The Nizam Sugars Limited, Hyderabad V. Dy. Commissioner of Income Tax , Circle-2(2), Hyderabad

MA 70/Hyd/2021

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 2412 (ITAT-HYDERABAD)
• Duration Of Justice: 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 27-10-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2016-2017
• Appeal Filed On: 29-09-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: TDS
• Section: 43B; 254(2); 20

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD A BENCH, HYDERABAD. BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI L . P . SAHU, ACCOUNTANT MEMBER (THROUGH VIRTUAL HEARING) M.A. NO.70/HYD/2021 (IN ITA NO. 1239 /HYD/20 19) (ASSESSMENT YEAR : 20 16 - 17 ) DY. COMMISSIONER OF INCOME TAX, CIRCLE 2(2), HYDERABAD. .. APPELLA NT. VS. THE NIZAM SUGARS LIMITED, HYDERABAD. PAN AAACT7969A .. RESPONDENT/APPLICANT . APPELLANT BY : SHRI A. V. RA GHU RAM. RESPONDENT BY : S MT. ESTHER N HANGALE. (D.R.) DATE OF HEARING : 8.10. 2021. DATE OF PRONOUNCEMENT : 27 . 10 .2021. O R D E R PER SHRI S.S. GODARA, J.M. : THIS ASSESSEE'S MISCELLANEOUS APPLICATION FILED U/S. 254(2) OF THE INCOME TAX ACT, 1961 ('THE ACT') SEEKS TO RECALL / RECTIFY OUR ORDER DT.24.03.2021 UPHOLDING THE CIT(A)S ORDER DELETING SECTION 43B INTEREST DISALLOWANCE FOR PAYMENTS MADE TO APRDC AND APCSC ONLY. 2 M.A. NO. 70/HYD/2021 HEARD BOTH THE PARTIES. CASE FILE PERUSED. 2. MR. RAGHURAM INVITED OUR ATTENTION TO THE ASSESSEE'S INTER EST PAYEES TRANSACTIONS INDICATING PAYMENT S OF RS.6,90,10,878 PAID TO FOUR PARTIES. HIS CASE IS THAT ALL INTER EST CLAIMS ARE TO THE GOVERNMENTS SP ECIFIED AGENCIES ONLY AND THEREFORE, OUR ORDER IN ISSUE HAS ERRED IN LAW AND ON FACTS; BY AN APPARENT MISTAKE, IN UPHOLDING THE CIT(A)S ACTION QUA APRDC AND APCSC ONLY. A PERUSAL OF THE CASE FILE SUGGESTS THAT THE ASSESSEE'S SIX INTER EST PAYEES HEREIN ARE APRDC, APCSC, GOVT. OF AP (3 RD 5 TH INSTANCES) AND M/S. BINNY LTD.; RESPECTIVELY. THE ASSESSING OFFICER HAD INVOKED SECTION 43B OF THE ACT TO DISALLOW THE SAME AS MERE PROVISIONS. THE CIT(A)S ORDER IN ISSUE HELD IN P AGE 8 THAT HIS SIMILAR ADJUDICATION IN ASSESSMENT YEAR 2014 - 15 DATED 25.01.2019 HAD FOLLOWED RAMALA SAHKARI CHINI MILLS LTD. VS. ACIT (ITA NO.6452/DEL/2014) WHILST CONCLU DING THAT SECTION 43B IS NOT APPLICABLE TO INTEREST PAYMENTS INVOLVING GOVT. OF AP AND T O GOVERNMENT CORPORATIONS APRDC AND APCSC. OUR ORDER DT.124.3.2021 UPHOLDING THE CIT(A)S ORDER ONLY QUA 3 M.A. NO. 70/HYD/2021 APRDC AND APCSC ONLY SUFFERS FROM AN APPARENT MISTAKE TO THIS EFFECT THEREFORE . THE FACTUAL POSITION IS NO DIFFERENT QUA THE SIXTH PAYEE HEREIN M/S. BINNY LIMITED AS WELL SINCE THE CIT(A) HAD DIRECTED THE ASSESSEE/APPLICANT TO FILE ALL DETAILS OF TDS AND OTHER ASPECTS BEFORE THE ASSESSING AUTHORITY. WE THUS ACCEPT ASSESSEE'S INSTANT MISCELLANEOUS APPLICATION TO THE FOREGOING LIMITED EXTENT. 3. THIS A SSESSEE'S MISCELLANEOUS APPLICATION IS ALLOWED . OUR ORDER DATED 24.3.2021 SHALL STAND RECTIFIED IN ABOVE TERMS . ORDER PRONOUNCED IN THE OPEN COURT ON 27TH OCT . , 2021. SD/ - SD/ - (L .P. SAHU) (S.S. GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DT. 27 . 10 .2021. * REDDY GP COPY TO : 1. THE NIZAM SUGARS LIMITED, NO.5 - 10 - 174, SHAKAR BHAVAN, FATHEMAIDAN ROAD, SAIFABAD, HYDERABAD. 2. DCIT, CIRCLE 2(2), HYDERABAD. 3. PR. C I T - 2 , HYDERABAD. 4. CIT(APPEALS) - 2, HYDERABAD. 5. DR, ITAT, HYDERABAD. 6. GUARD FILE. BY ORDER SR. PVT. SECRETARY, ITAT, HYDERABAD.