Appeal Details
Counselvise Citation
[2021] 104 COUNSELVISE.COM (IT) 8370 (ITAT-PUNE)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 4 month(s) 26 day(s)
Appellant
Respondent
Appeal Type
Income Tax Appeal
Pronouncement Date
15-11-2021
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
C
Assessment Year
2014-2015
Appeal Filed On
20-06-2019
Judgement Text
आयकर अपीलीय अधधकरण “सी” न्यायपीठ पुणे में । IN THE INCOME TAX APPELLATE TRIBUNAL “C” BENCH, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No. 935/PUN/2019 धनधाारण वषा / Assessment Year : 2010-11 The Assistant Commissioner of Income Tax (IT), Circle-1, Pune. .......अपीलाथी / Appellant बनाम / V/s. John Deere Equipment Pvt. Ltd. (Now merged with John Deere India Pvt. Ltd.) Tower XIV, Cybercity, Magarpatta City, Hadapsar, Pune-411 013 PAN : AAACL7331A ......प्रत्यथी / Respondent आयकर अपील सं. / ITA Nos. 936 & 937/PUN/2019 धनधाारण वषा / Assessment Years : 2010-11 & 2014-15 The Assistant Commissioner of Income Tax (IT), Circle-1, Pune. .......अपीलाथी / Appellant बनाम / V/s. John Deere India Pvt. Ltd. Tower XIV, Cybercity, Magarpatta City, Hadapsar, Pune-411 013 PAN : AAACJ4233B ......प्रत्यथी / Respondent Revenue by : Shri Shivraj B Morey Assessee by : Shri Nikhil Pathak 2 ITA Nos. 935 to 937/PUN/2019 A.Ys.2010-11, 2010-11 & 2014-15 सुनवाई की तारीख / Date of Hearing : 16.11.2021 घोषणा की तारीख / Date of Pronouncement : 16.11.2021 आदेश / ORDER PER BENCH: These three appeals filed by the Revenue are directed against the different orders of the Ld. CIT(Appeals)-13, Pune dated 11.03.2019 for the assessment years 2010-11 & 2014-15. 2. Since identical facts and issues are involved in all these appeals, we proceed to hear these appeals together and disposed of the same vide this common order. For the sake of clarity and convenience, we would take up the relevant facts stated in ITA No.935/PUN/2019 for the assessment year 2010-11 for adjudication. ITA No.935/PUN/2019 A.Y.2010-11 3. The brief facts in this case are that the respondent assessee is a company incorporated under the provisions of Indian Companies Act, 1956. It is engaged in the business of manufacture and sale of agricultural equipment. During financial year 2009-10, the TDS Officer/DCIT(IT)-1, Pune found that the respondent assessee had not deducted the tax at source on the payment to the foreign company as per Section 201(1) & 201(1A) of the Income Tax Act, 1961 (hereinafter referred to as „the Act‟). Then the TDS Officer/ DCIT(IT)-1, Pune had proceeded to issue show cause notice vide letter dated 22 nd March, 2017 calling upon the respondent assessee as to why the assessee should not be held as “assessee in default” for not-deducting of tax u/s.201 of the Act on the above payments. In response to the show cause 3 ITA Nos. 935 to 937/PUN/2019 A.Ys.2010-11, 2010-11 & 2014-15 notice, it was submitted by the respondent assessee that the provision of Section 195 of the Act have no application as the respondent assessee purchased off the shelf software product licenses and the same were in the nature of reimbursement of proportionate cost paid by foreign company Deere & Co., USA to Microsoft in respect of the licenses allotted to the assessee company. As there is no profit element embedded in the said payment, the question of TDS does not arise. Similarly, the assessee submitted that it has made payments on account of network access line charges. However, the TDS Officer/ DCIT(IT)-1, Pune placing reliance his own order in assessee‟s own case passed u/s.201(1A) of the Act dated 29.03.2016 in financial year 2008- 09 has rejected the above submissions and proceeded to pass order u/s.201(1) of the Act by holding the assessee, “assessee in default” and levied interest u/s.201(1A) of the Act vide order dated 29.03.2017. 