Yegna Manojavam Drugs & Chemicals Ltd., Hyd, Hyderabad V. DCIT, Circle-3(3), Hyd, Hyderabad

ITA 861/Hyd/2016

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 4750 (ITAT-HYDERABAD)
• Duration Of Justice: 5 year(s) 3 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-B
• Assessment Year: 2010-2011
• Appeal Filed On: 06-06-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHANA RAO
• Keywords: Retrospective amendment; TDS
• Section: 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES B : HYDERABAD (THROUGH VIDEO CONFERENCE) BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER I.T.A. NO. 861/HYD/2016 ASSESSMENT YEAR: 2010-11 M/S.YEGNA MANOJAVAM DRUGS & CHEMICALS LTD., HYDERABAD [PAN: AABCV7776L] VS DCIT, CIRCLE-3(3), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI P.MURALI MOHANA RAO, AR FOR REVENUE : SHRI ROHIT MUJUMDAR, DR DATE OF HEARING : 23-08-2021 DATE OF PRONOUNCEMENT : 29-09-2021 O R D E R PER S.S.GODARA, J.M. : THIS ASSESSEES APPEAL FOR AY.2010-11 ARISES FROM TH E CIT(A)-5, HYDERABADS ORDER DATED 29-02-2016 PASSED IN CASE NO.0647/2014-15/CIT(A)-5, IN PROCEEDINGS U/S.143(3) OF THE INCOME TAX ACT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. WE COME TO THE ASSESSEES FIRST AND FOREMOST SUBSTANT IVE GROUND SEEKING TO REVERSE BOTH THE LOWER AUTHORITIES ACTION TREATING ITS SHARE APPLICATION/ALLOTMENT AMOUNT OF RS.44,50,000/- AS UN-EXPLAINED CASH CREDITS U/S.68 OF THE ACT. A PERUSAL OF ITS DETAILED PAPER BOOK, AND MORE SO, AT PG.67 ITA NO. 861/HYD/2016 :- 2 -: THEREOF CONTAINS THE CORRESPONDING FACTS AND FIGURES I .E. THE RELEVANT PARTICULARS OF CHANGE IN EQUITY SHARE CAPITA L AND SHARE APPLICATION MONEY ALONG WITH THE CORRESPONDING DETAILS AS PER BALANCE SHEET FROM PG.46 ONWARDS SUGGESTING TH AT IT HAD NOT RECEIVED THE IMPUGNED SUM IN FY.2009-10 IN THE RELEVANT ACCOUNTING PERIOD FROM 01-04-2009 TO 31-03-20 10. SUFFICE TO SAY, THIS CLINCHING FACT HAS AGAINST UN-REB UTTED FROM THE REVENUES SIDE. CASE LAW, IVAN SINGH VS. AC IT (2020) 422 ITR 128 (BOM) HOLDS THAT THE STATUTORY EXPRESSION PREVIOUS YEAR IN THE ACT HAS TO BE TAKEN AS THE P REVIOUS YEAR IN ISSUE ONLY . WE THEREFORE DIRECT THE ASSESSING OFFICER TO DELETE THE IMPUGNED ADDITION FOR THIS PRECISE REASON ALONE. 3. NEXT COMES THE SECOND ISSUE OF PRE-OPERATIVE EXPEN SES DISALLOWANCE OF RS.9,44,736/- MADE IN BOTH THE LOWER PROCEEDINGS. LEARNED COUNSEL HAS FILED THE ASSESSEE S STATEMENT ON PRELIMINARY EXPENSES TO BE WRITTEN-OFF RIGH T FROM FY.2003-04 TO 2009-10 (IN ISSUE) GIVING DETAILS OF THE CORRESPONDING FIGURES WRITTEN-OFF DURING ALL THE CORRE SPONDING EARLIER YEARS BALANCE AS ON 31 ST MARCH INCURRED/TRANSFERRED DURING THE YEAR AND ALL RELEVANT FACTS. WE FIND THAT ALL THESE FOREGOING FIGURES HAVE NOWHERE BEEN CONSIDERED AND DISCUSSED EITHER IN THE COURSE OF ASSESSMENT OR IN THE CIT(A)S ORDER UNDER CHALLENGE. WE THUS DEEM IT APPROPRIATE TO RESTORE THE INSTANT SECOND ISSUE BACK TO THE ASSESSING OFFICER FOR HIS FRESH FACTUAL VERIFICATION. ORDERED ACCORDINGLY. 4. NEXT COMES THE ISSUE OF SECTION 40(A)(IA) DISALLOW ANCE OF RS.15,28,221/- ON ACCOUNT OF ASSESSEES FAILURE IN N OT DEDUCTING TDS ON CARRIAGE (INWARD AND OUTWARD) AS WE LL AS ITA NO. 861/HYD/2016 :- 3 -: AUDIT FEE HAVING VARYING SUMS. ITS SOLE ARGUMENT BEFO RE US IS THAT SECTION 40(A)(IA), 2 ND PROVISO STIPULATING THAT THE IMPUGNED DISALLOWANCE DOES NOT APPLY IN CASE AS ASSE SSEE IS NOT THE ASSESSEE-IN-DEFAULT U/S.201(1), IS A CURATIVE O NE HAVING RETROSPECTIVE EFFECT AS PER CIT VS. ANSAL LAND MARK TOWNSHIPS (P) LTD., (2016) [279 CTR 384] (DEL) (2015 ) [377 ITR 635] (DEL). WE THUS RESTORE THE INSTANT THIRD ISSUE AS WE LL BACK TO THE ASSESSING OFFICER FOR HIS AFRESH FACTUAL VERIFI CATION OF THE ASSESSEES PAYEES HAVING BEEN ASSESSED QUA THE IMPUGNED SUM(S). THIS THIRD SUBSTANTIVE GROUND IS ALSO ACCEPT ED FOR STATISTICAL PURPOSES. 5. LASTLY COMES FOURTH ISSUE OF CORRECTNESS OF BOTH THE LEARNED AUTHORITIES ACTION RESTRICTING ASSESSEES TDS CLAIM OF RS.6,86,531/- TO RS.6,58,691/- ONLY. BOTH THE LEARNED REPRESENTATIVES ARE AD IDEM DURING THE COURSE OF HEARING OF THE INSTANT TDS ISSUE INVOLVES MORE A RECONCILIATION EXER CISE THAN ANY SUBSTANTIVE ADJUDICATION. WE THEREFORE ADOPT THE VE RY COURSE OF ACTION HEREIN TO RESTORE THE ASSESSEES INSTAN T LAST GROUND BACK TO THE ASSESSING OFFICER. ORDERED ACCORD INGLY. 6. THIS ASSESSEES APPEAL IS TREATED AS PARTLY ALLOWE D FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH SEPTEMBER, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 29-09-2021 TNMM ITA NO. 861/HYD/2016 :- 4 -: COPY TO : 1.M/S.YEGNA MANOJAVAM DRUGS & CHEMICALS LTD., C/O. P.MURALI & CO., CHARTERED ACCOUNTANTS, 6-3- 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD. 2.DY.COMMISSIONER OF INCOME TAX, CIRCLE-3(3), HYDER ABAD. 3.CIT(APPEALS)-5, HYDERABAD. 4.PR.CIT-5, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.