ACIT, Circle-7(1), Hyderabad, Hyderabad V. Godavari Constructions, Hyd, Hyderabad

ITA 585/HYD/2016

• Counselvise Citation: [2016] 121 COUNSELVISE.COM (IT) 4410 (ITAT-HYDERABAD)
• Duration Of Justice: 7 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-11-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 22-11-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 25-04-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K J RAO
• Section: 143(3)

Judgement Text

ITA NO 585 OF 2016 GODAVARI CONSTRUCTIONS HYDERAB AD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.585/HYD/2016 (ASSESSMENT YEAR: 2006-07) ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 7(1) HYDERABAD VS M/S. GODAVARI CONSTRUCTIONS HYDERABAD PAN: AAFFG 8506 L FOR REVENUE: SHRI K.J. RAO, DR FOR ASSESSEE: NONE O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2006-07 AND IN THIS APPEAL, THE ONLY GRIEVANCE OF THE REVENUE IS A GAINST THE ORDER OF THE CIT (A) DELETING THE DISALLOWANCE OF RS.10,3 0,259 MADE BY THE AO U/S 40(A)(IA) OF THE ACT. IT IS THE CASE OF THE REVENUE THAT THE CIT (A) OUGHT NOT TO HAVE FOLLOWED THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL AT VISAKHAPATNAM IN THE CASE OF MERILYN SHIPPING & TRANSPORT, REPORTED IN (2012) (146 TTJ ( 1) THOUGH THE SAID DECISION HAS BEEN PLACED UNDER INTERIM SUSPENS ION BY THE HON'BLE HIGH COURT OF TELANGANA & ANDHRA PRADESH. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE WH ICH IS CARRYING OUT EARTH EXCAVATION WORKS, FILED ITS RETU RN OF INCOME FOR THE RELEVANT A.Y ON 31.10.2006 DECLARING AN INCOME OF RS.34,59,061. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF DATE OF HEARING : 22.11.2016 DATE OF PRONOUNCEMENT : 30.11.2016 ITA NO 585 OF 2016 GODAVARI CONSTRUCTIONS HYDERAB AD PAGE 2 OF 3 THE ACT, THE AO OBSERVED THAT THE ASSESSEE HAS INCU RRED AN EXPENDITURE OF RS.10,84,999 FROM WHICH THE ASSESSEE FAILED TO MAKE TDS ON A SUM OF RS.10,30,259 WHICH IS THE ACTU AL INTEREST PAID ON VEHICLE LOANS TO NON BANKING FINANCIAL INST ITUTIONS. THE AO DISALLOWED THE SAME U/S 40(A)(IA) OF THE ACT. ON APPEAL, THE CIT (A) DELETED THE DISALLOWANCE BY FOLLOWING THE D ECISION OF THE SPECIAL BENCH OF THE TRIBUNAL AT VISAKHAPATNAM IN T HE CASE OF MERILYN SHIPPING & TRANSPORT (CITED SUPRA). AGGRIE VED, THE REVENUE IS IN APPEAL BEFORE US. 3. WE FIND THAT THE DECISION OF THE SPECIAL BENCH I N THE CASE OF MERILYN SHIPPING & TRANSPORT (CITED SUPRA) WAS PUT UNDER INTERIM SUSPENSION BY THE HON'BLE JURISDICTIONAL HI GH COURT. HOWEVER, WE FIND THAT THE VIEW TAKEN BY THE SPECIAL BENCH HAS BEEN UPHELD BY THE HON'BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT VS. VECTOR SHIPPING SERVICES LTD REPORTED IN 35 7 ITR 647 WHICH IN TURN HAS BEEN UPHELD BY THE HON'BLE SUPREM E COURT BY WAY OF DISMISSAL OF THE SLP FILED BY THE REVENUE AG AINST THE SAID DECISION AS REPORTED IN (2013) 262 CTR (ALL) 545. I N VIEW OF THE SAME, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CIT (A) AND THE REVENUES APPEAL IS DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 30 TH NOVEMBER, 2016. SD/- SD/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 30 TH NOVEMBER, 2016. VINODAN/SPS ITA NO 585 OF 2016 GODAVARI CONSTRUCTIONS HYDERAB AD PAGE 3 OF 3 COPY TO: 1 ASSTT. COMMISSIONER OF INCOME TAX, CIRCLE 7(1) RO OM NO.812, 8 TH FLOOR, SIGNATURE TOWERS, KONDAPUR, HYDERABAD 2 M/S.GODAVARI CONSTRUCTIONS, FLAT NO.203, SRI ANIT HA APARTMENTS, 2-2-20/B/12, DD COLONY, BAGHAMBERPET, HYDERABAD 3 CIT (A)-3 HYDERABAD 4 PR. CIT 3 HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER