Bharat Vijay Construction Pvt.Ltd., Surat V. The Income tax Officer,Ward-1(1), Surat

ITA 2648/AHD/2008

• Counselvise Citation: [2010] 136 COUNSELVISE.COM (IT) 6105 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2010
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 28-05-2010
• Assessment Year: 2005-2006
• Appeal Filed On: 23-07-2008
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI LAXMI
• Assessee Lawyers: P M JAGASHETH
• Keywords: Retrospective amendment; TDS; Set aside
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL : D BENCH : A HMEDABAD CAMP AT SURAT (BEFORE HONBLE SHRI T.K. SHARMA, J.M. & HON'BLE SH RI D.C. AGRAWAL, A.M.) I.T.A. NO. 2648/AHD./2008 ASSESSMENT YEAR : 2005-2006 BHARAT VIJAY CONSTRUCTION PVT. LTD., SURAT -VS.- INCOME TAX OFFICER, WARD-1(1), SURAT (PAN : AABCB 1585 D) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI P.M. JAGASHETH RESPONDENT BY : SMT. JYOTI LAXMI, SR. D.R. O R D E R PER SHRI T.K. SHARMA, JUDICIAL MEMBER : THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE O RDER DATED 30.06.2008 OF LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-I, SURAT CONFIR MING THE ACTION OF THE ASSESSING OFFICER IN DISALLOWING THE EXPENSES TO THE TUNE OF RS.26,14 ,727/- ON ACCOUNT OF NON-PAYMENT OF TDS ON TIME UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 FOR THE ASSESSMENT YEAR 2005-06. 2. BRIEFLY STATED THE FACTS ARE THAT IN THE ASSESSM ENT ORDER, THE ASSESSING OFFICER DISALLOWED RS.26,14,727/- IN RESPECT OF PAYMENT MADE FOR WORKS CONTRACT UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961. ON APPEAL, IN THE IMPUGNED OR DER, THE LD. LEARNED COMMISSIONER OF INCOME TAX(APPEALS) UPHELD THE ACTION OF ASSESSING OFFICER. AGGRIEVED BY THE ORDER OF LD. LEARNED COMMISSIONER OF INCOME TAX(APPEALS), THE AS SESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 3. AT THE TIME OF HEARING BEFORE US, BOTH SIDES CON CEDED THAT THE ISSUE INVOLVED IN THIS APPEAL IS NOW REQUIRED TO BE SENT BACK TO THE FILE OF ASSESSING OFFICER FOR RE-WORKING OUT THE DISALLOWANCE UNDER SECTION 40(A)(IA) OF THE ACT KEE PING IN VIEW THE AMENDMENT MADE IN THAT SECTION BY FINANCE ACT, 2008 WITH RETROSPECTIVE EFF ECT FROM 1 ST APRIL, 2005. IN VIEW OF THIS, THE IMPUGNED ORDER OF LD. LEARNED COMMISSIONER OF INCOM E TAX(APPEALS) IS SET ASIDE AND THE MATTER IS RESTORED BACK TO THE FILE OF ASSESSING OFFICER W ITH A DIRECTION THAT HE WILL RE-WORK OUT THE DISALLOWANCE UNDER SECTION 40(A)(IA) KEEPING IN VIE W THE AMENDMENT MADE BY FINANCE ACT, 2008 2 ITA NO. 2648/AHD/2008 WITH RETROSPECTIVE EFFECT FROM 1 ST APRIL, 2005 AFTER PROVIDING ADEQUATE OPPORTUNITY O F BEING HEARD TO THE ASSESSEE. 4. IN THE RESULT, FOR STATISTICAL PURPOSES, THE APP EAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED. THE ORDER WAS PRONOUNCED IN THE COURT ON 04.06.201 0 SD/- SD/- (D.C. AGRAWAL) (T.K. SHARMA ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 04 / 06 / 2010 COPY OF THE ORDER IS FORWARDED TO : 1) THE ASSESSEE (2) THE DEPARTMENT. 3) CIT(A) CONCERNED, (4) CIT CONCERNED, (5) D.R., ITAT, AHMEDABAD. TRUE COPY BY ORDER DEPUTY REGISTRAR, ITAT, AHMEDABAD LAHA/SR.P.S.