Swarup Hospitals Private Limited, Hyderabad V. Swarup Hospitals Private Limited, Hyderabad

ITA 1401/Hyd/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 4562 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 07-02-2019
• Assessment Year: 2014-2015
• Appeal Filed On: 03-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PHANI RAJU
• Assessee Lawyers: LAXMINIWAS SHAR MA
• Keywords: TDS
• Section: 154

Judgement Text

ITA NOS 1398 TO 1403 AND 1497 OF 2018 SWARUP HOSPITALS P LTD HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NOS.1398 TO 1400, 1497 AND 1401 TO 1403/HYD/201 8 (ASSESSMENT YEARS: 2013-14 & 2014-15) M/S. SWARUP HOSPITALS PRIVATE LIMITED, HYDERABAD PAN: AAFCS3789L VS ADDL. COMMISSIONER OF INCOME TAX (TDS), RANGE-2 HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI LAXMINIWAS SHARMA FOR REVENUE : SHRI PHANI RAJU, DR O R D E R PER SMT. P. MADHAVI DEVI, J.M. ALL ARE ASSESSEES APPEALS FOR THE A.YS 2013-14 & 2014-15 RESPECTIVELY AGAINST THE ORDER U/S 200A AND SECTION 154 OF THE I.T. ACT RESPECTIVELY. 2. ALL THESE APPEALS ARE FILED AGAINST THE ORDER OF THE CIT (A) CONFIRMING THE LATE FEE LEVIED BY THE AO U/S 23 4E OF THE I.T. ACT. THE LEARNED CIT (A) DISMISSED THE APPEALS ON T HE GROUND THAT THE APPEALS WERE TIME BARRED. THE ASSESSEE HAS NOW FILED THE APPEALS BEFORE US RAISING THE FOLLOWING GROUNDS: 1. THE LEARNED CIT (A) HAS ERRED IN FACTS AND LAW WHILE DISPOSING OFF THE APPEAL. 2. THE LEARNED CIT (A) HAS ERRED IN FACTS AND LAW W HILE REJECTING THE REASONS FOR CONDONING THE DELAY IN FI LING OF AN APPEAL AND IGNORING THAT THE INTIMATION PASSE D DATE OF HEARING : 06.02.2019 DATE OF PRONOUNCEMENT : 15.02.2019 ITA NOS 1398 TO 1403 AND 1497 OF 2018 SWARUP HOSPITALS P LTD HYDERABAD. PAGE 2 OF 3 BY THE AO U/S 200A IS BARRED BY LIMITATION AS PER PROVISO TO SECTION 200A OF THE I.T. ACT. 3. THE LEARNED CIT (A) HAS ERRED IN NOT ADJUDICATIN G THE ISSUE ON MERIT, WHEREBY THE PROVISIONS OF SECTI ON 234E ARE NOT APPLICABLE IN CASE OF AN ASSESSEE WHIL E PROCESSING THE TDS STATEMENTS U/S 200A PRIOR TO 1.6.2015. 4. FOR THESE AND ANY OTHER GROUNDS WHICH MAY BE RAISED ON OR BEFORE HEARING OF THE APPEAL. 3. HAVING HEARD BOTH THE PARTIES AND HAVING CONSIDE RED THE MATERIAL ON RECORD, WE FIND THAT THE CIT (A) HA S REFUSED TO CONDONE THE DELAY EVEN THOUGH THE ASSESSEES CASE I S COVERED IN FAVOUR OF THE ASSESSEE ON MERITS. WE FIND THAT THE MACHINERY PROVISION U/S 200A HAS COME INTO FORCE W.E.F. 1.6.2 015 AND IN A NUMBER OF CASES, THE COORDINATE BENCH OF THIS TRIBU NAL HAS HELD THAT THE SAID MACHINERY PROVISIONS HAVE COME INTO E FFECT ONLY AFTER 1.6.2015 AND THEREFORE, THEY CANNOT BE APPLIED TO T HE EARLIER A.YS. FOR THE SAKE OF READY REFERENCE, THE RELEVANT PARAS IN THE CASE OF TERRA INFRA DEVELOPMENT LTD VS. ITO (TDS) WARD 2(3) HYDERABAD IN ITA NOS.1876 & 1875/HYD/2017, DATED 03.10.2018 A E AS UNDER: WE FIND THAT THOUGH THE PROVISIONS FOR LEVY OF FEE IN CERTAIN CASES HAS BEEN BROUGHT INTO THE STATUTE BOO K W.E.F. 1.7.2012, IT HAS BEEN BROUGHT UNDER THE PURV IEW OF SECTION 200A ONLY W.E.F. 1.6.2015. THEREFORE, AS RIGHTLY HELD BY THE COORDINATE BENCH IN THE CASE OF M/S. SONALAC PAINTINGS & COATINGS LTD (CITED SUPRA) , WE HOLD THAT THE INTEREST U/S 234E CANNOT BE LEVIED IN RESPECT OF TDS RETURNS FILED PRIOR TO 1.6.2015. RESPECTFULLY FOLLOWING THE SAME, ASSESSEES APPEALS FOR BOTH THE A.YS ARE ALLOWED. 4. RESPECTFULLY FOLLOWING THE SAME, WE HOLD THAT TH E LATE FEE IS NOT LEVIABLE IN THE PERIOD PRIOR TO 1.6.2015 AND THEREFORE, ITA NOS 1398 TO 1403 AND 1497 OF 2018 SWARUP HOSPITALS P LTD HYDERABAD. PAGE 3 OF 3 THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE ON T HE LEGAL ISSUE, WE ARE INCLINED TO CONDONE THE DELAY BEFORE THE CIT (A) AND HOLD THE ORDERS AS VOID. 5. IN THE RESULT, ASSESSEES APPEALS ARE ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 15 TH FEBRUARY, 2019. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 15 TH FEBRUARY, 2019. VINODAN/SPS COPY TO: 1 M/S. SWARUP HOSPITALS (P) LTD, 6-3-347/9/1, DWARA KAPURI COLONY, PANJAGUTTA, HYDERABAD 500082 2 ADDL. CIT, TDS RANGE-2 HYDERABAD 3 CIT (A)-8 HYDERABAD 4 CIT TDS, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER