Assistant Commissioner of Income TAX Circle-4(2)(1), Bangalore V. M/s Maruthi Transformers Manufacturing Co., Bangalore

ITA 2662/BANG/2017

• Counselvise Citation: [2018] 118 COUNSELVISE.COM (IT) 8235 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 1 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-12-2018
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 07-11-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR VINOD SHARMA
• Keywords: Tax effect
• Section: 40(a)(ia); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI ARUN KUMAR GARODIA, ACCOUNTANT MEMBER A ND SHRI LALIET KUMAR, JUDICIAL MEMBER ITA NO . 2662 / BANG/201 7 ASSESSMENT YEAR : 20 07 - 08 THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 4 (2) (1), BANGALORE. VS. M/S. MARUTHI TRANSFORMERS MANUFACTURING CO., SY.NO. 120/1, KODATHI GATE, MULLUR ROAD, SARJAPURA ROAD, BANGALORE 560 035. PAN: AABFM8874F APPELLANT RESPONDENT APPELLANT BY : DR. VINOD SHARMA, JCIT (DR) RESPONDENT BY : NONE DATE OF HEARING : 31 . 1 2 .2018 DATE OF PRONOUNCEMENT : 31. 1 2 .2018 O R D E R PER SHRI A.K. GARODIA, ACCOUNTANT MEMBER THIS APPEAL IS FILED BY THE REVENUE AND THE SAME IS DIRECTED AGAINST THE ORDER OF LD. CIT (A)-9, BANGALORE DATED 06.09.2017FOR ASSESS MENT YEAR 2007-08. 2. THE GROUNDS RAISED BY THE REVENUE ARE AS UNDER. 1. THE ORDER OF THE LD.CIT (A) IS OPPOSED TO THE LA W AND FACTS OF THE CASE. 2. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT (A) ERRED IN DELETING THE PENALTY LEVIED U/S 221 OF THE IT ACT A MOUNTING TO RS. 18,84,475/- 3. ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE CIT (A) ERRED IN LAW IN DELETING THE ADDITIONS MADE BY THE AO U/S 40(A)( IA) OF THE I T ACT, WITHOUT APPRECIATING THE APPLICABILITY OF SEC. 194C IN THE ORIGINAL ORDER. 4. THE DECISION OF ORIGINAL DEMAND FOR WHICH THE PE NALTY U/S 221 OF THE ACT LEVIED HAS BEEN CHALLENGED IN ITAT IN ITA N O 1180/BANG/2016 FOR THE AY 2007-08 5. THE ISSUE REGARDING 'PAYABLE' OCCURRING IN SECTI ON 40(A)(IA) WAS ALREADY SETTLED BY THE HON'BLE SUPREME COURT IN THE CASE OF M/S PALAM GAS SERVICE (81 TAXMANN.COM 43(SC)(2017). THE HON'BLE SUPREME COURT HELD THAT WORD 'PAYABLE' OCCURRING IN SECTION ITA NO. 2662/BANG/2017 PAGE 2 OF 2 40(A)(IA) NOT ONLY COVERS CASES WHERE AMOUNT IS YET TO BE PAID BUT ALSO THOSE CASES WHERE AMOUNT HAS ACTUALLY BEEN PAI D. 6. FOR THESE AND OTHER GROUNDS THAT MAY BE URGED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE CIT (A) IN SO FAR AS IT RELATES TO THE ABOVE GROUNDS MAY BE REVERSED AND THAT OF TH E ASSESSING OFFICER MAY BE RESTORED 7. THE APPELLANT CRAVES LEAVE TO ADD, ALTER, AMEND AND/OR DELETE ANY OF THE GROUNDS THAT MAY BE URGED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE IN SPITE OF NOTICE. HENCE THE APPEAL WAS HEARD EX-PARTE QUA THE ASSESSEE. IT WAS POINTED OUT BY THE BENCH TO THE LD. DR OF REVENUE THAT TAX EFFECT IN T HE PRESENT CASE IS BELOW RS. 20 LAKHS AND THEREFORE, THE APPEAL OF THE REVEN UE IS NOT MAINTAINABLE AS PER RECENT CBDT INSTRUCTIONS AS PER CIRCULAR NO. 3/2018 DATED 11.07.2018. IN REPLY, THE LD. DR OF REVENUE HAD NO THING TO SAY. IN VIEW OF ABOVE DISCUSSION, THIS APPEAL OF THE REVENUE IS DIS MISSED AS NOT MAINTAINABLE BECAUSE OF LOW TAX EFFECT. 4. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON THE DATE OF H EARING ON CONCLUSION OF THE HEARING. SD/- SD/- (LALIET KUMAR) (ARUN KUMAR GARODIA) JUDICIAL MEMBER ACCOUNTANT MEMBER BANGALORE, DATED, THE 31 ST DECEMBER, 2018. /MS/ COPY TO: 1. APPELLANT 4. CIT(A) 2. RESPONDENT 5. DR, ITAT, BANGALORE 3. CIT 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, BANGALORE.