ACIT, CHENNAI V. Channel Bharath Entertainment Pvt. Ltd., CHENNAI

ITA 2968/CHNY/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 86333 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 08-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: P RADHAKRISHNAN
• Assessee Lawyers: A S SRIRAMAN
• Section: 143(3); 263; 2

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , ! . . ' , # $ BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO.2968/MDS/2014 # % !&% / ASSESSMENT YEAR : 2007-08 THE ASSISTANT COMMISSIONER OF INCOME TAX, NON-CORPORATE CIRCLE 20, CHENNAI - 600 034. V. M/S CHANNEL BHARATH ENTERTAINMENT PVT. LTD., NO.22, 1 ST CROSS STREET, 11 TH AVENUE, ASHOK NAGAR, CHENNAI - 600 083. PAN : AACCC 5564 C (()/ APPELLANT) (+,()/ RESPONDENT) () - . / APPELLANT BY : SHRI P. RADHAKRISHNAN, JCIT +,() - . / RESPONDENT BY : SHRI A.S. SRIRAMAN, ADVOCATE / ! - 0 / DATE OF HEARING : 26.02.2015 1& - 0 / DATE OF PRONOUNCEMENT : 04.03.2015 / O R D E R PER S.S. GODARA, JUDICIAL MEMBER: THIS REVENUES APPEAL FOR ASSESSMENT YEAR 2007-08 IS ARISING FROM ORDER OF THE COMMISSIONER OF INCOME TA X (APPEALS)- IV, CHENNAI, DATED 08.09.2014 PASSED IN ITA NO.12/1 3-14 - - I.T.A. NO. 2968/MDS/2014 2 DELETING SECTION 40(A)(IA) DISALLOWANCE OF ` 99,00,000/-, IN PROCEEDINGS UNDER SECTION 143(3) R.W.S.263 OF THE I NCOME-TAX ACT, 1961 (IN SHORT 'THE ACT'). 2. FACTS OF THE CASE ARE IN NARROW COMPASS. THE AS SESSEE- COMPANY RUNS AN ENTERTAINMENT TV CHANNEL. IT FILED ITS RETURN ON 31.10.2007 ADMITTING NIL INCOME. IT HAD PROFITS OF ` 21,44,363/- WHICH STOOD ADJUSTED AGAINST BROUGHT FORWARD LOSSES OF ` 21,84,165/-. THE ASSESSING OFFICER COMPLETED A REG ULAR ASSESSMENT ON 31.12.2009. THEREAFTER, THE CIT NOTI CED FROM THE ASSESSEES RECORDS THAT IT HAD DEBITED A SUM OF ` 99,00,000/- TOWARDS PAYMENT OF UPLINKING CHARGES TO M/S INDIA S IGN PVT. LTD. WITHOUT DEDUCTING TDS AS PER SECTION 194J OF THE AC T. HE TREATED THE ASSESSMENT AS ERRONEOUS CAUSING PREJUDI CIAL TO THE INTERESTS OF THE REVENUE U/S 263 OF THE ACT IN ORDE R DATED 15.03.2012 AND DIRECTED THE ASSESSING OFFICER TO CO MPLETE A DE NOVO ASSESSMENT. 3. THE A.O. TOOK UP CONSEQUENTIAL PROCEEDINGS. HE PASSED HIS ORDER ON 07.03.2013 DISALLOWING THE AFORESAID U PLINKING - - I.T.A. NO. 2968/MDS/2014 3 CHARGES AMOUNTING TO ` 99,00,000/- FOR NON-DEDUCTION OF TDS UNDER SECTION 40(A)(IA) OF THE ACT. 4. THE ASSESSEE PREFERRED AN APPEAL. THE CIT(APPEA LS) HOLDS THAT THE CITS ORDER DATED 15.03.2012 (SUPRA) STANDS REVERSED BY THE TRIBUNAL IN I.T.A. NO. 1075/MDS/2 012 LEAVING NO LEGS FOR THE CONSEQUENTIAL ORDER TO STAND. THIS LE AVES THE REVENUE IN APPEAL. 5. WE HAVE HEARD BOTH PARTIES AND GONE THROUGH THE RELEVANT FINDINGS. IT HAS COME ON RECORD THAT THE IMPUGNED DISALLOWANCE IS A CONSEQUENCE OF THE CITS SECTION 263 ORDER DATED 15.03.2012. THE SAME STANDS REVERSED BY THE TRIBUNAL. THAT BEING THE CASE, THE ASSESSING OFFICERS ORDER NO MORE SURVIVES. THE REVENUE FAILS TO CONTROVERT THIS LEG AL PROPOSITION. ITS ARGUMENT ON MERITS CHALLENGING THE CIT(APPEALS) S ORDER IS REJECTED. 6. THIS REVENUES IS DISMISSED. - - I.T.A. NO. 2968/MDS/2014 4 ORDER PRONOUNCED ON WEDNESDAY, THE 4 TH OF MARCH, 2015 AT CHENNAI. SD/- SD/- (A. MOHAN ALANKAMONY) (S.S. GODARA) ( . ) ( . . ') / ACCOUNTANT MEMBER # /JUDICIAL MEMBER /CHENNAI, 3 /DATED, THE 4 TH MARCH, 2015. KRI. 4 - +#056 76&0 /COPY TO: 1. () /APPELLANT 2. +,() /RESPONDENT 3. / 80 () /CIT(A)-IV, CHENNAI 4. / 80 /CIT-IV, CHENNAI 5. 6!9' +#0# /DR 6. ':% ; /GF.