Assistant Commissioner of Income Tax,Circle-1, Nagpur V. M/s. Steklo Abresist Private Limited, Nagpur

ITA 164/NAG/2011

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 1929 (ITAT-NAGPUR)
• Duration Of Justice: 1 year(s) 1 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-02-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2006-2007
• Appeal Filed On: 14-12-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K DHARIA
• Assessee Lawyers: KAPIL BAHARI
• Keywords: Retrospective amendment

Judgement Text

, - IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH , ( E - COURT), MUMBAI , BEFORE SHRI R.K.GUPTA , J M & SHRI RAJENDRA , A M ITA NO. 1 6 4 / N AG / 20 1 1 ( ASSESSMENT YEAR : 200 6 - 0 7 ) ACIT, CIR - 1, NAGPUR - 440 006 VS. M/S STEKLO ABRESIST PVT. LTD., 102, OMSHREE APARTMENT, 264, DHARAMPETH EXTN., NAGPUR PAN/GIR NO. : A A DCM 2026 J ( APPELLANT ) .. ( RESPONDENT ) /REVENUE BY : MR. K. DHARIA /ASSESSEE BY : MR. KAPIL BAHARI DATE OF HEARING : 2 2 ND JAN ., 201 3 DATE OF PRONOUNCEMENT : 1 ST FEB ,201 3 O R D E R P ER SHRI R.K.G UPTA, JM : TH E DEPARTMENT HAS PREFERRED THIS APPEAL BEFORE THE ITAT NAGPUR BENCH, NAGPUR, AGAINST THE ORDER OF LEANED CIT (A) - I , NAGPUR (MAHARASHTRA) , WHICH HAS BEEN HEARD THROUGH E - COURT, MUMBAI . 2 . THE DEPARTMENT IN ITS APPEAL HAS RAISE D OBJECTION IN REGARD TO DELETING THE ADDITION OF RS. 26,92,847/ - MADE BY THE AO IN VIEW OF THE PROVISION UNDER SECTION 40(A)(IA). ITA NO . 1 6 4 /20 1 1 2 3 . DURING THE ASSESSMENT PROCEEDING S, THE AO NOTICED THAT THE TAX DEDUCTED AT SOURCE ON TRANSPORT EXPENSES HAVE NOT DEPOSITED IN TIME WHEREAS IT WAS REQUIRED TO BE DEPOSITED BY MARCH, 2006. ACCORDINGLY, HE MADE ADDITION OF RS.26,92,847/ - BY ATTRACTING THE PROVISION OF SECTION 40(A)(IA). 4 . THE ASSESSEE BEFORE THE LEARNED CIT(A) SUBMITTE D THAT THE TAX WAS DEDUCTED AND WAS DEPOSITED BEFORE FILING THE RETURN OF INCOME. IT WAS FURTHER SUBMITTED THAT TAX WAS PAYABLE ON 31 - 3 - 2006, HOWEVER, THE AMENDED PROVISIONS ARE APPLICABLE WITH RETROSPECTIVE EFFECT BY WHICH IT HAS BEEN PROVIDED THAT IF THE TDS DEDUCTED HAS BEEN PAID BEFORE FILING THE RETURN THEN NO ADDITION CAN BE MADE UNDER SECTION 40(A)(IA). RELIANCE WAS PLACED ON 131 TTJ 17 . AFTER CONSIDERING THE SUBMISSION, LEARNED CIT(A) FOUND THAT THE PROVISION OF SECTION 40(A)(IA) HAS BEEN SUBSTITUT ED BY FINANCE ACT, 2010 W.E.F. 1 - 4 - 2010. HOWEVER, AS HELD BY MUMBAI BENCH OF THE TRIBUNAL DECIDED IN ITA NO.2355/M/2010, VIDE ORDER DATED 22 - 7 - 2010 , LEARNED CIT(A) HELD THAT THE AMENDMENT IS RETROSPECTIVE AND, THEREFORE, IF THE AMOUNT OF TAX DEDUCTED FROM APRIL, 2005 TO FEBRUARY, 2006 AND THE SAME HAS BEEN PAID BEFORE FILING THE RETURN OF INCOME, THEN NO DISALLOWANCE CAN BE MADE UNDER SECTION 40(A)(IA) . ACCORDINGLY, HE DELETED THE DISALLOWANCE. 5 . AGGRIEVED THEREBY, THE DEPARTMENT IS IN APPEAL HERE BEFORE THE TRIBUNAL. ITA NO . 1 6 4 /20 1 1 3 6 . AFTER CONSIDERING THE ORDER OF THE AO AND THE CIT(A) , ON WHICH RELIANCE WAS PLACED BY RESPECTIVE PARTIES, WE FOUND NO INFIRMITY IN THE FINDING OF THE LEARNED CIT(A). WE FURTHER NOTED THAT THE HON BLE CALCUTTA HIGH COURT IN THE CASE OF CI T VS. VIRGIN CREDITS, DECIDED IN ITA NO.302/2010, VIDE ORDER DATED 23 - 11 - 2011 , HAS HELD THAT THE AMENDED PROVISIONS ARE APPLICABLE RETROSPECTIVELY. THEREFORE, IF THE TDS DEDUCTED DURING THE FINANCIAL YEAR AND THE SAME HAS BEEN PAID BEFORE FILING THE RETURN OF INCOME THEN NO DISALLOWANCE CAN BE MADE IN VIEW OF PROVISION OF SECTION 40(A)(IA). ACCORDINGLY, WE CONFIRM THE ORDER OF THE LEARNED CIT(A). 7 . IN THE RESULT , APPEAL OF THE DEPARTMENT IS DISMISSED . ORDER PRON OUNCED IN THE E - COURT ON THIS 1 ST DAY OF F EB , 201 3 . - 201 3 SD/ - SD/ - ( ) ( RAJENDRA ) ( ) ( R.K.GUPTA ) / ACCOUNTANT MEMBER / JU DICIAL MEMBER MUMBAI ; DATED : 0 1 / 0 2 / 201 3 . /PKM , PS COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) , M UMBAI / NAGPUR . 4. / CIT 5. / DR, ITAT, MUMBAI / NAGPUR . 6. GUARD FILE. //TRUE COPY// / BY ORDER, ( DY./ASSTT. REGISTRAR) / ITAT, MUMBAI