ITO WARD-8(1), HYDERABAD vs. MVVS-ALIENS(JV), HYDERABAD
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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A”, HYDERABAD
Before: SHRI RAMA KANTA PANDA & SHRI K.NARASIMHA CHARY
आदेश / ORDER PER K. NARASIMHA CHARY, JM: Challenging the order dated 09/09/2022 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of MVVS – ALIENS (JV) (“the assessee”) for the assessment year 2011-12, Revenue preferred this appeal.
ITA No. 577/Hyd/2022
Brief facts of the case are that the addition of Rs. 6,78,46,398/- made by the learned Assessing Officer in the order dated 01/03/2018, under section 40(a)(ia) of the of the Income Tax Act, 1961 (for short “the Act”) is deleted by the learned CIT(A) in appeal holding that the impugned payment made by the assessee to M/s Aliens Developers Pvt. Ltd., was declared by the payee in the Income Tax returns and the taxes were also paid. Learned CIT(A) followed the decision of the Hon’ble Delhi High Court in the case of CIT vs. Ansal Landmark Township P. Ltd., 61 taxmann.com 45 (2015), wherein it was held that 2nd proviso to section 40(a)(ia) of the Act is a declaratory in the curative and has retrospective effect from 01/04/2005. On this aspect, learned Assessing Officer recorded a finding that the view taken by the Hon’ble Delhi High Court in the case of Ansal Landmark Township P. Ltd (supra) has not attained the finality in view of the Special Leave Petition granted in favour of Revenue by the Hon’ble Supreme Court in the case of CIT vs. Ansal Landmark Township Pvt. Ltd. (2016) 242 Taxman 5 (SC).
Aggrieved by the act of the deletion made by the learned CIT(A), Revenue preferred this appeal and learned DR contended that as rightly pointed out by the learned Assessing Officer the issue has not reached finality in view of the grant of special leave by the Hon’ble Apex Court.
Per contra, learned AR submitted that as on the date the decision of the Hon’ble Delhi High Court in the case of Ansal Landmark Township P. Ltd. (supra) holds good and there is no decision to the contrary.
We have gone through the orders of the authorities below. Insofar as the facts are concerned there is no dispute that the payee M/s Aliens
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Developers Pvt. Ltd., declared the payment from the assessee in the return of income and paid the due taxes up and on that score the assessee cannot be considered as ‘assessee in default’. As on the date the decision of the Hon’ble Delhi High Court in the case of Ansal Landmark Township P. Ltd. holds good and there is no view taken to the contrary by the Hon’ble Apex Court. In the circumstances, we do not find anything illegality or irregularity in the impugned orders of the learned CIT(A) and, therefore, uphold the same. Appeal of the Revenue is devoid of merits and the same is liable to be dismissed.
In the result appeal of the Revenue is dismissed.
Order pronounced in the open court on this the 26th day of October, 2023.
Sd/- Sd/- (RAMA KANTA PANDA) (K. NARASIMHA CHARY) VICE PRESIDENT JUDICIAL MEMBER
Hyderabad, Dated: 26/10/2023
TNMM
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ITA No. 577/Hyd/2022
