M/s Srinivasa Ferro Alloys Ltd., Visakhapatnam V. The Addl. CIT, Range-4, Visakhapatnam., Visakhapatnam

ITA 62/VIZ/2012

• Counselvise Citation: [2012] 120 COUNSELVISE.COM (IT) 0223 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 8 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-11-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 06-11-2012
• Assessment Year: 2008-2009
• Appeal Filed On: 05-03-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K V N CHARYA
• Assessee Lawyers: P S RAJU

Judgement Text

ITA NO.62/VIZAG/2012 M/S. SRINIVASA FERRO ALLOYS LT D., VSKP IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE: SHRI D. MANMOHAN , VICE PRESIDENT AND SHRI BR BASKARAN, ACCOUNTANT MEMBER ITA NO. 62 /VIZAG/ 20 12 ASSESSMENT YEAR : 2008 - 09 M/S. SRINIVASA FERRO ALLOY S LTD VISAKHAPATNAM VS. ADDL. CIT RANGE - 4 VISAKHAPATNAM (APPELLANT) (RESPONDENT) PAN NO. AADCS 1439B APPELLANT BY: SHRI P.S. RAJU, C.A. RESPONDENT BY: SHRI K.V.N. CHARYA, CIT(DR) DATE OF HEARING : 06.11.2012 DATE OF PRONOUNCEMENT : 06.11.2012 ORDER PER SHRI D. MANMOHAN, VICE PRESIDENT:- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER DATED 30.11.2011 PASSED BY THE LD. CIT(A), VISAKHAPATNAM. THE ONLY GROUND URGED BEFORE US READS AS UNDER: THE CIT(A) HAS ERRED IN CONFIRMING THE ADDITIONS MADE IN RESPECT OF EXPENDITURE ON HIRE CHARGES OF RS.19,13,995/- U/ S 40(A)(IA) INSPITE OF THE EXPENDITURE HAVING BEEN PAID DURING THE FINANCIAL YEAR AS AGAINST PAYABLE USED IN SECTION 40(A)(IA). 2. FACTS OF THE CASE WERE ELABORATELY INCORPORATED BY THE A.O. AS WELL AS CIT(A) AND THEREFORE, IT IS NOT NECESSARY TO REP RODUCE THE FACTS. THE LIMITED ISSUE FOR OUR CONSIDERATION IS THAT EVEN IN A CASE WHERE TAX IS NOT DEDUCTED AT SOURCE, SO LONG AS PAYMENT IS MADE BY T HE ASSESSEE, PROVISIONS OF SECTION 40(A)(IA) OF THE INCOME-TAX A CT IS NOT ATTRACTED, SINCE IT REFERS TO THE EXPRESSION PAYABLE WHICH IS DIFF ERENT FROM THE EXPRESSION PAID. ASSESSEE RELIED UPON THE DECISION OF THE I TAT SPECIAL BENCH, VISAKHAPATNAM IN THE CASE OF `MERILYN SHIPPING & TR ANSPORTS, VISAKHAPATNAM IN ITA NO.477/VIZAG/2008 REPORTED IN 136 ITD 23 (SB). IT IS NOT IN DISPUTE THAT THE AMOUNT IN QUESTION IS PAID BEFORE MARCH OF THE CONCERNED FINANCIAL YEAR AND HENCE PROVISIONS OF SE CTION 40(A)(IA) OF THE ACT ARE NOT APPLICABLE TO THE SAME. THE LD. CIT(A) WAS HOWEVER OF THE ITA NO.62/VIZAG/2012 M/S. SRINIVASA FERRO ALLOYS LT D., VSKP 2 OPINION THAT THE EXPRESSION PAYABLE INCLUDES AMOU NTS PAID BEFORE MARCH. 3. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), ASSESS EE IS IN APPEAL BEFORE US. 4. AT THE TIME OF HEARING, BOTH THE PARTIES ADMITTE D THAT THE ISSUE STANDS SQUARELY COVERED BY THE DECISION OF THE ITAT VISAKHAPATNAM SPECIAL BENCH IN THE CASE OF MERILYN SHIPPING & TRA NSPORTS, VISAKHAPATNAM (SUPRA). SINCE THERE IS NO DISPUTE O N FACTS, WE ARE OF THE OPINION THAT DISALLOWANCE MADE BY THE ASSESSING OFF ICER U/S 40(A)(IA) OF THE ACT IS NOT IN ACCORDANCE WITH LAW. BY RESPECTF ULLY FOLLOWING THE DECISION OF THE VISAKHAPATNAM SPECIAL BENCH (SUPRA) , WE SET ASIDE THE ORDERS OF THE A.O. AND CIT(A) ON THIS ISSUE AND ALL OW THE APPEAL FILED BY THE ASSESSEE. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED. PRONOUNCED IN THE OPEN COURT ON 6.11.2012 SD/ - SD/ - (B . R . BASKARAN) ( D. MANMOHAN ) ACCOUNTANT MEMBER VICE PRESIDENT VG/SPS VISAKHAPATNAM, DATED 6 TH NOVEMBER, 2012 COPY TO 1 M/S. SRINIVASA FERRO ALLOYS LTD., MIG 225, TPT COLO NY, SEETHAMMADHARA, VISAKHAPATNAM 2 ACIT, RANGE - 4, VISAKHAPATNAM 3 THE CI T, VISAKHAPATNAM 4 THE CIT (A) , VISAKHAPATNAM 5 THE DR, ITAT, VISAKHAPATNAM. 6 GUARD FILE. BY ORDER SENIOR PRIVATE SECRETARY INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM