THE KUPPAM CO-OPERATIVE TOWN BANK LIMITED,ANDHRA PRADESH vs. ACIT, CIRCLE-1(1), TIRUPATHI
In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.
What did the Tribunal hold?
The tribunal decided the appeal based on available records as the assessee did not appear. The CIT(A) had confirmed the addition made by the Assessing Officer.
What were the facts?
The assessee, Kuppam Cooperative Town Bank Ltd., filed its return of income. The Assessing Officer made an addition of Rs. 84,79,336/- by disallowing 30% of interest paid to depositors due to failure to deduct tax at source.
What were the issues?
The primary issue was the disallowance of interest paid to depositors for non-deduction of tax at source under Section 40(a)(ia) of the Income Tax Act.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Hyderabad ‘B‘ Bench, Hyderabad
Before: Shri R.K. Panda & Shri Laliet Kumar
आयकर अपील�य अ�धकरण, हैदराबाद पीठ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘B‘ Bench, Hyderabad Before Shri R.K. Panda, Accountant Member AND Shri Laliet Kumar, Judicial Member Assessment Year: 2016-17 The Kuppam Cooperative Vs. Asstt. C. I. T. Town Bank Ltd, Kuppam Circle 1(1) PAN:AABAT7171M Tirupati (Appellant) (Respondent) Assessee by: N O N E Revenue by: Shri Kumar Aditya, DR Date of hearing: 11/04/2023 Date of pronouncement: 13/04/2023 ORDER Per R.K. Panda, A.M This appeal filed by the assessee is directed against the order dated 18.11.2022 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2016-17.
None appeared on behalf of the assessee at the time of hearing. No application seeking adjournment of the case has been filed. It was seen from the order sheet entries that even in the past also no one was appearing. Under the circumstances, we deem it proper to decide the issue on the basis of the material available on record and after hearing the learned DR.
Facts of the case, in brief, are that the assessee is an AOP and filed its return of income for the impugned A.Y on Page 1 of 7 31.12.2016 declaring income of Rs.80,58,590/-. The return was processed u/s 143(1) dated15.03.2017. Subsequently, the case was selected for complete scrutiny under CASS and statutory notices u/s 143(2) and 142(1) were issued to the assessee calling for certain details such as (a) list of persons to whom interest was paid during the relevant financial year along with the reasons for non-deduction of tax at source, (b) copy of ledger a/c in respect of contingencies, (c) contingencies, establishment charges and honorarium debited to P&L A/c, (d) details of appraiser fee, copies of invoices for fixed assets, (e) details of amount disallowed u/s 40(a)(ia). The assessee filed part details. After considering the scanty details filed by the assessee, the Assessing Officer completed the assessment u/s 143(3) on 22.12.2018 determining the total income of the assessee at Rs.1,65,37,926/-wherein he made addition of Rs.84,79,336/- by recording the following: “3.7 In view of the failure on the part of the assessee, to prove that tax at source has been deducted for the interest amount paid to various depositors during the year, aggregating to Rs.2,82,64,453/- as per the table below, and in view of section 40(a)(ia) of the I.T. Act, 1961, an amount of Rs.84,79,336/- being 30% of Rs.2,82,64,453/- is disallowed and brought to tax as income of the assessee for the A.Y 2016-17: S. No Amount (in Rs.) 1 Total interest paid during the year Rs.2,86,05,877 2 Less: interest amount already Rs.3,39,489 disallowed by the assessee in the statement of income as per provisions of section 40(a)(ia) 3 Less: Security deposit interest as Rs.1,935/- claimed by the assessee in its submission Interest amount to be brought Rs.2,82,64,453/- under the purview of section 40(a)(ia) for disallowance @ 30% 30% of above Rs.84,79,336/- Addition: Rs.84,79,336/-“ 4. In appeal, the learned CIT (A) confirmed the addition made by the Assessing Officer by observing as under: “5. Decision on Ground of Appeal No.1:
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