ACIT, Jaipur V. VINAY MATHUR, Jaipur

ITA 657/JPR/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 5626 (ITAT-JAIPUR)
• Duration Of Justice: 2 year(s) 5 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-01-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2009-2010
• Appeal Filed On: 12-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

ITANO. 657/JP/13 ACIT, CIRCLE-6, JAIPUR VS. SHRI VINAY MATHUR 1 IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH VKJ-IH-RKSYKUH] U;KF;D LNL; ,OA JH FOE FLAG ;KN O] YS[KK LNL; DS LE{K BEFORE: SHRI R.P. TOLANI, JM & SHRI VIKRAM SINGH YA DAV, AM VK;DJ VIHY LA-@ ITA NO. 657/JP/13 FU/KZKJ.K O'K Z@ ASSESSMENT YEAR : 2009-10 LQUOKBZ DH RKJH[K@ DATE OF HEARING : 16/12/2015 ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 05 /01/2016 VKNS'K@ ORDER FU/KKZFJRH DH VKSJ LS@ ASSESSEE BY SH. MANISH AGARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI REJENDRA SINGH (JCIT) PER SHRI VIKRAM SINGH YADAV, AM THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-II, JAIPUR DATED 10.05.2013 WHEREIN THE REVENUE HAS TAK EN THE FOLLOWING GROUND OF APPEAL: WHETHER ON THE FACTS AND IN CIRCUMSTANCES OF THE C ASE AND IN LAW THE LD.CIT(A) HAS ERRED IN DELETING ADDITION OF RS . 41,30,092/- ON THE ACIT, CIRCLE - 6, JAIPUR CUKE V/S. SHRI VINAY MATHUR, 7A EVEREST COLONY, BEHIND PNB, TONK ROAD, JAIPUR LFKK;H YS[KK LA-@THVKJBZVKJ LA-@ PAN NO. AGKPM 9193 Q ITANO. 657/JP/13 ACIT, CIRCLE-6, JAIPUR VS. SHRI VINAY MATHUR 2 ACCOUNT OF DISALLOWANCE U/S 40(A)(IA) OF THE I.T. A CT, FOR LATE DEPOSITION OF TDS ON GOVERNMENT ACCOUNT. 2. THE BRIEF FACTS RELEVANT FOR THE YEAR UNDER CONSIDERA TION ARE THAT THE AO MADE DISALLOWANCE OF RS. 41,30,092/- U/S 40(A) (IA) OF THE INCOME TAX ACT, 1961 ON THE GROUND THAT THE ASSESSEE H AD NOT DEPOSITED THE TDS MADE U/S194C BEFORE THE END OF THE RELEVANT FINANCIAL YEAR I.E. 31.03.2009. THE ASSESSEE HAD DEDUCTED TDS ON PAYMENT TO SUBCONTRACTOR FOR THE MONTH OF FEBRUARY, 2009 AND DEPOSITED THE SAME IN THE MONTH OF APRIL, JUNE AND AUG UST, 2009 TO THE CREDIT OF CENTRAL GOVERNMENT WHICH IS PRIOR TO THE FILI NG OF RETURN OF INCOME WHICH STOOD FILED ON 02.01.2010. THE LD. AO AL LEGED THAT THE SAME SHOULD HAVE BEEN DEPOSITED BEFORE THE END OF THE R ELEVANT FINANCIAL YEAR I.E 31.03.2009 AND MADE DISALLOWANCE U/S 40(A)(IA). 2.1 DURING THE COURSE OF HEARING, THE LD. AR BROUGH T TO THE NOTICE OF THE BENCH THAT THE ISSUE UNDER CONSIDERATION STANDS CO VERED IN FAVOUR OF THE ASSESEE BY RECENT DECISION OF HONBLE RAJASTHAN HIGH COURT IN CASE OF CIT VS. HARISH CHAND AHUJA 280 CTR 403 WHEREIN THE HONBLE RAJASTHAN HIGH COURT HAS AGREED WITH THE DECISION O F HONBLE GUJARAT HIGH COURT IN THE CASE OF OM PRAKASH CHOUDHURY IN ITA NO . 412 OF 2013 WHERE THE RELEVANT FINDING IS CONTAINED IN PARA 17 OF IT S ORDER WHICH READS AS UNDER: THE CORE ISSUE AS TO WHETHER THE AMENDMENT MADE BY THE FINANCE ACT 2010 TO SECTION 40(A)(IA) OF THE ACT IS RETROSPECTIVE FROM THE DATE OF INSERTION OF THE PROVISION I.E. 1 ST APRIL 2005 ITANO. 