VALUE LINE EQUITIES P. LTD ( FORMERLY KNWOAN AS M.S, ( SB & T SECURITIES P.LTD), MUMBAI V. ACIT CIR 4(2), MUMBAI

ITA 4445/MUM/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 62609 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-07-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 10-07-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 31-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M RAJAN

Judgement Text

, , , , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES F, MUMBAI .. , ! ' #$ %& , ' ', ( BEFORE SHRI R.S.SYAL, AM AND SHRI AMIT SHUKLA, JM ./ ITA NO.4445/MUM/2010 ( '* + '* + '* + '* + / / / / ASSESSMENT YEAR :2007-2008) M/S.VALUE LINE EQUITIES PRIVATE LIMITED (FORMERLY: M/S.SB & T SECURITIES P.LTD.) 138, SHREEJI CHAMBERS, TATA ROAD NO.2 OPERA HOUSE, MUMBAI 400 004. PAN : AAACS6170Q. THE ASSTT.COMMISSIONER OF INCOME-TAX CIRCLE 4(2) MUMBAI. ( ,- / // / APPELLANT) * * * * / VS. ( ./,-/ RESPONDENT) ,- 0 00 0 1 1 1 1 / APPELLANT BY : SHRI JITENDRA JAIN ./,- 0 1 0 1 0 1 0 1 / RESPONDENT BY : SHRI M.RAJAN * 0 $! / / / / DATE OF HEARING : 10.07.2012 23+ 0 $! / DATE OF PRONOUNCEMENT : 13.07.2012 ' % ' % ' % ' % / / / / O R D E R PER R.S.SYAL, AM : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME-TAX (APPEALS) ON 15.03.2010 IN RELATION TO THE ASSESSMENT YEAR 2007-2008. 2. THE ONLY ISSUE RAISED IN THIS APPEAL IS AGAINST THE CONFIRMATION OF DISALLOWANCE U/S 40(A)(IA). BRIEFLY STATED THE FACT S OF THE CASE ARE THAT THE ASSESSING OFFICER MADE DISALLOWANCE U/S 40(A) AMOUN TING TO ` 2,55,346 ON ACCOUNT OF PROFESSIONAL FEES PAID TO M/S. M.M.DUBEY & CO. ON WHICH THE ASSESSEE DID NOT DEDUCT ANY TAX AT SOURCE. THE LEAR NED CIT(A) UPHELD THE ASSESSMENT ORDER ON THIS ISSUE. ITA NO.4445/MUM/2010 M/S.VALUE LINE EQUITIES PVT.LTD. 2 3. HAVING HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE RELEVANT MATERIAL ON RECORD IT IS SEEN THAT THE ASSESSING OFFICER MADE D ISALLOWANCE BY RECORDING THAT : THE ASSESSEE HAS NOT DEDUCTED TAX AT SOURCE . THE LEARNED COUNSEL FOR THE ASSESSEE, RELYING ON THE SPECIAL BENCH ORDER IN TH E CASE OF MERILYN SHIPPING & TRANSPORTS V. ACIT [(2012) 70 DTR (VISAKHA) (SB)(TR IB) 81], SUBMITTED THAT THE PRESENT CASE RELATED TO THE DEDUCTION OF TAX AT SOURCE WHICH WAS LATE DEPOSITED AND NO AMOUNT WAS PAYABLE AS AT THE END O F THE YEAR. RELYING ON THIS SPECIAL BENCH ORDER, THE LEARNED AR CONTENDED THAT SINCE NO AMOUNT WAS PAYABLE AS AT THE END OF THE YEAR, THE PROVISIONS OF SECTION 40(A)(IA) WERE NOT ATTRACTED. ON A SPECIFIC QUERY, THE LEARNED AR COU LD NOT POINT OUT ANY MATERIAL TO DEMONSTRATE THAT THE ASSESSEE HAD, IN FACT, DEDU CTED TAX AT SOURCE ON THE PAYMENTS. HE SIMPLY SUBMITTED THAT THE ASSESSEE HAD DEDUCTED AND PAID TAX SO DEDUCTED DURING THE YEAR ITSELF AND NO AMOUNT WAS P AYABLE AT THE END OF THE YEAR. THERE CAN BE NO DISPUTE ABOUT THE RATIO OF TH E SPECIAL BENCH ORDER IN THE CASE OF MERILYN SHIPPING & TRANSPORTS (SUPRA) THAT IF THE AMOUNT OF TAX DEDUCTED AT SOURCE HAS BEEN PAID DURING THE YEAR AN D IS NOT PAYABLE AT THE END OF THE YEAR, THEN NO DISALLOWANCE U/S 40(A)(IA) IS CALLED FOR. CONSIDERING THE FACT PREVAILING IN THIS CASE, WE ARE OF THE CONSIDE RED OPINION THAT IT WILL BE IN THE INTEREST OF JUSTICE IF THE IMPUGNED ORDER IS SE T ASIDE AND THE MATTER RESTORED TO THE FILE OF A.O. WE ORDER ACCORDINGLY AND DIRECT HIM TO DELETE THE DISALLOWANCE U/S 40(A)(IA) IF THE ASSESSEE DEPOSITE D THE AMOUNT OF TAX DEDUCTED AT SOURCE DURING THE YEAR AND NO AMOUNT WAS PAYABLE AT THE END OF THE YEAR. IF HOWEVER, THE ASSESSEE FAILED TO DEDUCT TAX AT SOURC E ON THE SAID AMOUNT, THEN THE DISALLOWANCE SO MADE AND SUSTAINED WILL BE UPHE LD. 4. 4 $5 '* 4$ 0 6 70 89 : # $ ; 0 <$ => IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ITA NO.4445/MUM/2010 M/S.VALUE LINE EQUITIES PVT.LTD. 3 ORDER PRONOUNCED ON THIS 13 TH JULY, 2012. ' % 0 23+ ?'*5 3 0 @ SD/- SD/- (AMIT SHUKLA) (R.S.SYAL) ' ' ' ' ' ' ' ' / JUDICIAL MEMBER ! ' ! ' ! ' ! ' / ACCOUNTANT MEMBER MUMBAI ; ?'* DATED 13 TH JULY, 2012. DEVDAS* ' % 0 .'$#A B A+$ ' % 0 .'$#A B A+$ ' % 0 .'$#A B A+$ ' % 0 .'$#A B A+$/ COPY OF THE ORDER FORWARDED TO : 1. ,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. C () / THE CIT(A)VIII, MUMBAI. 4. C / CIT 5. AF@ .'$'* , , / DR, ITAT, MUMBAI 6. @G / GUARD FILE. ' %* ' %* ' %* ' %* / BY ORDER, /A$ .'$ //TRUE COPY// 8 8 8 8/ // /= < = < = < = < ( DY./ASSTT. REGISTRAR) , , , , / ITAT, MUMBAI