SRM Pharmaceutical Distributors, Tiruchirapalli V. ITO, Ward-3(2), Tiruchirapalli

ITA 328/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1234 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-05-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 11-02-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A SUNDARARAJANADDL
• Assessee Lawyers: SANJEEV AITYAC A
• Keywords: TDS
• Section: 40(a)(ia)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : CHENNAI . , ! , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S.JAYARAMAN, ACCOUNTANT MEMBER I.T.A .NO. 328 /CHNY/ 2019 ASSESSMENT YEAR : 2012-13 M/S.S.R.M.PHARMACEUTICAL DISTRIBUTORS , D-41,5 TH CROSS, N.E.E., THILLAI NAGAR, TIRUCHIRAPALLI 620 018. VS. INCOME TAX OFFICER, WARD 3(2), TIRUCHIRAPALLI 620 018. [ PAN AAHFS 9255 J ] ( '# / APPELLANT) ( $%'# /RESPONDENT) / APPELLANT BY : MR.SANJEEV AITYA,C.A /RESPONDENT BY : MR.A.SUNDARARAJAN,ADDL.CIT.DR ! / DATE OF HEARING : 05 - 03 - 20 20 '#$% ! / DATE OF PRONOUNCEMENT : 29 - 05 - 20 20 &' / O R D E R PER S.JAYARAMAN, ACCOUNTANT MEMBER THE ASSESSEE FILED THIS APPEAL AGAINST THE ORDER O F THE COMMISSIONER OF INCOME TAX (APPEALS)-1, TRICHY IN ITA NO.195/201 5-16/CIT(A)- 1/TRICHY, DATED 18.12.2018 FOR THE ASSESSMENT YEAR 2012-13. 2. M/S.S.R.M.PHARMACEUTICAL DISTRIBUTORS , THE ASSESSEE IS ENGAGED IN THE BUSINESS OF WHOLESALE AND RETAIL SALES OF ME DICINES. WHILE COMPLETING THE ASSESSMENT FOR THE IMPUGNED ASSESSME NT YEAR, THE A.O. HELD THAT ASSESSEE CLAIMED INTEREST DEDUCTIONS IN RESPECT OF ITA NO.328/CHNY/2019 :- 2 -: UNSECURED CREDITORS WITHOUT DEDUCTING TDS ON SUCH P AYMENTS. THEREFORE, THE A.O DISALLOWED THE ASSESSEES INTERE ST CLAIM UNDER SECTION 40(A)(IA) OF THE ACT. AGGRIEVED AGAINST TH E ORDER OF LD. A.O., THE ASSESSEE PREFERRED AN APPEAL BEFORE THE LEARNED CIT(A). ON APPEAL, LEARNED CIT(A) PARTLY ALLOWED THE APPEAL. A GGRIEVED AGAINST THAT ORDER, THE ASSESSEE FILED THIS APPEAL BEFORE T HE TRIBUNAL. 3. BEFORE US, THE LD. A.R. SUBMITTED THAT CREDITOR S WERE EITHER ASSESSED TO TAX OR HAD INCOME BELOW THE TAXABLE MIN IMUM. THE DEDUCTOR HAD OBTAINED FORM 15G/15H. FURTHER, THE AS SESSEE SUBMITTED BEFORE THE LEARNED CIT(A) THAT SECOND PRO VISO TO SECTION 40(A)(IA) OF THE ACT INSERTED BY THE FINANCE ACT, 2 012 IS RETROSPECTIVE WITH THE MAIN PROVISION SINCE 2005 AND THAT SUCH IN TERPRETATION WAS UPHELD BY CERTAIN COURTS, ALTHOUGH ALL SUCH PLEAS W ERE PUT FORTH BEFORE THE LEARNED CIT(A), THE LEARNED CIT(A) WITHOUT CONS IDERING THE ASSESSEES PLEA, UPHELD THE DISALLOWANCE MADE BY TH E A.O. TO AN EXTENT OF .9,35,007/- UNDER SECTION 40(A)(IA) OF THE ACT. TH EREFORE, LD. A.R PLEADED TO ALLOW THE ASSESSEES APPEAL. 4. PER CONTRA, LD. D.R. SUPPORTED THE ORDER OF THE LEARNED CIT(A). 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WHEN THE ASSESSEE H AS PLEADED BEFORE THE LEARNED CIT(A) THAT IT HAS OBTAINED FORM NO.15G /15H AND PLEADED ITA NO.328/CHNY/2019 :- 3 -: THAT SECOND PROVISO TO SECTION 40(A)(IA) OF THE ACT INSERTED BY THE FINANCE ACT, 2012 IS RETROSPECTIVE, THE LEARNED CI T(A) SHOULD HAVE EXAMINED THE ASSESSEES CLAIM IN A PROPER PERSPECTI VE. SINCE IT WAS NOT MADE, WE DEEM IT FIT TO REMIT THIS ISSUE BACK TO TH E FILE OF A.O FOR A FRESH EXAMINATION. THE ASSESSEE SHALL PLACE RELEVAN T MATERIALS IN SUPPORT OF ITS CONTENTIONS BEFORE THE A.O. AND COMP LY WITH THE REQUIREMENTS OF THE A.O. IN ACCORDANCE WITH LAW. T HE A.O AFTER AFFORDING EFFECTIVE OPPORTUNITY TO THE ASSESSEE AND DUE EXAMINATION, SHALL DECIDE THE MATTER ON MERITS. 6. IN THE RESULT, THE APPEAL OF ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 29 TH MAY, 2020 AT CHENNAI. SD/- SD/- ( . ) (DUVVURU RL REDDY) ( &) /JUDICIAL MEMBER ( ! ) (S. JAYARAMAN) /ACCOUNTANT MEMBER & / CHENNAI ' / DATED: 29 TH MAY,2020. K S SUNDARAM ( ) *+ , +$ / COPY TO: 1 . / APPELLANT 4. ( ( - / CIT 2. / RESPONDENT 5. +./ 01 / DR 3. ( ( - () / CIT(A) 6. /45 6 / GF