M/s. Shriram Roadlines, Ratnagiri V. ITO, Ward 2, Ratnagiri, Ratnagiri

ITA 1453/PUN/2010

• Counselvise Citation: 145324514 RSA 2010
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-06-2012
• Appeal Filed By: Assessee
• Bench Allotted: B
• Next Hearing Date: 29-05-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 15-12-2010
• Court: TRIBUNAL
• Department Lawyers: ALOK MISHRA

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER AND SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO.1453/PN/2010 (ASSTT.YEAR : 2007-08) SHRI SHRIRAM ROADLINES 1377, NEAR MANGESH UPHAR GRIHA, TAL: LANJA, DIST. RATNAGIRI .. APPELLANT PAN NO. AFFPS 2167G VS. ITO WARD-2, RATNAGIRI .. RESPONDENT APPELLANT BY : SRI M.K. KULKARNI RESPONDENT BY : SRI ALOK MISHRA DATE OF HEARING : 29-05-2012 DATE OF PRONOUNCEMENT : 26-06-2012 ORDER PER SHAILENDRA KUMAR YADAV, JM : THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A) DATED 29-10-2010 RELATING TO THE ASSESSMENT YEAR 2 007-08 WITH THE FOLLOWING GROUNDS : 1. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE LD. CIT(A) WAS NOT JUSTIFIED, IN CONFIRMING THE ORDER O F THE AO SINCE THE JUDICIAL VIEWS ON THE ISSUE ABOUT APPLICABILITY OF SECTION 40(A)(IA) ARE AVAILABLE BY THE JUDGMENTS OF THE COORDINATE BENCHE S OF THE HYDERABAD AND JAIPUR BENCH REPORTED IN (2010) 36 DTR (HYD) (T RIB.) 220 AND (2209) 123 TTJ (J) 888 AND ALSO OF PUNE BENCHES JUD GMENTS THAT THE PROVISIONS OF S.40(A)(IA) ARE NOT APPLICABLE WHERE PAYMENTS ARE ALREADY MADE AND DID NOT REMAIN PAYABLE AS AT THE END OF THE ASSESSMENT 2 YEAR. IN SUCH CIRCUMSTANCES NO DISALLOWANCE IS CAL LED FOR. THE ADDITION MADE INVOKING PROVISIONS OF S.40(A)(IA) BE DELETED. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) WAS NOT JUSTIFIED IN NOT APPRECIATING THE SU BMISSIONS OF THE APPELLANT THE SUBMISSION OF CERTIFICATES IN F.NO. 1 5-1 AND OTHER LEGAL ARGUMENTS. HIS DECISION TO DISMISS THE APPEAL IS C ONTRARY TO THE PROVISIONS OF LAW AND JUDICIAL VERDICTS. THE APPEA L OF THE ASSESSEE BE ALLOWED. 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE ASSESSEE DENIES TO PAY INTEREST U/S. 234 OF THE I.T. ACT AND THE SAME BE DELETED. 2. ON THE OTHER HAND THE LEARNED D.R. POINTED OUT T HAT THIS IS COVERED BY THE ORDER OF THE VISAKHAPATNAM SPECIAL BENCH IN THE CAS E OF MERILYN SHIPPING AND TRANSPORT VS. ACIT VIDE ITA NO. 427/VIZAG/2008 FOR ASSESSMENT YEAR 2005-06 DATED 09-04-2012 REPORTED IN 136 ITD 23. 3. AFTER HEARING BOTH THE SIDES AND AFTER CONSIDERI NG THE FACTS AND CIRCUMSTANCES OF THE CASE WE FIND THAT THIS MATTER IS ADDRESSED BY THE ORDER OF THE VISAKHAPATNAM SPECIAL BENCH IN THE CASE OF MERI LYN SHIPPING AND TRANSPORT VS. ACIT VIDE ITA NO. 427/VIZAG/2008 FOR ASSESSMENT YEAR 2005-06 DATED 09-04-2012 REPORTED IN 136 ITD 23 WHEREIN IT WAS HELD THAT PROVISIONS OF SECTION 40(A)(IA) ARE APPLICABLE ONLY TO AMOUNTS OF EXPENDITURE WHICH ARE PAYABLE AS ON 31 ST MARCH OF EVERY YEAR AND IT CANNOT BE UNDERTAKEN TO DISALLOW EXPENDITURE WHICH HAS BEEN ACTUALLY PAID DURING THE PREVIOUS YEAR WITHOUT DEDUCTION OF TDS. 3 4. WE, THEREFORE, DEEM IT PROPER TO RESTORE THIS IS SUE TO THE FILE OF THE AO WITH A DIRECTION TO DECIDE THE SAME AS PER FACT AND LAW IN THE LIGHT OF THE VISAKHAPATNAM SPECIAL BENCH DECISION IN THE CASE OF MERILYN SHIPPING AND TRANSPORT VS. ACIT (SUPRA) AFTER PROVIDING DUE OPPO RTUNITY OF BEING HEARD TO THE ASSESSEE. WE RESTORE THE ISSUE TO THE FILE OF THE AO ON PRELIMINARY ISSUE FOR THE REASONS DISCUSSED ABOVE, SO WE REFRAIN TO THE D ECIDE THE ISSUE AT HAND ON MERIT. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. PRONOUNCED IN THE OPEN COURT ON 26TH JUNE 2012. SD/- SD/- (G.S. PANNU) (SHAILENDRA KUMAR YAD AV) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED THE 26 TH JUNE 2012 COPY OF THE ORDER IS FORWARDED TO : 1. THE ASSESSEE 2. DEPARTMENT 3. THE CIT(A),KOLHAPUR 4. THE CIT CONCERNED 5. D.R. B BENCH, PUNE 6. GUARD FILE BY ORDER SENIOR PRIVATE SECRETARY, INCOME TAX APPELLATE TRIBUNAL, PUNE