657/JP/13 ACIT, CIRCLE-6, JAIPUR VS. SHRI VINAY MATHUR 3 THEREFORE NEEDS TO BE ANSWERED IN AFFIRMATION. IT CAN BE SEEN THAT THE AMENDMENT MADE BY THE FINANCE ACT 2010 AL LOWS ADDITIONAL TIME UPTO THE DUE DATE OF FILING OF THE RETURN IN RESPECT OF EVEN THOSE INSTANCES WHERE TDS HAS BEEN DEDUCTED DURING THE FIRST ELEVEN MONTHS OF THE PREVIOUS YEAR . THE ADDITIONAL TIME TILL THE DUE DATE OF FILING OF THE RETURN , IN CASE OF TDS MADE DURING THE LAST MONTH OF THE PREVIOUS Y EAR WAS ALREADY AVAILABLE BY THE AMENDMENT MADE BY FINANCE ACT 2008. THUS IT IS APPARENT THAT THE RELAXATION M ADE BY THE AMENDMENT MADE UNDER THE FINANCE ACT, 2010 BRINGS T HE LAW IN PARITY WITH THE AFOREMENTIONED SITUATION AND ACC ORDINGLY, FOR THE TDS DEDUCTED ALL THROUGHOUT THE YEAR, TIME I S EXTENDED FROM PAYMENT TILL THE FILING OF RETURN. IT IS THUS APPARENT THAT WHEN THE AMENDMENT INTRODUCED BY THE FINANCE ACT, 2 008 OF RELAXING THE TIME FOR DEPOSIT OF TDS WAS MADE RETR OSPECTIVE FROM THE YEAR 2005 (1 ST APRIL 2005) THE AMENDMENT BY FINANCE ACT, 2010 WITH REGARD TO OTHER LIMB OF TIME LIMIT FOR PAYMENT OF TDS HAS TO BE HELD RETROSPECTIVE NOT FROM 1 ST APRIL 2010 ONLY. IF WE RECALL AT THIS STAGE THE SPEECH OF FINA NCE MINISTER WHILE INTRODUCING THIS PROVISION BY WAY OF FINANCE ACT, 2010 THIS AMENDMENT ESSENTIALLY HAS BEEN BROUGHT FOR RE LAXING THE CURRENT PROVISION ON DISALLOWANCE OF EXPENDITURE. THE TAX, IF IS DEDUCTED AT ANY TIME DURING THE FINANCIAL YEAR AND PAID BEFORE THE DATE OF FILING OF THE RETURN, THE LEGISLATURE I NTENDED TO ALLOW DEDUCTION ON SUCH EXPENDITURE WITH AN INTENTION TO PERMIT ADDITIONAL TIME FOR MOST DEDUCTORS UPTO SEPTEMBER, OF THE NEXT FINANCIAL YEAR. 2.2 THE LD. DR RELIED ON THE ORDER OF THE LOWER AUT HORITIES. 2.3 WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. IT IS NOT IN DISPUTE THAT THE TDS WAS DEPOSITED BEFORE THE DUE DATE OF FILING OF THE RETURN OF INCO ME. RESPECTFULLY ITANO. 657/JP/13 ACIT, CIRCLE-6, JAIPUR VS. SHRI VINAY MATHUR 4 FOLLOWING THE DECISION OF THE HONBLE RAJASTHAN HIG H COURT IN CASE OF HARISH CHAND AHUJA (SUPRA), THE ADDITIONS OF RS. 17 ,78,495/- U/S 40(A)(IA) OF THE IT ACT, 1961 IS DELETED. IN THE RESULT, THE APPEAL FILED BY THE REVENUE IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 05 /0 1/2016. SD/- SD/- VKJ-IH-RKSYKUH FOE FLAG ;KNO (R.P.TOLANI) (VIKRAM SINGH YADAV) U;KF;D LNL;@ JUDICIAL MEMBER YS[KK LNL;@ ACCOUNTANT MEMBER JAIPUR DATED:- 05 /01 /2015 PILLAI VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT THE CIT, CIRCLE-6, JAIPUR 2. THE RESPONDENT SHI VINAY MATHUR, 7A EVEREST COLO NY, JAIPUR 3. THE CIT(A).II, JAIPUR 4. THE CIT-II JAIPUR 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO.657/JP/13) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR