G N Kamaraj, Guntur V. The Commissioner of Income-tax, Guntur

ITA 472/VIZ/2013

• Counselvise Citation: 47225314 RSA 2013
• Duration Of Justice: 8 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-03-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2009-2010
• Appeal Filed On: 18-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Section: 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI J.SUDHAKAR REDDY, AM AND SHRI SAKTIJIT DEY, JM ITA NO.472/VIZAG/2013 : ASST.YEAR 2009-2010 SRI G.N.KAMARAJ C/O.M/S.P.NAGESWARA RAO & CO., AUDITORS ANJUMAN BUILDING, LALAPET GUNTUR 522 003. PAN : AGCPG1266E. VS. THE COMMISSIONER OF INCOME - TAX GUNTUR. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI G.V.N.HARI RESPONDENT BY : SHRI K.V.N.CHARYA, CIT DATE OF HEARING : 04.03 .2014 DATE OF PRONOUNCEMENT : 06 .0 3 .2014 O R D E R PER J.SUDHAKAR REDDY (AM) : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX, GUNTUR, PASSED U/S 263 OF THE ACT, DATED 15.03.2013. 2. FACTS IN BRIEF ARE THAT THE CIT, GUNTUR WAS MADE A REVISION ON THE GROUND THAT PAYMENTS MADE TO CONTRACTORS TOWARDS CRUSHING CHARGES ARE NOT ALLOWABLE FOR THE REASON THAT TAX WAS NOT DEDUCTED AT SOURCE, IN TIME, AND HENCE THE SAME IS IN VIOLATION OF PROVISIONS OF SECTION 40(A)(IA). THE D ATES THAT HAVE TO BE CONSIDERED ARE (A) INVOICES RECEIVED WERE DATED 28.02.2009, (B) INVOICES WERE RECEIVED BY THE ASSESSEE ON 01.03.2009, (C) TDS WAS REMITTED ON 30. 05.2009 I.E. BEFORE THE DUE DATE FOR FILING OF THE RETURNS OF INCOME U/S 139(1) OF THE ACT. 2.1 THE LEARNED CIT ON THE GROUND THAT THE DATE OF CREDIT TO THE ACCOUNTS OF RESPECTIVE CONTRACTORS BEING 28.02.2009, WAS OF THE OPINION THAT THE TDS IN QUESTION SHOULD HAVE BEEN REMITTED ON OR BEFORE 07. 03.2009 AND FAILURE TO DO SO, ITA NO.472/VIZAG/2013. SRI G.N.KAMARAJ. 2 ATTRACTS PROVISIONS OF SECTION 40(A)(IA). THE DIREC TIONS WERE ISSUED TO THE AO TO MODIFY THE SAME. 3. THE LEARNED COUNSEL FOR THE ASSESSEE RELIED ON T HE DECISION OF THE VISAKHAPATNAM BENCH OF THE TRIBUNAL IN ITA NO.352/V IZAG/2008 IN THE CASE OF RAJAMAHENDRI SHIPPING & OIL FIELD SERVICES LTD. V. ACIT, ORDER DATED 13 TH APRIL, 2012 AND SUBMITTED THAT THE ISSUE IS COVERED IN FAV OUR OF THE ASSESSEE. 4. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTHER HAND, THOUGH NOT LEAVING HIS GROUND, AGREED THAT THE DECISION OF THE HONBLE KOLKATA HIGH COURT IN CIT V. VIRGIN CREATIONS, IT APPEAL NO.302 OF 2011 O RDER DATED 23.11.2011, WAS IN FAVOUR OF THE ASSESSEE. 5. AFTER HEARING RIVAL SUBMISSIONS, WE FIND THAT TH E HONBLE KOLKATA HIGH COURT IN THE CASE OF VIRGIN CREATIONS (SUPRA) HAS HELD TH AT THE AMENDMENT BROUGHT OUT TO SECTION 40(A)(IA) IS RETROSPECTIVE IN NATURE AND AS THE TAX DEDUCTED AT SOURCE IS PAID ON OR BEFORE THE DUE DATE OF FILING OF RETURN U/S 1 39(1) OF THE ACT, THE SAME IS ELIGIBLE. RESPECTFULLY FOLLOW THE SAME, WE ALLOW TH IS APPEAL OF THE ASSESSEE. 6. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED ON THIS 6 TH DAY OF MARCH, 2014. SD/- SD/- ( SAKTIJIT DEY ) (J.SUDHAKAR REDDY) JUDICIAL MEMBER ACCOUNTANT MEMBER VISAKHAPATNAM; DATED : 6 TH MARCH, 2014. DEVDAS* ITA NO.472/VIZAG/2013. SRI G.N.KAMARAJ. 3 COPY OF THE ORDER FORWARDED TO : BY ORDER, //TRUE COPY// (SENIOR PRIVATE SECRETARY) ITAT, VISAKHAPATNAM 1. THE APPELLANT 2. THE RESPONDENT. 3. THE CIT, GUNTUR . 4. CIT(A) GUNTUR . 5. DR, ITAT, VISAKHAPATNAM. 6. GUARD FILE.