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Income Tax Appellate Tribunal, RAIPURBENCH, RAIPUR
Before: SHRI PRADIP KUMAR KEDIA, HONBLE & SHRIN.K. CHOUDHRY, HON’BLE
O R D E R PER N.K. CHOUDHRY, JUDICIAL MEMBER
This appeal has been preferred by the Assessee against the order dated 18/04/2013 impugned herein passed by the Ld. Commissioner of Income Tax (Appeal) [for short, ‘ld. Commissioner], Bilaspur u/sec. 250(6) of the Income Tax Act, 1961 (hereinafter referred to as the "Act") for the A.Y. 2010-11.
2 (M/s. Rakesh Kumar Jain) 2. The Assessee, though, has challenged two additions of Rs.8,24,777/- on account of net profit and Rs. 5,65,084/- on account of interest paid on finance charges made by the AO and confirmed by the ld. Commissioner, however, during the hearing of appeal, the Assessee did not press addition of Rs. 8,24,777/- on account of net profit. Therefore, the only issue for consideration before us relates to the addition of Rs. 5,65,084/- on account of interest paid on finance charges. This amount was added in the income of the Assessee for non-deduction of TDS by the AO and sustained by the Ld. Commissioner.
The ld.AR prayed that the issue may be remitted to the file of the AO for determination afresh while considering the factual position qua paying of income-tax on the said amount of addition by the payee because as per Assessee’s knowledge the payee has paid the relevant taxes. On the other hand, ld.DR raised no objection.
Considering the peculiar facts and circumstances, in the interest of justice and for the just decision of the case, we deem it appropriate to remand the issue in hand to the file of the AO for factual determination in view of dictum laid down by the Hon'ble Apex Court in the case of Hindustan Coca Cola Beverage Pvt. Ltd. Vs. CIT (2007) 293 ITR 226 (SC), as to whether payee (recipient) has paid the relevant taxes on the addition of Rs. 5,65,084/- on account of interest paid on finance charges, and to decide afresh the liability of the Assessee, if any.
3 (M/s. Rakesh Kumar Jain) We may clarify that onus would be on the Assessee to substantiate its case either side, however, the AO would be at liberty to call for records of the payee for just decision of the case. 5. In the result, appeal filed by the assessee stands allowed for statistical purpose. Order Pronounced on dated 29-09-2021 as per rule 34(4) of the IT (Appellate Tribunal) Rules.