DCIT, Hyderabad v. M/s Divya Shakti Granites Ltd.,, Hyderabad

ITA 700/HYD/2008 | 2005-2006
Pronouncement Date: 21-09-2011 | Result: Dismissed

Appeal Details

RSA Number 70022514 RSA 2008
Assessee PAN AABCD0680K
Bench Hyderabad
Appeal Number ITA 700/HYD/2008
Duration Of Justice 3 year(s) 5 month(s) 4 day(s)
Appellant DCIT, Hyderabad
Respondent M/s Divya Shakti Granites Ltd.,, Hyderabad
Appeal Type Income Tax Appeal
Pronouncement Date 21-09-2011
Appeal Filed By Department
Order Result Dismissed
Bench Allotted B
Tribunal Order Date 21-09-2011
Date Of Final Hearing 30-05-2011
Next Hearing Date 30-05-2011
Assessment Year 2005-2006
Appeal Filed On 17-04-2008
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH HYDERABAD BEFORE SMT. ASHA VIJAYARAGHAVAN JUDICIAL MEMBER AND SHRI AKBER BASHA ACCOUNTANT MEMBER ITA NO.700/HYD/2008 ASSESSMENT YEAR 2007-08 THE DCIT CIRCLE 1(2) HYDERABAD VS M/S DIVYA SHAKTI GRANITES LTD. HYDERABAD (PAN AABCD 0680K/D- 85) APPELLANT RESPONDENT APPELLANT BY : SHRI D.D. GOYAL RESPONDENT BY : SHRI V. RAGHAVENDRA RAO DATE OF HEARING : 21.9.2011 DATE OF PRONOUNCEMENT : ORDER PER AKBER BASHA ACCOUNTANT MEMBER: THIS APPEAL PREFERRED BY THE REVENUE IS DIRECTED AGAINST THE ORDER PASSED BY THE CIT(A)II HYDERABAD DATED 7.2.2008 AND PERTAINS TO THE ASSESS MENT YEAR 2005-06. 2. THE MAIN GRIEVANCE IN THIS APPEAL OF THE REVENUE IS THAT THE CIT(A) ERRED IN DELETING THE AD DITION OF RS.1 59 51 550/- BEING THE COMMISSION PAID TO NON- RESIDENTS ON EXPORT SALES WITHOUT DEDUCTING TAX. 3. AT THE OUTSET THE LEARNED COUNSEL OF THE ASSESSEE SUBMITTED THAT THE ISSUE INVOLVED IN THE P RESENT APPEAL IS COVERED IN FAVOUR OF THE ASSESSEE WITH TH E DECISION OF THE TRIBUNAL IN THE CASE OF DCIT VS. DIVIS LABO RATORIES ITA NO.700/HYE/2008 M/S DIVYA SHAKTI GRANITES LTD. HYDERABAD 2 LTD. (131 ITD 271). THE LEARNED DEPARTMENTAL REPRESENTATIVE COULD NOT CONTROVERT THIS SUBMISSION S OF THE LEARNED COUNSEL FOR THE ASSESSEE. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. THE ONLY ISSUE INVOLVED IN THIS APPEAL RELATES TO DISAL LOWANCE OF RS. 1 59 51 550/- BEING COMMISSION PAID TO NON-RES IDENT AGENT WHICH HAS BEEN DELETED BY THE CIT(A). THIS DISALLOWANCE HAS BEEN MADE BY THE ASSESSING OFFICER UNDER THE PROVISIONS OF S.40(A)(I) ON ACCOUNT OF NON-DED UCTION OF TAX AT SOURCE. ON THIS ISSUE WHILE DELETING THE DISALLOWANCE MADE BY THE ASSESSING OFFICER THE CIT (A) HAS FOLLOWED HIS OWN APPELLATE ORDER IN ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2004-05 WE FIND THAT THE DECI SION OF THE TRIBUNAL IN THE CASE OF DIVIS LABORATORIES (SUP RA) IS IN FAVOUR OF THE ASSESSEE AND AGAINST THE REVENUE. RESPECTFULLY FOLLOWING THE SAID DECISION OF THE TRI BUNAL WE FIND NO INFIRMITY IN THE ORDER OF THE CIT(A). WE AC CORDINGLY UPHOLD THE SAME REJECTING THE GROUNDS OF THE REVEN UE IN THIS APPEAL. 5. IN THE RESULT THE APPEAL FILED BY THE REVEN UE STANDS DISMISSED. ORDER PRONOUNCED IN THE OPEN COURT 21.9.2011 SD/- SD/- (ASHA VIJAYA RAGHAVAN) (AKBER BASHA) JUDICIAL MEMBER ACCOUNTANT M EMBER DATED THE 21 ST SEPTEMBER 2011 ITA NO.700/HYE/2008 M/S DIVYA SHAKTI GRANITES LTD. HYDERABAD 3 COPY FORWARDED TO: 1. THE DCIT CIRCLE 1(2) HYDERABAD 2. M/S DIVYA SHAKTI GRANITES LTD. 7-1-58 DIVYA SHAKT I COMPLEX AMEERPET HYDERABAD 3. THE CIT(A) -II HYDERABAD 4. THE CIT HYDERABAD 5. THE DR ITAT HYDERABAD NP/