ACIT, Circle-15(1), Hyderabad, Hyderabad V. Satyanarayana Reddy Chada, Secunderabad, Secunderabad

ITA 1583/HYD/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 6188 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2017
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 25-11-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92; 40(a)(ia)

Judgement Text

ITA NO 1583 OF 2016 SATYANARAYANA REDDY CHADA SECU NDERABAD 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 NO.1583/HYD/2016 (ASSESSMENT YEAR: 2013-14) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 15(1) HYDERABAD VS SRI SATYANARAYANA REDDY CHADA SECUNDERABAD PAN: ACCPC 1709 N FOR REVENUE: SHRI K.J. RAO, DR FOR ASSESSEE: N O N E O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2013-14. IN THI S APPEAL, THE REVENUE IS AGGRIEVED BY THE ORDER OF TH E CIT (A)-7 HYDERABAD, DATED 4.8.2016 IN DELETING THE DISALLOWA NCE MADE BY THE AO U/S 40(A)(IA) OF THE ACT, BY RELYING UPON TH E DECISION OF THE INCOME TAX APPELLATE TRIBUNAL SPECIAL BENCH AT VISA KHAPATNAM IN THE CASE OF MERILYN SHIPPING & TRANSPORT REPORTE D IN 146 TTJ (1). 2. REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APP EAL: 1. THE LEARNED CIT (A) IS ERRONEOUS IN LAW AND ON FACTS. DATE OF HEARING : 02.02.2017 DATE OF PRONOUNCEMENT : 08.02.2017 ITA NO 1583 OF 2016 SATYANARAYANA REDDY CHADA SECU NDERABAD PAGE 2 OF 3 2. THE LEARNED CIT (A) ERRED IN DELETING THE DISALLOWANCE MADE BY THE AO U/S 40(A)(IA) BY RELYIN G ON THE DECISION OF THE HON'BLE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORT. 3. THE OPERATION OF THE INCOME TAX APPELLATE TRIBUNALS DECISION IN THE CASE OF MERILYN SHIPPING & TRANSPORT HAVING BEEN STAYED BY THE HON'BLE HIGH COURT OF A.P, THE MATTER HAS NOT REACHED FINALITY. 4. THE LEARNED CIT (A) HAD NOT CONSIDERED THE CBDT CIRCULAR NO.10/DV/2013 DATED 16.12.2013 IN DECIDING THE ISSUE. 3. THE NOTICE SENT BY THE REGISTRY TO THE RESPONDEN T ASSESSEE HAS BEEN RETURNED UN-SERVED. HOWEVER, ON G OING THROUGH THE ASSESSMENT ORDER AS WELL AS THE ORDER OF THE CI T (A), WE FIND THAT THE ASSESSEE HAD MADE THE PAYMENTS BEFORE THE DATE OF FILING OF THE RETURN AND THEREFORE, THE DECISION OF THE SP ECIAL BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORT (SUPRA) IS CLEARLY APPLICABLE TO THE FACTS OF THE CASE BEFORE US. WE F IND THAT THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. VECTOR SHIPPING SERVICES LTD REPORTED IN 357 ITR 647, HAS DISMISSE D THE SLP FILED BY THE REVENUE AGAINST THE ORDER OF THE HON'BLE ALL AHABAD HIGH COURT IN THE CASE OF VECTOR SHIPPING SERVICES LTD R EPORTED IN (2013)262 CTR (ALL) 545) WHICH HAS APPROVED THE DEC ISION OF THE SPECIAL BENCH IN THE CASE OF MERILYN SHIPPING & TRA NSPORT (SUPRA). IN VIEW OF THE SAME, WE SEE NO REASON TO I NTERFERE WITH THE ORDER OF THE CIT (A) AND THE REVENUES APPEAL I S ACCORDINGLY DISMISSED. ITA NO 1583 OF 2016 SATYANARAYANA REDDY CHADA SECU NDERABAD PAGE 3 OF 3 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH OF FEBRUARY, 2017. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 8 TH FEBRUARY, 2017. VINODAN/SPS COPY TO: 1 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 15(1) 5 TH FLOOR, D- BLOCK, IT TOWERS, AC GUARDS, HYDERABAD 2 SRI SATYANARAYANA REDDY CHADA, H.NO. 3-92/3 NANDA NAVANAM COLONY, STREET NO.4 SECUNDERABAD 3 CIT (A)-7 HYDERABAD 4 PR. CIT 74 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER