NAWANY CORP (I) LTD, MUMBAI V. ITO 9(2)(3), MUMBAI

ITA 482/MUM/2013

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3458 (ITAT-MUMBAI)
• Duration Of Justice: 3 year(s) 4 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-05-2016
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Next Hearing Date: 16-05-2016
• Assessment Year: 2009-2010
• Appeal Filed On: 16-01-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: BHARTI SINGH
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH B, MUMBAI BEFORE SHRI MAHAVIR SINGH, JUDICIAL MEMBER AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO. 482/MUM/2013 (ASSESSMENT YEAR : 2009-10) M/S. NAWANY CORP (I) LTD., 384/1, BANDANA, 15 TH ROAD, BANDRA(W), MUMBAI 400050 PAN: AAANCN1471D ... APPELLANT VS. THE ITO, WARD 12(2)(4), MUMBAI. .... RESPONDENT APPELLANT BY : SHRI NISHIT GANDHI RESPONDENT BY : MISS. BHARTI SINGH DATE OF HEARING : 16/05/2016 DATE OF PRONOUNCEMENT : 18/05/2016 ORDER PER MAHAVIR SINGH, J.M: THIS APPEAL BY ASSESSEE IS ARISING OUT OF THE ORD ER OF CIT(A)-20 MUMBAI IN APPEAL NO.CIT(A)-20/9(2)(3)/IT-409/2011-1 2 DATED 16/10/2012. ASSESSMENT WAS FRAMED BY ITO, WARD 9(2 )(3), MUMBAI UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 ( IN SHORT THE ACT) FOR THE ASSESSMENT YEAR 2009-10 VIDE HIS ORDER DATED 16 /10/2012. 2. THE ONLY ISSUE IN THIS APPEAL OF ASSESSEE IS AG AINST THE ORDER OF CIT(A) CONFIRMING THE DISALLOWANCE OF INTEREST AMOU NTING TO 2 ITA NO. 482/MUM/2013 (ASSESSMENT YEAR : 2009-10) RS.16,01,356/- FOR NON-DEDUCTION OF TDS UNDER SECTI ON 194A OF THE ACT THEREBY INVOKING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT. 3. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE STAT ED THAT IN THIS CASE HE DONT WANT TO ARGUE THE ISSUE OF PAID OR PAYAB LE AS MENTIONED IN THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT BUT, ACCORDING TO LD. COUNSEL THE RECIPIENTS OF INTEREST HAVE ALREADY INC LUDED THE RECEIPT OF THIS INTEREST AS INCOME IN THEIR RESPECTIVE RETURN OF INCOME. ACCORDING TO HIM, THE ISSUE IS CLEARLY COVERED BY SECOND PROV ISO TO SECTION 40(A) (IA) OF THE ACT AS INSERTED BY FINANCE ACT, 2012, W .E.F. 01/04/2013 AND WHICH IS HELD TO BE RETROSPECTIVE BY HONBLE DELHI HIGH COURT IN THE CASE OF CIT VS. ANSAL LAND MARK TOWNSHIP PVT. LTD. IN I TA NO.160 & 161 OF 2015 DATED 28/08/2015. ACCORDING TO LD. COUNSEL FO R THE ASSESSEE, ONCE THE SECOND PROVISO TO SECTION 40(A)(IA) IS RET ROSPECTIVE AND IN THE PRESENT CASE, THE RECIPIENTS HAVE INCLUDED RECEIPT OF INTEREST IN THEIR RESPECTIVE RETURN OF INCOME, THE DISALLOWANCE UNDER SECTION 40(A)(IA) CANNOT BE MADE ON THE NON-DEDUCTION OF TDS ON THE A BOVE INTEREST PAYMENTS. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND GONE THR OUGH THE FACTS AND CIRCUMSTANCES OF THE CASE. BRIEFLY STATED FATS ARE THAT THE ASSESSEE HAS PAID INTEREST WITHOUT DEDUCTION OF TDS TO TATA MOTOR FINANCE LTD., TATA CAPITAL LTD. AND G.E. COMMERCIAL FINANCE LTD. THIS FACT IS NARRATED IN THE ASSESSMENT ORDER, WHEREIN THE TOTAL AMOUNT O F INTEREST PAID BY THE ASSESSEE IS DEPICTED. AS ARGUED BY LD. COUNSEL FOR THE ASSESSEE, THESE PARTIES ARE ASSESSED TO INCOME-TAX AND ASSESS EES COUNSEL 3 ITA NO. 482/MUM/2013 (ASSESSMENT YEAR : 2009-10) UNDERTAKES TO FILE THE ASSESSMENT DETAILS OF THESE PARTIES TO THE ASSESSING OFFICER, SO THAT ASSESSING OFFICER CAN VE RIFY WHETHER THIS INTEREST IS INCLUDED BY THESE PARTIES IN THEIR RESP ECTIVE RETURN OF INCOME IN THE RELEVANT ASSESSMENT YEARS AND PAID TAXES ACC ORDINGLY. AS THE LD. COUNSEL FOR THE ASSESSEE HAS NOT ARGUED THE ISSUE O F PAID AND PAYABLE IN RESPECT TO DISALLOWANCE U/S. 40(A)(IA) OF THE AC T, WE DISMISS THE SAME AS NOT ARGUED. IN TERM OF ABOVE, THIS ISSUE IS S ET ASIDE TO THE FILE OF ASSESSING OFFICER AND ALLOWED FOR STATISTICAL PURPO SES. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18/05/ 2016. SD/- SD/- (ASHWANI TANEJA) (MAHAVIR SINGH) ACCOUNTNAT MEMBER JUDICIAL M EMBER MUMBAI, DATED 18/05/2016 VM , SR. PS COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT , 2. THE RESPONDENT. 3. THE CIT(A)- 4. CIT 5. DR, ITAT, MUMBAI 6. GUARD FILE. BY ORDER, //TRUE COPY// (DY./ASSTT. REGISTRAR) ITAT, MUMBAI