2015 (7) TMI 1067

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....The case was selected for scrutiny under CASS. During the course of assessment proceedings, the A.O. noticed that the assessee debited a sum of Rs. 13,88,500/- towards Proclaine hire charges and an amount of Rs. 9,80,000/- was debited towards Proclaine rent charges. But the assessee did not submit details of TDS payments on the amounts payable. Similarly, assessee debited an amount of Rs. 3,20,000/- towards crane hire charges paid to Ch. Maheswara Rao but did not furnish TDS details. It was also noticed that the assessee debited an amount of Rs. 3,29,234/- towards Hydra hire charges paid to Shri K. Raghunatha Kurup. But TDS details were not furnished. When called upon to explain as to why section 40(a)(ia) of the Income-Tax Act should not b....

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....o relied upon the decision of the ITAT Lucknow Bench in the case of Jasminder Singh to observe that the disallowance made by the A.O. u/s 40(a)(ia) is in accordance with law. 4. Further aggrieved, assessee is in appeal before us. 5. At the time of hearing, Ld. Counsel submitted that subsequent to the first interim order passed by the Hon'ble High Court, vide another order dated 24.6.2015 the Hon'ble A.P. High Court had an occasion to consider this particular issue in the case of M/s. Janapriya Engineering Syndicate wherein the court observed as under:- "We are of the view that until and unless the decision of the Special Bench is upset by this Court, it binds smaller Bench and coordinate Bench of the Tribunal. Under the circumstanc....

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....t binds smaller benches and coordinate benches of the Tribunal. Since the Hon'ble jurisdictional High Court has not taken any adverse view on this matter, the decision of the special bench, rendered from Visakhapatnam, is binding on the Visakhapatnam Bench. He submitted that though in ground no.3 the assessee contends that the entire proclaine hire charges and crane hire charges are allowable as deduction but as per the decision of the special bench, the assessee is entitled to the benefit to the extent of payments actually made before 31st March. It was submitted that in the instant case, the disallowance can be restricted to Rs. 3,70,000/- (proclaine hire charges) Rs. 32,000/- (crane hire charges). 7. Ld. D.R. on the other hand strongl....