Appeal Details
Counselvise Citation
[2019] 116 COUNSELVISE.COM (IT) 2177 (ITAT-VISAKHAPATNAM)
Assessee PAN
Bench
Appeal Number
Duration Of Justice
2 year(s) 15 day(s)
Appellant
Respondent
Appeal Type
Miscellaneous Application
Pronouncement Date
23-08-2019
Appeal Filed By
Department
Order Result
Allowed
Bench Allotted
DB
Assessment Year
2010-2011
Appeal Filed On
07-08-2017
Judgement Text
M.A. NO. 5 7 /VIZ/201 7 ( GUDE VENKATA KRISHNA RAO ) 1 IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER M.A.NO. 57 /VIZ/201 7 ( ARISING OUT OF I . T .A.NO. 211 /VIZ / 201 5 ) ( ASSESSMENT YEAR : 20 10 - 11 ) A CIT , CIRCLE - 2 (1), GUNTUR . VS. GUDE VENKATA KRISHNA RAO, D.NO. 4 - 2 - 17/8, 18 TH LINE, CHANDRAMOULINAGAR, GUNTUR. [ PAN: AHEPG 4373 K ] ( APP LICANT ) ( RESPONDENT ) ASSESSEE BY : SHRI D.L. NARASIMHA RAO ADV. DEPARTMENT BY : SMT. SUMAN MALIK SR. DR DATE OF HEARING : 23 / 0 8 /201 8 DATE OF P RONOUNCEMENT : 23 / 08 /201 8 O R D E R PER V. DURGA RAO , JUDICIA L MEMBER : BY THIS MISC. APPLICATION, REVENUE HAS PRAYED FOR RECALLING OF THE ORDER PASSED BY THIS TRIBUNAL IN ITA NO. 211 /VIZ/201 5 , DATED 21 /0 4 /2017. 2 . THE LD. DEPARTMENTAL REPRESENTATIVE HAS SUBMITTED THAT THE TRIBUNAL BY PASSING THE ORDER IN ITA NO. 21 1/VIZ/2015 FOR THE A.Y. 20 1 0 - 11 , DISMISSED THE APPEAL OF THE REVENUE BY FOLLOWING THE DECISION OF THE SPECIAL BENCH , ITAT, VISAKHAPATNAM IN MERILYN M.A. NO. 5 7 /VIZ/201 7 ( GUDE VENKATA KRISHNA RAO ) 2 SHIPPING & TRANSPORTS VS. ACIT (136 ITR 23) AND OBSERVED THAT IN CASE WHERE PAYMENT IS ALREADY MADE, NO DISA LLOWANCE IS CALLED FOR UNDER SECTION 40(A)(IA) OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS 'ACT'). THE HON'BLE APEX COURT IN THE CASE OF PALAM GAS SERVICE VS. CIT REPORTED IN [2017] 81 TAXMANN.COM 43 (SC) HAS HELD THAT SECTION 40(A)(IA) COVERS NOT ONLY THOSE CASES , WHERE THE PAYMENT IS PAYABLE, BUT ALSO PAID. THE HON'BLE APEX COURT FURTHER OBSERVED THAT SECTION 194C MANDATE A PERSON TO DEDUCT TAX AT SOURCE NOT ONLY ON THE AMOUNTS PAYABLE , BUT ALSO WHEN THE SUMS ARE ACTUALLY PAID TO THE CONTRACTOR, ANY PERSON WHO DOES NOT ADHERE TO THIS STATUTORY OBLIGATION HAS TO SUFFER THE CONSEQUENCES WHICH ARE STIPULATED IN THE INCOME TAX ACT, 1961 . 3 . WE HAVE H EARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD . 4 . WE FIND THAT THE HO N'BLE SUPREME COURT IN THE CASE OF PALAM GAS SERVICE (SUPRA) HAS CLEARLY HELD THAT SECTION 40(A)(IA) COVERS NOT ONLY THOSE CASES WHERE THE AMOUNT IS PAYABLE BUT ALSO WHEN IT IS PAID. T HEREFORE, RESPECTFULLY FOLLOWING THE DE CISION OF THE HON'BLE SUPREME C OURT IN THE ABOVE REFERRED TO CASE, WE FIND THAT THE ORDER PASSED BY TH IS TRIBUNAL IN ITA NO. 211 /VIZ/2015 , BY ORDER DATED 21 /04/2017 HAS TO BE RECALLED. ACCORDINGLY, IT IS RECALLED AND POSTED FOR HEARING ON 04 /0 9 /2019. SINCE THE DATE OF HEARING IS M.A. NO. 5 7 /VIZ/201 7 ( GUDE VENKATA KRISHNA RAO ) 3 ANNOU NCED IN THE OPEN COURT IN THE PRESENCE OF THE PARTIES, NO SEPARATE NOTICE IS REQUIRED TO BE ISSUED. O RDER PRONOUNCED IN THE OPEN COURT ON 23 RD AUGUST , 201 9 S D/ - SD/ - ( D.S. SUNDER SINGH) (V. DURGA RAO) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 23 / 08 /201 9 VR /SPS COPY OF THE ORDER FORWARDED TO : - 1. THE APPELLANT GUDE VENKATA KRISHNA RAO, D.NO. 4 - 2 - 17/8, 18 TH LINE, CHANDRAMOULINAGAR, GUNTUR. 2. THE RESPONDENT A CIT , CIRCE - 2 (1), GUN TUR . 3. THE PR. CIT , GUNTUR . 4. THE CIT(A) - 1 , GUNTUR . 5 . DR, ITAT, VISAKHAPATNAM 6 . GUARD FILE BY ORDER // TRUE COPY // SR.PRIVATE SECRETARY ITAT, VISAKHAPATNAM
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