INTERSIL (INDIA) P.LTD, MUMBAI V. DCIT 8(2), MUMBAI

ITA 5030/MUM/2012

• Counselvise Citation: [2014] 120 COUNSELVISE.COM (IT) 5665 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-02-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Next Hearing Date: 27-02-2014
• Assessment Year: 2009-2010
• Appeal Filed On: 06-08-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHOK SURI
• Assessee Lawyers: JAYESH DADIYA
• Keywords: Opportunity of being heard; Principle of natural justice; Additional evidence

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL I BENCH, MUMBAI BEFORE SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER AND SHRI VIVEK VARMA, JUDICIAL MEMBER ./I.T.A. NO.5030/M/2012 ( AY: 2009 - 2010 ) M/S. INTERSIL (INDIA) PVT. LTD., UNIT A - 4, UDYOG SADAN NO.3, M.I.D.C., ANDHERI (EAST), MUMBAI 400 093. / VS. DCIT 8(2), AAYAKAR BHAVAN, M.K. ROAD, MUMBAI 400 020. ./ PAN : AAACI 0954 Q ( / APPELLANT) .. ( / RESPONDENT ) / APPELLANT BY : SHRI JAYESH DADIYA / RESPONDENT BY : SHRI ASHOK SURI, DR / DATE OF HEARING :27.2.2014 / DATE OF PRONOUNCEMENT :27.2.2014 / O R D E R PER D. KARUNAKARA RAO, AM: THIS APPEAL FILED BY THE ASSESSEE ON 6.8.2012 IS AGAINST THE ORDER OF THE CIT (A) - 17, MUMBAI DATED 24.5.2012 FOR THE ASSESSMENT YEAR 2009 - 2010. 2. IN THIS APPEAL, ASSESSEE RAISED THE FOLLOWING EFFECTIVE GROUND WHICH READS AS UNDER: 1. THE LD CIT (A) HAS ERRED IN LAW AND ON THE FACTS OF THE CASE IN CONFIRMING THE ACTION OF THE AO IN DISALLOWING RS. 10,82,448/ - UNDER SECTION 40(A)(IA) OF THE ACT. THE ACTION IS UNJUSTIFIED AND UNWARRANTED AS THE ENTIRE AMOUNT OF RS. 10,82,448/ - IS ON ACCO UNT OF SHARE OF REVENUE AND NOT SUBJECT TO WITHHOLDING TAX UNDER ANY PROVISIONS OF INCOME TAX ACT. 3. AT THE OUTSET, SHRI JAYESH DADIYA, LD COUNSEL FOR THE ASSESSEE BROUGHT OUR ATTENTION TO THE IMPUGNED ORDER AND MENTIONED THAT THE ISSUE OF DISALLOWANCE U/S 40(A)(IA) IS REPETITIVE AND THE MATTER EVENTUALLY SET ASIDE BY THE TRIBUNAL IN THE EARLIER ASSESSMENT YEARS 2006 - 2007, 2007 - 2008 AND 2008 - 2009 TO THE FILES OF THE AO VIDE PARA 7 OF THE ORDER OF THE TRIBUNAL IN ASSESSEES OWN CASE DATED 7.11.2012. FURT HER, HE BROUGHT OUR ATTENTION TO THE AMENDED PROVISIONS OF SECTION 40(A)(IA) OF THE ACT AND MENTIONED THAT THE ASSESSEE FILED ADDITIONAL EVIDENCES WHICH ARE COPY OF 2 THE FORM NO.26A UNDER RULE 31ACB READ WITH SECTION 201 OF THE INCOME TAX ACT, 1961. THE SA ID FORM IS DULY SIGNED BY THE CHARTERED ACCOUNTANT OF THE PAYEE COMPANY. FURTHER, LD COUNSEL MENTIONED THAT THE PAYEE COMPANY I.E., TIGERSTOP SYSTEMS PVT LTD FILED THE RETURN OF INCOME THEREFORE, AS PER THE AMENDED PROVISIONS, AO NEED NOT INVOKE THE PROVI SIONS OF SECTION 40(A)(IA) OF THE ACT. 4. BEFORE US, LD REPRESENTATIVES OF BOTH THE PARTIES AGREED FOR REMANDING THE MATTER TO THE FILES OF THE AO IN ACCORDANCE WITH THE PRINCIPLES OF NATURAL JUSTICE. 5. ON HEARING BOTH THE PARTIES, WE ADMIT THE ADDITIONAL EVIDENCES FILED BY THE ASSESSEE AND REMAND THE MATTER TO THE FILES OF THE AO FOR ADJUDICATING THE ISSUE AFRESH AFTER GRANTING A REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ACCORDINGLY, GROUN D RAISED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH FEBRUARY, 2014. S D / - S D / - (VIVEK VARMA) (D. KARUNAKARA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI ; 27 .2 .2014 . . ./ OKK , 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 . //TRUE COPY// / BY ORDER, / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI