Value Labs Llp Hyd Formerly Value Labs Hyd Hyderabad v. Dcit Circle 8 1 Hyderabad Hyderabad

9 In The Income Tax Appellate Tribunal Hyderabad Bench A Hyderabad Before Smt P Madhavi Devi Judicial Member And Shri S Rifaur Rahman Accountant Member Ita No 1085 Hyd 2016 Assessment Year 2004 05 M S Valuelabs Llp Formerly Known As Valuelabs Hyderabad Pan Aakfv 2276 K Vs Dcit Circle 8 1 Hyderabad Applicant Respondent Assessee By Shri P Murali Mohana Rao Revenue By Shri J Siri Kumar Date Of Hearing 17 11 2017 Date Of Pronouncement 13 12 2017 Order Per P Madhavi Devi J M In This Appeal The Assessee Is Aggrieved By The Order Of The Cit A In Confirming The Order Passed By A O U S 154 Of The Act Dated 31 07 2006 2 Brief Facts Of The Case Are That The Assessee Had Filed Its Return Of Income For The A Y 2004 05 On 31 10 04 Wherein Amongst Other Items Tax Credit For Withholding Of Taxes By A Malaysian Company Was Claimed At Rs 39 42 389 While Processing The Return Of Income U S 143 1 Of The Act The A O Did Not Give Credit For The Taxes 2 Ita No 1085 Hyd 2016 Valuelabs Llp Hyderabad Withheld By M S Maxes Mobile Sdi Phd Malaysia Of Rs 39 42 389 The Assessee Filed A Petition U S 154 Of The It Act For Such Credit Along With The Said Petition The Assessee Filed The Original Withholding Tax Certificates And Also Indemnity Bond Before The A O For Indemnification Of Any Loss Incurred By Govt Of India If Withholding Of Tax Credit Is Given To The Assessee The A O Vide Orders Dated 31 07 2006 Allowed The Claim Of Withholding Of Taxes Of Rs 39 42 389 After Due Verification Of The Documents 3 Thereafter The Case Was Selected For Reassessment Proceedings U S 147 Of The Act For Restricting The Claim Of Exemption U S 10 B Of The Act And While Calculating The Taxes Payable The A O Omitted To Give Credit For Withholding Of Taxes Of Rs 39 42 389 Further An Order U S 154 Of The It Act Was Also Passed On 31 07 2006 Rectifying The Assessment Order U S 143 3 R W S 147 Of The Act Dated 30 12 2011 Rectifying The Interest U S 234 B Of The Act At This Point Of Time The Assessee Requested The A O To Give Credit For Withholding Of Taxes However The A O Did Not Allow The Credit For Withholding Of Taxes As Claimed By The Assessee 3 Ita No 1085 Hyd 2016 Valuelabs Llp Hyderabad 4 The Assessee Preferred An Appeal Before The Cit A Against The Order Passed By The A O U S 154 Of The Act Dated 31 07 2006 The Cit A Directed The A O To Allow The Claim Of The Assessee After Verifying The Assessees Claim In Respect Of Withholding Of Taxes Against This Direction Of The Cit A The Assessee Is In Appeal Before Us 5 The Ld Counsel For The Assessee While Reiterating The Submissions Made Above Submitted That The Assessee Has Already Filed The Relevant Details Along With The Original Tax Withholding Certificates Before The A O During The 154 Proceedings And The A O After Verifying The Said Documents And On Being Satisfied About The Allowbility Has Given Credit For Taxes Of Rs 39 42 389 He Submitted That The Subsequent Reopening Of Assessment Is On The Issue Of Exemption U S 10 A Of The It Act And While Passing The Reassessment Order A O Ought To Have Given Credit For Withholding Of Taxes He Submitted That The Direction Of The Cit A To Re Verify And Give Credit For Withholding Of Taxes Will Cause Severe Hardship To The Assessee Since The Assessee Has Already Filed All The Details Before The A O He Submitted That The Order U S 154 Of The It Act Giving Credit For Withholding Of Taxes Earlier Has Not Been Set 4 Ita No 1085 Hyd 2016 Valuelabs Llp Hyderabad Aside By Any Of The Authorities And Therefore The Order Is Final And The A O While Passing The Re Assessment Order Is Supposed To Give Credit For Withholding Of Taxes He Therefore Prayed That A O May Be Directed To Pass The Order In Accordance With The Order U S 154 Of The It Act Dated 31 07 2006 6 The Ld Dr However Supported The Order Of The Cit A Appeals 7 Having Regard To The Rival Contentions And Material Placed On Record We Find That The Assessees Claim Of Withholding Of Taxes Was Made In The Original Return Of Income And In The Order U S 154 Of The It Act Dated 31 07 2006 The A O Has Verified The Original Documents Filed By The Assessee And After Being Satisfied About The Allowbility Of Said Claim Has Allowed The Credit The Subsequent Reopening Of Assessment Is On The Issue Of Deduction U S 10 A Of The It Act And 154 Order Is For Recalculation Of Interest U S 234 D Of The Act Consequent To The Reassessment Proceedings The Issue Of Withholding Of Taxes Was Never An Issue In Any Of The Subsequent Proceedings Nor Has It Been Set Aside By Any Of The Authorities In Any Of The Proceedings Therefore The Order 5 Ita No 1085 Hyd 2016 Valuelabs Llp Hyderabad Passed By The A O U S 154 Dated 31 07 2006 Has Attained Finality Therefore In The Subsequent Assessment Proceedings While Computing The Taxes Payable By The Assessee The A O Ought To Have Given Credit For Tax Withheld By The Malaysian Company Therefore We Direct The A O To Pass The Consequential Order By Giving Credit To The Taxes Withheld By The Malaysian Company In Accordance With The Order U S 154 Of The Act Dated 31 07 2006 We Find That All The Grounds Of The Appeal Filed Along With Form 36 And Also The Additional Grounds Of Appeal Raised By The Assessee Are All On The Same Issue And They Are All Accordingly Treated As Allowed For Statistical Purposes 8 In The Result The Appeal Filed By The Assessee Is Allowed For Statistical Purposes Pronounced In The Open Court On 13 Th December 2017 Sd Sd S Rifaur Rahman P Madhavi Devi Accountant Member Judicial Member Hyderabad Dated 13 Th December 2017 6 Ita No 1085 Hyd 2016 Valuelabs Llp Hyderabad Krk 1 M S Valuelabs Llp C O P Murali Co Cas 6 3 655 2 3 1 St Floor Somajiguda Hyderabad 2 Dcit Circle 8 1 Hyderabad 3 Cit A 9 Hyderabad 4 The Pcit 2 Hyderabad 5 The Departmental Representative I T A T Hyderabad 6 Guard File