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IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD ‘ A ‘ BENCH, HYDERABAD.
BEFORE SHRI S.S. GODARA, JUDICIAL MEMBER AND SHRI LAXMI PRASAD SAHU, ACCOUNTANT MEMBER (Through Virtual Hearing)
ITA No.1692/Hyd/2016 (Assessment Year : 2009-10)
Dy. Commissioner of Income Tax, Circle 17(2), Hyderabad. …..Appellant. Vs. M/s. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Respondent. PAN AAACV 7259B
ITA No.1726/Hyd/2016 (Assessment Year : 2009-10)
M/s. Vijay Electricals Limited, 6-3-648/1 & 2,Rajbhavan Road, Hyderabad-500 082. …..Appellant. Vs. Dy. Commissioner of Income Tax, Circle 17(2), Hyderabad. …..Respondent.
Assessee By : Shri S. Rama Rao. Revenue By : Shri Sunil Kumar Pandey (D.R.)
Date of Hearing : 24.02.2021. Date of Pronouncement : 11.05.2021.
2 ITA Nos.1692 & 1726/Hyd/2016
O R D E R Per S.S. Godara, J.M. : These Revenue’s and assessee's cross appeals for
Assessment Year 2009-10 arise against the Commissioner
of Income Tax (Appeals)-5, Hyderabd’s order
dt.30.09.2016 passed in the case No.0391/2014-
15/CIT(A)-5 involving proceedings u/s. 143(3) r.w.s. 144C
of the Income Tax Act, 1961 ('the Act').
Heard both parties. Case files perused.
We come to the Revenue’s appeal in ITA
No.1692/Hyd/2016 raising the following substantive
grounds :
“1. The Ld. CIT(A) erred on (acts and in law in holding that the provisions of Sec. 195 LW.S. 40(a)(ia) are not applicable to the (acts of the case on the issue of interest amounting to Rs.5,63,43,083/ - paid on foreign supplier bills without making TDS.
The Ld. CIT(A) erred in law in ignoring the decision of the Hon'ble Supreme Court in the case of Vijay Shipping Corporation & Others vs. CIT, Ahmedabad 314 ITR 309, decision of the Hon'ble Gujarat High Court I the case of CIT vs. Vijay Ship Breaking Corporation 261 ITR 113 and decision of the Hon'ble Madras
3 ITA Nos.1692 & 1726/Hyd/2016 High Court in the case of CIT vs. India Pistons Ltd. (Madras) 282 ITR 632 which are in favour of the Revenue on the similar issue.
The Learned ClT(A) erred in not appreciating the fact that the Department is in appear before the Hon'ble High Court in appellant's Own case on identical issue for the A.Ys 2005-06, 2006-07 and 2007-08 in Appeal No. 236/Hyd./2009, 845/Hyd./2009 and 1462/Hyd./2010 dated 22.07.2011 respectively and the decision of the Hon'ble High Court is still awaited.”
It is evident at the outset that the
Revenue’s instant sole grievance (supra) already stands
adjudicated in assessee's favour in Assessment Years
2005-06 to 2007-08 before this tribunal. There is no
distinction on facts as well as on law forthcoming from the
department side. We notice from the CIT(Appeals)
detailed discussion that earlier learned co-ordinate bench
decision(s) already holds that section 40(a)(ia) r.w.s 195
does not apply qua payment of interest on foreign
suppliers bill. We thus adopt judicial consistency in
absence of any distinction on facts to affirm the
CIT(Appeals) impugned conclusion. The Revenue’s sole
4 ITA Nos.1692 & 1726/Hyd/2016 substantive grievance as well as the main appeal
1632/Hyd/2016 fails there.
Coming to the assessee's cross appeal in
ITA 1726/Hyd/2016 seeking to reverse both the lower
authorities’ action making ALP adjustment of
Rs.84,05,758, learned authorised representative rose to
his seniority and stated at the Bar that the same is within
5% tolerance margin u/s. 92C(2) 2nd proviso of the Act and
therefore, this taxpayer no more needs to press for the
same. Ordered accordingly.
This Revenue’s appeal in ITA 1692/Hyd/2018 is
dismissed and the assessee's cross appeal in ITA
1726/Hyd/2018 is dismissed as not pressed in above
terms. A copy of this common order be placed in the
respective files.
Order pronounced in the open court on 11th May,2021. Sd/- Sd/- (LAXMI PRASAD SAHU) (S.S. GODARA) Accountant Member Judicial Member Hyderabad, Dt.11.05.2021. * Reddy gp
5 ITA Nos.1692 & 1726/Hyd/2016 Copy to : 1. M/s. Vijay Electricals Limited, 6-3-648/1 & 2, Rajbhavan Road, Hyderabad-500 082. 2. DCIT, Circle 17(2), Hyderabad. 3. Pr. C I T-5, Hyderabad. 4. CIT(Appeals)-5, Hyderabad. 5. DR, ITAT, Hyderabad. 6. Guard File.
By Order Sr. Pvt. Secretary, ITAT, Hyderabad.