DCIT, Circle-3(1), Hyd, Hyderabad V. Rotex Petrochem (P) Ltd., Hyd, Hyderabad

MA 43/Hyd/2017

• Counselvise Citation: [2017] 124 COUNSELVISE.COM (IT) 5865 (ITAT-HYDERABAD)
• Duration Of Justice: 3 month(s) 8 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-11-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 25-07-2017
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: V SREEKAR
• Assessee Lawyers: R SREENIVASULU
• Keywords: Tax effect
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI B. RAMAKOTAIAH, ACCOUNTANT MEMBER M.A. NO. 43/HYD/2017 (ARISING OUT OF ITA NO. 1266/HYD/2016) ASSESSMENT YEAR: 2012-13 DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3(1), HYDERABAD VS M/S. ROTEX PETROCHEM (P) LTD., HYDERABAD [PAN: AAACR9637D] (APPLICANT) (RESPONDENT) FOR REVENUE : SHRI V. SREEKAR, DR FOR ASSESSEE : SHRI R. SREENIVASULU, AR DATE OF HEARING : 03-11-2017 DATE OF PRONOUNCEMENT : 03-11-2017 O R D E R PER B. RAMAKOTAIAH, A.M. : THIS MISCELLANEOUS APPLICATION IS FILED BY REVENUE SEEKING RECALL OF THE ORDER OF THIS TRIBUNAL DATED 12-04-201 7, DISMISSING THE REVENUES APPEAL. 2. VIDE THIS MISCELLANEOUS APPLICATION, REVENUE IS RE CALLING THE ITA NO. 1266/HYD/2016 DT. 12-04-2017 BY STATING AS UN DER: THE ASSESSEE COMPANY ENGAGED IN THE BUSINESS OF TR ADING IN LUBRICANTS, FILED ITS RETURN OF INCOME FOR A.Y 2012-13 ON 28.09 .2012 ADMITTING AN INCOME OF RS. 52,69,478. ASSESSMENT U/S 143(3) WAS COMPLETED ON 19.01.2015 ON AN INCOME OF RS. 65,79,615 BY DISALLO WING INTEREST AMOUNT OF RS. 13,10,137 PAID TO NBFCS U/S 40(A)(IA) AS THE ASSESSEE HAD NOT MADE TDS. THE CIT(A)-3, HYDERABAD VIDE ORDER DATED 15.07.2016 , BASED ON THE JUDGMENT OF HON'BLE ITAT SPECIAL BENCH, VISHAKHAPAT NAM IN THE CASE OF M.A. NO. 43/HYD/2017 :- 2 - : MERILLYN SHIPPING & TRANSPORT VS ADD.CIT IN ITA NO. 477/VIZ/2008 DT: 29.03.2012 HELD THAT AS THE ASSESSEE HAS PAID THE E NTIRE INTEREST DURING THE YEAR AND NO AMOUNT WAS OUTSTANDING, THEREFORE N O DISALLOWANCE U/S 40(A)(IA) CAN BE MADE ON PAYMENTS ALREADY PAID. ACC ORDINGLY, THE CIT(A) ALLOWED THE APPEAL OF THE ASSESSEE. ON REVENUE'S APPEAL, THE HON'BLE ITAT, A-BENCH VIDE ORDER IN ITA NO.1266/HYD/2016 DATED:12.04.2017 DISMISSED THE APP EAL OF THE REVENUE HOLDING THAT AS THE CIT(A) FOLLOWED THE ORD ER OF CO-ORDINATED BENCH AND DIRECTIONS OF JURISDICTIONAL HIGH COURT I N THE CASE OF CIT VS. JANAPRIYA ENGINEERS SYNDICATE IN ITA NO. 352/14 DT: 24.06.2014, NO INTERFERENCE IS REQUIRED IN THE ORDER OF CIT(A). FU RTHER, THE HON'BLE ITAT OPINED THAT THE TAX EFFECT INVOLVED IN THIS CASE IS BELOW THE MONETARY LIMITS PRESCRIBED BY THE BOARD VIDE CIRCULAR NO. 21/2015. HOWEVER, IT IS SUBMITTED THAT THE HON'BLE SUPREME C OURT IN THE CASE OF M/S. PALEM GAS SERVICE VS CIT IN CIVIL APPEAL NO. 5 512 OF 2017 DECIDED ON 03.05.2017 HAS SETTLED THIS ISSUE IN FAVOUR OF R EVENUE AND HELD THAT EVEN IF THE AMOUNT IS FULLY PAID WITHIN THE FY, PRO VISIONS OF SECTION 40(A)(IA) OF THE ACT ARE APPLICABLE WARRANTING DISA LLOWANCE IF NO TDS WAS MADE. IN VIEW OF THE ABOVE, IT IS PRAYED THAT THE HON'BLE TRIBUNAL MAY KINDLY ADJUDICATE THE ISSUE AND PASS SUCH ORDERS IN THE IN TEREST OF JUSTICE. 3. TAKING THE ABOVE FACTS INTO CONSIDERATION, WE ARE INCLINED TO ACCEPT THE REVENUES CONTENTION. WE HEREBY RECALL THE O RDER DATED 12-04-2017 AND FIX THE APPEAL FOR HEARING ON 28-02- 2018. AS THE DATE HAS BEEN ANNOUNCED IN THE OPEN COURT, NO FRESH NO TICE NEED BE GIVEN TO THE PARTIES. 4. IN THE RESULT, MISCELLANEOUS APPLICATION IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 3 RD NOVEMBER, 2017 UPON CONCLUSION OF HEARING SD/- SD/- (P. MADHAVI DEVI) (B. RAMAKOTAIAH) JUDICIAL MEMBER ACCOUNTANT MEM BER HYDERABAD, DATED 3 RD NOVEMBER, 2017 TNMM M.A. NO. 43/HYD/2017 :- 3 - : COPY TO : 1. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-3( 1), HYDERABAD. 2. M/S. ROTEX PETROCHEM (P) LTD., 9-4-77/3/11, YUSU F TEKDI, TOLICHOWKI ROAD, HYDERABAD. 3. CIT (APPEALS)-3, HYDERABAD. 4. PR.CIT-3, HYDERABAD. 5. D.R. ITAT, HYDERABAD. 6. GUARD FILE.