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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: HON’BLE SHRI MAHAVIR SINGH & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2019-20 arises out of the order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 28-07-2022 in the matter of an intimation issued by Centralized Processing Center, Bengaluru (CPC) u/s. 143(1) of the Act on 06-05- 2020. The sole grievance of the assessee is disallowance u/s 40(a)(ia) for Rs.56.23 Lacs for want of TDS on interest payment. This default was reported in Tax Audit report and accordingly, CPC made - 2 - impugned disallowance u/s 40(a)(ia). The Ld. CIT(A) confirmed the same since there was no representation by assessee during appellate proceedings. Aggrieved, the assessee is in further appeal before us.
The Ld. AR submitted that the payment was made to resident and the default would attract 30% disallowance which was already made by the assessee in the return of income. In support, the ledger extracts as well as computation of income has been placed on record. The Ld. AR submitted that there was reporting error in the Tax Audit Report. The Ld. Sr. DR submitted that the assessee did not furnish correct audit report at any point of time.
After going through the computation of income, prima-facie the assessee has made disallowance of 30% for the default. The documentary evidences furnished before us support the claim of the assessee. Any further disallowance made by CPC would amount to double disallowance. Therefore, we direct Ld. AO to verify the claim of the assessee and if found correct, delete the impugned disallowance as made by CPC.
The appeal stand allowed for statistical purposes. Order pronounced on 01st March, 2023.