Income Tax Officer (TDS), Ward-2(2), Hyderabad V. M/s Sree KTM Trust, Hyderabad

ITA 2078/Hyd/2017

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7050 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 10-08-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 08-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Tax effect; TDS
• Section: 143(3); 201(1); 201; 139

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIRTUAL CONFERENCE) BEFORE S MT. P. MADHAVI DEVI , JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER IT A NO S . 2078 & 2079 /H/20 1 7 ASSESSMENT YEAR S : 2013 - 14 & 2 0 1 4 - 1 5 INCOME - TAX (TDS), WARD 2 ( 2 ), HYDERABAD. VS. SREE KTM TRUST, HYDERABAD. PAN AA GTS 1988R (APPELLANT) (RESPONDENT) REVENUE BY: SHRI ROHIT MUJUMDAR ASSESSEE BY: S HRI S. RAMA RAO DATE OF HEARING: 1 0 /0 8 /2021 DATE OF PRONOUNCEMENT: 30 /0 8 /2021 O R D E R PER L.P. SAHU, A.M. : BOTH T H E S E APPEAL S FILED BY THE REVENUE ARE DIRECTED AGAINST CIT(A) - 8 , HYDERABAD S COMMON ORDER DATED 2 5 TH SEPTEMBER, INVOLVING PROCEEDINGS U/S 201(1) AND 201(1A) OF THE INCOME - TAX ACT, 1961; IN SHORT THE ACT . 2. AS REGARDS ITA NO. 2078/HYD/2017 FOR AY 2013 - 14 , A T THE TIME OF HEARING , IT HAS BEEN BROUGHT TO OUR NOTICE THAT AS I TA NO S . 2078 & 2079 / /HYD /20 1 7 SREE KTM TRUST, HYDERABAD. : - 2 - : PER THE CBDT CIRCULARS NO.03/2018 DATED 11.07.2018 AND CIRCULAR NO.17 OF 2019 DATED 9 TH AUGUST, 2019, THE TAX LIMIT FOR FILING OF APPEAL BY THE REVENUE BEFORE THE TRIBUNAL HAS BEEN FIXED AT RS.50.00 LAKHS. SINCE T HE TAX EFFECT IN THIS APPEAL IS LESS THAN RS.50.00 LAKHS, WE ARE DISMISSING THE SAME ON ACCOUNT OF LOW TAX EFFECT WITH THE LIBERTY TO THE REVENUE TO SEEK RECALL OF THE ORDER, IF ANY OF THESE CASES FALLS WITHIN THE EXCEPTIONS MENTIONED IN THE CIRCULARS CITE D ABOVE. 3 . IN THE RESULT, REVENUE S APPEAL IS DISMISSED IN ABOVE TERMS. 4. AS REGARDS ITA NO. 2079/HYD/2017 FOR AY 2014 - 15, THE AO RAISED A DEMAND U / S. 201(1) ON THE GROUND THAT AS ON THE DATE OF PASSING OF THE IMPUGNED ORDER I.E . ON 31.03.2016, SCRU TINY ASSE SSMENT U / S. 143(3) WAS NOT COMPLETED AND THEREFORE, RAISED THE DEMAND ON THE DEFAULT OF NON DEDUCTION OF TAX U/S. 201(1) OF RS. 56,81,752/ - . 5. WHEN THE ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A), THE CIT(A) OBSERVED THAT THE AR SUBMITTED THAT THE ACT SPECIFIES THAT THE DEDUCTOR SHALL NOT B E DEEMED TO BE AN ASSESSEE IN DEFAULT IF THE DEDUCTEE HAS FILED THE RETURN OF INCOME U / S. 1 39 AND HAS TAKEN INTO ACCOUNT TO SUCH SUMS FOR COMPUTING INCOME AND PAID THE TAX DUE ON INCOME DECLARED IN THE RE TURN OF INCOME. AS CAN BE SEEN FROM THE I TA NO S . 2078 & 2079 / /HYD /20 1 7 SREE KTM TRUST, HYDERABAD. : - 3 - : SECTION, THE CRUCIAL MATERIAL FACTOR FOR NOT DEEMING THE DEDUCTOR AS ASSESSEE IN DEFAULT IS FILING OF RETURN BY THE DEDUCTEE U/S. 139 AND DECLARATION OF SUCH RECEIPT FOR COMPUTING INCOME AND PAYING THE TAX DUE. IT I S EVIDENT FROM THE ORDER OF THE AO THAT IT WAS STRETCHED TO THE STAGE OF COMPLETION OF ASSESSMENT U/S. 143 (3) WHICH IS NEITHER MANDATED NOR ALLOWABLE UNDER LAW. IT IS NOT THE CONTENTION OF THE AO THAT THE DEDUCTOR HAS NOT FILED THE RETURN U/S. 139 AND THE DUE TAX HAS NOT BEEN PAID ON THE SAID RECEIPTS. IN VIEW OF THE ABOVE, THE ACTION OF THE AO IN RAISING THE DEMAND U/S. 201(1) OF RS. 56,81,752/ - IS HELD TO BE NOT AS PER THE SANCTION OF LAW AND THEREFORE DELETED. 6. AGGRIEVED BY THE ORDE R OF CIT(A), THE REVENUE IS IN APPEAL BEFORE THE ITAT. 7. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. BEFORE US, THE ASSESSEE HAS FILED FORM 26A AND A CERTIFICATE FROM CA UNDER THE PROVISIONS OF SECTION 201 THAT THE RECIP IENT HAS INCLUDED THE RECEIPTS WHILE COMPUTING ITS INCOME. THEREFORE, FOR A LIMITED PURPOSE, WE REMIT THIS ISSUE TO THE FILE OF AO FOR THE PURPOSE OF VERIFICATION OF FORM NO. 26A. THE AO IS ALSO DIRECTED TO CALCULATE THE INTEREST U/S 201(1A) FOR A PERIOD O F DEFAULT OF INTEREST. I TA NO S . 2078 & 2079 / /HYD /20 1 7 SREE KTM TRUST, HYDERABAD. : - 4 - : 8. IN THE RESULT, APPEAL OF THE REVENUE FOR AY 2014 - 15 IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. 9. TO SUM UP, APPEAL IN ITA NO. 2078/HYD/2017 IS DISMISSED AND THE APPEAL IN ITA NO. 2079/HYD/2017 IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 30 TH AUGUST , 2021 . SD/ - SD/ - ( P. MADHAVI DEVI ) (L . P . SAHU) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDE RABAD, DATED : 30 TH A UGUST , 20 2 1 . K V C OPY TO : 1 ITO, TDS, WARD 2(2), 4 TH FLOOR, D BLOCK, ROOM NO. 447, IT TOWERS, AC GUARDS, MASBAD TANK, HYDERABAD. 500 0 04 2 M/S SREE KTM TRUST, 1 - 2 - 888/23/1, DOMALGUDA, HYDERABAD. 3 C I T(A) 8 , HYDERABAD. 4 CIT (TDS) , HYDERABAD. 5 ITAT, DR, HYDERABAD. 6 GUARD FILE. I TA NO S . 2078 & 2079 / /HYD /20 1 7 SREE KTM TRUST, HYDERABAD. : - 5 - : S.NO. DETAILS DATE 1 DRAFT DICTATED ON 2 DRAFT PLACED BEFORE AUTHOR 3 DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 4 DRAFT DISCUSSED/APPROVED BY SECOND MEMBER 5 APPR OVED DRAFT COMES TO THE SR. PS/PS 6 KEPT FOR PRONOUNCEMENT 7 FILE SENT TO BENCH CLERK 8 DATE ON WHICH THE FILE GOES TO HEAD CLERK 9 DATE ON WHICH FILE GOES TO A.R. 10 DATE OF DISPATCH OF ORDER