ITO, Ward 16(1), Hyderabad v. M/s Meera & Ceiko Pumps pvt. ltd., Hyderabad

ITA 1428/HYD/2010 | 2006-2007
Pronouncement Date: 28-01-2011 | Result: Dismissed

Appeal Details

RSA Number 142822514 RSA 2010
Assessee PAN AABCM3924F
Bench Hyderabad
Appeal Number ITA 1428/HYD/2010
Duration Of Justice 2 month(s) 10 day(s)
Appellant ITO, Ward 16(1), Hyderabad
Respondent M/s Meera & Ceiko Pumps pvt. ltd., Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 28-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted A
Tribunal Order Date 28-01-2011
Assessment Year 2006-2007
Appeal Filed On 18-11-2010
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A' HYDERABAD BEFORE SHRI N.R.S. GANESAN JUDICIAL MEMBER AND SHRI AKBER BASHA ACCOUNTANT MEMBER I.T.A. NO. 1428/HYD/2010 (ASSESSMENT YEAR 2006-07) THE INCOME TAX OFFICER WARD 16(1) HYDERABAD VS. M/S. MEERA & CEIKO PUMPS PVT. LTD. SECUNDERABAD PAN: AABCM3924F APPELLANT RESPONDENT APPELLANT BY: SHRI K.V.N. CHARYA RESPONDENT BY: SHRI P.V.S.S. PRASAD O R D E R PER NRS GANESAN JM: THIS APPEAL OF THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A)-V HYDERABAD DATED 20.8.2010 AND PERT AINS TO ASSESSMENT YEAR 2006-07. 2. THE ONLY ISSUE ARISES FOR CONSIDERATION IS DISAL LOWANCE U/S. 40(A)(IA) OF THE INCOME-TAX ACT 1961 FOR NON DEDUCTION OF TAX AT SOURCE. SHRI K.V.N. CHARYA THE LEARNED DR SUBMITTED THAT THE CIT(A) MECHANICALLY PLACING REFERENCE ON T HE ORDER OF THE OF THIS TRIBUNAL FOR A.Y. 2005-06 ALLOWED THE C LAIM OF THE ASSESSEE. REFERRING TO THE ASSESSMENT ORDER MORE P ARTICULARLY PAGE 3 THE LEARNED DR POINTED OUT THAT THE TOTAL P AYMENT WILL BE MADE TO THE ASSESSEE DIRECTLY BY THE DEPARTMENT THR OUGH THE FUNDING AGENCY IN FINLAND. THE ASSESSEE HAS TO TRA NSFER THE SHARE TO MR. AHMED OU OULT TAJIDIN IN SENEGAL. THE ASSESSEE HAS TO OFFER COMMERCIAL ASSISTANCE @ 5% COMMISSION ON THE I.T.A. NO. 1428/HYD/2010 M/S. MEERA & CEIKO PUMPS PVT. LTD. ============================ 2 FOB VALUE. THIS FACTUAL SITUATION WAS NOT CONSIDER ED BY THE CIT(A) WHILE ALLOWING THE CLAIM OF THE ASSESSEE. 3. ON THE CONTRARY SHRI P.V.S.S. PRASAD THE LEARNE D REPRESENTATIVE FOR THE ASSESSEE SUBMITTED THAT THE ASSESSEE RENDERED THE TECHNICAL SERVICES OUT OF INDIA ON THE BASIS OF THE AGREEMENT ENTERED INTO. THE VERY SAME AGREEMENT WA S SUBJECT MATTER BEFORE THIS TRIBUNAL IN ASSESSEE'S OWN CASE FOR A.Y. 2005-06. AFTER EXAMINING THE AGREEMENT AND THE PAY MENT OF 5% COMMISSION ON THE FOB VALUE FOR LIAISONING WITH DEPARTMENT THIS TRIBUNAL FOUND THAT MAOM HAS A PARAMOUNT RIGHT OVER THIS AMOUNT AND THERE WAS A CHARGE OF OVERRIDING TITLE. THEREFORE IT CANNOT BE CONSIDERED TO BE PAYMENT FOR TECHNICAL SE RVICES. THIS TRIBUNAL FURTHER FOUND THAT SINCE THE WORK WAS CARR IED OUT OUTSIDE INDIA AND THE PAYMENT WAS ALSO MADE OUTSIDE INDIA THE ASSESSEE IS NOT REQUIRED TO DEDUCT TAX. ACCORDING TO THE LEARNED REPRESENTATIVE FOR THE ASSESSEE SINCE THE VERY SAME AGREEMENT WHICH WAS EXAMINED BY THIS TRIBUNAL FOR A.Y. 2005-0 6 IN I.T.A. NO. 960/HYD/2009 WAS SUBJECT MATTER FOR THIS YEAR A LSO IT CANNOT BE SAID THAT THE CIT(A) MECHANICALLY APPLIED THE DE CISION OF THIS TRIBUNAL. 4. WE HAVE CAREFULLY GONE THROUGH THE DECISION OF T HE TRIBUNAL IN ASSESSEE'S OWN CASE FOR A.Y. 2005-06 AN D ALSO THE ORDERS OF THE LOWER AUTHORITIES. AS RIGHTLY SUBMIT TED BY THE LEARNED REPRESENTATIVE FOR THE ASSESSEE THE VERY S AME I.T.A. NO. 1428/HYD/2010 M/S. MEERA & CEIKO PUMPS PVT. LTD. ============================ 3 AGREEMENT WAS SUBJECT MATTER OF APPEAL FOR A.Y. 200 5-06 BEFORE THIS TRIBUNAL. THIS TRIBUNAL AFTER ELABORATE EXAMI NATION FOUND THAT THE ASSESSEE IS NOT REQUIRED TO DEDUCT TAX. I T WAS FURTHER FOUND THAT BY OVERRIDING TITLE THE MAOM HAS A PARAM OUNT RIGHT OVER THIS AMOUNT. THEREFORE IN OUR OPINION THE F INDING RECORDED BY THIS TRIBUNAL FOR A.Y. 2005-06 IS EQUALLY APPLIC ABLE FOR THE ASSESSMENT YEAR UNDER CONSIDERATION. THEREFORE WE DO NOT FIND ANY INFIRMITY IN THE ORDER OF THE LOWER AUTHORITY W HO IN FACT FOLLOWED THE DECISION OF THIS TRIBUNAL IN ASSESSEE' S OWN CASE FOR A.Y. 2005-06. THEREFORE WE UPHOLD THE ORDER OF TH E CIT(A) AND THE GROUNDS RAISED BY THE REVENUE ARE DISMISSED. 5. IN THE RESULT THE APPEAL OF THE REVENUE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT ON 28TH JANUARY 2011. SD/- (AKBER BASHA) ACCOUNTANT MEMBER SD/- (N.R.S. GANESAN) JUDICIAL MEMBER HYDERABAD DATED 28TH JANUARY 2011 TPRAO COPY FORWARDED TO: 1. THE INCOME TAX OFFICER WARD 16(1) ROOM NO. 613 6TH FLOOR AAYAKAR BHAVAN BASHEERBAGH HYDERABAD. 2. M/S. MEERA & CEIKO PUMPS PVT. LTD. 4-3-161 HIL L STREET RANIGUNJ SECUNDERABAD. 4. THE CIT(A)-V HYDERABAD 5 THE CIT HYDERABAD 6. THE DR A BENCH ITAT HYDERABAD