ITAT Hyderabad Judgments — February 2019

BHARATHI CEMENT CORPORATION PRIVATE LIMITED,HYDERABAD vs ACIT, CIRCLE 2(3), HYDERABAD

ITA 1050/HYD/2014[2009-10]Status: Disposed20 Feb 2019AY 2009-10Dismissed

The Tribunal noted that a coordinate bench had previously remitted the issue back to the Assessing Officer for re-verification of funds and cash flow management. Since the CIT's direction was similar to the Tribunal's previous directions, the Tribunal confirmed the CIT's order and directed the CIT(A) to examine the issue in line with the previous directions.

DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD vs GVK BIOSCIENCES PRIVATE LIMITED, HYDERABAD

ITA 1072/HYD/2017[2012-13]Status: Disposed20 Feb 2019AY 2012-13Dismissed

The Tribunal held that since the assessee had obtained and renewed approval from the prescribed authority as a research and development company, and the facts were similar to earlier years where the ITAT had allowed the deduction, the claim should be allowed. The Revenue failed to present any new material to rebut the CIT(A)'s findings.

NHANCE ENGINEERING SOLUTIONS PRIVATE LIMITED,HYDERABAD vs DY. COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD

ITA 1522/HYD/2018[2013-14]Status: Disposed20 Feb 2019AY 2013-14Allowed

The Tribunal held that the non-filing of Form 3CEA along with the return of income is a curable defect. As long as the form is submitted during the assessment proceedings, the benefit of Section 50B should be allowed. The AO was directed to accept the audit report and allow the benefit of Section 50B.

INCOME TAX OFFICER, WARD-17(2), HYDERABAD vs FUSOL ADVISORY SERVICES PRIVATE LIMITED, SECUNDERABAD

ITA 1581/HYD/2018[2013-14]Status: Disposed20 Feb 2019AY 2013-14Dismissed

The Tribunal held that the payment was reimbursement of expenses and not salary, and therefore, the assessee was not obligated to deduct TDS. This decision followed a previous ruling in the assessee's own case for AY 2011-12.

MAYTAS-CTR (JV),HYDERABAD vs ASST. COMMISSIONER OF INCOME TAX, CIRCLE-14(1), HYDERABAD

ITA 630/HYD/2018[2014-15]Status: Disposed20 Feb 2019AY 2014-15Allowed

The Tribunal held that transactions between JV partners, including financial support and resource pooling, are not necessarily on a commercial basis and need not be reflected in the Profit & Loss account. The addition made by the AO was therefore not proper.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1398/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 200A, which allows for the levy of fees under Section 234E, came into effect on 01.06.2015. Therefore, late fees cannot be levied for assessment years prior to this date. The delay in filing the appeal before the CIT(A) was condoned.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1399/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 200A, which allows for the levy of fees under Section 234E, came into effect from June 1, 2015. Therefore, late fees cannot be levied for assessment years prior to this date.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1400/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 200A, which allows for processing of TDS statements and levy of fees, came into effect from June 1, 2015. Therefore, late fees under Section 234E cannot be levied for assessment years prior to this date.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs SWARUP HOSPITALS PRIVATE LIMITED, HYDERABAD

ITA 1401/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that Section 200A, which allows for processing of TDS statements and levy of fees, came into effect from June 1, 2015. Therefore, late fees under Section 234E cannot be levied for assessment years prior to this date.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1403/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that Section 200A, which allows for the levy of fees under Section 234E, came into effect from June 1, 2015. Therefore, late fees cannot be levied for assessment years prior to this date.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1497/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 200A, which allows for processing of TDS statements and levy of fees, came into effect from June 1, 2015. Therefore, late fees under Section 234E cannot be levied for assessment years prior to this date.

MAK PROJECTS PRIVATE LIMITED,HYDERABAD vs ASST. COMMISSIONER OF INCOME TAX, CIRCLE-16(2), HYDERABAD

ITA 1576/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that disallowance under Section 14A cannot be made if there is no exempt income earned during the relevant assessment year. Therefore, the addition made by the AO was deleted.

