AM SB INFRA PRIVATE LIMITED,BHUBANESWAR vs. DCIT CIRCLE-1(1), CUTTACK

It was the submission of the ld. AR that the issue in the assessee’s appeal was in regard to the confirmation of the assessment order on the issue of disallowance u/s.40(a)(ia) of the Act on account of non-deduction of TDS in respect of purchases of agricultural land by the assessee. It was the submission that the ld.AO had not considered the fact that the TDS was not liable to be made nor has considered the fact that the payments have been made to multiple persons and in respect of whom TDS is not liable to be made. It was further submission that the ld. AO has also not considered the fact that the assessee had claimed the purchases of land was not to be considered as an expenditure. It was the further submission that the ld. CIT(A) without considering the evidence produced before him has dismissed assessee’s appeal.

In reply, ld. Sr. DR vehemently supported the orders of the ld. AO and ld. CIT(A). It was the submission of the ld. Sr. DR that the assessee has not appeared before the ld. CIT(A) though multiple opportunities have been given. It was further submitted by the ld. Sr. DR that adequate opportunities had been granted by the AO in the course of assessment proceedings and the assessee has not provided all the details. Thus, it was the prayer that the order of the ld. CIT(A) is liable to be upheld.

We have considered the rival submissions. As it is noticed that the assessee admittedly has not appeared before the ld. CIT(A) and also the assessee has categorically mentioned that the payments have been made to the multiple persons, which is evidenced from the assessment order page 2, wherein the ld. AO has incorporated the name of the payees, from whom the assessee has purchased the land. In the interest of justice, the issues in this appeal are restored to the file of AO for readjudication after granting adequate opportunity of being heard.