WOOLWAYS (INDIA) LIMITED,DELHI vs. ACIT, CIRCLE-27(2), NEW DELHI

PDF · subscribers
ITA 7174/DEL/2019Status: DisposedITAT Delhi30 June 2022AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted that the assessee provided challan details for TDS deposit which were not considered by the lower authorities. To ensure justice, the matter was restored to the Assessing Officer for verification of TDS deposit.

What were the facts?

The assessee company, under Corporate Insolvency Resolution Process, had TDS deducted but not deposited, leading to a disallowance. The assessee claimed TDS was deposited but could not adequately represent its case before lower authorities due to insolvency proceedings.

What were the issues?

Whether the disallowance of TDS under Section 40(a)(ia) was justified when the assessee claimed the TDS was deposited but could not present evidence due to insolvency proceedings.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘H’ : NEW DELHI

Before: SH. G.S.PANNU, HON’BLE & SH. ANUBHAV SHARMA

For Respondent: Shri Mrinal Kumar Dass, Sr. DR
Hearing: 22.06.2022

The assessee has come in appeal against order dated 08.07.2019 in appeal no. 9/10467/18-19 for the assessment year 2016-17 passed by Commissioner of Income Tax (Appeals)-9, New Delhi (hereinafter referred to as the ‘First Appellate Authority’ or in short ‘Ld. F.A.A.’) in appeal before it against order dated 29.12.2018 u/s 143(3) of the Income Tax Act, 1961 passed by ACIT, Circle 27(2), Delhi ( herein after referred to as ‘Ld. Assessing officer or in short Ld. AO’).

2.

The assessee had filed return of income declaring loss and the case was selected for complete scrutiny. The Ld. Assessing Officer observed that TDS amount of Rs. 4,17,23,404/- has been deducted but not deposited therefore, an amount of Rs. 1,25,17,021/- i.e. 30% of the expense was disallowed u/s 40(a)(ia) of the Act. The appeal preferred by the assessee was also dismissed by Ld. CIT(A).

3.

Now before the Tribunal the assessee had raised various grounds and primary ground being that the company is under Corporate Insolvency Resolution Process under Insolvency and Bankruptcy Code, 2016. Therefore, the company in spite of having evidence of deposit of TDS could not represent its case before the lower tax Authorities. On hearing Ld. Counsel for the assessee and Ld. DR, the Bench is of considered view that at page no. 44 of the paper book assessee has given certain details of the challans by which the TDS was deposited in the relevant assessment year. However, the same have not been considered by the Ld. Tax Authorities below as the case of company may not have been appropriately represented due to ongoing insolvency proceedings. Therefore the ends of justice require verification of the fact of deposit of TDS by the challans referred to in page no. 44 of the paper book.

4.

Accordingly, the order of Ld. Tax Authorities below are set aside and the issue is restored to the files of ld. AO with direction to verify the deposit of challans of TDS while giving opportunity of hearing to the assessee and there upon pass afresh order.

Order pronounced in the open court on 30th June, 2022.

More judgments on Section 40(a)(ia)

All 7,300 judgments and leading authorities on Section 40(a)(ia) →

Recent GST High Court judgments

Search GST case law →