JAMBESWAR JENA,ANGUL vs. DCIT, CIRCLE-4(1), BHUBANESWAR

This is an appeal filed by the assessee against the order of the CIT(A) This is an appeal filed by the assessee against the order of the CIT(A) This is an appeal filed by the assessee against the order of the CIT(A)-2, Bhubaneswar for the assessment year Bhubaneswar for the assessment year 2016-17.

In the Grounds of appeal, the grievance of the assessee is that the ld In the Grounds of appeal, the grievance of the assessee is that the ld In the Grounds of appeal, the grievance of the assessee is that the ld CIT(A) is not justified in confirming the addition of Rs.18,71,280/ CIT(A) is not justified in confirming the addition of Rs.18,71,280/ CIT(A) is not justified in confirming the addition of Rs.18,71,280/- made under section 40(a)(ia) of the Act. section 40(a)(ia) of the Act.

We have heard the rival submissions and perused the record of the case. We have heard the rival submissions and perused the record of the case. We have heard the rival submissions and perused the record of the case. Ld counsel for the assessee submitted that the ld CIT(A) has dismissed the appeal Ld counsel for the assessee submitted that the ld CIT(A) has dismissed the appeal Ld counsel for the assessee submitted that the ld CIT(A) has dismissed the appeal of the assessee exparte without affording reasonable opportunity of being heard. of the assessee exparte without affording reasonable opportunity of being heard. of the assessee exparte without affording reasonable opportunity of being heard. Ld counsel for the assessee filed a paper book containing declaration of income by Ld counsel for the assessee filed a paper book containing declaration of income by Ld counsel for the assessee filed a paper book containing declaration of income by Mahalaxmi Trading with certificate in Form No.26A at pages 1 to 3 of PB, and i Trading with certificate in Form No.26A at pages 1 to 3 of PB, and i Trading with certificate in Form No.26A at pages 1 to 3 of PB, and declaration by GSS Infrastructure (P) Ltd., Jain Hiring Co and Roel Roadways at declaration by GSS Infrastructure (P) Ltd., Jain Hiring Co and Roel Roadways at declaration by GSS Infrastructure (P) Ltd., Jain Hiring Co and Roel Roadways at P a g e 1 | 3 pages 7 to 9 of PB and contended that the above documents were not examined by the AO and ld CIT(A). He submitted that the recipients of the amount have paid the tax in their respective return of income and, therefore, prayed that matter be restored to the file of the AO for considering the above evidence and redo the assessment accordingly.

Replying to above, ld D.R. agreed to the contention of ld A.R. of the assessee.

On careful consideration of the rival submissions, we noted that the assessee has incurred transportation expenses of Rs.62,37,600/- during the financial year 2015-16 on which, tax was not deducted at source. The AO opined that the assessee was required to furnish declaration to a prescribed authority under Rule 31A(4)(vi)/31A(5) of I.T.Rules, 1962, which was not done, therefore, he disallowed 30% of transportation expenses of Rs.62,37,600/- and made addition of Rs.18,71,280/- under section 40(a)(ia) of the Act and on the same ground, the appeal was dismissed by the ld CIT(A). Now, the assessee has filed Form 26A and declaration by the recipients as available in APB pages 1 to 9 in support of his claim of transportation. It is the contention of the assessee that the recipients of the amount have offered the amount to tax.

Considering the apparent facts and materials on record, we are of the considered view that the matter requires fresh adjudication by the Assessing Officer on the basis of certificate in Form No.26A and declaration to be furnished by the assessee in support of the claim that the recipient has offered the amount of Rs.62,37,600/- to tax. The P a g e 2 | 3 Assessing Officer is directed to examine and verify the certificates and declaration to be submitted by the assessee and adjudicate the issue afresh as per law.

In the result, appeal of the assessee is allowed for statistical purposes.