Dy. Commissioner of Income Tax , Circle-1(1), Hyderabad V. Andhra Pradesh Industrial Infrastructure Corporation Limited , Vijayawada

ITA 981/Hyd/2019

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7394 (ITAT-HYDERABAD)
• Duration Of Justice: 2 year(s) 2 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-08-2021
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: DB-B
• Next Hearing Date: 07-06-2021
• Assessment Year: 2007-2008
• Appeal Filed On: 11-06-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: B SATYANARAYANA MURTHY
• 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. 981/HYD/2019 ASSESSMENT YEAR: 2007-08 DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDERABAD VS M/S.ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED, VIJAYAWADA [PAN: AABCA9029K] (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI ROHIT MUJUMDAR, DR FOR ASSESSEE : SHRI B.SATYANARAYANA MURTHY, AR DATE OF HEARING : 07-06-2021 DATE OF PRONOUNCEMENT : 17-08-2021 O R D E R PER S.S.GODARA, J.M. : THIS REVENUES APPEAL FOR AY.2007-08 ARISES FROM THE CIT(A)-1, HYDERABADS ORDER DATED 27-03-2019 PASSED IN CASE NO.10040/2018-19/DCIT-1(1), HYD/CIT(A)-1/HYD/2018-1 9, IN PROCEEDINGS U/S.143(3) R.W.S.147 OF THE INCOME TAX A CT, 1961 [IN SHORT, THE ACT]. HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. THE REVENUES SOLE SUBSTANTIVE GRIEVANCE SEEKS TO REVERSE THE CIT(A)S ACTION DELETING SECTION 40(A)(I A) DISALLOWANCE OF RS.5 CRORES ON ACCOUNT OF ASSESSEES FAILURE IN NOT DEDUCTING TDS QUA INTEREST EXPENDITURE AS PRESCRIBED U/S.192A OF THE ACT. ITA NO. 981/HYD/2019 :- 2 -: 3. WE NOTICE FROM A PERUSAL OF THE CIT(A)S CORRESPON DING LOWER APPELLATE DISCUSSION ON THE SOLE ISSUE IN PARA 8 TO 8.5 THAT THE TRIBUNALS ORDERS IN AY.2009-10 AND 2010-11 HA VE ALREADY BEEN ACCEPTED THE ASSESSEES ARGUMENTS REGARD ING THE IMPUGNED 40(A)(IA) DISALLOWANCE QUA THE INTEREST PAYMENTS MADE TO THE VERY ENTITIES I.E., NTPC AND VIWSCO; AS THE CASE MAY BE IN VIEW OF THE FACT THAT THE SAID RECIPIENTS OF TH E INTEREST EXPENDITURE HAD ALREADY ACCOUNTED FOR THE SAME AND STOOD DULY ASSESSED TO THIS EFFECT. LEARNED COUNSEL N EXT INVITED OUR ATTENTION THAT THERE IS NO DISPUTE ON THE FACT SI NCE THE ASSESSEE HAD ALREADY FILED ALL THE RELEVANT DETAIL S BEFORE THE ASSESSING OFFICER IN REMAND PROCEEDINGS. 4. WE HAVE GIVEN OUR THOUGHTFUL CONSIDERATION TO THE PRECEDING RIVAL CONTENTIONS AND HOLD THAT REVENUES SO LE SUBSTANTIVE GRIEVANCE CARRYS NO MERIT IN VIEW OF THE L EARNED CO-ORDINATE BENCHS ORDER IN AYS.2009-10 AND 2010-11 INVOKING SECTION 40(A)(IA) 2 ND PROVISO INSERTED IN THE ACT VIDE FINANCE ACT, 2012 W.E.F.01-04-2013 HELD AS HAVING RETROSPECTIVE EFFECTS BEING CURATIVE IN NATURE IN CIT VS. ANSAL LANDMARK TOWNSHIPS (P) LTD., (2016) [279 CTR 384] (D EL). THE REVENUES SOLE SUBSTANTIVE GRIEVANCE IS DECLINED THER EFORE. 5. THIS REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 17 TH AUGUST, 2021 SD/- SD/- (LAXMI PRASAD SAHU) (S.S.G ODARA) ACCOUNTANT MEMBER JUDICIAL MEM BER HYDERABAD, DATED: 17-08-2021 TNMM ITA NO. 981/HYD/2019 :- 3 -: COPY TO : 1.DY.COMMISSIONER OF INCOME TAX, CIRCLE-1(1), HYDE RABAD. 2.M/S.ANDHRA PRADESH INDUSTRIAL INFRASTRUCTURE CORPORATION LIMITED, 59A-20/3/2A, 3 RD FLOOR, SRI SIVA COMPLEX, GURUNANAK COLONY ROAD, TEACHERS COLONY, VIJAYAWADA. 3.CIT(APPEALS)-1, HYDERABAD. 4.PR.CIT-1, HYDERABAD. 5.D.R. ITAT, HYDERABAD. 6.GUARD FILE.