Konark Refrigeration Industries Private Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-2(1), Hyderabad

ITA 985/Hyd/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7651 (ITAT-HYDERABAD)
• Duration Of Justice: 3 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Next Hearing Date: 31-05-2021
• Assessment Year: 2014-2015
• Appeal Filed On: 17-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N ESTHER
• Assessee Lawyers: K LENKA
• Keywords: TDS
• Section: 143(3); 201(1); 13

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) ITA NO. 985 /HYD/201 8 (ASSESSMENT YEAR : 20 14 - 15 ) M/S. KONARK REFRIGERATION INDUSTRIES PVT. LTD., HYDERABAD. PAN AACCK 6564E ..APPELLANT. VS. DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(1), HYDERABAD. ..RESPONDENT. APPELLANT BY : SHRI K. LENKA. RE SPONDENT BY : S MT. N. ESTHER. (D.R.) DATE OF HEARING : 31.05. 2021. DATE OF PRONOUNCEMENT : 25 .0 8 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEES APPEAL FOR ASST. YEAR 2014 - 15 ARISES FROM THE COMMISSIONER OF INCOME TAX (APPEALS) - 8 , HYDERABAD S ORDER DT. 22.02.2018 PASSED IN CASE NO. 0252/CIT(A) - 8/HYD/2016 - 17 IN PROCEEDINGS UNDER SECTION 143(3) OF INCOME TAX ACT, 1961 (THE ACT). HEARD BOTH THE PARTIES . C ASE FILE PERUSED. 2 ITA NO. 985/HYD/2018 2. COMING TO THE ASSESSEE'S TWIN SUBSTANTIVE GROUNDS RAISED IN THE INSTANT APPEAL CHALLENGING CORRECTNESS OF BOTH THE LEARNED LOWER AUTHORITIES ACTION DISALLOWING ITS INTEREST PAYMENT(S) OF RS.10,19,727 PAID TO N B FC COMPANIES U/S. 40 A (IA) ON ACCOUNT OF NON - DEDUCTION OF TDS AND DISALLOWANCE OF WARRANTY SERVICE CHARGES CLAIMED OF RS.9,56,120; RESPECTIVELY , W E NOTICE AT THE OUTSET WITH THE ABLE ASSISTANCE COMING FROM TAXPAYER AS WELL AS THE REVENUES SIDE THAT THE FORMER ISSUE HEREIN DESERVES TO BE RESTORED BACK TO THE ASSESSING OFFICER TO BE EXAMINE D IN LIGHT OF 40 A (IA) SECOND PROVISO INSERTED VIDE FINANCE ACT, 2012 W.E.F. 1.4.2013 THAT THE SAME WOULD NOT COME INTO PLAY IN CASE THE ASSESS EE CONCERN ED IS NOT THE AS IN DEFAULT AS PER SECTION 201(1) FIRST PROVISO. AND MORE PARTICULARLY IN VIEW OF THE FACT THAT THE RECIPIENT(S) CONCERN ED ALREADY STANDS ASSESSED UNDER THE PROVISIONS OF THE ACT. FACED WITH THIS SITUATION, WE DEEM IT APPROPRIAT E TO RESTORE THE INSTANT FORMER ISSUE OF 40 A (IA) DISALLOWANCE OF RS.10,19,727 BACK TO THE ASSESSING OFFICER FOR HIS NECESSARY FACTUAL VERIFICATION. 3 ITA NO. 985/HYD/2018 3 . WE NEXT PROCEED TO NOTICE THAT THE FACTUAL POSITION IS NO DIFFERENT QUA THE LATTER ISSUE OF WARRAN TY EXPENDITURE CHARGES DISALLOWANCE OF RS.9,56,120 SINCE NEITHER THE ASSESSING OFFICER NOR THE CIT(A) HA VE CONSIDER S THE CORRESPONDING THREE ASPECTS OF THE SAME BASED ON HISTORIC TRENDS AND SCIENTIFIC ESTIMATION FOLLOWED BY APPROPRIATE PRO VISION AS PER HON'BLE APEX COURTS LAND MARK DECISION IN ROTOR CONTROL S INDIA P. LTD. VS. CIT (2009) 314 ITR 62 (SC). WE THUS RESTORE THE INSTANT SECOND ISSUE AS WELL BACK TO THE ASSESSING OFFICER TO BE EXAMINED AFRESH IN FOREGOING TERMS WITHIN THREE EFFECTIV E OPPORTUNITIES OF HEARING. 5. THIS ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES IN ABOVE TERMS. ORDER PRONOUNCED IN THE OPEN COURT ON 25TH AUG. , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 25. 0 8 .2021. * REDDY GP 4 ITA NO. 985/HYD/2018 COPY TO : 1. M/S. KONARK REFRIGERATION INDUSTRIES PVT. LTD., 13 - 175/2A/3A & 4A, APIE, BALANAGAR, HYDERABAD - 500 018 2. DCIT, CIRCLE 2(1), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 8, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.