The TIO, Visakhapatnam V. Sri Kodali Sreekrishna, Visakhapatnam

ITA 256/VIZ/2016

• Counselvise Citation: [2016] 130 COUNSELVISE.COM (IT) 9928 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 26-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T SATYANADHAM
• Assessee Lawyers: A ARUNA
• Section: 143(3)

Judgement Text

ITA NO.256/VIZAG/2016 SRI KODALI SREE KRISHNA, VISAKHAPATNAM 1 , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM SMC BENCH, VISAKHAPATNAM . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER ./I.T.A.NO.256/VIZAG/2016 ( / ASSESSMENT YEAR: 2012-13) ITO, WARD - 1(4), VISAKHAPATNAM VS. SRI KODALI SREE KRISHNA, VISAKHAPATNAM [PAN: BCYPS 4587D ] ( / APPELLANT) ( ! / RESPONDENT) / APPELLANT BY : SHRI T. SATYANADHAM, DR / RESPONDENT BY : SMT. A. ARUNA, AR / DATE OF HEARING : 04.08.2016 / DATE OF PRONOUNCEMENT : 29.08.2016 / O R D E R PER V. DURGA RAO, JUDICIAL MEMBER: THIS APPEAL FILED BY THE REVENUE IS DIRECTED AGAIN ST THE ORDER OF CIT(A)-1, VISAKHAPATNAM DATED 17.2.2016 FOR THE ASS ESSMENT YEAR 2012-13. ITA NO.256/VIZAG/2016 SRI KODALI SREE KRISHNA, VISAKHAPATNAM 2 2. FACTS ARE IN BRIEF THAT THE ASSESSEE IS AN INDIV IDUAL CARRYING ON BUSINESS OF RUNNING A COURIER AGENCY. HE HAD FILED A RETURN OF INCOME BY DECLARING TOTAL INCOME OF ` 1,92,980/-. THE ASSESSEES CASE WAS PROCESSED U/S 143(1) OF THE INCOME TAX ACT, 1961 (H EREINAFTER CALLED AS 'THE ACT'), THEREAFTER, AFTER DUE PROCESS, ASSESSME NT WAS COMPLETED U/S 143(3) OF THE ACT BY DETERMINING TOTAL INCOME OF ` 45,43,097/-. IN THE ASSESSMENT ORDER, THE A.O. HAS DISALLOWED AN AMOUNT OF ` 43,49,009/- U/S 40(A)(IA) OF THE ACT ON ACCOUNT OF NON-DEDUCTIO N OF TDS. ASSESSEE CARRIED MATTER IN APPEAL BEFORE THE CIT(A). THE LD . CIT(A) BY FOLLOWING THE SPECIAL BENCH DECISION OF THE VIZAG BENCH OF TH E TRIBUNAL HAS DELETED THE ADDITION MADE BY THE A.O. THE RELEVANT PORTION OF THE ORDER IS EXTRACTED AS UNDER: 5.3 I HAVE CAREFULLY CONSIDERED THE ABOVE. I HAVE ALSO P ERUSED THE DECISION OF THE HONBLE ITAT BENCH RELIED ON BY THE AR. THE HONBLE ITAT, VIZAG BENCH CONSIDERING THE DECISION OF THE H ONBLE HIGH COURT OF ANDHRA PRADESH IN THE CASE OF M/S. JANAPRIYA ENGINE ERING SYNDICATE AND THE DECISION OF THE ITAT, SPECIAL BENCH, VISAKHAPAT NAM IN THE CASE OF MERILYN SHIPPING (136 ITD 23) HELD THE PROVISIONS O F SECTION 40(A)(IA) OF THE I.T. ACT CANNOT BE APPLICABLE IN RESPECT OF THE AMOUNTS ALREADY PAID BEFORE THE END OF THE PREVIOUS YEAR. IN OTHER WORDS , THE DISALLOWANCE U/S 40(A)(IA) OF THE I.T. ACT IS RESTRICTED TO THE AMOU NTS REMAINING