Spectrum Power Generation Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-3(2), Hyderabad

ITA 2011/Hyd/2018

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 5772 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 2 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-12-2021
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB-A
• Assessment Year: 2012-2013
• Appeal Filed On: 04-10-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Date of conversion; TDS
• Section: 143(3); 40(a)(ia); 194A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD (Through Virtual Hearing) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SRI S.S. GODARA, JUDICIAL MEMBER ITA No. 2011/Hyd/2018 A.Y. 2012-13 Spectrum Power Generation Limited, Hyderabad. PAN: AAECS 3685 A VS. DCIT, Circle-3(2), Hyderabad. (Appellant) (Respondent) Assessee by None Revenue by Shri Rajendra Kumar, CIT Date of hearing: 09/12/2021 Date of pronouncement: 14/12/2021 ORDER PER A. MOHAN ALANKAMONY, A.M: This appeal is filed by the assessee against the order of the Ld. CIT(A)-3, Hyderabad in appeal No. 0165/DCIT-3(2)/Hyd/CIT(A)- 3/2015-16, dated 08/06/2018 passed U/s. 143(3) r.w.s 250(6) of the Act for the A.Y. 2012-13. 2. At the time of hearing, before us none appeared on behalf of the assessee to represent its case. On perusing the order sheet, we find that on the earlier two occasions also ie., 20/05/2021 and 17/08/2021 the case was adjourned because there was no representation on behalf of 2 the assessee. Even before us, when the appeal is called for hearing, neither there is any representation on behalf of the assessee nor any letter seeking adjournment is filed. Hence, we are of the opinion that the assessee is not interested in prosecuting the appeal, whatsoever the reasons may be. 3. On perusing the order of the ld. AO it is observed that the assessee had paid an amount of Rs. 13,75,00,000/- towards premium on redemption of CCDs. It was further observed by the Ld.AO from the order of the Hon’ble High Court of Andhra Pradesh that the assessee had agreed to pay predetermined interest to the secured creditors even after the conversion of CCDs into equity shares as per SOA. It was also revealed that the additional amount paid from the date of conversion of CCDs into equity shares till the date of IPOs was to be treated as interest. Therefore, from the above it was revealed that the redemption premium on CCDs takes the characteristics as “interest” as defined U/s. 2(28A) of the Act. Hence, it was opined that for the payment made, the provisions of section 194A of the Act will be applicable and accordingly provisions of section 40(a)(ia) of the Act will come into play. Since the assessee had not deducted TDS as per the provisions of the Act the ld. AO disallowed the amount of Rs. 13,75,00,000/- as allowable deduction. On appeal, the Ld. CIT (A) confirmed the order of the Ld. AO by agreeing with his view. Before us, the Ld. AR has not brought out any materials to substantiate its claim of deduction. No substantial 3 information also could be gathered from the paper book filed by the assessee. Hence, we do not find it necessary to interfere with the orders of the Ld. Revenue Authorities. Therefore, we hereby dismiss the appeal of the assessee. 4.. In the result, appeal of the assessee is dismissed. Pronounced in the open Court on the 14 th December, 2021. Sd/- Sd/- (S.S. GODARA) (A. MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 14 th December, 2021. OKK Copy to:- 1) Spectrum Power Generation Limited C/o. Rajesh Lakshman & Associates, Chartered Accountants, 302, III Floor, Chirag Ali Lane, Abids, Hyderabad – 500 001. 2) DCIT, Circle-3(2), Hyderabad. 3) The CIT (A)-3, Hyderabad. 4) The Pr. CIT-3, Hyderabad. 5) The DR, ITAT, Hyderabad 6) Guard File