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2014 (5) TMI 931 - AT - Income TaxDeletion made u/s 40(a)(ia) of the Act – Failure to deduct TDS u/s 194C of the Act – Works contract - Payments made to service provider for carrying out the work of the maintenance services – The CIT(A) has adjudicated the issue following the order of the Special Bench of the Tribunal in the case of Merilyn Shipping & Transports and decided the issue in favour of the assessee without adjudicating the appeal on merit – the order of the CIT(A) is set aside - the CIT(A) has not given any finding on merit, the matter is required to be remitted back to the CIT(A) to adjudicate the issue on merit as to whether the provisions of section 194C are applicable and as to whether the provision of section 40(a)(ia) is applicable in respect of such amounts, which are payable as on 31st of March of the year - the provision of section 40(a)(ia) would cover not only to the amounts which are payable as on 31st March of a particular year but also which are payable at any time during the year – Decided in favour of Revenue. Applicability of M/s Merilyn Shipping & Transports Vs. ACIT; Range-1, Vishakhapatnam [2012 (4) TMI 290 - ITAT VISAKHAPATNAM] – Held that:- The view expressed or the ratio laid down by the Special Bench of the Tribunal in the case of Merilyn Shipping & Transports has been overruled - it cannot be said that the Hon'ble Jurisdictional High Court has approved the view taken by the Special Bench of the Tribunal in the case of Merilyn Shipping & Transports, the same has to be followed by the Tribunal situated within the jurisdiction of Hon'ble Allahabad High Court - The Hon'ble Jurisdictional High Court has not examined the issue at all and simple passing reference was made with regard to the order of the Special Bench of the Tribunal in the case of Merilyn Shipping & Transports and the relief was granted to the assessee on merit - the ratio laid down in the case of Merilyn Shipping & Transports, which has been suspended by Hon'ble Andhra Pradesh High Court has not been approved by the Hon'ble Allahabad High Court - subordinate judicial forum are not required to follow the ratio order laid down in the case of Merilyn Shipping & Transports, as it was overruled by the other High Court. - Decided in favor of revenue.
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