TENNECO AUTOMOTIVE INDIA PVT LTD., HOSUR V. ACIT CORPORATE CIRCLE 3(1), CHENNAI

ITA 3066/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0126 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2013-2014
• Appeal Filed On: 12-11-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: MRS M SUBASHRI
• Assessee Lawyers: R KUMAR
• Keywords: Non-deduction of tax; TDS
• Section: 195

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL D BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.3066/CHNY/2018 / ASSESSMENT YEAR :2013-14 M/S. TENNECO AUTOMOTIVE INDIA PVT. LTD., C/O SRI T.N. SEETHARAMAN, ADVOCATE, #384 (OLD NO. 196), LLOYDS ROAD, CHENNAI 600 086. [PAN:AABCT3125D] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 3(1), CHENNAI 600 034. ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI R. KUMAR, ADVOCATE / RESPONDENT BY : MRS. M. SUBASHRI, JCIT / DATE OF HEARING : 12.06.2019 /DATE OF PRONOUNCEMENT : 19.06.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 11, CHENNAI DATED 29.09.2018 RELEVANT TO THE ASSESSMENT YEAR 2013-14. THE ONLY EFFECTIVE GROUND RAISED IN THE APPEAL OF THE ASSESSEE IS THAT THE LD. CIT(A) HAS ERRED IN NOT ADJUDICATING THE ISSUE REGARDING THE DISALLOWANCE OF .57,71,793/- UNDER SECTION 40(A)(I) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. I.T.A. NO.3066/CHNY/18 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 29.11.2013 DECLARING LOSS OF .9,30,39,984/-. THE CASE WAS SELECTED FOR SCRUTINY. AGAINST SERVICE OF STATUTORY NOTICES, THE ASSESSEE FILED THE DETAILS CALLED FOR. AFTER VERIFICATION OF DETAILS FILED BY THE ASSESSEE AND CONSIDERING THE SUBMISSIONS, THE ASSESSING OFFICER DETERMINED THE LOSS AT .7,96,80,636/-. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A) AND CHALLENGED THE DISALLOWANCES MADE UNDER SECTION 36(1)(VA) AS WELL AS UNDER SECTION 40(A)(I) OF THE ACT. WHILE DIRECTING THE ASSESSING OFFICER TO ALLOW THE CLAIM OF DEDUCTION UNDER SECTION 36(1)(VA) OF THE ACT, WITH REGARD TO THE DISALLOWANCE UNDER SECTION 40(A)(I) OF THE ACT, THE LD. CIT(A) HAS OBSERVED THAT A PERUSAL OF THE AOS ORDER SHOWS THAT THE ISSUE OF DISALLOWANCE U/S 40(A)(I) HAS NOT ARISEN IN THE RELEVANT ASSESSMENT YEAR 2013-14. THIS GROUND APPEARS TO BE FILED ERRONEOUSLY AND HENCE WILL NOT BE CONSIDERED AS BEING A PART OF APPELLATE PROCEEDINGS. BY FILING COPY OF THE STATEMENT OF INCOME FOR THE ASSESSMENT YEAR 2013-14, CHALLAN, ETC., THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE HAS DISALLOWED .57,71,793/- UNDER SECTION 40(A)(I) OF THE ACT FOR NON-DEDUCTION OF TAX AT SOURCE UNDER SECTION 195 OF THE ACT BASED ON THE TAX AUDIT REPORT AND THE ASSESSEE DEDUCTED AND PAID THE TDS OF .11,54,358/- ON 07.08.2012 WELL WITHIN THE SAME PREVIOUS YEAR AND PRAYED FOR ALLOWING THE CLAIM OF THE ASSESSEE. ON THE OTHER HAND, THE LD. DR I.T.A. NO.3066/CHNY/18 3 FAIRLY CONCEDED THAT THE ISSUE MAY BE REMITTED BACK TO THE FILE OF THE ASSESSING OFFICER TO VERIFY AND DECIDE THE ISSUE. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. ON PERUSAL OF THE ASSESSMENT ORDER, WE FIND THAT THERE IS NO MENTION ABOUT THE DISALLOWANCE UNDER SECTION 40(A)(I) OF THE ACT. IT IS NOT CLEAR AS TO WHETHER, WHILE COMPUTING THE TOTAL LOSS OF THE ASSESSEE, THE ASSESSING OFFICER HAS NOT TAKEN INTO ACCOUNT THE EXPENDITURE INCURRED BY THE ASSESSEE TOWARDS THE SUM PAID OUTSIDE INDIA/NON-RESIDENT. ACCORDINGLY, WE REMIT THE MATTER BACK TO THE FILE OF THE ASSESSING OFFICER TO EXAMINE AND ALLOW THE EXPENDITURE AS CLAIMED BY THE ASSESSEE. THUS, THE GROUND RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 19 TH JUNE, 2019 AT CHENNAI. SD/- SD/- (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 19.06.2019 VM/- I.T.A. NO.3066/CHNY/18 4 /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.