Subhash Chandra Bose Hanumara, Hyderabad, Hyderabad V. DCIT, Circle-14(1), Hyderabad, Hyderabad

ITA 352/HYD/2017

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5706 (ITAT-HYDERABAD)
• Duration Of Justice: 4 year(s) 2 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 23-03-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 27-02-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S RAMA RAO
• Keywords: Retrospective amendment; TDS
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 352/HYD/2017 ASSESSMENT YEAR: 2012-13 SUBHASH CHANDRA BOSE HANUMARA, HYDERABAD [PAN: AAMPH2187D] VS DY.COMMISSIONER OF INCOME TAX, CIRCLE-14(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI S.RAMA RAO, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 23-03-2021 DATE OF PRONOUNCEMENT : 29-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2012-13 ARISES FROM TH E CIT(A)-6, HYDERABADS ORDER DATED 14-12-2016 PASSED IN CASE NO.1599/2014-15/CIT(A)-6/16-17 IN PROCEEDINGS U/S.1 43(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. COMING TO THE ASSESSEES FIRST AND FOREMOST SUBSTANTI VE GROUND THAT BOTH THE LOWER AUTHORITIES HAVE ERRED IN LAW AND ON FACTS IN INVOKING SECTION 40(A)(IA) R.W.S.194A DIS ALLOWANCE OF INTEREST CLAIMED TO THE TUNE OF RS.1,43,22,348/-. WE NOTICE DURING THE COURSE OF HEARING THAT HE HAD PLEADED BEF ORE THE ITA NO. 352/HYD/2017 :- 2 -: CIT(A) THAT SECOND PROVISO TO SECTION 40(A)(IA) WAS SQU ARELY APPLICABLE STIPULATING THAT IF AN ASSESSEE IS NOT AN A SSESSEE IN DEFAULT U/S.201(1) FIRST PROVISO, THE IMPUGNED DISALL OWANCE IS NOT SUSTAINABLE. THE CIT(A) HOLDS IN HIS ORDER VIDE PARA 5.4 THAT EVEN IF THE SAID PROVISO IS HELD AS CARRYING RETRO SPECTIVE EFFECT, THE ASSESSEE HAD FAILED TO PLACE ON RECORD THE CORRESPONDING COMPUTATION OF INCOME OF ITS FOUR PAYEES M/S.CHOLAMANDALAM FINANCE, RELIANCE CAPITAL, INDIA B ULLS, RELIGARE FINANCE AND L&T FINANCE SO AS TO GET THE NECE SSARY RELIEF. IT IS NOTICED IN THIS FACTUAL BACKDROP THAT THE ASSESSEE HAS SOUGHT TO DELETE THE IMPUGNED DISALLOWANCE. 3. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL PLEADINGS AGAINST AND IN SUPPORT OF THE IMPUGNED DISALLOWANCE. THERE IS NO DISPUTE ON THE CLINCHING F ACT THAT THE ASSESSEE HAD INDEED NOT DEDUCTED ANY TDS ON THE IMPUGNED INTEREST PAYMENTS ON VEHICLE LOAN FINANCES. NEXT IS THE HONBLE DELHI HIGH COURTS DECISION IN CIT VS. A NSAL LANDMARK TOWNSHIPS (P) LTD., (2015) [377 ITR 635] (D EL) HOLDS THAT THE ABOVE PROVISO CARRIES RETROSPECTIVE EFFECT BEI NG CURATIVE IN NATURE. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIATE TO RESTORE THE INSTANT FORMER ISSUE BACK TO THE ASSESSING O FFICER FOR HIS NECESSARY FACTUAL VERIFICATION AS PER LAW IN LIGHT OF SECTION 40(A)(IA), 2 ND PROVISO AS TO WHETHER ASSESSEE PAYEES STAND ASSESSED QUA THE IMPUGNED FINANCIAL CHARGES OR NOT? THIS FIRST SUBSTANTIVE GROUND IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ITA NO. 352/HYD/2017 :- 3 -: 4. LEARNED AUTHORISED REPRESENTATIVE NEXT STATED AT THE BAR THAT THE ASSESSEE DOES NOT WISH TO PRESS FOR DISALLOWANC E OF RS.1 LAKH UNDER THE HEAD OTHER EXPENDITURE KEEPING IN MIND SMALLNESS THEREOF. THE SAME IS DECLINED AS PRAYED FO R. 5. THIS APPEAL OF ASSESSEE IS TREATED AS PARTLY ALLOWE D FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 29-04-2021 TNMM ITA NO. 352/HYD/2017 :- 4 -: COPY TO : 1.SUBHASH CHANDRA BOSE HANUMARA, 8-2-293/82/J/A, A81, JOURNALIST COLONY, HYDERABAD. 2.THE DY.COMMISSIONER OF INCOME TAX, CIRCLE-14(1), HYDERABAD. 3.CIT(APPEALS)-6, HYDERABAD. 4.PR.CIT-6, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.