ZS Associates India Pvt.Ltd, Pune V. Deputy Commissioner of Income-tax, Circle - 12, Pune

ITA 16/PUN/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 1324 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 8 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-09-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-07-2019
• Assessment Year: 2010-2011
• Appeal Filed On: 04-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SWAPNIL PATIL
• Assessee Lawyers: SANJAY MEHTA
• Keywords: Principle of natural justice; TDS; Set aside
• Section: 2; 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, PUNE BEFORE SHRI D. KARUNAKARA RAO, AM AND SHRI PARTHA SARATHI CHAUDHURY , JM . / I TA NO.16 /PUN/20 18 / ASSESSMENT YEAR : 2010 - 11 ZS ASSOCIATES INDIA PRIVATE LIMITED, WORLD TRADE CENTER, TOWER - 3, KHARADI, PUNE - 411 014. PAN : AAACZ2157Q ....... / APPELLANT / V/S. THE INCOME TAX OFFICER, WARD 1(4), PUNE. / RESPONDENT . / ITA NO. 17/PUN/2018 / ASSESSMENT YEAR : 2011 - 12 ZS ASSOCIATES INDIA PRIVATE LIMITED, WORLD TRADE CENTER, TOWER - 3, KHARADI, PUNE - 411 014. PAN : AAACZ2157Q ....... / APPELLANT / V/S. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 12, PUNE. / RESPONDENT A SSESSEE BY : SHRI SANJAY MEHTA REVENUE BY : SHRI SWAPNIL PATIL 2 ITA NO S . 16 & 17 /PUN/20 18 A.Y S . 2010 - 11 & 2011 - 12 / DATE OF HEARING : 09 .0 9 .2019 / DATE OF PRONOUNCEMENT : 09 .09 .2019 / ORDER PER PARTHA SARATHI CHAUDHU RY, JM : THESE TWO APPEALS PREFERRED BY THE ASSESSEE EMANATES FROM THE ORDER OF THE LD. CIT(APPEALS), PUNE - 5, PUNE DATED 28.09.2017 FOR THE ASSESSMENT YEARS 2010 - 11 & 2011 - 12 AS PER THE GROUNDS OF APPEAL ON RECORD. 2. THESE CASES WERE HEARD TOGETHER. SINCE ISSUES COMMON, FACTS ARE SIMILAR, THESE CASES ARE BEING DISPOSED OF VIDE THIS CONSOLIDATED ORDER. 3. AT THE VERY OUTSET, THE LD. COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ISSUES INVOLVED IN THESE CASES ARE WITH REGARD TO THE TDS REIMBURSEMENT OF THE PAYMENT FOR SOFTWARE EXPENSES, LEASE LINE CHARGES - (VPN & COMMUNICATION EXPENSES) AND TRAINING AND INDUCTI ON CHARGES. THE ISSUES ON TDS ON THESE EXPENSES ARE COVERED IN FAVOUR OF THE ASSESSEE BY THE FOLLOWING JURISDICTIONAL ITAT CASES: (I) T - 3 ENERGY SERVICES INDIA PVT. LTD. VS. JCIT, ITA NO.826/PUN/2015. (II) TATA TECHNOLOGIES LTD. VS. THE DY. CIT (INT. TAX ) - II, ITA NO.1433/PUN/2014. IT WAS FURTHER SUBMITTED BY THE LD. COUNSEL BEFORE US THAT HOWEVER, BENEFIT OF DIRECTIONS ARISING FROM THE AFORESAID CASES WERE NOT AVAILABLE TO THE LD. CIT(APPEALS) AT THE TIME OF PASSING APPELLATE ORDER AND HENCE, IT WAS R EQUESTED BEFORE US TO RESTORE THE MATTER BACK TO THE FILE OF LD. CIT(APPEALS) 3 ITA NO S . 16 & 17 /PUN/20 18 A.Y S . 2010 - 11 & 2011 - 12 WITH THE DIRECTION S TO DECIDE THE CASES IN THE LIGHT OF THE AFORESAID JUDICIAL PRONOUNCEMENTS. 4. THE LD. DR FAIRLY CONCEDED TO THE PRAYER MADE BY THE LD. COUNSEL FOR THE ASSE SSEE. 5. WE HAVE PERUSED THE CASE RECORDS AND HEARD THE RIVAL CONTENTIONS. WE HAVE ALSO CONSIDERED THE JUDICIAL PRONOUNCEMENTS PLACED ON RECORDS. THAT FROM THE FACTS, IT IS CLEARLY ADMITTED BY BOTH THE PARTIES HEREIN, AT THE TIME OF PASSING ORDER BY TH E LD. CIT(APPEALS), HE WAS NOT HAVING BENEFIT OF THE AFORESAID DECISIONS OF THE PUNE BENCH OF THE TRIBUNAL AND THEREAFTER, SPECIFIC DIRECTIONS HAVE BEEN ISSUED ON THE ISSUES INVOLVED IN THESE CASES BEFORE US. IN THE INTEREST OF JUSTICE, WE ACCEPT THE PRAYE R MADE BY THE LD. COUNSEL FOR THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE ORDER OF THE LD. CIT(APPEALS) FOR THE BOTH THESE CASES FOR ASSESSMENT YEARS 2010 - 11 & 2011 - 12 BEFORE US AND RESTORE THEM BACK TO HIS FILE TO DECIDE THE ISSUES IN DE - NOVO IN THE LIGHT OF THE JUDICIAL PRONOUNCEMENTS REFERRED HEREIN ABOVE IN COMPLIANCE WITH PRINCIPLES OF NATURAL JUSTICE. 6. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE FOR THE ASSESSMENT YEARS 2010 - 11 & 2011 - 12 ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRO NOUNCED ON 09 TH D AY OF SEPTEMBER , 201 9 . SD/ - SD/ - D. KARUNAKARA RAO PARTHA SARATHI CHAUDHURY ACCOUNTANT MEMBER JUDICIAL MEMBER / PUNE; / DATED : 09 TH SEPTEMBER, 2019 . SB 4 ITA NO S . 16 & 17 /PUN/20 18 A.Y S . 2010 - 11 & 2011 - 12 / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT. 2. / THE RESPONDENT. 3. THE CIT(APPEALS), PUNE - 5, PUNE. 4. THE PR. CIT, PUNE - 4, PUNE. 5 . , , , / DR, ITAT, A BENCH, PUNE. 6 . / GUARD FILE. // TRUE COPY // / BY ORDER, / PRIVATE SECRETARY , / ITAT, PUNE . 5 ITA NO S . 16 & 17 /PUN/20 18 A.Y S . 2010 - 11 & 2011 - 12 DATE 1 DRAFT DICTATED ON 09 .0 9 .2019 SR.PS/PS 2 DRAFT PLACED BEFORE AUTHOR 09 .0 9 .201 9 SR.PS/PS 3 DRAFT PROPOSED AND PLACED BEFORE THE SECOND MEMBER JM/AM 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER AM/JM 5 APPROVED DRAFT COMES TO THE SR. PS/PS SR.PS/PS 6 KEPT FOR PRONOUNCEMENT ON SR.PS/PS 7 DATE OF UPLOADING OF ORDER SR.PS/PS 8 FILE SENT TO BENCH CLERK SR.PS/PS 9 DATE ON WHICH THE FILE GOES TO THE HEAD CLERK 10 DATE ON WHICH FILE GOES TO THE A.R 11 DATE OF DISPATCH OF ORDER