DCIT, CIRCLE- 16(2), NEW DELHI vs. MITSUBISHI CORPORATION INDIA PVT. LTD., NEW DELHI

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ITA 4345/DEL/2019Status: DisposedITAT Delhi14 July 2022AY 2014-159 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal upheld the deletion of the TDS disallowance, following previous decisions in favor of the assessee. The donation disallowance was set aside and remanded to the AO for fresh verification.

What were the facts?

The revenue challenged the deletion of disallowances made for non-deduction of TDS on purchases from group entities. The assessee also appealed a disallowance of a donation claimed under Section 80G.

What were the issues?

Whether the disallowance for non-deduction of TDS on purchases from group entities was justified, and whether the disallowance of donation under Section 80G due to lack of documentary evidence was correct.

Which sections of the Income-tax Act were involved?

Section 195,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘D’, NEW DELHI

Before: SH. N. K. BILLAIYA & SH. N.K. CHOUDHRY

Hearing: 14/07/2022Pronounced: 14/07/2022

ORDER PER N.K. BILLAIYA, AM:

CIT(A)-37, New Delhi dated 28.02.2019 pertaining to A.Y.2014-15 and and ITA No.4479/Del/2019 are cross appeals by the revenue and the assessee preferred against the order of the CIT(A)-37, New Delhi dated 28.02.2019 pertaining to A.Y.2015- 16.

2.

Since common issues are involved in the captioned appeals they were heard together and are disposed of by this common order for the sake of convenience and brevity.

3.

The common grievance in both these appeals of the revenue relates to the deletion of the disallowance made by the AO on account of non deduction of TDS amounting to Rs.23.66 crores in A.Y.2014-15 and Rs.22.06 crores in A.Y.2015-16.

4.

Since underlying facts in the issue are common we are addressing to the facts of A.Y. 2014-15.

5.

During the course of the scrutiny assessment proceedings the AO noticed that the assessee has not deducted tax at source on purchases made from group entities. The same can be understood from the following chart :-

6.

Referring to the provisions of section 195 viz-a-viz the relevant article of the DTAA the AO formed a belief that submission of the assessee is legally and factually not tenable because of the following reasons :-

7.

As can be seen from the above in the last bullet the AO himself has agreed that this issue has been decided in favour of the assessee by this Tribunal for A.Y.2006-07 to 2010-11.

8.

We have carefully perused the order of this Tribunal. This Tribunal has also considered this issue in for A.Y.2013-14. The relevant findings read as under :-

9.

Respectfully following the decision of the coordinate Bench we decline to interfere with the findings of the CIT(A) this ground is accordingly dismissed.

10.

Coming to the grievance of the assessee taken by it in his appeal in the only grievance relates to the disallowance of donation of Rs.39 lacs which was claimed as deduction u/s. 80G of the Act.

11.

The AO disallowed the same for want of documentary evidences and the CIT(A) confirmed the disallowance because though the assessee filed donation receipts but the same was not accompanied by an application for the consideration of additional evidences.

12.

We are of the considered opinion that the documentary evidences submitted by the assessee before the CIT(A) go to the root of the matter the same ought to have been admitted by the CIT(A). In the interest of justice we set aside this issue to the files of the AO. The assessee is directed to furnish the necessary documentary evidences before the AO and the AO is directed to examine/ verify the same and decide the issue as per the provisions of the law. 13. In the result, the appeal of the assessee is allowed for statistical purpose and both the appeals by the revenue are dismissed. 14. Decision announced in the open court on 14.07.2022.

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