TULSI INFRASTRUCTURE,VADODARA vs. THE ITO, WARD-1(3)(1), VADODARA

ITA 2034/AHD/2025Status: DisposedITAT Ahmedabad14 September 2026AY 2014-1510 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the second proviso to Section 40(a)(ia) is declaratory and curative, with retrospective effect. It directed the AO to verify if the recipients had offered the income to tax and to delete the disallowance if confirmed.

What were the facts?

The assessee, a construction firm, made payments to sub-contractors without deducting TDS. The Assessing Officer disallowed these payments under Section 40(a)(ia) of the Income Tax Act. The CIT(A) upheld the disallowance, finding issues with the Form 26A submissions.

What were the issues?

Whether the disallowance under Section 40(a)(ia) is justified when the recipient has offered the income to tax, considering the retrospective nature of the second proviso. Whether principles of natural justice were violated.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 201(1A),Section 234A,Section 234B,Section 234C,Section 271(1)(c)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, B” BENCH, AHMEDABAD

Per Rahul Chaudhary, Judicial Member:

1.

The present appeal has been preferred by the Assessee against the Order, dated 21/08/2025, passed by the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as the ‘CIT(A)’] whereby the Learned CIT(A) had dismissed the appeal against the Assessment Order, dated 10/06/2019, passed under Section 143(3) read with Section 263 of the Income Act, 1961 [hereinafter referred to as ‘the Act’] for the Assessment Year 2014-2015. 2. The Assessee has raised the following grounds of appeal:

1.

The order passed by lower authorities is bad in law and required to be quashed.

2.

The

The order continues below.

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