Shri T.R.Swaminathan, CHENNAI V. ITO, Kumbakonam

ITA 979/CHNY/2011

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 64380 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-10-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 16-10-2012
• Assessment Year: 2007-2008
• Appeal Filed On: 03-06-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DR S MOHARANA IRS
• Assessee Lawyers: S SRIDHAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, CHENNAI BEFORE DR. O.K. NARAYANAN, VICE-PRESIDENT AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER I.T.A.NO. 979/MDS/2011 ASSESSMENT YEAR : 2007-08 SHRI T.R.SWAMINATHAN, 25, GANDHI NAGAR, KUMBAKONAM. PAN AIRPS0144E VS. THE INCOME-TAX OFFICER, WARD-I(3), KUMBAKONAM. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI S. SRIDHAR, ADVOCATE RESPONDENT BY : DR. S. MOHARANA, IRS, CIT DATE OF HEARING : 16 TH OCTOBER, 2012 DATE OF PRONOUNCEMENT : 16 TH OCTOBER, 2012 O R D E R PER DR. O.K. NARAYANAN, VICE-PRESIDENT THIS APPEAL IS FILED BY THE ASSESSEE. THE RELEVAN T ASSESSMENT YEAR IS 2007-08. THE APPEAL IS DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME-TAX(APPEALS) AT ITA 979/11 :- 2 -: TIRUCHIRAPALLI DATED 17.3.2011 AND ARISES OUT OF TH E ASSESSMENT COMPLETED UNDER SEC.143(3) OF THE INCOME-TAX ACT, 1 961. 2. THE ONLY ISSUE RAISED BY THE ASSESSEE IN THIS AP PEAL IS THAT THE COMMISSIONER OF INCOME-TAX(APPEALS) HAS ERRED I N SUSTAINING THE DISALLOWANCE OF ` 50,78,104/- BEING THE TRANSPORTATION CHARGES PAID ON THE TECHNICAL GROUND OF APPLICATION OF SEC. 40(A)(IA) OF THE ACT WITHOUT ASSIGNING PROPER REASONS AND JUSTIFICAT ION. 3. THERE WAS A DELAY OF 9 DAYS IN FILING THE APPEAL . THE DELAY IS CONDONED AND THE APPEAL IS ADMITTED. 4. WE HEARD BOTH SIDES. THE INCOME-TAX APPELLATE T RIBUNAL, VIZAG., SPECIAL BENCH IN THE CASE OF MERILYN SHIPPI NG & TRANSPORTS V. ADDL. CIT REPORTED IN 16 ITR (TRIB) 0 1 (SB) HAS HELD THAT THE PROVISIONS OF SEC.40(A)(IA) ARE APPLICABLE ONLY TO THE AMOUNTS OF EXPENDITURE WHICH ARE PAYABLE AS ON THE LAST DAY OF THE PREVIOUS YEAR AND THE PROVISIONS WOULD NOT APPL Y TO A CASE WHERE THE EXPENSES HAVE ALREADY BEEN PAID BY THE AS SESSEE DURING THE PREVIOUS YEAR. IN THE PRESENT CASE, THE ASSESSEE HAS ALREADY MADE THE PAYMENTS IN RESPECT OF TRANSPORTAT ION CHARGES. THEREFORE, IN VIEW OF THE ABOVE SAID DECISION OF TH E SPECIAL ITA 979/11 :- 3 -: BENCH, NO DISALLOWANCE CAN BE MADE UNDER SEC.40(A)( IA). THE DISALLOWANCE IS ACCORDINGLY DELETED. 5. IN RESULT, THIS APPEAL FILED BY THE ASSESSEE IS ALLOWED. ORDER PRONOUNCED ON TUESDAY, THE 16 TH OF OCTOBER, 2012 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD) (DR.O.K.NARAYANAN) JUDICIAL MEMBER VICE-PRESIDENT CHENNAI, DATED THE 16 TH OCTOBER, 2012 MPO* COPY TO : APPELLANT/RESPONDENT/CIT/CIT(A)/DR