DCIT, New Delhi V. M/s. SMS Paryavaran (P) Ltd., Delhi

ITA 3823/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4177 (ITAT-DELHI)
• Duration Of Justice: 8 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2011
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Next Hearing Date: 25-04-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 09-08-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) (DELHI BENCH : G NEW DELHI) BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND BEFORE SHRI A.D. JAIN , JUDICIAL MEMBER AND SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER I.T.A. NO.3823/DEL./2010 I.T.A. NO.3823/DEL./2010 I.T.A. NO.3823/DEL./2010 I.T.A. NO.3823/DEL./2010 (ASSESSMENT YEAR : 2005 (ASSESSMENT YEAR : 2005 (ASSESSMENT YEAR : 2005 (ASSESSMENT YEAR : 2005- -- -06) 06) 06) 06) DCIT, CIRCLE 9(1), DCIT, CIRCLE 9(1), DCIT, CIRCLE 9(1), DCIT, CIRCLE 9(1), VS. VS. VS. VS. M/S SMS PARYAVARAN (P) LTD. M/S SMS PARYAVARAN (P) LTD. M/S SMS PARYAVARAN (P) LTD. M/S SMS PARYAVARAN (P) LTD., ,, , NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. SMS HOUSE, E SMS HOUSE, E SMS HOUSE, E SMS HOUSE, E- -- -1/4, SECTOR 7, 1/4, SECTOR 7, 1/4, SECTOR 7, 1/4, SECTOR 7, ROHINI, ROHINI, ROHINI, ROHINI, DELHI. DELHI. DELHI. DELHI. (PAN/GIR NO. : AAACS2177F) (PAN/GIR NO. : AAACS2177F) (PAN/GIR NO. : AAACS2177F) (PAN/GIR NO. : AAACS2177F) (APPELLANT) (APPELLANT) (APPELLANT) (APPELLANT) (RESPONDENT) (RESPONDENT) (RESPONDENT) (RESPONDENT) ASSESSEE BY : NONE ASSESSEE BY : NONE ASSESSEE BY : NONE ASSESSEE BY : NONE REVENUE BY : SHRI KISHORE B., DR REVENUE BY : SHRI KISHORE B., DR REVENUE BY : SHRI KISHORE B., DR REVENUE BY : SHRI KISHORE B., DR ORDER ORDER ORDER ORDER PER A.D. JAIN, JM THIS IS DEPARTMENTS APPEAL FOR ASSESSMENT YEAR 2005-06, CONTENDING THAT THE CIT(A) HAS ERRED IN ALLOWING DED UCTION FOR EXPENSES OF `22,41,318, `3,41,090 AND `1,21,636, SINCE THE TDS HAS NOT BEEN DEPOSITED WITHIN THE TIME SPECIFICALLY PROVI DED U/S 40(A)(IA) OF THE I.T. ACT, 1961. 2. THE AO MADE THE FOLLOWING DISALLOWANCES U/S 40(A)(I A) OF THE ACT: ADDITIONS/DISALLOWANCE DUE DATE DATE OF DEPOSIT AMOUNT (`) PAYMENT MADE IN VIOLATION TO SECTION(40(A)(IA) NOT SPECIFIED 27/08/05 3,46,727 31/05/05 27/08/05 3,46,727 NOT SPAECIFIED 07/04/05 3,41,090 NOT SPECIFIED 07/05/05 1,21,636 I.T.A. NO.3823/DEL./2010 (A.Y. : 2005-06) 2 3. THE CIT(A) DELETED THESE DISALLOWANCES. NONE HAS APP EARED BEFORE US ON BEHALF OF THE ASSESSEE DESPITE ISSUANCE OF A N OTICE OF HEARING WHICH HAS NOT RETURNED UNSERVED. HOWEVER, FI NDING THAT THE MATTER CAN BE PROCEEDED WITH, IN THE ABSENCE OF THE ASSESSEE, WE ARE DOING SO. 4. CHALLENGING THE IMPUGNED ORDER, THE LD.DR.HAS ARG UED THAT THE CIT(A) HAS ERRED IN ALLOWING THE DEDUCTION FOR EXPEN SES DESPITE THE FACT THAT THE TDS HAD NOT BEEN DEPOSITED WITHIN THE TIME SPECIFICALLY PROVIDED U/S 40(A)(IA) OF THE ACT. 5. WE HAVE HEARD THE LD.DR. AND HAVE PERUSED THE MAT ERIAL ON RECORD. WE DO NOT FIND NAY ERROR IN THE ORDER OF T HE CIT(A). IT HAS BEEN FOUND AS A FACT THAT THE TDS WAS DEPOSITED WITH REGARD TO THE EXPENSES OF `22,41,318, `3,41,090 AND `1,21,636 PRIOR TO THE FILING OF THE RETURN OF INCOME. THAT BEING SO, FINDING NO FOR CE IN THE GRIEVANCE SOUGHT TO BE RAISED BY THE DEPARTMENT IS HEREBY REJECT ED. THE APPEAL FILED BY THE DEPARTMENT IS DISMISSED. 6. IN THE RESULT, THE APPEAL OF THE DEPARTMENT IS DISM ISSED. ORDER PRONOUNCED IN OPEN COURT 25.04.2011. SD/- SD/- (SHAMIM YAHYA) (A.D. JAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED, APRIL 25, 2011 SKB COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A)-XII, NEW DELHI 5.CIT(ITAT), NEW DELHI. AR/ITAT I.T.A. NO.3823/DEL./2010 (A.Y. : 2005-06) 3