ACIT, Nellore v. M/s Prardhana Constructions Co., Nellore

ITA 1046/HYD/2010 | 2006-2007
Pronouncement Date: 07-01-2011 | Result: Dismissed

Appeal Details

RSA Number 104622514 RSA 2010
Assessee PAN AACFP1347F
Bench Hyderabad
Appeal Number ITA 1046/HYD/2010
Duration Of Justice 5 month(s) 11 day(s)
Appellant ACIT, Nellore
Respondent M/s Prardhana Constructions Co., Nellore
Appeal Type Income Tax Appeal
Pronouncement Date 07-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 07-01-2011
Assessment Year 2006-2007
Appeal Filed On 26-07-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A' HYDERABAD BEFORE SHRI G.C. GUPTA VICE PRESIDENT AND SHRI CHANDRA POOJARI ACCOUNTANT MEMBER I.T.A. NO. 1046/HYD/2010 (ASSESSMENT YEAR 2006-07) THE ASST. COMMISSIONER OF INCOME-TAX CIRCLE 1 NELLORE VS. M/S. PRARDHANA CONSTRUCTIONS CO. NELLORE PAN: AACFP1347F APPELLANT RESPONDENT APPELLANT BY: SMT. V. MADHUVANI RESPONDENT BY: SHRI A.V. RAGHURAM O R D E R PER G.C. GUPTA VP : THIS APPEAL BY THE REVENUE FOR ASSESSMENT YEAR 200 6- 07 IS DIRECTED AGAINST THE ORDER OF THE CIT(A) GUN TUR DATED 15.4.2010. 2. THE GROUNDS OF APPEAL OF THE REVENUE ARE AS UNDE R: '1. THE ORDER OF THE LEARNED COMMISSIONER OF INCOME-TAX (APPEALS) GUNTUR IS CONTRARY TO LAW AND FACTS AND CIRCUMSTANCES OF THE CASE. 2. IN THE FACTS AND CIRCUMSTANCES OF THE CASE WHEN THE TDS CERTIFICATE HAS BEEN ISSUED BY THE ASSESSING OFFICER OF JOINT VENTURE CO. AND THERE IS NO PROVISION IN LAW FOR APPORTIONMENT OF SAID TDS BETWEEN THE MEMBERS OF THE JOINT VENTURE CO. WHETHER THE DIRECTIONS OF CIT(A) DIRECTING THE ASSESSING OFFICER TO ALLOW PROPORTIONATE TDS TO THE ASSESSEE AS A MEMBER OF SAID JOINT VENTURE CO. IS NOT ERRONEOUS IN LAW?' 3. THE LEARNED DR HAS RELIED ON THE ORDER OF THE AS SESSING OFFICER. SHE SUBMITTED THAT THE TDS CERTIFICATE WA S ISSUED BY I.T.A. NO. 1046/HYD/2010 M/S. PRARDHANA CONSTRUCTIONS CO. ======================= 2 THE ASSESSING OFFICER ON THE JOINT VENTURE COMPANY AND THERE IS NO PROVISION IN THE INCOME-TAX ACT FOR APPORTIONMEN T OF THE SAID TDS AMOUNT BETWEEN THE MEMBERS OF THE JOINT VENTURE COMPANY. SHE SUBMITTED THAT THE ORDER OF THE CIT(A ) IN DIRECTING THE APPORTIONMENT OF THE TDS AMOUNT WAS P ATENTLY WRONG. 4. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE ASSESSEE HAD CLAIMED ITS 60% SHARE IN THE TDS AMOUN T IN THE RETURN OF INCOME FILED AND THEREFORE IT AMOUNTS T O A MISTAKE APPARENT FROM THE RECORD AND SINCE THE INCOME THERE OF HAS BEEN ASSESSED AT 60% OF THE JOINT VENTURE COMPANY IN THE HANDS OF THE ASSESSEE THE ASSESSEE COMPANY WAS ENTITLED TO THE CREDIT OF 60% OF THE TDS AMOUNT. HE SUBMITTED THAT THE IS SUE IS COVERED IN FAVOUR OF THE ASSESSEE BY THE DECISION O F THE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR EARLI ER A.Y. 2003-04 IN I.T.A. NO. 1148/HYD/2006 DATED 4.4.2008 WHICH WAS FOLLOWED BY THE CIT(A) IN THE IMPUGNED ORDER. 5. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFUL LY. WE FIND THAT THE ASSESSEE IS A PARTNERSHIP FIRM ENGAGE D IN CIVIL CONTRACT WORKS. THE ASSESSEE HAS CLAIMED THE CREDI T OF 60% OF THE TDS AMOUNT OF THE JOINT VENTURE COMPANY AS PER THE TDS CERTIFICATE ISSUED BY THE ASSESSING OFFICER OF THE JOINT VENTURE COMPANY. THE CREDIT OF THE TDS AMOUNT OF THE JOINT VENTURE COMPANY WAS NOT ALLOWED TO THE ASSESSEE FIRM AND TH E I.T.A. NO. 1046/HYD/2010 M/S. PRARDHANA CONSTRUCTIONS CO. ======================= 3 ASSESSEE ACCORDINGLY APPLIED FOR RECTIFICATION REQU ESTING THE ASSESSING OFFICER FOR THE CREDIT OF TDS AMOUNT. TH E ASSESSING OFFICER REJECTED THE REQUEST OF THE ASSESSEE HOLDIN G THAT THE TDS CERTIFICATE WAS ISSUED IN THE NAME OF THE JOINT VENTURE COMPANY AND THE PROPORTIONATE CREDIT COULD NOT BE G IVEN IN THE HANDS OF THE MEMBERS OF THE JOINT VENTURE COMPANY. WE FIND THAT THE PROVISIONS OF SECTION 199 OF THE INCOME-TA X ACT 1961 ARE CLEAR ON THE ISSUE AND THE CREDIT FOR TDS HAS T O BE GIVEN TO THE PERSON IN WHOSE CASE THE RECEIPTS ARE SUBJECTED TO TAX. IN THIS CASE THE RECEIPTS COVERED BY THE TDS CERTIFICA TE OF THE JOINT VENTURE COMPANY WERE OFFERED FOR TAXATION IN THE HA NDS OF THE CONSTITUENTS OF THE JOINT VENTURE COMPANY AND THE P ROPORTIONATE CREDIT OF THE TDS AMOUNT HAS TO BE ALLOWED IN THE H ANDS OF THE INDIVIDUAL CONSTITUENTS AS PER THEIR RESPECTIVE SHA RE RATIO PROVIDED IN THE JOINT VENTURE AGREEMENT. WE FIND T HAT THIS ISSUE IS COVERED IN FAVOUR OF THE ASSESSEE WITH THE DECIS ION OF THE HYDERABAD TRIBUNAL IN ASSESSEE'S OWN CASE FOR ASSES SMENT YEAR 2003-04 (SUPRA) WHEREIN IT WAS HELD THAT THE A SSESSEE WAS ENTITLED TO THE CREDIT OF TDS AMOUNT AS PER THE SHA RE RATIO AGREEMENT IN THE JOINT VENTURE AGREEMENT. WE BEING IN AGREEMENT WITH THE ORDER OF THE CO-ORDINATE BENCH O F THE TRIBUNAL FOR A.Y. 2003-04 IN ASSESSEE'S OWN CASE D ECIDE THE ISSUE IN FAVOUR OF THE ASSESSEE AND THE ORDER OF TH E CIT(A) IS CONFIRMED. THE GROUNDS OF APPEAL OF THE REVENUE AR E DISMISSED. I.T.A. NO. 1046/HYD/2010 M/S. PRARDHANA CONSTRUCTIONS CO. ======================= 4 6. IN THE RESULT THE APPEAL OF THE REVENUE IS DISM ISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 7TH JANUARY 2011. SD/- (CHANDRA POOJARI) ACCOUNTANT MEMBER SD/- (G.C. GUPTA) VICE PRESIDENT HYDERABAD DATED 7TH JANUARY 2011 TPRAO COPY FORWARDED TO: 1. THE ASST. COMMISSIONER OF INCOME-TAX CIRCLE 1 DARGAMITTA NELLORE. 2. M/S. PRARDHANA CONSTRUCTIONS CO. D.NO. 16/384 RAMAMURTHY NAGAR NELLORE. 3. THE CIT(A) GUNTUR. 4. THE CIT GUNTUR CHARGE GUNTUR 5. THE DR A BENCH ITAT HYDERABAD