Dy.CIT, Circle-1, Khammam V. Shri Venkateswara Rao Baja, Khammam

ITA 222/HYD/2013

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 5915 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 22-02-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Assessee Lawyers: T CHAITANYA KUMAR

Judgement Text

ITA NO 222 OF 2013 VENKATESWARA RAO BAJA KHAMMAM PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER ITA NO.222/HYD/2013 (ASSESSMENT YEAR: 2009-10) DY. COMMISSIONER OF INCOME TAX, CIRCLE-1 KHAMMAM VS SHRI VENKATESWARA RAO BAJA 6-100 JAGAMVARI VEEDHI NELAKONDAPALLI KHAMMAM PAN: AHAPB 7814 L FOR REVENUE : SHRI K.J. RAO, DR FOR ASSESSEE : SHRI T. CHAITANYA KUMAR O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2009-10 AGAINST THE ORDER OF THE CIT (A) VIJAYAWADA DATED 4 TH JANUARY, 2013. IN THIS APPEAL, THE REVENUE HAS RAISED THE FOLLOWING G ROUNDS OF APPEAL: I. THE LD. CIT (A) ERRED BOTH IN LAW AND IN FACTS OF THE CASE. 2. THE ID. CITA) ERRED IN HOLDING THAT THE AO WAS NOT JUSTIFIED IN DISALLOWING THE INTEREST PAYMENTS B Y INVOKING THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT BY PLACING RELIANCE ON THE DECISION OF THE HON'BLE ITAT IN THE CASE OF MERILYN SHIPPING S TRANSPORTS. 3. THE ID. CIT(A) OUGHT TO HAVE UPHELD THE ADDITION AS THE DECISION OF THE SPECIAL BENCH, VIZAG IN THE CASE OF MERYLIN SHIPPING CORPORATION HAS BEEN KEPT DATE OF HEARING : 06.12.2016 DATE OF PRONOUNCEMENT : 16.12.2016 ITA NO 222 OF 2013 VENKATESWARA RAO BAJA KHAMMAM PAGE 2 OF 3 UNDER 'INTERIM SUSPENSION' BY THE HON'BLE HIGH COURT OF A.P. VIDE ORDER DATED 08/1012012. 4. RELIANCE IS PALC3ED ON THE DECISION OF THE HON'BLE HIGH COURT OF CALCUTTA IN THE CASE OF CIT VS S.K. TEKRIWAL WHEREIN IT WAS HELD THAT THE PROVISIONS OF SECTION 40(A)(IA) ARE APPLICABLE IN TWO CONDITIONS VIZ., (I) THE TAX IS DEDUCTIBLE AT SOURCE AND (IJ) SU CH TAX HAS NOT BEEN DEDUCTED. 5. RELIANCE IS ALSO PLACED ON THE FOLLOWING JUDICIAL PRONOUNCEMENTS: (I) SHREE CHOUDHARY TRANSPORT COMPANY VS. ITO [225 CTR(RAJ} 12582008] (II) (II) DEY'S MEDICAL (U.P.)(P) LTD. VS UNION OF INDIA & OTHERS [(2008) 3161TR 445] (III) (III) MARC SIGNAGE VS ITO 201O-TIOL-778- ITAT-KOL (IV) MATRIX GLASS S STRUCTURES PVT. LTD. VS.ITO 2011- T10L -181-ITAT -KOL (V) M/S PARNIKA CONSTRUCTION PVT. LTD. VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE-116(3), HYDERABAD ITA T'B BENCH, HYDERABAD IN ITA NO.108I/HYD/08. DATED 16/07/2010. 6. ANY OTHER GROUND(S) THAT MAY BE URGED AT THE TIME OF HEARING. 2. THE LEARNED DR SUPPORTED THE GROUNDS RAISED BY T HE REVENUE WHILE THE LEARNED COUNSEL FOR THE ASSESSEE RELIED ON THE ORDERS OF THE CIT (A). 3. HAVING REGARD TO THE RIVAL CONTENTIONS, WE FIND THAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS. VE CTOR SHIPPING SERVICES LTD REPORTED IN 357 ITR 647 WHEREIN THE HO N'BLE SUPREME COURT HAS DISMISSED THE SLP FILED BY THE RE VENUE ITA NO 222 OF 2013 VENKATESWARA RAO BAJA KHAMMAM PAGE 3 OF 3 AGAINST THE ORDER OF THE HON'BLE ALLAHABAD HIGH COU RT IN THE CASE OF VECTOR SHIPPING SERVICES LTD REPORTED IN (2013)2 62 CTR (ALL) 545). FURTHER, IT IS ALSO SEEN THAT THE INTEREST AMO UNT HAS BEEN PAID IN THE RELEVANT PREVIOUS YEAR AND THERE IS NOT HING PAYABLE BY THE END OF THE RELEVANT F.Y. THEREFORE, WE SEE NO REA SON TO INTERFERE WITH THE ORDER OF THE CIT (A) WHICH IS IN CONSONANCE WITH THE JUDICIAL PRECEDENTS ON THE ISSUE. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 16 TH DECEMBER, 2016. SD/- SD/- (B. RAMAKOTAIAH) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 16 TH DECEMBER, 2016. VINODAN/SPS COPY TO: 1 DY. CIT, CIRCLE 1 AAYAKAR BHAVAN, BEHIND KINNERAS ANI THEATRE, RAJIV GUNJ, KHAMMAM 2 SHRI VENKATESWARA RAO BAJA, 6-100, JAGAMVARI VEED HI, NELAKONDAPALLI, KHAMMAM 3 CIT (A)-VIJAYAWADA 4 CIT - VIJAYAWADA 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER