Assistant Commissioner of Income Tax, Central Circle-3(2), Hyderabad V. Hill County Properties Ltd., (formerly Maytas Properties Ltd.), Hyderabad

MA 19/Hyd/2018

• Counselvise Citation: [2018] 124 COUNSELVISE.COM (IT) 6426 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 14 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 05-04-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 22-01-2018
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: S RAMA RAO
• Section: 194C

Judgement Text

MA NO 19 OF 2018 HI LL COUNTY PROPERTIES LTD HYDERABAD. PAGE 1 OF 3 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER M.A NO.19/HYD/2018 (ARISING OUT OF ITA NO.1001/HYD/2016) (ASSESSMENT YEAR: 2011-12) ACIT, CENTRAL CIRCLE 3(2) HYDERABAD VS M/S. HILL COUNTRY PROPERTIES LTD (FORMERLY MAYTAS PROPERTIES LTD, HYDERABAD) PAN: AAECM 2732 Q (APPELLANT) (RESPONDENT) FOR REVENUE : SHRI RAMAKRISHNA BANDI, DR FOR ASSESSEE : SHRI S. RAMA RAO O R D E R PER SMT. P. MADHAVI DEVI, J.M. THIS M.A. IS FILED BY THE REVENUE SEEKING RECALL OF THE ORDER OF THE TRIBUNAL DATED 7.8.2017 IN ITA NO.1001 /HYD/2016 FOR NON-ADJUDICATION OF GROUND OF APPEAL NO.(A) RAI SED THEREIN. THE CONTENTION OF THE REVENUE IN THE M.A. ARE AS UNDER: 1. THIS IS AN APPLICATION FOR RECALL/ RECTIFICATIO N OF THE ORDER ITA NO 1 001/HYD/16 DATED 07.08.2017 FOR AY 2011-12 PASSED BY THE HON. TRIBUNAL THEREBY PARTLY ALLOWING THE APPEAL OF THE DEPARTMENT. 2. IN THIS CASE, THE ASSESSING OFFICER HAS MADE DISALLOWANCE OF RS.1 ,28,19,190/- U/S 40(A)(IA) AS THE ASSESSEE FAILED TO DEDUCT TAX ON CERTAIN CONTRACT P AYMENT AS REQUIRED U/S 194C. 3. ON APPEAL BY THE ASSESSEE, THE LD. CIT(A) HAS ST RAIGHT AWAY DELETED THE ADDITION OF RS.1 ,00,00,000/- OUT OF TOTAL DATE OF HEARING: 16.03.2018 DATE OF PRONOUNCEMENT: 05 . 0 4 .2018 MA NO 19 OF 2018 HI LL COUNTY PROPERTIES LTD HYDERABAD. PAGE 2 OF 3 DISALLOWANCE RS.1,28,19,190/- ON THE GROUND THAT IT IS A MERE PROVISION AND THEREFORE PROVISIONS OF SECTION 194C ARE NOT APPLICABLE TO IT AND FOR THE REMAINING CONT RACT PAYMENT, THE CIT(A) HAS RESTORED THE MATTER TO THE AO TO EXCLUDE THE MATERIAL PURCHASE AMOUNT FROM THE DISALLOWANCE. 4. ON THE ISSUE OF DELETION OF ADDITION OF RS. 1.0 0 CRORE BY THE CIT(A), THE DEPARTMENT HAS FILED APPEAL TO ITAT ON FOLLOWING GROUNDS: A) THE CIT(A) ERRED IN DELETING THE ADDITION OF RS. 1,00,00,0001- MADE U/S 40(A)(IA) OF THE IT ACT ON T HE GROUND THAT IT IS A MERE PROVISIONS AND HENCE NO TA X IS DEDUCTIBLE AT SOURCE. B) THE CIT(A) OUGHT TO HAVE ENHANCED THE INCOME AS THE SAID EXPENDITURE IS NOT AN ASCERTAINED LIABILITY AN D ITS BEING A MERE PROVISION. 5. ON THIS GROUND THE HON'BLE ITAT IN PARA 16.1 OF ITS ORDER DATED 07.08.2017 HAS OBSERVED AS UNDER: 'AFTER HEARING BOTH THE PARTIES, WE ARE OF THE OPINION THAT AS THE SIMILAR ISSUE IN REVENUE APPEAL IN ITA NO.1000/HYD/2016, DISCUSSED ABOVE HAS BEEN REMITTED TO THE FILE OF THE AO FOR FRESH CONSIDERATION. ACCORDI NGLY, THIS GROUND IS REMITTED TO THE AO ON SIMILAR DIRECTIONS .' 6. IN THIS REGARD IT IS SEEN THAT THE NO SUCH ISSUE OF DISALLOWANCE OF PROVISION WAS INVOLVED IN THE ITA NO.1000/HYD/2016 FOR AY 2010-11 IN RESPECT OF WHICH THE HON. ITAT RELIED UPON. THUS THE HON. ITAT ERRED IN NOT DECIDING THE GROUND RAISED BY THE DEPARTMENT ON MER IT. 7. AS THIS IS A MISTAKE APPARENT FROM RECORD, IT IS PRAYED THAT THE SAME MAY BE RECTIFIED BY THE HON'BLE ITAT U/S. 254(2) OF THE INCOME TAX ACT BY PASSING SUITABLE OR DERS. 2. AFTER HEARING BOTH THE PARTIES, AND AFTER GOING THROUGH THE DECISION OF THE TRIBUNAL, WE FIND THAT THE GROU ND OF APPEAL NO.(A) NEEDS ADJUDICATION AS IT IS NOT COVERED BY T HE DECISION IN ITA NO.1001/HYD/2016 FOR THE A.Y 2011-12 AS THE ISS UES IN BOTH THE APPEALS ARE DIFFERENT. IN VIEW OF THE SAME, THE ORDER OF THE TRIBUNAL IN ITA NO.1001/HYD/2016 ONLY WITH REGARD T O GROUND OF MA NO 19 OF 2018 HI LL COUNTY PROPERTIES LTD HYDERABAD. PAGE 3 OF 3 APPEAL NO.(A) IS RECALLED AND THE APPEAL IS FIXED F OR HEARING ON 20 TH JUNE, 2018. AS THE DATE OF HEARING HAS BEEN ANNOUNC ED IN THE OPEN COURT IN THE PRESENCE OF BOTH THE PARTIES, NO FRESH NOTICE NEED TO BE ISSUED BY THE REGISTRY. 3. IN THE RESULT, M.A. FILED BY THE REVENUE IS ALLO WED. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH APRIL, 2018. SD/- AS/- (S.RIFAUR RAHMAN) ACCOUNTANT MEMBER (P. MADHAVI DEVI) JUDICIAL MEMBER HYDERABAD, DATED 5 TH APRIL 2018. VINODAN/SPS COPY TO: 1 ACIT, CENTRAL CIRCLE 3(2) HYDERABAD 2 M/S. HILL COUNTRY PROPERTIES LTD (FORMERLY MAYTAS PROPERTIS LTD) C/O SHRI S.RAMA RAO, ADVOCATE, FLAT NO.102, SHRIYA' S ELEGANCE, 3-6-643, STREET NO.9, HIMAYATNAGAR, HYDERABAD 50002 9 3 CIT (A) - 11, HYDERABAD 4 PR. CIT CENTRAL, HYDERABAD 5 THE DR, ITAT HYDERABAD 6 GUARD FILE BY ORDER