DCIT, CHENNAI V. Varadarajan Santhanaraman, CHENNAI

MA 228/CHNY/2017

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 5756 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 09-03-2018
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 02-08-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: MRS A SUSHMA HARINI

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER M .P.NO . 228 / CHNY /2017 [IN I.T.A.NO. 2309 / CHNY /20 16 ] ASSESSMENT YEAR: 201 2 - 1 3 SHRI VARADARAJAN SANTHANARAMAN, NO.9/5, BALAJI AVENUE, FIRST STREET, T.NAGAR, CHENNAI - 600 017. [PAN: A IYPS7092J ] VS . THE ASSISTANT COMMISSIONER OF INCO ME TAX, NON - CORPORATE CIRCLE - 2 , CHENNAI . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : MRS. A.SUSHMA HARINI , ADVOCATE / RESPONDENT BY : MR. AR.V.SREENIVASAN , J CIT / DATE OF HEARING : 09.03.2018 / DATE OF P RONOUNCEMENT : 09.03 .201 8 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : THE PRESENT MISCELLANEOUS PETITION FILED BY THE DEPARTMENT IS AGAINST THE ORDER OF THE TRIBUNAL IN I.T.A. NO. 2309/MDS/2016 DATED 25.01.2017 RELEVANT TO THE ASSESSMENT YEAR 2012 - 13. ITS GRIEVANCE IS THAT THE TRIBUNAL REMITTED THE ISSUE REGARDING DISALLOWANCE UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT] BACK TO THE FILE OF THE ASSESSING OFFICER BY FOLLOWING THE DECISION OF THE SPECI AL BENCH OF THE TRIBUNAL IN THE CASE OF M .P. NO . 228 / CHNY/2017 2 MERILYN SHIPPING AND TRANSPORTS V. ADDL. CIT [2012] 16 ITR (TRIB) 1 (VIZAG) (SB) AND THE DECISION OF THE HON BLE ALLAHABAD HIGH COURT IN THE CASE OF CIT V. VECTOR SHIPPING SERVICES (P.) LTD. 357 ITR 642. 2. THE L D. DR SUBMITTED THAT SUBSEQUENT TO THE ORDER PASSED BY THE TRIBUNAL, THE QUESTION WHETHER THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT COULD BE APPLIED TO PAID AMOUNT ALSO, IT CAME UP BEFORE THE HON BLE SUPREME COURT IN THE CASE OF PALAM GAS SERVICES V. CIT IN CIVIL APPEAL NO. 5512 OF 2017 DATED 03.05.2017. AS PER THE LD. DR, THERE IS A MISTAKE APPARENT ON RECORD WARRANTING INTERFERENCE UNDER SECTION 254(2) OF THE ACT. 3. ON THE OTHER HAND, THE LD. AR SUBMITTED THAT THE JUDGEMENT OF THE HON BLE SUPREME COURT IN THE CASE OF PALAM GAS SERVICES V. CIT (SUPRA) PASSED SUBSEQUENT DATE OF THE ORDER OF THE TRIBUNAL, THE SAME CANNOT BE RECALLED FOR RECTIFYING THE ORDER OF THE TRIBUNAL. 4. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED THE ORDER OF THE TRIBUNAL. THERE IS NO DISPUTE THAT THE TRIBUNAL REMITTED THE ISSUE REGARDING DISALLOWANCE MADE UNDER SECTION 40(A)(IA) OF THE ACT BACK TO THE FILE OF THE ASSESSING OFFICER FOR CONSIDERING IT IN THE LIGHT OF THE DECISION OF THE SPECIAL BENCH OF THE TRIBUNAL IN THE CA SE OF MERILYN SHIPPING AND TRANSPORTS V. ADDL. CIT (SUPRA). HOWEVER, SUBSEQUENT TO THE ORDER OF THE TRIBUNAL, IT HAS BEEN POINTED OUT BY THE LD DR THAT THE HON BLE SUPREME COURT IN THE CASE OF M .P. NO . 228 / CHNY/2017 3 PALAM GAS SERVICES V. CIT (SUPRA) HELD THAT THE DISALLOWANCE U NDER SECTION 40(A)(IA) OF THE ACT HAS TO BE MADE ON THE AMOUNTS NOT ONLY PAID BUT ALSO PAYABLE IF TDS WAS NOT DEDUCTED. WHEN THE HON BLE SUPREME COURT DECLARES A LAW, IT APPLIES FROM THE DATE ON WHICH THE LAW CAME IN THE STATUTE AND NOT NOTIFIED TO BE DEEM ED AS A PROSPECTIVE INTERPRETATION UNLESS THIS IS SPECIFICALLY SO STATED , AS CONTENDED BY THE LD. COUNSEL. HENCE, IN OUR OPINION, THERE IS A MISTAKE APPARENT ON RECORD AND WE, THEREFORE, RECALL THE ORDER OF THE TRIBUNAL DATED 25.01.2017 IN I.T.A. NO. 2309/ MDS/2016 FOR LIMITED PURPOSE OF DECIDING THE GROUND RAISED BY THE ASSESSEE WITH REGARD TO DISALLOWANCE MADE UNDER SECTION 40(A)(IA) OF THE ACT. THE REGISTRY IS DIRECTED TO FIX THE APPEAL FOR HEARING IN DUE COURSE AFTER GIVING NOTICE TO THE PARTIES. 5 . IN THE RESULT, THE MP FILED BY THE REVENUE IS ALLOWED . ORDER PRONOUNCED IN THE OPEN COURT ON THE 09 TH MARCH , 201 8 AT CHENNAI. SD/ - SD/ - ( ABRAHAM P. GEORGE ) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JUDICIAL MEMBER CHENNAI, DATED, THE 09.03 . 201 8 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.