CIT v. Vector Shipping Services (P) Ltd.

357 ITR 642High Court2013#1313 most cited

What is CIT v. Vector Shipping Services (P) Ltd. authority for?

Section 40(a)(ia) of the Income-tax Act, 1961, applies only when an amount is payable (accrued) and not when the amount has already been disbursed or paid.

87

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Vector Shipping Services (P) Ltd. · Section 40(a)(ia) · applicability of Section 40(a)(ia) · amounts payable · amounts paid · TDS default disallowance · Allahabad High Court 2013 · SLP dismissed Supreme Court · disallowance expenses · unpaid liabilities

Also reported as

38 Taxmann.com 77218 Taxmann 93

Sections most often in play

Section 194CSection 195Section 40(a)(ia)Section 143(3)Section 147Section 197Section 197ASection 43B

Issues it is cited on

section 194csection 201(1)section 40(a)section 40(a)(ia)non-application of mindsection 40speaking ordersection 143(3)previous yearindiaprescribedcompany

Judgments citing CIT v. Vector Shipping Services (P) Ltd.

M/S. Matrix Infrastructure, New Delhi vs. ITO, New Delhi

In the result the appeal of the assessee is partly allowed and the appeal of the revenue is dismissed

ITA 5428/DEL/2010[2007-08]Status: DisposedITAT Delhi30 Sept 2015AY 2007-08

Bench: Sh. A. T. Varkey, Jm & Sh. O.P.Kant, Am

For Appellant: Dr. Rakesh Gupta, AdvFor Respondent: Sh. P. Dam Kanunjna, Sr. DR
Section 143(3)Section 40

…010 of Rs.67,36,671/-, the interest of Rs.50.00 lakhs stood paid as on 09.02.2007 and was not payable at the end of the year and thus Section 40(a)(ia) of the Act was not applicable in view of the judicial pronouncements in the case of CIT Vs. Vector Shipping 357 ITR 642 (All) and others cases reported in 43 CCH 1) (Hyd), 167 TTJ 493 (Mum), 146 TTJ 1(SB) (Vizag). Further, the ld AR submitted that , in absence of any judgement of jurisdictional High Court, even if contradictory decisions are there of other courts, the view favourable to the assessee might be taken, following the decision of Income-tax Appellate Tr…

ITO, Chennai vs. D.Umapathy, Chennai

In the result, the appeal of the Revenue is allowed

ITA 2435/CHNY/2014[2008-09]Status: DisposedITAT Chennai14 Aug 2015AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.2435/Mds/2014 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Shri S. Dasgupta, JCITFor Respondent: Shri K. Balasubramanian
Section 40

…not attracted. Therefore, according to the appellants, disallowance cannot be sustained. This contention was sought to be substantiated by relying on the judgment of the Allahabad High Court in Commissioner of Income Tax v. Vector Shipping Services (P) [2013] 357 ITR 642 (All)]. Primarily, this contention should be answered with reference to the language used in the statutory provision. Section 40(a)(ia) makes it clear that the consequence of disallowance is attracted when an individual, who is liable to deduct tax on any interest payable to a resident on which tax is deductible at source, commits default. The la…

Conferencecall Services India Pvt Ltd., Bangalore vs. ACIT, Chennai

In the result, the appeals of the assessee in ITA

ITA 484/CHNY/2014[2007-2008]Status: DisposedITAT Chennai17 Jul 2015AY 2007-2008

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.484 & 1057/Mds/2014 ("नधा"रण वष" / Assessment Years : 2007-08 & 2009-10)

For Appellant: Shri. T. Banusekar, C.AFor Respondent: Shri. A.V. Sreekanth, IRS, JCIT
Section 195Section 195(2)Section 40Section 9

…uction of TDS cannot be a reason for disallowance. He relied on the following judgments. I.T.A.Nos.484 & 1057/Mds/2014 :- 4 -: (i) CIT vs. Vector Shipping Services (P) Ltd. in CC No.8068/2014 (SC) (SLP) (ii) CIT vs. Vector Shipping Services (P) Ltd (2013) 357 ITR 642 (All) (iii) ACIT vs. Eskay Designs in ITA No.1951/Mds/2012, dt 9.12.2013. (iv) ITO vs. Theekathir Press in ITA No.2076/Mds/2012,dt. 18.9.2013 5. 305 ITR 37, wherein held that an issue decided on the basis of DTA agreement, the authority for advance ruling had observed that ‘’having regard to the fact that the entire operations are carried on b…

Conferencecall Services India Pvt Ltd., Bangalore vs. ACIT, Chennai

In the result, the appeals of the assessee in ITA

ITA 1057/CHNY/2014[2009-2010]Status: DisposedITAT Chennai17 Jul 2015AY 2009-2010

Bench: Shri Chandra Poojari & Shri V. Durga Raoआयकर अपील सं./ I.T.A. Nos.484 & 1057/Mds/2014 ("नधा"रण वष" / Assessment Years : 2007-08 & 2009-10)

