ACIT NON CORPORATE CIRCLE 10(1), CHENNAI V. METRO TUNNELLING CHENNAI L & T SUCG JV, CHENNAI

ITA 2969/CHNY/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9214 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2020
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 26-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A SUNDARARAJAN IRS CIT
• Assessee Lawyers: T BANUSEKAR
• Keywords: TDS; Set aside
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./I.T.A. NO.2969/CHNY/2018 ! ' / ASSESSMENT YEAR : 2012-2013. THE ASSISTANT COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 10(1) CHENNAI. VS. M/S. METRO TUNNELLING CHENNAI L & T SUCG JV, FIRST FLOOR, NO.126, HALLS ROAD, OPP.PACHAYAPPAS COLLEGE, KILPAUK, CHENNAI 600 010. [PAN AABAM 7867R] ( / APPELLANT) ( /RESPONDENT) # $ % / APPELLANT BY : SHRI. A. SUNDARARAJAN, IRS, ADDL. CIT &' # $ % /RESPONDENT BY : SHRI. T. BANUSEKAR, C.A. ( ) $ * /DATE OF HEARING : 02-01-2020 +,'! $ * /DATE OF PRONOUNCEMENT : 06-01-2020 / O R D E R PER INTURI RAMA RAO , ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE DIRECTED AGA INST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1 2, CHENNAI (CIT(A) FOR SHORT) DATED 20.08.2018 FOR THE ASSES SMENT YEAR (AY) 2012-2013. ITA NO.2969/2018 :- 2 -: 2. THE REVENUE RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE ORDER OF THE LEARNED CIT(A) IS ERRONEOUS I N LAW AND OPPOSED TO THE FACTS AND CIRCUMSTANCES OF THE CASE. 2.1 THE LEARNED CIT(A) ERRED IN DIRECTING THE ASSES SING OFFICER TO GIVE CREDIT FOR TDS TO THE EXTENT OF CUMULATIVE SALES AS ON 31.03.2012 AMOUNTING TO RS.1,48,61,86,578/-. THIS A MOUNT IS VALUE OF CLOSING STOCK AND NOT THE SALES AS REFERRE D BY THE ID. CIT(A). 2.2 THE LEARNED CIT(A) OUGHT TO HAVE REFERRED TO SE C. 199 READ WITH RULE 37BA WHEREIN IT IS STATED THAT TDS CREDIT CAN BE GIVEN ONLY IN THE ASSESSMENT YEAR FOR WHICH CORRESPONDING INCOME IS OFFERED FOR TAXATION. 3. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE ORDER OF THE LEARNED CIT (A) MAY BE SET ASIDE AND THAT OF THE ASSESSING OFFI CER BE RESTORED. 3. T HE BRIEF FACTS OF THE CASE ARE AS UNDER: THE RESPONDENT-ASSESSEE NAMELY M/S. METRO TUNNELLIN G CHENNAI L & T SUCG JV IS AN AOP AND JOINT VENTURE, IS ENGAGED IN THE BUSINESS OF DESIGN AND CONSTRUCTION OF UNDERGROUND STATIONS. THE RETURN OF INCOME FOR THE AY 2012-13 WAS FILED ON 30 .09.2012 DISCLOSING TOTAL INCOME OF RS. 5,49,75,140/-. AGAIN ST THE SAID RETURN OF INCOME, THE ASSESSMENT WAS COMPLETED BY THE DEPUTY COMMISSIONER OF INCOME TAX, NON CORPORATE CIRCLE 10(1) CHENNAI (HEREINAFTER CALLED AO) VIDE ORDER DATED 30.03.2015 PASSED U/S . 