Shri Salasar Infrastructures & Developers, Hyderabad V. Income Tax Officer, Ward-14(1), Hyderabad

MA 42/Hyd/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 3791 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 5 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 07-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-09-2021
• Assessment Year: 2012-2013
• Appeal Filed On: 02-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: P MURALI MOHAN RAO
• Section: 40(a)(ia); 13

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH SMC, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER MA NO. 42/HYD/2021 (IN ITA NO.508/HYD/2018 ) ASSESSMENT YEAR: 2012 - 13 SHRI SALASAR INFRASTRUCTURES & DEVELOPERS, HYDERABAD. PAN: ABIFS 3323 B VS. INCOME TAX OFFICER, WARD - 14(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI P. MURALI MOHAN RAO REVENUE BY: SHRI SWAROOP MANNAVA , DR DATE OF HEARING: 13/09/2021 DATE OF PRONOUNCEMENT: 07 /10/2021 ORDER PER A. MOHAN ALANKAMONY, AM.: THIS MA IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE TRIBUNAL IN ITA NO. 508/HYD/2018 FOR THE AY 2012 - 13. 2. THE ASSESSEE HAS MADE ELABORATE SUBMISSION S IN HIS MA HOWEVER , THE CRUX OF THE ISSUE IS THAT , THE WHILE PASSING THE ORDER THE BENCH HAD NOT TAKEN NOTE OF THE SUBMISSION S OF THE ASSESSEE AT THE TIME OF THE HEARING THAT , THE RECIPIENT OF THE INTEREST HAD DECLARED THE SAME IN ITS RETURN AS HIS INCOME AND PAID TAX AND THEREFORE THE PROVISIONS OF S ECTION 4 0(A)(IA) OF THE ACT C ANNOT BE INVOKED IN THE CASE OF THE ASSESSEE 2 FOR NON - DEDUCTION OF TAX THEREBY RESULTING IN UPHOLDING THE ORDER OF THE LD. REVENUE AUTHORITIES FOR DISALLOWANCE U/S. 40(A)(IA) OF THE ACT BY THE TRIBUNAL. 3. ON PERUSING THE SUBMISSIONS OF THE ASSESSEE, I FIND MERIT IN THE MA FILED BY THE ASSESSEE. IN THE CASE OF THE ASSESSEE T HE LD. AO HAD INVOKED THE PROVISIONS OF SECTION 40(A ) (IA) OF THE ACT AND DISALLOWED THE INTEREST PAID BY THE ASSESSEE TO M/S. ABHISHEK TRANSTEL LIMITED AS ALLOWABLE DEDUCTION SINCE THE ASSESSEE HAD NOT REMITTED THE TAX DEDUCTED AT SOURCE IN THE GOVERNMENT TREASU RY. THE LD. CIT (A) AS WELL AS THE TRIBUNAL ALSO HAS UPHELD THE ORDER OF THE LD. AO. HOWEVER , THE FACTS STATED BY THE ASSESSEE NEEDS VERIFICATION. A S SUBMITTED BY THE LD. AR THE ASSESSEE CANNOT BE PENALISED UNDER THE PROVISIONS OF SECTION 40(A)(IA) OF THE ACT IF THE RECIPIENT HAS DECLARED THE AMOUNT RECEIVED FROM THE ASSESSEE IN ITS RETURN OF INCOME AND PAID TAX . T HE LD. A R HA D CLAIMED BEFORE US THAT THE M/S. ABHISHEK TRANSTEL LIMITED THE RECIPIENT OF THE INTEREST FROM THE ASSESSEE HAD DECLARED THE SAME IN ITS RETURN AS ITS INCOME AND PAID TAX WHICH WE HAD NOT CONSIDERED WHILE PASSING THE ORDER . THEREFORE , AS REQUESTED BY THE ASSESSEE , IN THE INTEREST OF JUSTICE , I HE REBY RECALL THE ORDER OF THE TRIBUNAL DATED 21/1/2021 AND REMIT THE MATTER BACK TO THE FILE OF THE LD. AO FOR VERIFYING THE SUBMISSION OF THE LD. AR AND THEREAFTER DECIDE THE MATTER IN ACCORDANCE WITH LAW AND MERIT. 3 4 . IN THE RESULT, MISCELLANEOUS APPLICATION OF THE ASSESSEE IS ALLOWED AS INDICATED HEREIN ABOVE . PRONOUNCED IN THE OPEN COURT ON THE 07 TH OCTOBER, 2021. SD/ - ( A. MOHAN ALANKAMONY ) ACCOUNTANT MEMBER HYDERABAD, DATED: 07 TH OCTOBER, 2021 OKK COPY TO: - 1) SHRI SALASAR INFRASTRUCTURES & DEVELOPERS, C/O. P. MURALI & CO., CHARTERED ACCOUNTANTS, 6 - 3 - 655/2/3, 1 ST FLOOR, SOMAJIGUDA, HYDERABAD 500 082. 2) INCOME TAX OFFICER, WARD - 14(1), HYDERABAD. 3) THE CIT (A) - 6, HYDERABAD. 4) THE PRINCIPAL CO MMISSIONER OF INCOME TAX - 6, HYDERABAD. 5) THE DR, ITAT, HYDERABAD 6) GUARD FILE