SEEC TECHNOLOGIES ASIA PRIVATE LIMITED,HYDERABAD vs DY. COMMISSIONER OF INCOME TAX, CIRCLE-3(1), HYDERABAD

ITA 1676/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Partly Allowed

The Tribunal held that since this was the first year of mandatory e-filing and the appeal was filed manually within time, the assessee should be allowed to file it electronically. The CIT(A) was directed to decide the appeal on merits after providing an opportunity of being heard.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1856/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not have the power to adjust for such fees before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4, HYDERABAD

ITA 1862/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that the levy of fees under Section 234E was not permissible for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include this levy before that date. Therefore, the fees levied were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1868/HYD/2018[2016-17]Status: Disposed15 Feb 2019AY 2016-17Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

VANSUN ERECTORS PRIVATE LIMITED,SECUNDERABAD vs INCOME TAX OFFICER, WARD-17(3), HYDERABAD

ITA 732/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that since the service tax was not debited to the Profit & Loss Account as an expenditure and was not claimed as a deduction, Section 43B is not applicable for disallowance. The disallowance is not sustainable.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1864/HYD/2018[2015-16]Status: Disposed15 Feb 2019AY 2015-16Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

SHAKTHI CONSTRUCTIONS,HYDERABAD vs DY. COMMISSIONER OF INCOME TAX, CIRCLE-11(1), HYDERABAD

ITA 1208/HYD/2017[2006-07]Status: Disposed15 Feb 2019AY 2006-07Remanded

The Tribunal held that the CIT(A) dismissing the appeal ex-parte violated principles of natural justice. Therefore, the matter was restored to the CIT(A) for a decision on merits after affording the assessee a reasonable opportunity of being heard.

DY. COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURE LIMITED, HYD, HYDERABAD

ITA 1540/HYD/2017[2015-16]Status: Disposed15 Feb 2019AY 2015-16Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

SRINIVAS VUDUTHA,HYDERABAD vs INCOME TAX OFFICER, WARD-15(3), HYDERABAD

ITA 2011/HYD/2017[2014-15]Status: Disposed15 Feb 2019AY 2014-15Partly Allowed

The Tribunal, following its previous decisions, directed the AO to estimate the net profit from the retail liquor business at 3% of the cost of goods put to sale.

K GOPAL RAJ, HYD,HYDERABAD vs DCIT, CEN.CIRCLE-1(3), HYD, HYDERABAD

ITA 773/HYD/2017[2009-10]Status: Disposed15 Feb 2019AY 2009-10Dismissed

The Tribunal held that since incriminating material was found during the search, Section 153C should have been invoked, not Section 147. Initiating proceedings under Section 147 was deemed improper and void ab initio.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1866/HYD/2018[2015-16]Status: Disposed15 Feb 2019AY 2015-16Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1867/HYD/2018[2015-16]Status: Disposed15 Feb 2019AY 2015-16Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1857/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1860/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1861/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

EPE PROCESS FILTERS & ACCUMULATORS PVT.LTD., HYD,SECUNDERABAD vs DCIT, CIRCLE-2(2), HYDERABAD, HYDERABAD

ITA 975/HYD/2016[2009-10]Status: Disposed15 Feb 2019AY 2009-10Remanded

The Tribunal considered the claim of business promotion through ticket distribution as plausible, akin to distributing gifts. It admitted a list of customers as additional evidence and remanded the issue to the AO for verification.

ITO, WARD-7(3), HYD, HYDERABAD vs KOSETTY KISHORE, HYD, HYDERABAD

ITA 342/HYD/2015[2009-10]Status: Disposed15 Feb 2019AY 2009-10Dismissed

The Tribunal held that since incriminating material was found during the search, Section 153C should have been invoked, not Section 147. Initiating proceedings under Section 147 was deemed improper and void ab initio.

ITO, WARD-7(3), HYD, HYDERABAD vs KOSETTY NAGARAJU, HYD, HYDERABAD

ITA 343/HYD/2015[2009-10]Status: Disposed15 Feb 2019AY 2009-10Dismissed

The Tribunal held that since incriminating material was found during the search, Section 153C should have been invoked, not Section 147. Initiating proceedings under Section 147 was deemed improper and void ab initio.

ACIT, CIRCLE-7(1), HYDERABAD, HYDERABAD vs K GOPAL RAJ, HYD, HYDERABAD

ITA 765/HYD/2017[2009-10]Status: Disposed15 Feb 2019AY 2009-10Dismissed

The Tribunal held that since incriminating material was found during the search, Section 153C should have been invoked, not Section 147. Initiating proceedings under Section 147 was deemed improper and void ab initio.

