Biotech Opthalmics Pvt.Ltd., Ahmedabad V. The Income tax Officer,Ward-1(2), Ahmedabad

ITA 519/AHD/2011

• Counselvise Citation: 51920514 RSA 2011
• Duration Of Justice: 7 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-10-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 07-10-2011
• Assessment Year: 2005-2006
• Appeal Filed On: 21-02-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAY RAJ KUMAR
• Assessee Lawyers: VIVEK DAMANI

Judgement Text

-1- IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'D' [BEFORE SHRI T K SHARMA JUDICIAL MEMBER] [AND SHRI A K GARODIA, ACCOUNTANT MEMBER] ITA NO.519/AHD/2011 (ASSESSMENT YEAR:-2005-06) BIOTECH OPTHALMICS PVT. LTD., 401 SARTHIK-II, OPP. RAJPATH CLUB, S G HIGHWAY, BODAKDEV, AHMEDABAD THE INCOME-TAX OFFICER, WARD-1(2), AHMEDABAD PAN: AACCB 0328 F [APPELLANT] [RESPONDENT] APPELLANT BY :- SHRI VIVEK DAMANI, AR RESPONDENT BY:- SHRI JAYRAJ KUMAR, SR. DR DATE OF HEARING:- 07-10-2011 DATE OF PRONOUNCEMENT:- 14-10-2011 O R D E R PER T K SHARMA [JM] : THIS APPEAL BY THE ASSESSEE IS AGAINST THE ORDER DATED 03-01-2011 PASSED BY THE LEARNED CO MMISSIONER OF INCOME-TAX (APPEALS)-VI, AHMEDABAD [THE CIT(A) ] FOR ASSESSMENT YEAR (AY) 2005-06. THE ONLY GROUND RAISE D BY THE ASSESSEE IS AS UNDER:- IN LAW AND IN THE FACTS AND CIRCUMSTANCES OF THE APPELLANTS CASE, THE LEARNED CIT(A) HAS GROSSLY ERRED IN UPHOLDING THE D ISALLOWANCE U/S 40(A)(IA) FOR RS.4,10,556/-. HE OUGHT TO HAVE ALLOW ED THE CLAIM OF APPELLANT AS ENTIRE TDS PERTAINING AMOUNT INVOLVED HAS BEEN PAID BEFORE DUE DATE OF FILING OF RETURN OF INCOME. 2 IT A NO.519/AHD/2008 2 AT THE TIME OF HEARING BEFORE US ON BEHALF OF THE ASSESSEE, SHRI VIVEK DAMANI, APPEARED AND POINTED OUT THAT TH E CORRECT AMOUNT OF DISALLOWANCE U/S 40(A)(IA) OF THE INCOME- TAX ACT, 1961 IS RS.3,65,495/-. HE FURTHER POINTED OUT THAT AS PE R PROVISO TO SECTION 40(A)(IA) OF THE ACT, THE ASSESSING OFFICER [AO] BE DIRECTED TO ALLOW THE SUM OF RS.3,65,495/- IN THE N EXT ASSESSMENT YEAR BECAUSE IN THAT YEAR THE ASSESSEE HAS PAID THE AMOUNT OF TDS DUE. 3 SHRI JAYRAJ KUMAR, LEARNED SENIOR DR APPEARED FOR THE REVENUE AND FAIRLY ADMITTED THAT HE HAS NO OBJECTIO N BECAUSE THIS HAS BEEN PROVIDED IN PROVISO TO SECTION 40(A)(IA) O F THE ACT. 4 AFTER HEARING BOTH THE SIDES, WE HAVE CAREFULLY G ONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. PROVIS O TO SECTION 40(A)(IA) READS AS UNDER:- [PROVIDED THAT WHERE IN RESPECT OF ANY SUCH SUM, T AX HAS BEEN DEDUCTED IN ANY SUBSEQUENT YEAR, OR HAS BEEN D EDUCTED DURING THE PREVIOUS YEAR BUT PAID AFTER THE DUE DAT E SPECIFIED IN SUB-SECTION (1) OF SECTION 139, SUCH S UM SHALL BE ALLOWED AS A DEDUCTION IN COMPUTING THE INCOME O F THE PREVIOUS YEAR IN WHICH SUCH TAX HAS BEEN PAID.] WHETHER, THE ASSESSEE HAS PAID THE TDS DUE ON RS.3, 65,495/- IN THE ASSESSMENT YEAR 2006-07 NEEDS VERIFICATION AT T HE END OF AO. WE ACCORDINGLY DIRECT THE ASSESSEE TO FURNISH NECES SARY EVIDENCE OF PAYMENT OF TDS IN THE AY 2006-07 IN RESPECT OF T DS OF RS.3,65,495/- [WHICH IS DISALLOWED IN THE ASSESSMEN T YEAR UNDER APPEAL U/S 40(A)(IA) OF THE ACT] TO THE AO. THE AO WILL VERIFY THE 3 IT A NO.519/AHD/2008 SAME AND ALLOW THE SAME KEEPING IN VIEW THE AFORESA ID PROVISO TO SECTION 40(A)(IA) OF THE ACT. 5 IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREA TED AS PARTLY ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT TODAY ON 14-10-2011 SD/- SD/- (A K GARODIA) ACCOUNTANT MEMBER (T K SHARMA) JUDICIAL MEMBER DATE : 14-10-2011 COPY OF THE ORDER FORWARDED TO: 1. BIOTECH OPTHALMICS PVT. LTD., 401 SARTHIK-II, OP P. RAJPATH CLUB, S G HIGHWAY, BODAKDEV, AHMEDABAD 2. THE INCOME-TAX OFFICER, WARD-1(2), AHMEDABAD 3. CIT CONCERNED 4. CIT(A)-VI, AHMEDABAD 5. DR, ITAT, AHMEDABAD BENCH-D, AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT, AHMEDABAD