The ITO, Ward-4(3), Baroda V. M/s. SPML UEEL JV Co.Ltd., Baroda

ITA 2003/AHD/2012

• Counselvise Citation: 200320514 RSA 2012
• Duration Of Justice: 3 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2012
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 07-09-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: B K S PANDYA
• Assessee Lawyers: S N SOPARKAR

Judgement Text

, , , , B, IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD, B BENCH . .. . . .. . , !' !' !' !', , , , #$ #$ #$ #$ %& %& %& %& , , , , &' ( & &' ( & &' ( & &' ( & ' ' ' ' BEFORE S/SHRI G.C. GUPTA, VICE-PRESIDENT AND TEJ RAM MEENA, ACCOUNTANT MEMBER) ITA NO.2003/AHD/2012 [ASSTT.YEAR : 2009-2010] ITO, WARD-4(3) BARODA. /VS. M/S.SPML UEEL JV CO. LTD. NR. BANCO PRODUCTS LTD. VILLAGE : BILL, PADRA ROAD BARODA 391 410. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( (,-*+ ,-*+ ,-*+ ,-*+ / RESPONDENT) ( . / &/ REVENUE BY : SHRI B.K.S. PANDYA 1% . / &/ ASSESSEE BY : SHRI S.N. SOPARKAR 2 . %3'/ DATE OF HEARING : 6 TH NOVEMBER, 2012 456 . %3'/ DATE OF PRONOUNCEMENT : 07-12-2012 &7 / O R D E R PER G.C. GUPTA, VICE-PRESIDENT: THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YEAR 2009-2010 IS DIRECT ED AGAINST THE ORDER OF THE CIT(A)-III, BARODA DATED 13.6.2012. 2. THE ONLY GROUND OF THE APPEAL OF THE REVENUE IS AS UNDER: 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CA SE AND IN LAW, THE LD.CIT(A) ERRED IN DELETING THE ADDITION O F RS.7,46,64,271/- U/S.40(A)(IA) OF THE ACT, HOLDING THAT THE PROVISIONS OF SECTION 40(A)(IA) AS AMENDED BY THE F INANCE ACT, ITA NO.2003/AHD/2012 -2 2010 W.E.F. 01.04.2010 ARE OF CLARIFICATORY NATURE, AND THEREFORE RETROSPECTIVE, WITHOUT CONSIDERING THE FA CT THAT THE RELEVANT PORTION OF THE MEMORANDUM EXPLAINING THE P ROVISIONS IN FINANCE BILL, 2010 CLEARLY STATES THAT THIS AMEN DMENT IS PROPOSED TO TAKE EFFECT FROM 01.04.2010 AND WILL, A CCORDINGLY, APPLY IN RELATION TO THE ASSESSMENT YEAR 2010-11 AN D SUBSEQUENT YEARS. 3. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AO . THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE ITAT, AHMEDAB AD IN RAJ CORPORATION VS. ITO, ITA NO.44/AHD/2010 FOR A.Y.200 6-2007 DATED 6-7-2012 WHEREIN THE DECISION OF THE HONBLE CALCUT TA HIGH COURT IN VIRGIN CREATORS DATED 23-11-2011 WAS FOLLOWED. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND HAVE PE RUSED THE ORDERS OF THE AO AND THE CIT(A). WE FIND THAT THE ISSUE OF ADDITION UNDER SECTION 40(A)(IA) OF THE ACT AND WHETHER AMEN DMENT IN THE PROVISION IS RETROSPECTIVE, IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. VIRGIN CREATORS, GA NO.3200/2011 DATED 23-11-2011 WHICH WAS FOLLOWED BY THE ITAT, AHMEDABAD IN SHRI RAJ CORPORA TION (SUPRA). IT WAS HELD BY THE HONBLE CALCUTTA HIGH COURT IN CIT VS. RAJ CORPORATION (SUPRA) THAT THE AMENDMENT TO THE PROVI SION OF SECTION 40(A)(IA) OF THE ACT HAS RETROSPECTIVE APPLICATION. WE BEING IN AGREEMENT WITH OF THE DECISION OF THE ITAT, AHMEDAB AD BENCH IN RAJ CORPORATION AND RESPECTFULLY FOLLOWING THE DECISION OF THE HONBLE CALCUTTA HIGH COURT IN THE CASE OF CIT VS. VIRGIN C REATORS DECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND CONFIRM THE ORD ER OF THE CIT(A), AS THE CIT(A) HAS GIVEN A FINDING THAT THE ASSESSEE HA S PAID TDS TO THE ITA NO.2003/AHD/2012 -3 CREDIT OF THE GOVERNMENT BEFORE THE DUE DATE OF FIL ING OF THE RETURN. ACCORDING THE GROUND OF THE APPEAL OF THE REVENUE I S DISMISSED. 5. IN THE RESULT, THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( %& %& %& %& / TEJ RAM MEENA) &' ( &' ( &' ( &' ( /ACCOUNTANT MEMBER ( . .. . . .. . /G.C. GUPTA) !' !' !' !' /VICE-PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER DR/AR, ITAT, AHMEDABAD