DCIT, CHENNAI V. M/s. Nagappa Motors Pvt Ltd., CHENNAI

ITA 424/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 61283 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-07-2012
• Appeal Filed By: Department
• Bench Allotted: D
• Next Hearing Date: 12-07-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 03-03-2011
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR STAND ING
• Assessee Lawyers: A SATYASEELAN
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH, CHENNAI BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENT AND SHRI V.DURGA RAO, JUDICIAL MEMBER ITA NO.424(MDS)/2011 ASSESSMENT YEAR : 2005-06 THE DEPUTY COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE IV(4), CHENNAI. VS. M/S. NAGAPPA MOTORS PVT. LTD., 13-BALFOUR ROAD, CHENNAI-600 010. PAN AAACN3575G. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI KEB RENGARAJAN, JR. ST ANDING COUNSEL RESPONDENT BY : SHRI A.SATYASEELAN, ADVOCATE DATE OF HEARING : 12 TH JULY, 2012 DATE OF PRONOUNCEMENT : 12 TH JULY, 2012 O R D E R PER DR.O.K.NARAYANAN, VICE-PRESIDENT: THIS APPEAL IS FILED BY THE REVENUE. THE RELEVAN T ASSESSMENT YEAR IS 2005-06. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS)-V AT CHENNAI, DATED 24-11-2010. THE APPEAL ARISES OUT OF THE ASS ESSMENT COMPLETED UNDER SECTION 143(3) OF THE INCOME-TAX AC T, 1961. - - ITA 424 OF 2012 2 2. THE ONLY ISSUE RAISED BY THE REVENUE IN THIS AP PEAL IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED IN HOLDING THAT THE PROVISIONS OF SECTION 40(A)(IA) AR E NOT APPLICABLE TO THE ASSESSEE PERTAINING TO PAYMENTS MADE TO M/S. NAGAPPA MOTORS FOR HANDLING CHARGES, ADVERTISEMENT CHARGES TO PALS ADVERTISEMENT, M/S.APOORVA ENTERPRISES AND M/S.GETI T INFO MEDIA. 3. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER UNDER SECTION 40(A)(IA) ALL RELATED TO THE AMOUNTS ALREADY PAID BY THE ASSESSEE DURING THE PREVIOUS YEAR RELEVANT TO T HE ASSESSMENT YEAR UNDER APPEAL. THE INCOME-TAX APPEL LATE TRIBUNAL, VISAKHAPATNAM SPECIAL BENCH IN THE CASE OF MERILYN SHIPPING AND TRANSPORTS VS. ACIT, 16 ITR (TRIB) 1, HAS HELD THAT THE PROVISIONS OF LAW STATED IN SECTION 40(A)(IA) A PPLY ONLY TO THE AMOUNTS PAYABLE AS ON THE LAST DAY OF THE PREVIOU S YEAR AND DO NOT APPLY TO THE AMOUNTS ALREADY PAID BEFORE THE CLOSE OF THE PREVIOUS YEAR. IN VIEW OF THE ABOVE DECISION OF TH E SPECIAL BENCH, IT IS TO BE SEEN THAT THE DISALLOWANCE MADE BY THE ASSESSING OFFICER IN THE PRESENT CASE IS NOT SUSTAI NABLE IN LAW. THEREFORE, WE FIND THAT THE ORDER PASSED BY THE COM MISSIONER OF - - ITA 424 OF 2012 3 INCOME-TAX(APPEALS) NEEDS TO BE UPHELD. WE CONFIRM HIS ORDER ON THIS POINT. 4. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON THURSDAY, THE 12 TH OF JULY, 2012 AT CHENNAI. SD/- SD/- (V.DURGA RAO) (DR. O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 12 TH JULY, 2012. V.A.P. COPY TO: (1) APPELLANT (2) RESPONDENT (3) CIT (4) CIT(A) (5) D.R. (6) G.F.