DCIT, Circle, Patiala V. M/s Hindustan Wire Products Ltd., Patiala

ITA 1609/CHANDI/2017

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5753 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 27-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA KANTA
• Keywords: Retrospective amendment; TDS
• Section: 40(a)(ia); 201

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A, CHANDIGARH , !' # $ % &' , '( BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1609/CHD/2017 / ASSESSMENT YEAR : 2012-13 THE DCIT, CIRCLE, PATIALA VS. M/S HINDUSTAN WIRE PRODUCTS LTD., FACTORY AREA, PATIALA ./PAN NO: AAACH3632C / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE ' ! / REVENUE BY : SMT. CHANDRAKANTA, SR.DR # $ % /DATE OF HEARING : 04.12.2018 &'() % / DATE OF PRONOUNCEMENT : 04.12. 2018 ')/ ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE REVENU E AGAINST THE ORDER DATED 13.09.2017 OF THE COMMISSIONER OF INCOM E TAX(APPEALS )- 1, LUDHIANA [HEREINAFTER REFERRED TO AS CIT(A)]. 2. THE SOLE ISSUE RAISED IN THIS APPEAL IS RELAT ING TO THE ACTION OF THE LD. CIT(A) IN DELETING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER U/S 40(A)(IA) OF THE INCOME-TAX ACT, 1961 (IN SHORT 'TH E ACT'). 3. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE HAS PLEADED THAT THOUGH THE ASSESSEE HAD DEDUCTED TDS ON THE AMOUNTS PAID TO CERTAIN PARTIES, HOWEVER, THE RESPECTIVE PAYEES HAD TAKEN INTO CONSI DERATION THE AMOUNT ITA NO. 1609-CHD-2017- M/S HINDUSTAN WIRE PRODUCTS LTD., PATIALA 2 RECEIVED FROM THE ASSESSEE WHILE COMPUTING THEIR TA XABLE INCOME AND HAD FILED THEIR INCOME TAX RETURN ACCORDINGLY. THE LD. COUNSEL, THEREFORE, RELIED UPON SECOND PROVISO TO SECTION 40(A)(IA) OF THE A CT INSERTED BY THE FINANCE ACT 2012, WHICH PROVIDES THAT IN CASE AN A SSESSEE FAILS TO DEDUCT TDS AS PER THE PROVISIONS OF SECTION 40(A)(IA) OF T HE ACT, BUT HE IS NOT DEEMED TO BE ASSESSEE IN DEFAULT UNDER THE FIRST PR OVISO TO SUB-SECTION (1) OF SECTION 201, THEN, FOR THE PURPOSE OF PROVISION S OF SECTION 40(A)(IA) OF THE ACT, IT SHALL BE DEEMED THAT AS THE ASSESSEE HAD DEDUCTED AND PAID THE TAX ON SUCH SUM ON THE DATE OF FURNISHING OF RETURN OF INCOME BY THE RESIDENT PAYEE REFERRED TO IN THE SAID PROVISO. IT IS PERTINENT TO MENTION HERE THAT FIRST PROVISO TO SECTION 201 STIPULATES T HAT A PERSON IF FAILED TO DEDUCT TAX IN ACCORDANCE WITH THE PROVISIONS OF THE ACT SHALL NOT BE DEEMED TO BE ASSESSEE IN DEFAULT, IF A CERTIFICATE IS FURNISHED FROM AN ACCOUNTANT IN A PRESCRIBED FORM TO THE EFFECT THAT THE RESIDENT PAYEE HAD FURNISHED THE RETURN OF INCOME TAX AND HAS TAKEN IN TO ACCOUNT THE SUM RECEIVED AND HAS PAID DUE TAXES AS PAYABLE AS PER H IS RETURN OF INCOME. 4. THE ASSESSEE BEFORE THE LD. CIT(A) RELIED UPON T HE DECISION OF THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. AN SAL LAND MARK TOWNSHIP PRIVATE LIMITED [2015] 377 ITR 635 (DELHI ), WHEREIN, DELHI HIGH COURT HAS HELD THAT THE SECOND PROVISO INSERTE D BY FINANCE ACT 2012 IS DECLARATORY AND CURATIVE IN NATURE AND HAS RETROSPECTIVE EFFECT W.E.F. 1.4.2005. THE LD. CIT(A) CONSIDERING THE SUBMISSIO NS OF THE ASSESSEE AND THE RELEVANT CASE LAWS HELD THAT SINCE IN THIS CASE THE PAYEES HAD TAKEN INTO ACCOUNT THE SUMS RECEIVED FROM THE ASSESSEE A ND HAD FILED THEIR RETURN AND PAID DUE TAXES, HENCE, IN THE LIGHT OF THE SECO ND PROVISO TO SECTION ITA NO. 1609-CHD-2017- M/S HINDUSTAN WIRE PRODUCTS LTD., PATIALA 3 40(A)(IA) OF THE ACT, NO DISALLOWANCE U/S 40(A)(IA) OF THE ACT WAS WARRANTED. 5. BEING AGGRIEVED BY THE ABOVE ORDER OF THE CIT(A) , THE REVENUE HAS COME IN APPEAL BEFORE US. 6. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS PLACED ON FILE A COPY OF ANOTHER DECISION / ORDER OF THE HON'BLE PUNJAB & HARYANA HIGH COURT IN THE CASE OF PCIT-2, CHANDIGARH VS. M/S MOBISOF T TELESOLUTIONS PRIVATE LIMITED IN ITA NO. 495 OF 2017 (O&M) ORDER DATED 3.10.2018, WHEREIN, THE FINDINGS SO ARRIVED AT BY THE HON'BLE DELHI HIGH COURT IN THE CASE OF CIT VS. ANSAL LAND MARK TOWNSHIP PRIVATE L IMITED, (SUPRA) HAS BEEN REAFFIRMED BY THE JURISDICTIONAL HIGH COURT . NO DISTINGUISHING CASE LAW HAS BEEN PUT BEFORE US BY THE DEPARTMENT. IN VIEW OF THIS, WE DO NOT FIND ANY MERIT IN THE AP PEAL OF THE REVENUE AND THE SAME IS ACCORDINGLY DISMISSED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT ON 4.12.2018. SD/- SD/- ( # $ % &' / ANNAPURNA GUPTA) '( / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 04.12. 2018 .. '+ ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # / / CIT 4. # / ( )/ THE CIT(A) 5. -01 2 , % 2 , 34516 / DR, ITAT, CHANDIGARH 6. 15 7$ / GUARD FILE '+ # / BY ORDER, 8 ' / ASSISTANT REGISTRAR