ACIT, Central Circle - 5, Hyderabad V. Bhooratnam Construction Company Pvt. Ltd., Secunderabad

ITA 183/HYD/2011

• Counselvise Citation: 18322514 RSA 2011
• Duration Of Justice: 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 11-07-2011
• Assessment Year: 2004-2005
• Appeal Filed On: 04-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V SRINIVAS
• Assessee Lawyers: C P RAMASWAMY
• Section: 143(3); 153A; 234B

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD BEFORE SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI AKBER BASHA, ACCOUNTANT MEMBE R ITA NOS.183, 218 & 219/HYD/11 :ASST. YEARS: 2004- 05, 2004-05 & 2008-09 ACIT, CENTRAL CIRCLE-5, HYDERABAD. (PAN: AAACJ 5066 A) VS BHOORATHNAM CONSTRUCTIONS COMPANY, RP ROAD, SECUNDERABAD. (PAN: AACCB 2077 M) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V. SRINIVAS RESPONDENT BY : SHRI C.P. RAMASWAMY O R D E R PER BENCH: THESE THREE APPEALS FILED BY THE REVENUE ARE DIRE CTED AGAINST SEPARATE ORDERS OF CIT (A)-VII, HYDERABAD, ON THE ORDERS OF THE ASSESSING OFFICER PASSED UNDER SECTION 143(3) OF TH E ACT FOR THE ASSESSMENT YEAR 2004-05 AND 2008-09 AND ALSO ON THE ORDER OF THE ASSESSING OFFICER PASSED UNDER SECTION 143(3) READ WITH SECTION 153A OF THE ACT PERTAINING TO THE ASSESSMENT YEAR 2004-05. SINCE COMMON ISSUES ARE INVOLVED IN ALL THESE THREE APPEALS, THE SE ARE TAKEN UP TOGETHER AND DISPOSED OFF BY THIS COMBINED ORDER FO R THE SAKE OF CONVENIENCE. ITA NOS. 183,218 & 219 OF 2011 BHOORATNAM CONSTRUCTI ONS CO. PVT. LTD.. ================ ====== 2 2. COMMON AND IDENTICAL GROUNDS RAISED IN THESE APP EALS ARE AS UNDER:- 1. THE ORDER OF THE LD. CIT (A) IS ERRONEOUS ON FACTS AND IN LAW. 2. THE LD. CIT (A) ERRED IN DETERMINING THAT IF THE JO INT VENTURE HAS NOT FILED THE ROI AND CLAIMED CREDIT FOR TDS CE RTIFICATES, THEN THE SAID CREDIT HAS TO BE ALLOWED IN THE HANDS OF THE ASSESSEE. 3. THE LD. CIT (A) OUGHT TO HAVE APPRECIATED THE FACT THAT RULE 37BA OF THE INCOME-TAX RULES WHICH CLEARLY SPECIFIE S WHERE CREDIT FOR TDS CAN BE ALLOWED TO A PERSON OTHER THA N THE DEDUCTEE AND THE SAID LIST DOES NOT CONTAIN THE CAS E WHERE THE DEDUCTEE IS A JOINT VENTURE AND THE INCOME HAS BEEN ASSESSED IN THE CASE OF THE PVT. LTD., COMPANY. 4. ANY OTHER GROUND THAT MAY BE RAISED AT THE TIME OF HEARING. 2. AT THE OUTSET, WE FIND THAT THE COMMON ISSUE I NVOLVED IN THESE APPEALS IS COVERED BY THE DECISION OF CO-ORDI NATE BENCH OF THIS TRIBUNAL IN THE CASE OF THE, SISTER CONCERN OF THE ASSESSEE, ACIT VS. M/S. BHOORATHNAM & COMPANY, SECUNDERABAD PASSED IN ITA NO.1671/HYD/2010 FOR ASSESSMENT YEAR 2004-05 DATED 3-6-2011, TO WHICH ONE OF US WAS A PARTY TO THAT ORDER, IS COVER ED IN FAVOR OF THE ASSESSEE, WHEREIN THE TRIBUNAL HELD IN THE PENULTIM ATE PARA OF THEIR ORDER AS UNDER: WE FIND FORCE IN THE ARGUMENTS OF THE LEARNED COUN SEL FOR THE ASSESSEE. THERE IS NO DISPUTE THAT THERE HAS BEEN A TDS EITHER IN THE NAME OF THE COMPANY OR IN THE NAME OF THE DIRECTOR AND IT COVERS ALL THE ITA NOS. 183,218 & 219 OF 2011 BHOORATNAM CONSTRUCTI ONS CO. PVT. LTD.. ================ ====== 3 TAX PAYABLE BY THE ASSESSEE. AS PER RULE 37BA OF T HE INCOME-TAX RULES, 1962 THE ASSESSING OFFICER IS REQUIRED TO GI VE CREDIT FOR THE TDS CERTIFICATE FILED BY THE ASSESSEE COMPANY EITHER IN THE NAME OF THE ASSESSEE OR IN THE NAME OF THE DIRECTOR. BEING SO WHEN DUE CREDIT HAS BEEN GIVEN TO THIS TDS CERTIFICATE THERE WOULD BE N O BALANCE OF TAX PAYABLE BY THE ASSESSEE. ACCORDINGLY, THE ASSESSEE IS NOT LIABLE FOR INTEREST UNDER SECTION 234B AND 234C OF THE ACT. TH E GROUNDS RAISED BY THE REVENUE ARE DEVOID OF MERIT AND THE SAME ARE DI SMISSED. RESPECTFULLY FOLLOWING THE ABOVE AND THE FACTS AND THE CIRCUMSTANCES OF BOTH THESE CASES ARE QUITE SIMILAR AND IDENTICAL, W E UPHOLD THE FINDINGS OF THE CIT (A) FOR THE YEARS UNDER CONSIDERATION AN D REJECT THE GROUNDS RAISED BY THE REVENUE IN THESE APPEALS. 3. IN THE RESULT, ALL THE APPEALS FILED BY THE REV ENUE ARE DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28-7-2011. SD/- SD/- (G.C. GUPTA) (AKBER BASHA) VICE PRESIDENT. ACCOUNTANT MEMBER. DT/- 28-7-2011. COPY FORWARDED TO: 1. ACIT,CC - 5, AAYAKAR BHAVA, BASHEERBAGH, HYDERABAD. 2. 3. 4 5. JMR* BHOORATNAM CONSTRUCTION COMPANY PVT. LTD., 7-3-719, R.P. ROAD, SECUNDERABAD. CIT (A)-VII,, HYDERABAD. CIT, AP, HYDERABAD. THE DR, ITAT, HYDERABAD. ITA NOS. 183,218 & 219 OF 2011 BHOORATNAM CONSTRUCTI ONS CO. PVT. LTD.. ================ ====== 4