ACIT, New Delhi v. M/s Graziano Transmissioni India Pvt. Ltd., New Delhi

ITA 4789/DEL/2010 | 2003-2004
Pronouncement Date: 06-01-2011 | Result: Dismissed

Appeal Details

RSA Number 478920114 RSA 2010
Assessee PAN AAACH4258M
Bench Delhi
Appeal Number ITA 4789/DEL/2010
Duration Of Justice 2 month(s) 3 day(s)
Appellant ACIT, New Delhi
Respondent M/s Graziano Transmissioni India Pvt. Ltd., New Delhi
Appeal Type Income Tax Appeal
Pronouncement Date 06-01-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted C
Tribunal Order Date 06-01-2011
Date Of Final Hearing 06-01-2011
Next Hearing Date 06-01-2011
Assessment Year 2003-2004
Appeal Filed On 02-11-2010
Judgment Text
I.T.A. NO. 4789 /DEL/2010 1/2 IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL NEW DELHI BENCH C NEW DELHI BENCH C NEW DELHI BENCH C NEW DELHI BENCH C BEFORE SHRI R. P. TOLANI JUDICIAL MEMBER AND SHRI K. D. RANJAN ACCOUTANT MEMBER ITA NO. 4789 /DEL/2010 (ASSESSMENT YEAR2003-04 ) ACIT CIRCLE 12(1) VS. M/S. GRAZIANO TRANSMISSION NEW DELHI. INDIA PVT. LTD. 1414 ANSAL TOWER NEHRU PLACE NEW DELHI (APPELLANTS) (RESPONDENTS) PAN / GIR NO. AAACH4258M APPELLANT BY: SHRI D.N. KAR CIT DR RESPONDENT BY: NONE ORDER ORDER ORDER ORDER PER K. D. RANJAN AM: PER K. D. RANJAN AM: PER K. D. RANJAN AM: PER K. D. RANJAN AM: 1. THIS APPEAL BY THE REVENUE FOR THE ASSESSMENT YE AR 2003-04 ARISES OUT OF THE ORDER OF LD. CIT(A) XX NEW DELHI . THE GROUNDS OF APPEAL RAISED BY THE REVENUE ARE REPRODUCED AS UNDE R: 1) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW THE ORDER OF THE CIT(A) IS ERRONEOUS PERVERSE ILL EGAL AND AGAINST THE PROVISIONS OF LAW WHICH IS LIABLE TO BE SET ASIDE. 2) ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND I N LAW THE LD. CIT(A) HAS ERRED IN DELETING THE ADDITION O F ` 5 45 899/- MADE BY THE A.O. ON ACCOUNT OF PAYMENT OF INTEREST U/S 40(A)(I). 2. NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE A PPOINTED DATE OF HEARING. WE HAVE HEARD LD. D.R. FOR THE RE VENUE AND DECIDE THE APPEAL OF THE REVENUE EX-PARTE QUA THE A SSESSEE. 3. THE ONLY ISSUE FOR CONSIDERATION IN THIS APPEAL RELATES TO DELETING THE ADDITION OF ` 5 45 899/- MADE BY THE A .O. ON ACCOUNT OF PAYMENT OF INTEREST U/S 40(A)(I) OF THE ACT. THE F ACTS O THE CASE STATED IN BRIEF ARE THAT THE ASSESSEE HAD PAID INTE REST OF ` 1 40 52 853/- OUT OF INDIA. ON EXAMINATION IT WAS NOTED BY ASSESSING OFFICER THAT THE ASSESSEE HAD DEDUCTED TA X ON AMOUNT OF ` 1 35 06 954/- AND ON THE BALANCE AMOUNT OF ` 5 45 8 99/- NO TAX AT I.T.A. NO. 4789 /DEL/2010 2/2 SOURCE WAS DEDUCTED. THE A.O. THEREFORE DISALLOW ED THE AMOUNT OF ` 5 45 899/- U/S 40(A)(I) OF THE ACT. 4. BEFORE CIT(A) IT WAS SUBMITTED THAT THE A.O. HA D NOT EXAMINED; THE FACTS OF THE CASE CORRECTLY AND HIS D ECISION IS CONTRARY TO THE POSITION OF LAW. THE PROVISIONS OF SECTION 40(A)(I) WOULD BE ATTRACTED ONLY IF DEDUCTION OF INTEREST IS CLAIMED BUT TAX IS NOT DEDUCTED. THE ASSESSEE HAS CLAIMED DEDUCTION O F INTEREST AMOUNTING TO ` 1 35 06 954/- AND NOT OF ` 1 40 52 8 53/-. THEREFORE DISALLOWANCE MADE BY THE A.O. IS NOT JUSTIFIED. LD . CIT(A) ON CONSIDERATION OF FACTS DELETED THE ADDITION ON THE GROUND THAT ADDITION OF ` 5 45 899/- WAS PRIMA FACIE FACTUALLY INCORRECT. 5. WE HAVE HEARD LD. CIT (DR) AND GONE THROUGH THE MATERIAL AVAILABLE ON RECORD. FROM THE FACTS STATED ABOVE IT IS CLEAR THAT HE ASSESSEE HAD CLAIMED ` 1 35 06 954/- AS INTEREST ON EXTERNAL COMMERCIAL BORROWINGS ON WHICH TAX AT SOURCE WAS DE DUCTED. HOWEVER THE A.O. HAD TAKEN THE FIGURE AT ` 1 40 52 853/-. SINCE THE ASSESSEE HAD CLAIMED DEDUCTION OF INTEREST AMOUNTIN G TO ` 1 35 06 954/- DISALLOWANCE CANNOT BE MADE IN RESPEC T OF THE AMOUNT WHICH HAS NOT BEEN CLAIMED AS DEDUCTION. TH EREFORE LD. CIT(A) WAS JUSTIFIED IN DELETING THE ADDITION. 7. IN THE RESULT THE APPEAL FILED BY THE REVENUE I S DISMISSED. 8. THE DECISION WAS PRONOUNCED IN THE OPEN COURT ON 06.01.2011 AFTER CLOSE OF HEARING. SD./- SD./- (R. P. TOLANI) (K. D. RANJAN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 06 TH JAN. 2011 SP. COPY FORWARDED TO 1. APPELLANT 2. RESPONDENT 3. CIT TRUE COPY: BY ORDER 4. CIT(A) 5. DR DY. REGISTRAR ITAT NEW DELHI