CES Limited , Hyderabad V. Dy. Commissioner of Income Tax , Circle-1(2), Hyderabad

ITA 725/Hyd/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 6060 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 11 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-04-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 17-03-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 09-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: TDS; Set aside
• Section: 22

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 725/HYD/2019 ASSESSMENT YEAR: 2014-15 M/S.CES LIMITED, HYDERABAD [PAN: AADCS4564P] VS DCIT, CIRCLE-1(2), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING : 22-02-2021 DATE OF PRONOUNCEMENT : 22-04-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2014-15 ARISES FROM TH E CIT(A)-1, HYDERABADS ORDER DATED 18-02-2019 PASSED IN CASE NO. 0212 / 2016-17 / ITO-17(1) / CIT(A)-1 / HYD / 2 018-19, IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILED PERUSED. 2. THE ASSESSEE HAS PLEADED THE FOLLOWING TWIN SUBSTA NTIVE GROUNDS IN THE INSTANT APPEAL: ITA NO. 725/HYD/2019 :- 2 -: 1. THE ORDER OF THE CIT(A) IS ERRONEOUS BOTH ON FA CTS AND IN LAW. 2. THE LD.CIT(A) OUGHT TO HAVE ALLOWED THE GROUND O F APPEAL WITH REGARD TO THE DISALLOWANCE OF RS.3,46,655/- INSTEAD OF DIRECTING THE AO TO VERIFY FURTHER. 3. THE LD.CIT(A) OUGHT TO HAVE ALLOWED THE GROUND O F APPEAL IN RESPECT OF CREDIT FOR TDS OF RS.2,23,29,360/- INSTE AD OF DIRECTING THE AO TO VERIFY FURTHER. 4. THE APPELLANT MAY ADD, ALTER OR MODIFY ANY OTHER POINTS TO THE GROUNDS OF APPEAL AT ANY TIME BEFORE OR AT THE TIME OF HEARING OF THE APPEAL. 3. IT TRANSPIRES DURING THE COURSE OF HEARING THAT WE N EED NOT DELVE MUCH DEEPER IN THE RELEVANT FACTS. THE ASSE SSING OFFICER HAD MADE THE ABOVE STATED TWO DISALLOWANCES OF ASSESSEES ESI/PF PAYMENTS AND FOLLOWED BY ADDITION OF SHORT CREDIT OF TDS OF RS.2,23,29,360/- IN THE COURSE OF A SSESSMENT WHICH IN TURN STAND RESTORED BACK TO HIM BY THE CIT(A) I N HIS LOWER APPELLATE ORDER TO ACCEPT THE CORRESPONDING CLAIM S AFTER DUE VERIFICATION OF FACTS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO RIVAL CONTENTIONS. THE ASSESSEES ONLY CASE IS THAT THE CIT(A ) NO MORE POSSESSES THE JURISDICTION TO SET ASIDE THE SAID I SSUES IN HIS LOWER APPELLATE ADJUDICATION SINCE THE RELEVANT ST ATUTORY EXPRESSION OR HE MAY SET ASIDE IN SECTION 251(1)(A) OF THE ACT STANDS OMITTED BY THE FINANCE ACT, 2001 W.E.F. 01-06-20 01. THE REVENUE IS EQUALLY FAIR IN NOT DISPUTING THE FOR EGOING LEGAL PLEA. THE FACT ALSO REMAINS THAT BOTH THE ASSESSE ES SUBSTANTIVE GRIEVANCES INDEED REQUIRE FACTUAL VERIFIC ATION REGARDING THE DUE DATE SO FAR AS ITS ESI/PF DISALLOWAN CE IS CONCERNED AS WELL AS THE TDS CREDIT FIGURES IN FORM 2 6AS ITA NO. 725/HYD/2019 :- 3 -: VIZ-A-VIZ THE BOOKS OF ACCOUNTS. WE THEREFORE REVERSE THE CIT(A)S ACTION IN PRINCIPLE BUT ADOPT THE VERY CAUSE O F ACTION IN THE ASSESSEES TWIN SUBSTANTIVE GROUNDS IN THE LARGE R INTEREST OF JUSTICE. THE ASSESSEE IS DIRECTED TO APPEAR BEFORE THE ASSESSING OFFICER ON OR BEFORE 31-08-2021 ALONG WITH ALL THE NECESSARY DETAILS TO BE FOLLOWED BY THREE EFFECTIVE O PPORTUNITIES OF HEARING; AT ITS OWN RISK AND RESPONSIBILITY. 5. THIS ASSESSEES APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 22 ND APRIL, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 22-04-2021 TNMM ITA NO. 725/HYD/2019 :- 4 -: COPY TO : 1.M/S.CES LIMITED, C/O. P.MURALI & CO., CHARTERED ACCOUNTANTS, 6-3-655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2.THE DCIT, CIRCLE-1(2), HYDERABAD. 3.CIT(APPEALS)-1, HYDERABAD. 4.PR.CIT-1, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.