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Income Tax Appellate Tribunal - Hyderabad

M/S. Dharti Dredging & Infrastructure ... vs Department Of Income Tax on 19 March, 2012

             IN THE INCOME TAX APPELLATE TRIBUNAL
                 HYDERABAD BENCH 'B', HYDERABAD

BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER and
         SHRI SAKTIJIT DEY, JUDICIAL MEMBER

                       I.T.A. No. 1290/Hyd/2011
                      (Assessment year : 2007-08)

Asst. Commissioner of            Vs.   M/s. Dharti Dredging &
Income-tax, Circle-1(2)                Infrastructure Ltd.,
Hyderabad                              Hyderabad
                                       PAN: AABCD6612M
Appellant                              Respondent

                      Appellant by: Ms. G.V. Hemalatha
                    Respondent by: Mr. R.K. Jhunjhunwala

                    Date of hearing: 19.03.2012
            Date of pronouncement: 19.03.2012

                              ORDER

PER CHANDRA POOJARI, AM:

This appeal by the Revenue is directed against the order of the CIT(A)-II, Hyderabad dated 27.4.2011.

2. The Revenue raised the ground with regard to deletion of addition made u/s. 40(a)(ia) of the Income-tax Act, 1961.

3. Brief facts of the issue are that the Assessing Officer disallowed the following payment made to non-residents:

i) Payment to East Marine - Rs. 11,69,22,876

ii) Payment to Macon Asia - Rs. 3,45,10,000

----------------------

Total Rs. 15,14,32,876 ==============

4. On appeal, the CIT(A) deleted the addition holding that the impugned payments are not liable for deduction of tax. Being so there is no application of provisions of section 40(a)(ia) of the Act. Against this the Revenue is in appeal before us.

M/s. Dharti Dredging & Infrastructure Ltd. ===============================

5. We have heard both the parties and perused the material on record. The payment made to M/s. Macon Asia is the subject matter of appeal before the Tribunal in assessee's own case in ITA Nos. 605 & 606/Hyd/ 2010 for A.Ys. 2006-07 and 2007-08. The Tribunal vide order dated 17.9.2010 held that the provisions of section 195 are not applicable to these payments and held that there is no necessity of TDS on these payments. Similarly payments to M/s. East Marine Pvt. Ltd. is the subject matter of appeal in assessee's own case in I.T.A. No. 396/Hyd/2010 for A.Y. 2005-06 and 2006-07. The Tribunal vide order dated 15th February, 2012 held that the assessee is not liable for deduction of TDS. Being so, as of now, as decided by the Tribunal on earlier occasion, in our opinion, the impugned payments are not liable for TDS. Hence the provisions of section 40(a)(ia) are not applicable. Accordingly, the order of the CIT(A) is confirmed on this issue.

6. In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court on 19th March, 2012.

              Sd/-                              Sd/-
          (SAKTIJIT DEY)                  (CHANDRA POOJARI)
        JUDICIAL MEMBER                  ACCOUNTANT MEMBER

Hyderabad, dated the 19th March, 2012

Copy forwarded to:

1. The Asst. Commissioner of Income-tax, Circle-1(2), 4th Floor, Aayakar Bhavan, Hyderabad.

2. M/s. Dharti Dredging & Infrastructure Ltd., 6-3-1113/2, 1st Floor, Point of View, B.S. Maktha, Begumpet, Hyderabad-500 016

3. The CIT(A)-II, Hyderabad

4. The CIT-I, Hyderabad.

5. The DR - B Bench, ITAT, Hyderabad.

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