For Appellant: Shri. T. Banusekar, C.AFor Respondent: Shri. A.V. Sreekanth, IRS, JCIT
Section 195Section 195(2)Section 40Section 9

…uction of TDS cannot be a reason for disallowance. He relied on the following judgments. I.T.A.Nos.484 & 1057/Mds/2014 :- 4 -: (i) CIT vs. Vector Shipping Services (P) Ltd. in CC No.8068/2014 (SC) (SLP) (ii) CIT vs. Vector Shipping Services (P) Ltd (2013) 357 ITR 642 (All) (iii) ACIT vs. Eskay Designs in ITA No.1951/Mds/2012, dt 9.12.2013. (iv) ITO vs. Theekathir Press in ITA No.2076/Mds/2012,dt. 18.9.2013 5. 305 ITR 37, wherein held that an issue decided on the basis of DTA agreement, the authority for advance ruling had observed that ‘’having regard to the fact that the entire operations are carried on b…

M/S Tungabhadra Fertilizers & Chemicals Co., Ltd., Koppal vs. DCIT, Bellary

In the result, assessee’s appeal is treated as allowed for statistical

ITA 1471/BANG/2013[2008-09]Status: DisposedITAT Bangalore03 Jul 2015AY 2008-09

Bench: Smt. P. Madhavi Devi

For Appellant: Shri. C. R. Nulvi, CAFor Respondent: Dr. P. K. Srihari, Addl. CIT
Section 115J

…DR sought to rely on judgment of Hon’ble Calcutta High Court in the case of CIT v. Crescent Export Syndicate [(2013) 94 DTR (Cal) 81], which is decided in favour of Revenue. 13. We find that on the contrary, there is one another judgment of Hon’ble [(2013) 357 ITR 642], wherein the Ho’ble High Court had held the issue in favour of the assessee. Hon’ble Allahabad High Court had held that Section 40(a)(ia) of the Act stood attracted only on amounts which remain payable during the previous year and not on the paid amounts. SLP filed by the Revenue against this judgment was dismissed by the Hon’ble Apex Court. T…

Sri. E. Krishnappa vs. ACIT, Bangalore

ITA 325/BANG/2013[2007-08]Status: DisposedITAT Bangalore14 May 2015AY 2007-08

Bench: Shri N.V. Vasudevan & Shri Jason P. Boaz

For Appellant: Mrs. Prathibha & Mrs. Sheetal Borkar, AdvocatesFor Respondent: Dr. P.K. Srihari, Addl. CIT (D.R)
Section 133ASection 143(1)Section 143(3)Section 147Section 148Section 40

…ear, and though no TDS has been made on the said payments, no disallowance under Section 40(a)(ia) of the Act can be made. Reliance was also placed on the decision of the Hon'ble High Court of Allahabad in the case of Vector Shipping Services Pvt. Ltd. (2013) 357 ITR 642. As per the learned Authorised 10 Representative, SLP filed by the Department against the latter decision stood dismissed by the Hon'ble Apex Court in C.C. No.8065/2014 dt.2.7.2014. 7.2.1 We have heard the rival contentions of both parties and perused and carefully considered the material on record, including the judicial decision cited. As subm…

M/S Karnataka Vikas Grameena Bank vs. CIT

In the result, the assessee’s appeal is allowed

ITA 662/BANG/2013[2008-09]Status: DisposedITAT Bangalore13 Feb 2015AY 2008-09

Bench: Smt. P. Madhavi Devi & Shri Jason P.Boazkarnataka Vikas Grameena Bank, Head Office, Cts No.52/B1/A1/D.H.No.133A, H.O.Building, Belgaum Road, D.N.Koppa Dharwad-580 008. … Appellant Vs. Commissioner Of Income-Tax, Hubli. … Respondent Appellant By: Shri Narendra Sharma, Advocate & Srihari Kutsa Respondent By: Shri Farhat Hussain Qureshi, Cit(Dr) Date Of Hearing : 03/02/2015 Date Of Pronouncement: 13/02/2015 O R D E R Per Smt.P.Madhavi Devi, Jm:

For Appellant: Shri Narendra Sharma, Advocate and Srihari KutsaFor Respondent: Shri Farhat Hussain Qureshi, CIT(DR)
Section 143(1)Section 143(3)Section 14ASection 154Section 194ASection 263Section 36(1)(viia)Section 40

…pping reported in (2012) 136 ITD 23 (Vishakapatnam)(SB), this amount cannot be disallowed u/s 40(a)(ia). He also placed reliance upon the judgment of the Hon’ble Allahabad High Court in the case of CIT vs. Vector Shipping Services (P) Ltd., reported in (2013) 357 ITR 642(All.) which has referred to the decision of the Special Bench of the Tribunal for coming to the above conclusion and also drawn our Karnataka Vikas Grameena Bank Page 5 of 7 attention to the fact that the Hon’ble Supreme Court has dismissed the SLP filed by the Revenue against the judgment of the Hon’ble Allahabad High Court. Thus, according to h…