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Income Tax Appellate Tribunal, “C” BENCH: KOLKATA
Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]
ORDER / आदेश Per Rajesh Kumar, AM:
This is the appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)”] dated 31.08.2022 for the AY 2013-14.
The Registry has pointed out that the appeal is time barred by 7 days. At the time of hearing, we note that the delay is for reasonable cause and therefore we condone the delay and admit the appeal for hearing.
Assessment Year: 2013-14 Rishikesh Hire Purchase and Leasing Co. Pvt. Ltd. 3. The only issue raised by the assessee is against the confirmation of disallowance of Rs. 54,55,050/- by Ld. CIT(A) as made by AO u/s 40a(ia) of the Act on account of non-deduction of TDS from interest expenses of Rs. 52,59,050/- and professional charges of Rs. 1,96,000/-.
Facts in brief are that the assessee has paid interest on unsecured loan of Rs. 52,59,050/- on which TDS of Rs. 5,25,905/- u/s194A of the Act was deducted which was deposited into Govt. Treasury on 30.09.2013. Similarly the assessee has created provisions for professional charges of Rs. 1,96,000/- on which TDS was deducted u/s 194J amounting to Rs. 19,600/- which was too deposited on 30.09.2013. The assessee filed return of income on 30.09.2013 along with also tax audit report dated 02.09.2013. In Item no. 27.B(iv) tax auditor appended a table of payments made by the assessee during the year on which no TDS was deducted due to shortage of funds whereas as a matter of fact the TDS was deposited on 30.09.2013 on the date when the return was filed. The AO on the basis of said tax audit report disallowed these expenses as such u/s 40a(ia) of the Act and added the same to the income of the assessee.
In the appellate proceedings, the appeal was decided by NFAC ex-parte as the assessee did not respond to the various notices issued.
After hearing the rival submissions and perusing the material on record including the tax audit report and challans of payments filed by the assessee in respect of deposit of TDS into Govt. Treasury, we find that the TDS was deposited on 30.09.2013 which falls within the due date of filing of return. Thus the assessee has duly deposited TDS as per the provisions of the Act and therefore provisions of Section 43B are not attracted as there is no violation /default on the part of the assessee in depositing the tax and no disallowance can be made. The made the addition on the basis of tax audit report dated 02.09.2013 and it undisputed that till then the TDS deducted was not deposited. For the sake of ready reference and convenience we are extracted below the challans as under:
Assessment Year: 2013-14 Rishikesh Hire Purchase and Leasing Co. Pvt. Ltd. Though the challans were not been examined by the AO but considering the apparent facts on record and also the challans reproduced before us by the assesse as extracted hereinabove, we do not deem it fit to restore the file back to the lower authorities. In our opinion, the assessee has made due compliance by depositing TDS on 30.09.2013 whereas the tax audit report was compiled and signed on 2.09.2013. Considering this factual matrix , we direct the AO to delete the disallowance. The appeal of the assessee is allowed by setting aside the order of Ld. CIT(A).
In the result, the appeal of the assessee is allowed.
Order is pronounced in the open court on 23rd February, 2023