M/s Ashok Auto Sales Ltd., Agra V. J.C.I.T., Range-4, Agra

ITA 139/AGR/2013

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 2152 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2013
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 15-07-2013
• Assessment Year: 2009-2010
• Appeal Filed On: 02-05-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: S L MAURYA
• Assessee Lawyers: S C JAIN
• Keywords: Search and seizure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI A.L. GEHLOT, ACCOUNTANT MEMBER ITA NO. 139/AGRA/2013 ASSTT. YEAR : 2009-10 ASHOK AUTO SALES LTD., VS. J.C.I.T., RANGE-4, 12/146, NUNHAI, AGRA. AGRA. (PAN: AABCA3711C) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S.C. JAIN, C.A. RESPONDENT BY : SHRI S.L. MAURYA, SR. D.R. DATE OF HEARING : 15.07.2013 DATE OF PRONOUNCEMENT OF ORDER : 19.07.2013 ORDER PER BHAVNESH SAINI, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-II, AGRA DATED 14.02.2013 FOR THE ASSESSMENT YEAR 2009- 10, CHALLENGING THE DISALLOWANCE OF INTEREST OF RS.18,02,893/- U/S. 40( A)(IA) OF THE IT ACT. 2. THE AO MADE ADDITION OF RS.18,02,893/- U/S. 40(A )(IA) FOR NON-DEDUCTION OF TDS ON INTEREST PAID TO TATA CAPITAL LTD. OF RS.16, 94,743/- AND TO TATA MOTOR FINANCE LTD. RS.1,08,150/-. AS THE ASSESSEE HAS ADM ITTED THAT TDS WHICH WAS REQUIRED TO BE DEDUCTED ON PAYMENT OF INTEREST AS P ER THE ACT, HAS NOT BEEN DEDUCTED AND PAID DUE TO INADVERTENT MISTAKE, THE A O MADE THE ADDITION. THE ITA NO. 139/AGRA/2013 2 ASSESSEE CHALLENGED THE ADDITION BEFORE THE LD. CIT (A) AND WRITTEN SUBMISSIONS OF THE ASSESSEE ARE REPRODUCED IN THE APPELLATE ORDER. THE SOLE CONTENTION OF THE ASSESSEE WAS THAT THE DISALLOWANCE UNDER THE ABOVE PROVISION CAN BE MADE IN RESPECT OF THE EXPENDITURE PAYABLE AT THE END OF TH E YEAR AND NOT ON THE AMOUNTS ALREADY PAID WITHOUT DEDUCTING TAX. THE ASSESSEE RE LIED UPON THE DECISION OF SPECIAL BENCH OF ITAT, VISHAKHAPATNAM BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORTS VS. ACIT, 136 ITD 23, IN WHICH IT WAS HE LD THAT THE ADDITION COULD BE MADE WHEN TAX HAS NOT BEEN DEDUCTED ON THE EXPENDIT URE PAYABLE AT THE END OF THE YEAR AND NOT ON THE EXPENDITURE WHICH HAS ALREADY B EEN PAID. THE LD. CIT(A), HOWEVER, FOUND THAT THE ASSESSEE HAS ADMITTED THAT TAX HAS NOT BEEN DEDUCTED WHICH WAS DUE. FURTHER, THE DECISION OF ITAT SPECIA L BENCH ABOVE IS NO LONGER APPLICABLE AS THE OPERATION OF THE DECISION HAS BEE N STAYED BY THE HONBLE HIGH COURT. THEREFORE, THE ADDITION WAS CONFIRMED. 3. ON CONSIDERATION OF THE SUBMISSIONS OF THE PARTI ES, WE DO NOT FIND ANY MERIT IN THE APPEAL OF THE ASSESSEE. THE ASSESSEE ADMITTE D BEFORE THE AO THAT TDS HAS TO BE DEDUCTED ON PAYMENT OF INTEREST. THEREFORE, THE ASSESSEE ADMITTED APPLICABILITY OF PROVISIONS OF SECTION 40(A)(IA) OF THE IT ACT IN THE MATTER. THE LD. COUNSEL FOR THE ASSESSEE ONLY SUBMITTED THAT EVEN IF DECISION O F SPECIAL BENCH ABOVE HAS BEEN STAYED BY ANDHRA PRADESH HIGH COURT, BUT THE PRINCI PLE IS STILL IN FAVOUR OF THE ITA NO. 139/AGRA/2013 3 ASSESSEE. WE ARE AFRAID TO ACCEPT SUCH CONTENTION O F THE LD. COUNSEL FOR THE ASSESSEE BECAUSE ONCE THE ORDER OF ITAT SPECIAL BENCH IS STA YED BY THE HONBLE HIGH COURT, IT IS NO LONGER APPLICABLE IN FAVOUR OF THE ASSESSEE AS ON TODAY. THEREFORE, THERE IS NO QUESTION OF ITS PRINCIPLE REMAINED IN F AVOUR OF THE ASSESSEE. SINCE THE DECISION OF SPECIAL BENCH ABOVE HAS ADMITTEDLY BEEN STAYED BY THE HONBLE HIGH COURT, THEREFORE, THE SAME CANNOT BE APPLIED IN ANY FORM IN FAVOUR OF THE ASSESSEE AS ON TODAY. THE APPEAL OF THE ASSESSEE HAS, THUS, NO MERIT AND IS ACCORDINGLY DISMISSED. 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DIS MISSED. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (A.L. GEHLOT) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY