K. Ganesh, CHENNAI V. ACIT, CHENNAI

ITA 2366/CHNY/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 7773 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-12-2016
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 17-08-2016
• Court: TRIBUNAL
• Department Lawyers: SHIVA SRINIVAS
• Assessee Lawyers: DURAIRAJ KANDIAR

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: CHENNAI , ! ' ! # . $% & '( BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO.2366/MDS/2016 / ASSESSMENT YEAR:2012-13 SHRI K. GANESH, NO.23, SECOND STREET, DHANALAKSHMI COLONY, VADAPALANI, CHENNAI-600 026. VS. THE ASST. COMMISSR. OF INCOME TAX, NON-CORPORATE CIRCLE-13(1), NUNGAMBAKKAM, CHENNAI-600 034. [PAN:AADPG0490R] ( )* / APPELLANT) ( +,)* /RESPONDENT) / APPELLANT BY : MS.DURAIRAJ KANDIAR, CIT /RESPONDENT BY : MS.SHIVA SRINIVAS, JCIT / DATE OF HEARING : 1 7.11. 201 6 / DATE OF PRONOUNCEMENT : 28 .12. 2016 - / O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER THIS APPEAL OF THE ASSESSEE/REVENUE IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS)- 14, CHENNAI, ITA NO.2366/MDS/2016 :- 2 -: DATED 22.06.2016 IN ITA NO.6/2015-16 PERTAINING TO ASSESSMENT YEAR 2012-13. 2. THE ONLY GRIEVANCE OF THE ASSESSEE IN HIS APPEA L IS WITH REGARD TO DISALLOWANCE U/S.40(A)(IA) OF THE ACT AT ` 3,73,460/- TOWARDS RENT PAYMENT. 3. AT THE TIME OF HEARING LD.A.R SUBMITTED THAT T HE ASSESSEE DEDUCTED THE TDS AT LOWER RATE AND PAID THE AMOUNT ALREADY TO THE LANDLORD TOWARDS RENT PAYMENT AND THERE IS NO OUTST ANDING AT THE END OF THE CLOSE OF THE FINANCIAL YEAR, AS SUCH THERE I S NO WARRANT OF DISALLOWANCE U/S.40(A)(IA) OF THE ACT 4. ON THE OTHER HAND, LD.D.R SUPPORTED THE ORDER O F LOWER AUTHORITIES. 5. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL ON RECORD. IN OUR OPINION, THIS ISSUE IS SQUARELY COVE RED BY THE ORDER OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF ME RILYN SHIPPING AND TRANSPORTS V. ADDL. CIT [2012] 16 ITR (TRIB) 1 (VIS AKHAPATNAM) [SB] WHEREIN HELD THAT:- FURTHER, WE MAKE IT CLEAR THAT IF THE IMPUGNED AMO UNT IS NOT OUTSTANDING AT THE END OF THE CLOSE OF THE ASSESSME NT YEAR IN RESPECT OF THE EXPENSES EITHER AS OUTSTANDING EXPEN SES OR AS SUNDRY CREDITORS, THIS AMOUNT CANNOT BE DISALLOWED. ITA NO.2366/MDS/2016 :- 3 -: ACCORDINGLY, IN OUR OPINION WHEN THERE IS NO OUTST ANDING AT THE END OF THE CLOSE OF THE FINANCIAL YEAR RELEVANT TO ASSESSM ENT YEAR, THERE IS NO QUESTION OF DISALLOWANCE U/S.40(A)(IA) OF THE ACT. 5.1 IN VIEW OF THE ABOVE ORDER OF SPECIAL BENCH, WE ARE INCLINED TO DECIDE THE ISSUE IN FAVOUR OF ASSESSEE. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 28 TH DECEMBER, 2016, AT CHENNAI. SD/ - SD/ - ! ' # . $ %& ' ( DUVVURU RL REDDY ) ) & / JUDICIAL MEMBER ( ) (CHANDRA POOJARI) / ACCOUNTANT MEMBER () / CHENNAI *+ / DATED: 28 TH DECEMBER, 2016 K S SUNDARAM +,-- ./-0/ / COPY TO: - 1 . / APPELLANT 3. - 1-!' / CIT(A) 5. /23- 4 / DR 2. / RESPONDENT 4. - 1 / CIT 6. 3&-5 / GF