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) AT TOTAL INCOME OF RS. 5,76,42,520/-. WHILE DOING SO, THE AO DENIED CRED IT FOR TDS OF ITA NO.2969/2018 :- 3 -: RS.4,63,83,155/- RECEIVED FROM CHENNAI METRO RAIL LIMITED ON THE GROUND THAT CORRESPONDING INCOME WAS NOT OFFERED TO TAX. 4. BEING AGGRIEVED, AN APPEAL WAS PREFERRED BEFORE THE LD.CIT(A) WHO VIDE IMPUGNED ORDER HAD DIRECTED THE ASSESSING OFFICER TO GIVE CREDIT TO THE EXTENT OF INCOME OFFERED TO TAX RS.1, 48,61,86,578/- 5. BEING AGGRIEVED BY THE ORDER OF THE LD. COMMISSI ONER OF INCOME TAX (APPEALS), THE REVENUE IS IN APPEAL BEFORE US CHALLENGING THE CORRECTNESS OF THE DECISION OF LD. COMMISSIONER OF INCOME TAX (APPEALS). IT IS SUBMITTED THAT THE FINDINGS OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) THAT SALES OF RS.1,48,61,86 ,578/- WAS OFFERED TO TAX IS INCORRECT AS THE AMOUNT WAS SHOWN IN CLOS ING WORK IN PROGRESS AND IT IS FURTHER SUBMITTED THAT IN TERMS OF PROVISIONS OF SECTION 199 OF THE ACT CREDIT FOR TDS CAN BE GIVE N IN THE YEAR IN WHICH CORRESPONDING INCOME IS OFFERED TO TAX. 6. ON THE OTHER HAND, THE LD. AUTHORISED REPRESENTA TIVE PLACED RELIANCE ON THE ORDER OF THE LD. COMMISSIONER OF IN COME TAX (APPEALS). 7. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE M ATERIAL ON RECORD. THE ONLY ISSUE IN THE PRESENT APPEAL RELAT ES TO WHETHER OR NOT CREDIT FOR TDS SHOULD BE GIVEN FOR THE YEAR UN DER CONSIDERATION OR NOT. THE ASSESSING OFFICER DISALLOWED THE CLAIM F OR CREDIT FOR TDS ON THE GROUND THAT CORRESPONDING INCOME WAS NOT OFFE RED TO TAX IN THE ITA NO.2969/2018 :- 4 -: YEAR UNDER CONSIDERATION. FROM THE PERUSAL OF THE BALANCE SHEET AND PROFIT AND LOSS ACCOUNT, IT IS CLEAR THAT ASSESSEE HAS BEEN OFFERING PROFIT CONTRACT RECEIPT RECEIVED ON PERCENTAGE OF COMPLETION METHOD, DURING THE YEAR UNDER CONSIDERATION INCOME FROM T HE CONTRACT RECEIPT WAS OFFERED TO THE EXTENT OF RS.146,88,58,224/- AND THEREFORE THE ASSESSING OFFICER WAS NOT JUSTIFIED IN DISALLOWING CREDIT FOR ENTIRE TDS. THE LD. COMMISSIONER OF INCOME TAX (APPEALS) HAS RI GHTLY ALLOWED THE CREDIT IN RESPECT OF INCOME OFFERED TO TAX. THE D ECISION OF LD. COMMISSIONER OF INCOME TAX (APPEALS) IS IN CONFORMI TY WITH THE PROVISIONS OF SECTION 199 OF THE ACT. THEREFORE, W E DO NOT FIND ANY REASON TO INTERFERE WITH THE ORDER OF THE LD. COMMI SSIONER OF INCOME TAX (APPEALS). 8. IN THE RESULT, THE APPEAL FILED BY THE REVENUE S TANDS DISMISSED. ORDER PRONOUNCED ON 6TH DAY OF JANUARY, 2020, AT CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER -) / CHENNAI . / DATED:6TH JANUARY, 2020. KV /0 $0& *12032'* / COPY TO: 0 1 . # / APPELLANT 3. 0 ( 4*056 / CIT(A) 5. 278 0& * 9 / DR 2. &' # / RESPONDENT 4. 0 ( 4* / CIT 6. 8:0;) / GF