DCIT, Circle-3(1), Hyderabad V. M/s. Semantic Space Technologies Pvt. Ltd., Hyderabad

MA 85/HYD/2013

• Counselvise Citation: [2013] 124 COUNSELVISE.COM (IT) 0249 (ITAT-HYDERABAD)
• Duration Of Justice: 1 month(s) 18 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 03-05-2013
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 15-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LAXMAN RAO
• Assessee Lawyers: V SIVA KUMAR

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER M.A.NO. 85/H/2013 (IN ITA NOS. 458 & 474/HYD/2011 ASSESSMENT YEAR : 2007-08) DY. COMMISSIONER OF INCOME-TAX, APPLICAN T CIRCLE 3(1),HYDERABAD. VS. M/S SEMANTIC SPACE TECHNOLOGIES PVT. LTD., RE SPONDENT HYDERABAD. (PAN AAGCS6868P) APPELLANT BY : SHRI LAXMAN RAO RESPONDENT BY : SHRI V. SIVA KUMAR DATE OF HEARING : 03/05/2013 DATE OF PRONOUNCEMENT : 03 /05/2013 ORDER PER CHANDRA POOJARI, A.M.: THIS MISCELLANEOUS APPLICATION FILED BY THE ASSESSE E ARISES OUT OF THE ORDER OF ITAT B BENCH, HYDERABAD BENCHES, HYDERABAD, IN APPEAL ITA NO. 458/HYD/2011 AND 474/HYD/2011 DATED 08/06/2012. 2. BRIEFLY THE FACTS ARE THAT WHILE COMPLETING THE ASSESSMENT FOR THE AY 2007-08, THE AO HELD THAT THE PAYMENT OF RS. 31,48,566/- TOWARDS LEASED LINE CHARGES ATTRACTS THE PROVISIONS OF SECTION 194-I AND DISALLOWED THE SAME U/S 40(A)(IA). THE CIT(A) H ELD THAT LEASING OF LINES IS IN THE NATURE OF LEASING OF ANY PROPERT Y AND LIABLE FOR TDS U/S 194-I AND NOT U/S 194-C AS WAS DONE BY THE ASSESSEE AND ACCORDINGLY CONFIRMED THE ADDITION. ON APPEAL BY TH E ASSESSEE, THE HONBLE ITAT RELYING ON AN EARLIER DECISION OF JURI SDICTIONAL TRIBUNAL IN THE CASE OF M/S USHODAYA ENTERPRISES PVT. LTD., HYDERABAD IN MA NO. 85/HYD/13 M/S SEMANTIC SPACE TECHNOLOGIES PVT. LTD. 2 ITA NO. 1706 TO 1708/HYD/2008 DATED 22/03/2012 HAS ALLOWED ASSESSEES APPEAL. IN THE SAID DECISION, THE HONBL E ITAT RELIED ON THE DECISION OF THE DELHI HIGH COURT IN THE CASE OF CIT VS. ESTEL COMMUNICATIONS PVT. LD., 217 CTR 102 (DEL.) AND MAD RAS HIGH COURT DECISION IN THE CASE OF SKYCELL COMMUNICATION S VS. DCIT, WHEREIN IT WAS HELD THAT CONNECTIVITY CHARGES CANNO T COME UNDER THE PURVIEW OF TECHNICAL/PROFESSIONAL SERVICES AND IT IS SIMILAR TO TELEPHONE CONNECTION AND THEREFORE PROVISIONS OF SE C. 194-C ARE INAPPLICABLE. 3. THE DR SUBMITTED THAT IN THE ASSESSMENT ORDER TH E DISALLOWANCE WAS MADE U/S 40(A)(IA) SINCE THE ASSES SEE FAILED TO COMPLY WITH THE PROVISIONS OF SECTION 194-I AND THE SAME WAS UPHELD BY THE CIT(A). THE DR, THEREFORE, CONTENDED THAT THIS FACT WAS NOT CONSIDERED BY THE TRIBUNAL WHILE DECIDING T HE APPEAL AND, HENCE, IT IS A MISTAKE APPARENT FROM THE RECORD REQ UIRING ACTION U/S 254(2) OF THE IT ACT. THE DR, THEREFORE, REQUESTED TO RECONSIDER THE APPEAL ON MERITS. 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE R ECORD. IT IS OBSERVED THAT RECONSIDERING THE DECISION OF THE ITA T, WOULD AMOUNT TO REVIEW OF ITS OWN DECISION AND THE TRIBUNAL HAVE NO POWERS TO REVIEW ITS OWN ORDER. IN THIS VIEW OF THE MATTER, W E DISMISS M.A. FILED BY THE REVENUE REQUESTING TO RECONSIDER THE D ECISION OF THE TRIBUNAL. 5. IN THE RESULT, THE MISCELLANEOUS APPLICATION FIL ED BY THE REVENUE IS DISMISSED. PRONOUNCED IN THE OPEN COURT ON 03/05/2013. SD/- SD/- (ASHA VIJAYARAGHAVAN) (CHANDRA POOJA RI) JUDICIAL MEMBER ACCOUNTANT M EMBER HYDERABAD, DATED: 3 RD MAY, 2013 KV MA NO. 85/HYD/13 M/S SEMANTIC SPACE TECHNOLOGIES PVT. LTD. 3 COPY TO:- 1) DCIT, CIRCLE 3(1), HYDERABAD 2) M/S SEMANTIC SPACE TECHNOLOGIES PVT. LTD., P LOT NO. 26, ROAD NO. 17, JUBILEE HILLS, HYDERABAD 3) THE CIT (A)-IV, HYDERABAD 4) THE CIT-III, HYDERABAD 5) THE DEPARTMENTAL REPRESENTATIVE, I.T.A.T., HYDE RABAD.