TENTH PLANET TECHNOLOGIES PVT. LTD., CHENNAI V. DCIT (INTERNATIONAL TAXATION) 2(2), CHENNAI

ITA 2947/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3241 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-02-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 23-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MRS VIJAYA PRABHA
• Section: 201(1)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI , ! ' # , $ %& BEFORE SHRI MAHAVIR SINGH , VICE PRESIDENT AND SHRI M. BALAGANESH, ACCOUNTANT MEMBE R ./ ITA NO.2947/CHNY/2018 ' ( )( /ASSESSMENT YEAR: 2010-11 M/S. TENTH PLANET TECHNOLOGIES PVT. LTD., NO.807, ANNA SALAI, 6 TH FLOOR, (OPP. TO LIC BUILDING), CHENNAI 600 002. VS. THE DY. COMMISSIONER OF INCOME TAX (INTERNATIONAL TAXATION)-2(2), CHENNAI. [PAN : AABCT 8911F ] ( *+ /APPELLANT) ( ,-*+ /RESPONDENT) *+ . / / APPELLANT BY : SHRI I. DINESH, ADVOCATE ,-*+ . / /RESPONDENT BY : MRS. VIJAYAPRABHA, JCIT 0 . 1$ /DATE OF HEARING : 25.02.2020 23) . 1$ / DATE OF PRONOUNCEMENT : 28.02.2020 %# / O R D E R PER M. BALAGANESH, ACCOUNTANT MEMBER : THIS APPEAL OF THE ASSESSEE ARISE OUT OF THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS)-16, CHENNAI VI DE PROCEEDINGS IN ITA NO. 03/CIT(A)-16/2010-11, DATED 09.08.2018 AGAINST THE ORDER PASSED BY THE DCIT, INTERNATIONAL TAXATION-2(2), CHENNAI (AO) U/S. 201(1) & 201(1A) OF THE INCOME TA X ACT, 1961 ITA NO.2947/CHNY/2018 (A.Y 2010-11) M/S. TENTH PLANET TECHNOLOGIES PVT. LTD. :- 2 -: (HEREAFTER THE ACT) DATED 31.03.2017 FOR THE ASSE SSMENT YEAR (A.Y) 2010-11. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE LD. AO FRAMED THE ASSESSM ENT U/S. 201(1) AND 201(1A) OF THE ACT ON 31-3-2017 TREATING THE AS SESSEE AS ASSESSEE IN DEFAULT FOR NON DEDUCTION OF TAX AT S OURCE IN RESPECT OF PAYMENTS MADE TOWARDS PURCHASE OF SOFTWARE IN THE S UM OF RS. 24,95,136/- BY TREATING THE SAME AS ROYALTY. THIS O RDER WAS UPHELD BY THE LD. CIT(A). 3. WE FIND THAT BEFORE US THE LD. AO RAISED A PRELI MINARY OBJECTION THAT THE ASSESSMENT FRAMED BY THE LD. AO U/S. 201(1 ) AND 201(1A) OF THE ACT FOR THE A.Y 2010-11 ON 31-3-2017 WAS BARRED BY LIMITATION. TO SUPPORT HIS ARGUMENT, THE LD. AR DREW OUR ATTENT ION TO THE PRE- AMENDED PROVISIONS OF S. 201(3)(II) OF THE ACT, WHI CH STIPULATES THAT THE ORDER UNDER SUB S. (1) TO S. 201(1) COULD BE P ASSED ONLY WITHIN 6 YEARS FROM THE END OF THE FINANCIAL YEAR IN WHICH T HE PAYMENT WAS MADE. THERE IS NO DISPUTE IN THE INSTANT CASE THAT PAYMENT FOR PURCHASE OF SOFTWARE WAS MADE BY THE ASSESSEE DURIN G THE FINANCIAL YEAR 2009-10 RELEVANT TO A.Y 2010-11. HENCE, SIX YE ARS FROM THE END OF THE FINANCIAL YEAR WOULD EXPIRE ON 31-03-2016, W HICH WOULD BE THE LAST DATE FOR FRAMING THE ASSESSMENT U/S. 201(1) OF THE ACT IN TERMS OF ITA NO.2947/CHNY/2018 (A.Y 2010-11) M/S. TENTH PLANET TECHNOLOGIES PVT. LTD. :- 3 -: PRE-AMENDED PROVISIONS OF S. 201(3)(II) OF THE ACT. THIS SECTION WAS LATER AMENDED W.E.F 01-10-2014 SUBSTITUTING SIX YEA RS WITH SEVEN YEARS. WE FIND THAT THE THE LD. CIT(A) SIMPLY APPLI ED THE AMENDED PROVISIONS FOR THE A.Y 2010-11 IGNORING THE FACT TH AT THE SAID AMENDMENT IS APPLICABLE ONLY W.E.F 01-10 2014. ACC ORDINGLY, WE HOLD THAT THE ORDER PASSED BY THE LD. AO U/S. 201(1) AND 201(1A) OF THE ACT ON 31-03-2017 IS BARRED BY LIMITATION AND HENCE , THE SAME IS HEREBY QUASHED. 4. SINCE, THE APPEAL OF THE ASSESSEE IS DECIDED ON A TECHNICAL ISSUE, WE REFRAIN TO GIVE OUR OPINION ON THE MERITS OF THE CASE. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSESSEE ARE ALLOWED. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED. ORDER PRONOUNCED ON 28 TH DAY OF FEBRUARY, 2020 IN CHENNAI. SD/ - SD/ - ( ) (MAHAVIR SINGH) /VICE PRESIDENT ( ) (M. BALAGANESH) /ACCOUNTANT MEMBER /CHENNAI, 4% /DATED: 28 TH FEBRUARY, 2020 . EDN, SR. P.S %# . ,'15 65)1 /COPY TO: 1. *+ /APPELLANT 2. ,-*+ /RESPONDENT 3. 0 71 ( )/CIT(A) 4. 0 71 /CIT 5. 58' ,'1' /DR 6. '9( : /GF