GUPTA, THE LD. COUNSEL FOR THE ASSESSEE , INVITED OUR ATTENTION TO THE DECISION OF THE SPECIAL BENCH OF ITAT, VISAK HAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKHAPATNAM, IN ITA NO.477/VIZ/2008 FOR THE ASSES SMENT YEAR 2005-06 DATED 29.03.2012, WHERE IT HAS BEEN DECIDED THAT SE CTION 40(A)(IA) OF THE ACT IS APPLICABLE ONLY TO THE EXPENDITURE WHICH IS PAYA BLE AS ON 31 ST MARCH OF EVERY YEAR AND CANNOT BE INVOKED TO DISALLOW THE AM OUNTS WHICH HAVE ALREADY BEEN PAID DURING THE YEAR WITHOUT DEDUCTIN G TAX AT SOURCE. A COPY OF THE SAID DECISION HAS BEEN PLACED ON RECORD BY T HE LD. COUNSEL FOR THE ASSESSEE. 5. ON THE OTHER HAND, THE LD. CIT(DR), SH. LAXMAN S INGH, RELIED ON THE ORDERS OF THE AUTHORITIES BELOW. ITA NO.136(ASR)/2012 3 6. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE FACTS OF THE CASE. THE LD. CIT(A) IN THE PRESENT CASE HAD MADE THE DIS ALLOWANCE, IN THE ABSENCE OF THE DECISION OF SPECIAL BENCH OF ITAT VI SAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAK HAPATNAM VS. ACIT RANGE-1, VISAKHAPATNAM (SUPRA) OR THE DECISION OF T HE JURISDICTIONAL BENCH ON THE ISSUE. SINCE THE DECISION OF THE SPECIAL BEN CH OF ITAT VISAKHAPATNAM (SUPRA) WAS NOT AVAILABLE WITH THE LD . CIT(A), WHO HAD PASSED THE ORDER ON 19.03.2012 WHEREAS THE DECISION OF THE SPECIAL BENCH HAS BEEN PRONOUNCED THEREAFTER. ON PERUSAL OF THE D ECISION OF THE SPECIAL BENCH OF ITAT, VISAKHAPATNAM IN THE CASE OF M/S. ME RILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKH APATNAM (SUPRA), WHERE IT HAS BEEN HELD THAT SECTION 40(A)(IA) IS AP PLICABLE ONLY TO EXPENDITURE WHICH IS PAYABLE AS ON 31 ST MARCH OF EVERY YEAR AND CANNOT BE INVOKED TO DISALLOW THE AMOUNTS WHICH HAVE ALREADY BEEN PAID D URING THE YEAR PREVIOUS YEAR WITHOUT DEDUCTING TAX AT SOURCE. IN THE PRESEN T CASE, THE FACTS ARE IDENTICAL AS THE FACTS IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAKHAPATNAM VS. ACIT RANGE-1, VISAKHAPATNAM (SUPR A). THEREFORE, FOLLOWING THE DECISION OF THE SPECIAL BENCH OF ITAT VISAKHAPATNAM IN THE CASE OF M/S. MERILYN SHIPPING & TRANSPORTS , VISAKH APATNAM VS. ACIT RANGE-1, VISAKHAPATNAM (SUPRA), THE AO IS NOT JUSTI FIED IN DISALLOWING THE ITA NO.136(ASR)/2012 4 EXPENDITURE. ACCORDINGLY, THE ORDER OF THE LD. CIT( A) IS REVERSED. THUS, ALL THE GROUNDS OF THE ASSESSEE ARE ALLOWED. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH AUGUST, 2012. SD/- SD/- (H.S. SIDHU) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 7TH AUGUST, 2012 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S. JAMKASH VEHICLEADES PVT. LTD.JAM MU 2. THE ADDL.CIT R-2, JAMMU 3. THE CIT(A) 4. THE CIT 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.