Bollam Srikanth, Hyderabad V. Income Tax Officer, Ward-4(4), Hyderabad

ITA 1751/Hyd/2017

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3931 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC-A
• Next Hearing Date: 25-02-2020
• Assessment Year: 2013-2014
• Appeal Filed On: 23-10-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J P ANAND
• Keywords: TDS; Set aside
• Section: 40(a)(ia)

Judgement Text

ITA NO 1751 OF 2017 BOLLAM SRIKANTH HYDERABAD. PAGE 1 OF 2 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A SMC BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER ITA NO.1751/HYD/2017 ASSESSMENT YEAR: 2013-14 SHRI BOLLAM SRIKANTH HYDERABAD PAN:AEPPB0066G VS. INCOME TAX OFFICER WARD 4(4) HYDERABAD (APPELLANT) (RESPONDENT) ASSESSEE BY: SRI A.SRINIVAS, AR REVENUE BY : SRI J.P. ANAND, DR DATE OF HEARING: 25/02/2020 DATE OF PRONOUNCEMENT: 28/02/2020 ORDER THIS IS ASSESSEES APPEAL FOR THE A.Y 2013-14 AGAIN ST THE ORDER OF THE CIT (A)-1, HYDERABAD, DATED 31.07. 2017. 2. THE ONLY ISSUE IN THIS APPEAL IS AGAINST THE DISALLOWANCE U/S 40(A)(IA) OF THE ACT FOR NOT MAKIN G TDS ON A TOTAL OF INTEREST OF RS.10,38,226/- PAID TO THREE DIFFERE NT NBFCS. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED THAT A P ROVISO HAS BEEN APPENDED TO SECTION 40(A)(IA), TO THE EFFECT T HAT IF THE PAYEE/RECIPIENT HAS OFFERED THE SAME TO TAX IN THEI R RETURNS OF INCOME, THEN NO DISALLOWANCE U/S 40(A)(IA) SHALL BE MADE. HE SUBMITTED THAT VARIOUS COURTS HAVE HELD THIS AMENDM ENT TO BE RETROSPECTIVELY APPLICABLE. HE SUBMITTED THAT IN TH E CASE OF THE ASSESSEE ALSO, THE ASSESSEE WILL BE ABLE TO PROVE T HAT THE RECIPIENT HAS OFFERED THIS INCOME TO TAX. THEREFORE, HE PRAYE D THAT THE ISSUE MAY BE REMITTED TO THE FILE OF THE AO WITH A DIRECT ION TO ALLOW THE ITA NO 1751 OF 2017 BOLLAM SRIKANTH HYDERABAD. PAGE 2 OF 2 ASSESSEE TO PROVE THAT THE RECIPIENTS HAVE OFFERED THE INCOME TO TAX. 3. THE LEARNED DR WAS ALSO HEARD. 4. HAVING REGARD TO THE RIVAL CONTENTIONS AND THE M ATERIAL ON RECORD, I FIND THAT THE PROVISO TO SECTION 40(A) (IA) WAS BROUGHT INTO STATUTE BOOK BY THE FINANCE ACT OF 2012 AND TH E A.Y BEFORE THE TRIBUNAL IS 2013-14. THEREFORE, THE PROVISO IS CLEARLY APPLICABLE TO THE A.Y BEFORE THE TRIBUNAL AND THERE FORE, THE ISSUE IS SET ASIDE TO THE FILE OF THE AO TO ALLOW THE ASS ESSEE TO PROVE THAT THE RECIPIENTS HAVE OFFERED THE INCOME TO TAX AND I F IT IS SO PROVED, THEN NO DISALLOWANCE U/S 40(A)(IA) SHALL BE MADE. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH FEBRUARY, 2020. SD/- (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 28 TH FEBRUARY, 2020. VINODAN/SPS COPY TO: 1 SRI BOLLAM SRIKANTH, H.NO.3-5-900/1 APARAJITHA AR CADE, TELUGU ACADEMY ROAD, HIMAYATHNAGAR, HYDERABAD 500029 2 ITO WARD 4(4) HYDERABAD 3 CIT (A)-1 HYDERABAD 4 PR. CIT 1 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER