ITO, Ward-7(3), Hyderabad, Hyderabad V. Yeshwanth Kumar Kishta, Hyd, Hyderabad

ITA 99/HYD/2016

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 6319 (ITAT-HYDERABAD)
• Duration Of Justice: 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2016
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 01-08-2016
• Assessment Year: 2006-2007
• Appeal Filed On: 01-02-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E SUNIL BABU

Judgement Text

ITA NO 99 OF 2016 YESHWANTH KUMAR KISHTA HYDERABAD PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD BEFORE SMT. P.MADHAVI DEVI, JUDICIAL MEMBER & SHRI S. RIFAUR RAHMAN, ACCOUNTANT MEMBER ITA NO.99/HYD/2016 (ASSESSMENT YEAR: 2006-07) INCOME TAX OFFICER WARD 7(3), HYDERABAD VS. SHRI YESHWANT KUMAR KISHTA HYDERABAD PAN: AGUPK 9630 L (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI K.E. SUNIL BABU, DR FOR ASSESSEE : SHRI MOHD. AFZAL DATE OF HEA R ING : 08.08.2016 DATE OF PRONOUNCEMENT : 12 .08.2016 O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS IS REVENUES APPEAL FOR THE A.Y 2006-07. AT TH E OUTSET IT IS SEEN THAT THE APPEAL OF THE REVENUE IS BARRED BY 15 DAYS. THE REVENUE HAS FILED AN APPLICATION FOR CONDONATIO N OF DELAY ALONGWITH AN AFFIDAVIT SIGNED BY THE INCOME TAX OFF ICER WARD 7(3) HYDERABAD STATING THAT THE RECORD FOR THE A.Y 2006- 07 FOR WHICH THE APPEAL IS BEING FILED HAS BEEN MIXED UP WITH OT HER RECORDS RESULTING IN THE DELAY OF 15 DAYS IN FILING OF THE APPEAL BEFORE THE TRIBUNAL. TAKING NOTE OF THE STATED FACTS, THE DELA Y IS CONDONED. 2. THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE AGAINST THE ORDER OF THE CIT (A) IN DELETING THE DISALLOWAN CE OF EXPENDITURE MADE BY THE AO U/S 40(A)(IA) OF THE ACT , BY HOLDING THAT THE AMOUNTS ARE NOT PAYABLE AT THE END OF THE RELEVANT ITA NO 99 OF 2016 YESHWANTH KUMAR KISHTA HYDERABAD PAGE 2 OF 3 FINANCIAL YEAR AND BY FOLLOWING THE DECISION OF THE ITAT SPECIAL BENCH IN THE CASE OF MERILYN SHIPPING & TRANSPORTS VS. ADDITIONAL CIT (2012) 136 ITD 0023 (SB). IT IS THE CASE OF THE REENUE THAT THE DECISION OF THE SPECIAL BENCH IN TH E CASE OF MERILYN SHIPPING & TRANSPORTS HAS BEEN SUSPENDED BY THE HON'BLE HIGH COURT OF TELANGANA & ANDHRA PRADESH AN D THEREFORE, IT OUGHT NOT TO HAVE BEEN FOLLOWED BY TH E CIT (A) IN GIVING RELIEF TO THE ASSESSEE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E IS A TRAVEL AGENT AND IS MAINLY ENGAGED IN TRANSPORTATION OF EM PLOYEES OF DIFFERENT COMPANIES AND INSTITUTIONS. WE FIND THAT THE EXPENDITURE DISALLOWED BY THE AO IS THE PAYMENT MAD E BY THE ASSESSEE TO THE VEHICLE OWNERS WITHOUT MAKING TDS B EFORE THE PAYMENT. THE AO DISALLOWED THE SAME HOLDING THAT TH E ASSESSEE HAS FAILED TO DEDUCT TAX AT SOURCE BEFORE MAKING TH E PAYMENT. THE CIT (A) HAS DELETED THE DISALLOWANCE AFTER CONS IDERING THE FACTS THAT THE AMOUNT HAS ALREADY BEEN PAID AND THA T NO AMOUNT REMAINED PAYABLE AS ON THE LAST DAY OF THE ACCOUNTI NG PERIOD. THE CIT (A), THEREFORE, HAS FOLLOWED THE DECISION O F THE SPECIAL BENCH OF THE TRIBUNAL IN THE CASE OF MERILYN SHIPPI NG & TRANSPORTS IN DELETING THE DISALLOWANCE. WE FIND TH AT THIS ISSUE IS NOW COVERED BY THE DECISION OF THE HON'BLE ALLAHAB AD HIGH COURT IN THE CASE OF VECTOR SHIPPING SERVICES (P) L TD REPORTED IN 357 ITR 642 WHEREIN IT WAS HELD THAT DISALLOWANCE U /S 40(A)(IA) APPLIES ONLY TO AMOUNTS PAYABLE AS ON 31 ST MARCH AND NOT TO AMOUNTS ALREADY PAID DURING THE YEAR AND THE SLP AGAINST THIS JUDGMENT FILED BY THE REVENUE WAS DISMISSED IN LIMI NI BY THE HON'BLE SUPREME COURT VIDE ORDER DATED 6.7.2014. IN VIEW OF THE ITA NO 99 OF 2016 YESHWANTH KUMAR KISHTA HYDERABAD PAGE 3 OF 3 SAME AND AS THE ORDER OF THE CIT (A) IS TO THE ABOV E EFFECT, THE APPEAL OF THE REVENUE IS DISMISSED. 4. IN THE RESULT, REVENUES APPEAL IS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2016. S D/ - S D/ - (S.RIFAUR RAHMAN) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 12 TH AUGUST, 2016. VNODAN/SPS COPY TO: 1. INCOME TAX OFFICER WARD 7(3) 8 TH FLOOR, SIGNATURE TOWERS, KOTHAGUDA, KONDAPUR, HYDERABAD 500084 2. SHRI YESHWANT KUMAR KISHTA, PROP. M/S. SREE VENKATESWARA TOURS & TRAVELS, M/S.SONY TRAVELS, 15- 5- 8843, AFZALGUNJ, HYDERABAD 3. CIT(A)-5 HYDERABAD 4. PR. CIT -3 HYDERABAD 5. THE DR, ITAT, HYDERABAD 6. GUARD FILE BY ORDER