DCIT, CENTRAL CIRLCE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURE LTD, HYDERABAD

ITA 608/HYD/2016[2011-12]Status: Disposed15 Feb 2019AY 2011-12Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

DCIT, CENTRAL CIRLCE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURE LTD, HYDERABAD

ITA 610/HYD/2016[2013-14]Status: Disposed15 Feb 2019AY 2013-14Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

DCIT, CENTRAL CIRCLE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURES LIMITED, HYD, HYDERABAD

ITA 1375/HYD/2016[2014-15]Status: Disposed15 Feb 2019AY 2014-15Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

DCIT, CENTRAL CIRLCE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURE LTD, HYDERABAD

ITA 607/HYD/2016[2010-11]Status: Disposed15 Feb 2019AY 2010-11Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

DCIT, CENTRAL CIRLCE-2(1), HYD, HYDERABAD vs MEGHA ENGINEERING & INFRASTURCTURE LTD, HYDERABAD

ITA 609/HYD/2016[2012-13]Status: Disposed15 Feb 2019AY 2012-13Dismissed

The Tribunal held that a fresh claim for deduction under Section 80IA(4) can be made in a return filed in response to a notice under Section 153A. It also held that constituents of Joint Ventures are eligible for deduction under Section 80IA(4) on profits from projects executed by them.

SWARUP HOSPITALS PRIVATE LIMITED,HYDERABAD vs ADDL. COMMISSIONER OF INCOME TAX, TDS RANGE-2, HYDERABAD

ITA 1402/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that Section 200A, which allows for processing of TDS statements and levy of fees, came into effect from June 1, 2015. Therefore, late fees under Section 234E cannot be levied for assessment years prior to this date.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1855/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1858/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1859/HYD/2018[2013-14]Status: Disposed15 Feb 2019AY 2013-14Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS WARD-1(4), HYDERABAD

ITA 1863/HYD/2018[2014-15]Status: Disposed15 Feb 2019AY 2014-15Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

MOTHER THERESAS EDUCATIONAL SOCIETY,HYDERABAD vs INCOME TAX OFFICER, TDS, WARD-1(4), HYDERABAD

ITA 1865/HYD/2018[2015-16]Status: Disposed15 Feb 2019AY 2015-16Allowed

The Tribunal held that Section 234E fees could not be levied for TDS returns filed prior to June 1, 2015, as the processing under Section 200A did not include such adjustments before that date. Therefore, the levies were without authority of law.

ITO, WARD-14(1), HYD, HYDERABAD vs AMJAD KHAN, HYDERABAD, HYDERABAD

ITA 1485/HYD/2016[2010-11]Status: Disposed13 Feb 2019AY 2010-11Dismissed

The Tribunal upheld the CIT(A)'s order, agreeing that the assessee did not have title or possession of the property to transfer it. Therefore, capital gains could not be taxed in the assessee's hands.

BKP MINING CORPORATION LIMITED,HYDERABAD vs INCOME TAX OFFICER, WARD-1(3), HYDERABAD

ITA 1636/HYD/2017[2013-14]Status: Disposed13 Feb 2019AY 2013-14Dismissed

The Tribunal held that the interest earned from idle funds deposited in banks during the pre-operative stage is to be treated as 'income from other sources' and not business income. Consequently, pre-operative expenditure cannot be set off against this interest income.

DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE17(2), HYDERABAD vs M/S VST INTUSTRIES LIMITED, HYDERABAD

ITA 1857/HYD/2017[2009-10]Status: Disposed13 Feb 2019AY 2009-10Dismissed

The Tribunal held that the payment made under the Voluntary Retirement Scheme was not a contribution to an approved Superannuation Fund. Therefore, it could not be treated as a fringe benefit attracting Fringe Benefit Tax.

DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD vs HSM STEELS PEIVATE LIMITED, HYDERABAD

ITA 10/HYD/2018[2013-14]Status: Disposed13 Feb 2019AY 2013-14Allowed

The Tribunal held that the Assessing Officer had not discharged his onus to prove that the amounts were not genuine. The CIT(A) had rightly directed the AO to verify the same by issuing commission.

SRI ASL FINVEST PRIVATE LIMITED,HYDERABAD vs INCOME TAX OFFICER, WARD-3(3), HYDERABAD

ITA 294/HYD/2018[2013-14]Status: Disposed13 Feb 2019AY 2013-14Allowed

The Tribunal held that disallowance under Rule 8D(2)(iii) should be computed only on the average of investments yielding exempt income. It also held that disallowances under Section 14A cannot be added for computing book profits under Section 115JB.

GAUTAMCHAND RATHORE,HYDERABAD vs INCOME TAX OFFICER, WARD-10(2), HYDERABAD

ITA 785/HYD/2018[2013-14]Status: Disposed13 Feb 2019AY 2013-14Remanded

The Tribunal found that the assessee had reasonable cause for non-appearance. While the CIT(A) had to decide ex-parte, the appeal should have been decided on merits, not dismissed for non-prosecution.