Lycos Internet Limited(Formerly known as Ybrant Digital Limited), Hyderabad V. ACIT, Circle-15(2), , Hyderabad

ITA 533/HYD/2016

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5375 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 17-02-2021
• Assessment Year: 2008-2009
• Appeal Filed On: 15-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y V S T SAI
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Retrospective amendment; TDS
• Section: 194C; 201(1); 201; 43; 194J

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES : BENCH B HYDERABAD (THROUGH VIDEO CONFERENCE ) BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L.P. SAHU, ACCOUNTANT MEMBER I.T.A. NO S . 531, 532, 533/HYD/ 201 6 ASSESSMENT YEAR S : 2006 - 07, 2007 - 08, 2008 - 09 M/S LYCOSE INTERNET LTD. VS. ACIT, CIRCLE 15(2) (FORMERLY KNOWN AS M/S YBRANT DIGITAL HYDERABAD LTD ) HYDERABAD [PAN: AAACV 4079Q ] (APPELLANT) (RESPONDENT) FOR ASSESSEE: SRI P. MURALI MOHANA RAO, AR FOR REVENUE: SHRI YVST SAI, CIT D.R. DATE OF HEARING : 17 /02/2021 DATE OF PRONOUNCEMENT : 06 /05/2021 O R D E R PER S.S. GODARA, J.M. THESE THREE ASSESSEES APPEALS FOR A.Y 2006 - 07, 2007 - 08 AND 2008 - 09 ARISE FROM THE CIT(A) - 8, HYDERABADS ORDERS; ALL DATED 15.2.2016 IN CASE NO. AFFIRMING ASSESSING OFFICERS ACTION TREATING IT AS ASSESSEE IN DEFAULT RESULTING IN DEMANDS OF RS.2 , 43 , 131 / - ; 1 , 21 , 597 / - AND 4 , 61 , 88 4 / - RESPECTIVELY IN VOLVING PROCEEDINGS U /S 201(1) AND 201(1A) OF THE INCOME TAX ACT, 1961 [FOR SHORT THE ACT ] . HEARD BOTH THE PARTIES CASE FILE PERUSED. 2. COMING TO ASSESSEES ALLEGED DEFENCE IN ISSUE TRIGGERING SEC.201(1) & 201(1A) PROCESS IN MO TION, T HERE IS NO MATERIAL BEFORE US WHICH COULD REBUT ITA NOS. 531, 532 & 533/HYD/2016 AAYS: 2006 - 07, 2007 - 08, 2008 - 09 LYCOSE INTERNET LTD. (FORMERLY KNOWN AS YBRANT DIGITAL LTD.) 2 THE LEARNED LOWER AUTHORITIES ACTION IN PRINCIPLE THAT THE ASSESSEE INDEED HAS NOT DEDUCTED TDS O N ALL THE CORRESPONDING PAYMENTS MADE U/S 194C 194(1) AND 194J OF THE ACT; AS THE CASE MAY BE ; RESPECTIVELY . WE THUS FIND NO REASON TO INTERFERE WITH THE IMPUGNED ACTION OF LEARNED LOWER AUTHORITIES IN PRINCIPLE. 3. NEXT COMES THE EQUALLY IMPORTANT ISSUE OF INTRODUCTION OF S.201(1) FIRST PROVISO VIDE FINANCE ACT, 2012 W.E..F. 1.4.2012. THE REVE NUES VEHEMENT STAND IS THAT THIS PROVISO DOES NOT CARRY ANY RETROSPECTIVE EFFECT IN AY. 2006 - 07 TO 2008 - 09 BEFORE US. WE FIND NO FORCE IN R EVENUES INSTANT ARGUMENT. WE NOTE THAT THE LEGISLATURE HAS MADE IT CLEAR THAT THE LANGUAGE EMPLOYED IN BOTH SECT IONS 40(A) (IA) 2 ND PROVISO WHICH IS TO BE READ WITH THE FIRST PROVISO OF SEC.201 CASTS ONUS ON THE ASSESSEE TO PROVE THAT THE RECEIPTS CONCERNED ALREADY STANDS ASSESSED IN RECIPIENTS HANDS QUA THE CORRESPONDING EXPENSE(S). HONBLE DELHI H IGH C OURTS DECI SION IN CIT VS. ANSAL PROPERTIES 279 CTR 384 (DELHI) HOLDS THE FORMER PROVISO TO BE CARRYING RETROSPECTIVE EFFECT SINCE A CURATIVE WHICH IS INSEPARABLE FROM SEC.201 FIRST PROVISO. WE THUS ADOPT THE VERY REASONING MUTATIS MUTANDIS HEREIN ALSO TO RESTORE THE FORMER ISSUE FOR ASSESSING OFFICERS FACTUAL VERIFICATION QUA THE RESPECTIVE ASSESSMENTS TO BE DECIDED AFRESH . THE ASSESSEE OR ITS AUTHORISED REPRESENTATIVE SHALL APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 31.08.2021 W ITH ALL RELEVANT EVIDENCE S; AT ITS OWN RISK AND RESPONSIBILITY WHICH SHALL FOLLOW THREE EFFECTIVE OPPORTUNITIES OF HEARING. THESE ASSESSEES APPEALS ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. A COPY OF THIS COMMON ORDER BE PLACED IN RESPECTIVE FILES. PRONOUNCED IN OPEN COURT ON 06 TH MAY, 2021. SD/ - SD/ - (L.P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: THE 06 TH MAY, 2021. * GMV ITA NOS. 531, 532 & 533/HYD/2016 AAYS: 2006 - 07, 2007 - 08, 2008 - 09 LYCOSE INTERNET LTD. (FORMERLY KNOWN AS YBRANT DIGITAL LTD.) 3 COPY OF THE ORDER FORWARDED TO: 1. M/S LYCOSE INTERNET LTD. (FORMERLY KNOWN AS M/S YBRANT DIGITAL LTD.,) C/O P.MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500 0 82, TELANGANA. 2. ACIT, CIRCLE 15(2), HYDERABAD. 3 . ACIT, RANGE 1 5 , HYDERABAD. 4 . CIT(A) - 8 , HYDERABAD. 5. PR.CIT - 8 , HYDERABAD. 6. DR, ITAT, HYDERABAD. 7 . GUARD FILE.