PAYABLE/OUTSTANDING ON THE LAST DAY OF THE PREVIOUS YEAR. 5.3.1 RESPECTFULLY FOLLOWING THE DECISION OF THE H ONBLE ITAT, VISAKHAPATNAM, I DIRECT THE AO TO RESTRICT THE DISAL LOWANCE, IF ANY, TO THE AMOUNTS REMAINING PAYABLE ON 31.3.2012. IN OTHER WO RDS, PAYMENTS ALREADY MADE DURING THE PREVIOUS YEAR RELEVANT TO T HE IMPUGNED ASSESSMENT YEAR ARE DIRECTED TO BE ALLOWED. ITA NO.256/VIZAG/2016 SRI KODALI SREE KRISHNA, VISAKHAPATNAM 3 3. ON BEING AGGRIEVED, REVENUE IS IN APPEAL BEFORE THE TRIBUNAL. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESS EE HAS SUBMITTED THAT THE ISSUE INVOLVED IN THIS APPEAL IS SQUARELY COVER ED BY THE DECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF MU KUNDARA ENGINEERS & CONTRACTORS, VISAKHAPATNAM VS. ACIT CIRCLE-5(1), VI SAKHAPATNAM IN ITA NO.657/VIZAG/2014 AND SUBMITTED THAT CIT(A) ORDER M AY BE UPHELD. 4. THE LD. D.R. HAS SUPPORTED THE ORDER PASSED BY T HE A.O. 5. I HAVE HEARD BOTH THE PARTIES, PERUSED THE MATER IALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITI ES BELOW. THE VERY SAME ISSUE HAS BEEN CONSIDERED BY THE COORDINATE BE NCH OF THIS TRIBUNAL IN THE CASE OF MUKUNDARA ENGINEERS & CONTRACTORS (S UPRA), WHICH IS EXTRACTED AS UNDER: 8. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSI ONS AND PERUSED THE RECORD. CONSISTENT WITH THE VIEW TAKEN BY THE ITAT SPECIAL BENCH VISAKHAPATNAM AND ALSO IN THE LIGHT OF THE VIEW EXP RESSED BY THE HONBLE A.P. HIGH COURT IN THE CASE OF JANAPRIYA ENGINEERIN G SYNDICATE, WE ARE OF THE OPINION THAT THE PROVISIONS OF SECTION 40(A)(IA ) OF THE ACT CANNOT BE MADE APPLICABLE IN RESPECT OF THE AMOUNTS ALREADY P AID BEFORE 31 ST MARCH. IN OTHER WORDS, THE A.O. IS DIRECTED TO RESTRICT THE DISALLOWANCE TO THE AMOUNTS PAYABLE AFTER 31 ST MARCH. WITH THESE OBSERVATIONS, GROUND NO.3 OF THE ASSESSEE IS TREATED AS PARTLY ALLOWED. ITA NO.256/VIZAG/2016 SRI KODALI SREE KRISHNA, VISAKHAPATNAM 4 6. RESPECTFULLY FOLLOWING THE COORDINATE BENCH DECI SION, I FIND NO REASON TO INTERFERE WITH THE ORDER PASSED BY THE LD . CIT(A). THUS, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 29 TH AUG16. SD/- ( . ) (V. DURGA RAO) /JUDICIAL MEMBER ! /VISAKHAPATNAM: % /DATED : 29.08.2016 VG/SPS '! (! /COPY OF THE ORDER FORWARDED TO:- 1. / THE APPELLANT THE ITO, WARD-1(4), VISAKHAPATNA M 2. / THE RESPONDENT SRI KODALI SREE KRISHNA, VISAKH APATNAM 3. ) / THE PRINCIPAL CIT-1, VISAKHAPATNAM, 4. ) ( ) / THE CIT(A)-1, VISAKHAPTNAM 5. ! , , , , ! / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // /0 , (SR.PRIVATE SECRETARY) , , ! / ITAT, VISAKHAPATNAM