4. Being aggrieved by the above order, an appeal was preferred before the Ld. CIT(Appeals) who vide impugned order placing reliance on the order of the Tribunal in assessee‟s own case in earlier assessment years 2007-08 & 2008- 09 had quashed the proceedings u/s.201(1) & 201(1A) of the Act. Being further aggrieved, the Revenue is in appeal before us. 5. When the matter was called on, the Ld. AR for the assessee submitted that in the context of disallowance u/s.40(a)(ia) of the Act for the assessment year 2010-11 in respect of the very same payment, the Tribunal considering the additional evidences filed before it, had remanded the matter to the file of the Assessing Officer for de-novo adjudication. In the light of that fact, the Ld. AR submits before us that the matter be remanded to the file of the Assessing Officer on similar lines for the year under consideration also. 4 ITA Nos. 935 to 937/PUN/2019 A.Ys.2010-11, 2010-11 & 2014-15 6. On the other hand, the Ld. Sr. DR did not raise serious objection with regard to the submissions made by the Ld. AR. 7. We have heard the rival submissions and perused the materials available on record. The issue raised in the present appeal relates to non- deduction of TDS on the payment made to foreign company namely, Deere & Co., USA. The Tribunal in assessment year 2010-11 had remanded the issue to the file of the Assessing Officer for considering certain additional evidences filed by the assessee in the context of disallowance u/s.40(a)(ia) of the Act in respect of the very same payment. In these circumstances, we are of the considered view that in the interest of justice, the matter be remanded to the file of the Assessing Officer for de-novo consideration of the issue raised in appeal considering additional evidences filed before him in the assessment year 2010-11 and adjudicate the same in accordance with law. 8. In the result, appeal of the Revenue in ITA No.935/PUN/2019 for the assessment year 2010-11 is allowed for statistical purposes. ITA Nos.936 & 937/PUN/2019 A.Ys. 2010-11 & 2014-15 9. Both the parties unanimously agreed that identical issues and facts are involved in these two appeals i.e. ITA Nos. 936 & 927/PUN/2019 for the assessment years 2010-11 & 2014-15. Therefore, our decision rendered in ITA No.935/PUN/2019 for the assessment year 2010-11 shall mutatis- mutandis apply in ITA Nos. 936 & 937/PUN/2019 for the assessment years 2010-11 & 2014-15 also. 10. In the result, appeals of the Revenue in ITA Nos.936 & 937/PUN/2019 for the assessment years 2010-11 & 2014-15 are allowed for statistical purposes. 5 ITA Nos. 935 to 937/PUN/2019 A.Ys.2010-11, 2010-11 & 2014-15 11. In the combined result, all the appeals of the Revenue are allowed for statistical purposes. Order pronounced on 16 th day of November, 2021. Sd/- Sd/- S.S. VISWANETHRA RAVI INTURI RAMA RAO JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ददनांक / Dated : 16 th November, 2021 SB आदेश की प्रधतधलधप अग्रेधषत / Copy of the Order forwarded to : 1. अपीलाथी / The Appellant. 2. प्रत्यथी / The Respondent. 3. The CIT(Appeals)-13, Pune. 4. The Pr. CIT-5, Pune. 5. धवभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, “सी” बेंच, पुणे / DR, ITAT, “C” Bench, Pune. 6. गार्ा फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // धनजी सधचव / Private Secretary आयकर अपीलीय अधधकरण, पुणे / ITAT, Pune. 6 ITA Nos. 935 to 937/PUN/2019 A.Ys.2010-11, 2010-11 & 2014-15 Date 1 Draft dictated on 16.11.2021 Sr.PS/PS 2 Draft placed before author 16.11.2021 Sr.PS/PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order
