DCIT, CHENNAI V. Automotive Coaches & Components Ltd., CHENNAI

ITA 490/CHNY/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77236 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 25-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM IRS
• Assessee Lawyers: SAROJ KUMAR PARIDA
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . . . , . . !' , # '$ % BEFORE DR. O.K.NARAYANAN, VICE-PRESIDENTAND SHRI S.S. GODARA, JUDICIAL MEMBER ./ ITA NO. 490(MDS)/2014 # & '& / ASSESSMENT YEAR : 2006-07 THE DEPUTY COMMISSIONER OF INCOME TAX, COMPANY CIRCLE I(1), CHENNAI - 600 034. V. M/S AUTOMOTIVE COACHES & COMPONENTS LTD., KHIVRAJ COMPLEX II, 2 ND FLOOR, 477-482, ANNA SALAI, CHENNAI - 600 035. PAN : AAACA 3150 E ( )*/ APPELLANT) ( ,-)*/ RESPONDENT) )* . / APPELLANT BY : SHRI GURU BHASHYAM, IRS, JCIT ,-)* . / RESPONDENT BY : SHRI SAROJ KUMAR PARIDA, ADVOCATE / . 01 / DATE OF HEARING : 22 ND APRIL, 2014 2!' . 01 / DATE OF PRONOUNCEMENT : 22 ND APRIL, 2014 - - I.T.A. NO. 490/MDS/14 2 / 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 2006-07. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-I I AT CHENNAI, PASSED ON 25.11.2013 AND ARISES OUT OF THE ASSESSMENT ORDER PASSED UNDER SECTION 143(3) OF THE INCOME- TAX ACT, 1961. 2. THE GROUNDS RAISED BY THE REVENUE IN THE PRESENT APPEAL READ AS BELOW:- 2.1. THE LD. CIT(A) ERRED IN DELETING THE DISALLOWANCE U/S 40(A)(IA) HOLDING THAT PROVISIONS SEC. 40(A)(IA) WILL NOT BE APPLICABLE FOR SHORT- DEDUCTION TAX. 2.2. THE LD. CIT(A) FAILED TO NOTE THAT DEDUCTION OF TAX UNDER CHAPTER XVII-B MEANS DEDUCTING THE APPROPRIATE AMOUNT OF TAX. AS PER CHAPTER XVII-B, IF THE TDS IS NOT DEDUCTED FULLY, THEN THE PROVISIO NS OF SEC. 40(A)(IA) WILL AUTOMATICALLY BE APPLICABLE. 2.3. THE LD. CIT(A) FAILED TO FOLLOW THE DECISION IN THE CASE OF M/S FRONTIER OFFSHORE EXPLORATION (INDI A) LTD. VS. DCIT (ITAT, CHENNAI) 118 ITD 494, IT HAS BEEN HELD THAT ONCE IT IS SHOWN THAT TAX HAS NOT BEEN DEDUCTED IN ACCORDANCE WITH THE PROVISIONS OF CHAPTER XVII-B, THE BURDEN IS ON THE ASSESSEE TO - - I.T.A. NO. 490/MDS/14 3 SHOW THAT EITHER TAX HAS BEEN DEDUCTED OR ASSESSEE WAS NOT REQUIRED TO DO SO IF ASSESSEE FEELS THAT A PARTICULAR PORTION ALONE IS TAXABLE, ASSESSEE CANNOT DECIDE SO AND IT HAS TO APPROACH THE AUTHORITIES U/S 195(2). 3. AS SEEN FROM THE ABOVE, THE ONLY ISSUE RAISED BE FORE THE TRIBUNAL IS WHETHER SHORT DEDUCTION OF TAX AT SOURC E WOULD ACTIVATE THE PROVISIONS OF LAW STATED IN SECTION 40 (A)(IA). IN FACT, THE CIT(APPEALS) HAS DECIDED THE ISSUE IN FAVOUR OF THE ASSESSEE RELYING ON THE ORDER OF ITAT, CHENNAI C BENCH PASSED IN THE CASE OF M/S KEC INTERNATIONAL LTD. TH ROUGH THEIR ORDER DATED 29 TH JANUARY, 2013, PASSED IN I.T.A. NO. 2061(MDS)/2012. THE VERY SAME VIEW WAS EARLIER TAK EN BY ITAT, CHENNAI A BENCH IN THE CASE OF FRONTIER OFF SHORE EXPLORATION (INDIA) LTD. V. DEPUTY COMMISSIONER OF INCOME TAX (118 ITD 494). 4. THE COMMISSIONER OF INCOME TAX (APPEALS) HAS LEGITIMATELY FOLLOWED THE BIDING ORDERS OF THE TRIB UNAL TO HOLD THAT SHORT DEDUCTION OF TDS DOES NOT CALL FOR DISALLOWAN CE UNDER SECTION 40(A)(IA). THEREFORE, IT IS TO BE SEEN THA T THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (APPEALS) IS JUST AND PROPER IN LAW. - - I.T.A. NO. 490/MDS/14 4 5. IN RESULT, THIS APPEAL FILED BY THE REVENUE IS D ISMISSED. ORDER PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ON TUESDAY, THE 22 ND OF APRIL, 2014 AT CHENNAI. SD/- SD/- (S.S. GODARA) (DR. O.K. NARAYANAN) ( . . !') ( . . . ) # '$ /JUDICIAL MEMBER /VICE-PRESIDENT /CHENNAI, 4' /DATED, THE 22 ND APRIL, 2014. KRI. '5 . ,#067 87'0 /COPY TO: 1. )* /APPELLANT 2. ,-)* /RESPONDENT 3. / 90 () /CIT(A)-II, CHENNAI 4. / 90 /CIT, CHENNAI-I, CHENNAI 5. 7: ,#0# /DR 6. & ; /GF.