The DCIT, Circle-3(1), Visakhapatnam V. M/s L..G.Polymers India Pvt. Ltd., Visakhapatnam

MA 7/VIZ/2016

• Counselvise Citation: [2016] 124 COUNSELVISE.COM (IT) 4159 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 10 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 31-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2007-2008
• Appeal Filed On: 21-03-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K SETHI
• Assessee Lawyers: C V S MURTHY
• Keywords: Rectification of order

Judgement Text

MP NO.7/VIZAG/2016 M/S. L.G. POLYMERS INDIA (PVT) LTD., VISAKHAPATNAM 1 ` `` ` , , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . , ' BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER M.P. NO.7/VIZAG/2016 (ARISING OUT OF I.T.A.NOS.700&701/VIZAG/2013 & C.O. NOS.22&23/VIZAG/2014) ( / ASSESSMENT YEARS : 2007-08 & 2008-09) M/S. L.G. POLYMERS INDIA PVT. LTD. VISAKHAPATNAM VS. DCIT, CIRCLE - 3(1), VISAKHAPATNAM [ PAN: AAACL8528P] ( / APPELLANT) ( / RESPONDENT ) & ( / APPELLANT BY : SHRI C.V.S. MURTHY, AR ,-& ( / RESPONDENT BY : SHRI M.K. SETHI, DR / DATE OF HEARING : 30 .0 3 .2016 ( 2 / DATE OF PRONOUNCEMENT : 31.03.2016 / O R D E R PER G. MANJUNATHA, ACCOUNTANT MEMBER: THIS MISCELLANEOUS PETITION FILED BY THE ASSESSEE, REQUESTING RECTIFICATION OF ORDER PASSED BY THIS BENCH, IN ITA NOS.700&701/VIZAG/2013 DATED 28.1.2016. MP NO.7/VIZAG/2016 M/S. L.G. POLYMERS INDIA (PVT) LTD., VISAKHAPATNAM 2 2. DURING THE COURSE OF HEARING, THE LD. A.R. SUBMI TTED THAT ON GOING THROUGH THE ORDER OF THE HONBLE BENCH, IT IS NOTIC ED THAT THERE WAS A MISTAKE IN PARA 11 OF THE ORDER WHICH MISTAKE IS A MISTAKE APPARENT FROM RECORD, IT REQUIRES RECTIFICATION U/S 254(2) O F THE INCOME TAX-ACT, 1961 (HEREINAFTER CALLED AS THE ACT). THE LD. A. R. FURTHER SUBMITTED THAT WHILE DISPOSING OF THE ALTERNATIVE PLEA OF THE ASSESSEE UNDER PARA- 11, THE ASSESSEES SUBMISSION AND REQUEST FOR GIVIN G DIRECTION TO THE ASSESSING OFFICER TOWARDS ALLOWABILITY OF THE ROYAL TY IN THE YEAR IN WHICH THE TDS WAS DEDUCTED AND REMITTED TO THE GOVERNMENT ACCOUNT. THE HONBLE BENCH HAS ACCEPTED THE PLEA OF THE ASSESSEE AND GIVE A FINDING THAT THE ROYALTY PAYMENT IS DEDUCTIBLE IN THE YEAR IN WHICH THE TDS HAS BEEN DEDUCTED AND REMITTED FOR THE ASSESSMENT YEAR 2007-08, BUT BY OVERSIGHT, NOT GIVEN ANY FINDING FOR THE ASSESSMENT YEAR 2008-09. THEREFORE, REQUESTED TO RECALL THE ORDER AND PASS A PPROPRIATE ORDER IN ACCORDANCE WITH LAW. 3. ON THE OTHER HAND, THE LD. D.R. DID NOT OBJECT T HE MISCELLANEOUS PETITION. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MA TERIALS AVAILABLE ON RECORD. ON VERIFICATION OF THE ORDER OF THIS BENCH, IN ITA NOS.700 & 701/VIZAG/2013, WE FIND THAT THE BENCH, B Y OVERSIGHT HAS NOT MP NO.7/VIZAG/2016 M/S. L.G. POLYMERS INDIA (PVT) LTD., VISAKHAPATNAM 3 GIVEN ANY FINDING IN RESPECT OF ASSESSMENT YEAR 200 8-09. THEREFORE, BY EXERCISING THE POWERS VESTED WITH THE TRIBUNAL U/S 254(2) OF THE ACT, THE ORDER DATED 28.1.2016 IS MODIFIED AS UNDER: ITA NO.701/VIZAG/2013: 5. THE FACTS AND ISSUES INVOLVED IN ITA NO.701/VIZA G/2013 IS IDENTICAL TO ITA NO.700/VIZAG/2013. THEREFORE, FOR THE REASONS RECORDED IN THE PRECEDING PARAGRAPHS, WE ARE OF THE OPINION THAT THE ASSESSEE IS ELIGIBLE FOR DEDUCTION TOWARDS ROYALTY PAYMENT IN THE YEAR IN WHICH THE TDS IS DEDUCTED AND REMITTED INTO THE GOVERNMENT ACCOUNT I.E. FOR THE ASSESSMENT YEAR 2009-10. ACCO RDINGLY, WE DIRECT THE A.O. TO ALLOW THE DEDUCTION FOR THE ASSESSMENT YEAR 2009-10. 6. IN THE RESULT, THE MISCELLANEOUS PETITION FILED BY THE ASSESSEE IN ITA NOS.700&701/VIZAG/2013 & CO NOS.22&23/VIZAG/201 4 IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 31 ST MAR16. SD/- SD/- (. ) ( . ) ( V. DURGA RAO ) ( G. MANJUNATHA) / JUDICIAL MEMBER / ACCOUNTANT MEMBER 4 /VISAKHAPATNAM: 8 / DATED : 31.03.2016 VG/SPS MP NO.7/VIZAG/2016 M/S. L.G. POLYMERS INDIA (PVT) LTD., VISAKHAPATNAM 4 ( , <4 =4/ COPY OF THE ORDER FORWARDED TO :- 1. & / THE APPELLANT THE DCIT, CIRCLE-3(1), VISAKHAPATNAM 2. ,-& / THE RESPONDENT M/S. L.G. POLYMERS INDIA PVT. LTD., P.R. VENKATA PURAM POST, VISAKHAPATNAM 3. @ / THE CIT, VISAKHAPATNAM 4. @ () / THE CIT (A), VISAKHAPATNAM 5. 4 , E, 2 E , 4 / DR, ITAT, VISAKHAPATNAM 6 . / GUARD FILE / BY ORDER // TRUE COPY // JK E ( SR.PRIVATE SECRETARY ) 2 E , 4 / ITAT, VISAKHAPATNAM