ORISSA COOPERATIVE MARKETING FEDERATION LIMITED,BHUBANESWAR vs. JCIT, RANGE-II, BHUBANESWAR

PDF · subscribers
ITA 70/CTK/2018Status: DisposedITAT Cuttack26 October 2021AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal observed that the assessment was framed ex-parte and the assessee was deprived of furnishing details. To render substantial justice, the matter was set aside and remitted back to the AO for a fresh consideration after hearing the assessee.

What were the facts?

The assessee's assessment was completed under Section 144 without providing an opportunity to be heard, leading to disallowances of advertisement expenses, donation expenses, and an addition under Section 40(a)(ia). The assessee argued that they could not furnish required details due to the ex-parte assessment.

What were the issues?

Whether the assessment completed under Section 144 without providing an opportunity to the assessee to furnish details is valid, and whether the disallowance under Section 40(a)(ia) was justified without proper opportunity.

Which sections of the Income-tax Act were involved?

Section 144,Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, IN THE INCOME TAX APPELLATE TRIBUNAL,

Before: MANISH BORAD & MANISH BORAD & MANISH BORAD

For Appellant: Shri P.R.Mohanty
For Respondent: Shri M.K.Gautam
Pronounced: 26/10

O R D E R Per Bench This is an appeal filed by the assessee against the order of the This is an appeal filed by the assessee against the order of the This is an appeal filed by the assessee against the order of the CIT(A),1, Bhubaneswar CIT(A),1, Bhubaneswar dated 30.11.2017 for the assessment year for the assessment year 2014- 15.

2.

In the grounds of appeal, the assessee is aggrieved by the decision In the grounds of appeal, the assessee is aggrieved by the decision In the grounds of appeal, the assessee is aggrieved by the decision of the ld CIT(A) in confirming the assessment u/s.144 of the Act, adhoc of the ld CIT(A) in confirming the assessment u/s.144 of the Act, adhoc of the ld CIT(A) in confirming the assessment u/s.144 of the Act, adhoc disallowance of 10% of advertisement expenses, donation expenses of disallowance of 10% of advertisement expenses, donation expenses of disallowance of 10% of advertisement expenses, donation expenses of Rs.3,60,107/- and addition of Rs.5,05,76,375/-.

1.

3. Ld A.R. of the assessee submitted that the assessment in this case Ld A.R. of the assessee submitted that the assessment in this case Ld A.R. of the assessee submitted that the assessment in this case was completed u/s.144 of the Act without hearing the assessee, therefore, was completed u/s.144 of the Act without hearing the assessee, therefore, was completed u/s.144 of the Act without hearing the assessee, therefore, assessee could not furnish the required relevant details with regard to assessee could not furnish the required relevant details with regard to assessee could not furnish the required relevant details with regard to P a g e 1 | 3 addition of Rs.5,05,76,376/-u/s.40(a)(ia) of the Act. He submitted that the ld CIT(A) has dismissed the appeal, stating that no details, documents and evidences were furnished to show that tax was deducted as per TDS provisions and the assessee was not required to deduct tax at source. He submitted that the assessee is a Government concern and the AO has not provided any opportunity to the assessee to submit in this regard before making any such addition of the failure of the assessee. Hence, it was his prayer that the matter may be restored to the file of the AO to consider the details and evidences in support of the assessee’s contention.

4. Replying to above, ld CIT DR supported the orders of lower authorities. He submitted that the assessee was unable to furnish any details either before the AO or before the ld CIT(A) to show that no TDS is required on the payments so made by the assessee.

5. Having heard the rival submissions, we observe that the assessee is a State Government concern. In this case, the assessment was framed under section 144 of the Act, for which, the assessee was deprived to furnish the details with regard to TDS deduction. However, the AO has estimated the disallowance in the absence of supporting bills and vouchers and the disallowance u/s.40(a)(ia) of the Act. However, before the ld CIT(A), on the basis of written submissions, restricted some of the disallowances made by the AO but confirmed the disallowance u./s.40(a)(ia) of the Act. The contention of the assessee that the AO should P a g e 2 | 3 have given opportunity to the assessee to furnish all the details required for making disallowance u/s.40(a)(ia) of the Act. Keeping in view the contentions of the assessee as also to render substantial justice, we set aside the orders of lower authorities and remit the matter back to the file of the AO for a denovo consideration after hearing the assessee in all the issues. Needless to say that if the assessee will not be able to furnish the required details at the time of assessment proceedings, the AO is free to make assessment as per law.

6.

In the result, appeal of the assessee is allowed for statistical purposes.

Order pronounced on 26/10/2021. Sd/- sd/- (Manish Borad) (Chandra Mohan Garg) ACCOUNTANT MEMBER JUDICIAL MEMBER Cuttack; Dated 26 /10/2021 B.K.Parida, SPS (OS) Copy of the Order forwarded to : 1. The Appellant : Orissa Co-op Marketing Federation ltd., Old Station Road, Bhubaneswar 2. The Respondent. JCIT, Range-II, Bhubaneswar 3. The CIT(A)-1, Bhubaneswar 4. Pr.CIT-1, Bhubaneswar 5. DR, ITAT, Cuttack 6. Guard file. //True Copy//

More judgments on Section 40(a)(ia)

All 7,300 judgments and leading authorities on Section 40(a)(ia) →

Recent GST High Court judgments

Search GST case law →