SOHANEY BROTHERS,SEONI vs. INCOME TAX OFFICER WARD, SEONI

ITA 132/JAB/2025Status: DisposedITAT Jabalpur20 August 2026AY 2009-105 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that since the payee had disclosed the income and paid taxes thereon, the disallowance under Section 40(a)(ia) was not warranted. The Tribunal relied on various High Court decisions which treated the second proviso to Section 40(a)(ia) as curative and retrospective.

What were the facts?

The assessee, engaged in transportation, was reassessed for AY 2009-10 after the AO noticed non-deduction of TDS on payments to M/s. S.K. Oil. An addition of Rs. 12,72,060/- was made under Section 40(a)(ia) for non-deduction of TDS.

What were the issues?

The primary issue was whether disallowance under Section 40(a)(ia) is permissible when the payee has already paid tax on the income. Another issue concerned the validity of reassessment proceedings initiated under Section 148.

Which sections of the Income-tax Act were involved?

Section 148,Section 147,Section 143(3),Section 40(a)(ia),Section 194C,Section 201(1),Section 234A,Section 234B,Section 234C

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JABALPUR BENCH “SMC”, JABALPUR

Before: SHRI KUL BHARAT

For Appellant: Shri Sunil Kumar Nema, Advocate
For Respondent: Shri Rahul Padha, JC-2

PER KUL BHARAT, VICE PRESIDENT.:

This appeal, by the assessee, is directed against the order of the Learned Addl/Joint Commissioner of Income-tax (Appeals)- Kochi, dated 27.03.2025, pertaining to the assessment year 2009-10. The assessee has raised the following grounds of appeal: -

“1. Notice issued u/s 148 of I.T. Act 1961 on 25/03/2015 is illegal. invalid and bad in law. Consequent assessment framed thereupon is liable to be cancelled. 2) Notice issued u/s 148 is not in accordance with law in terms of proviso to section 147 and consequent assessment framed thereupon is liable to be cancelled. Reasons recorded does not indicate any failure on the part of assessee to disclose fully and truly all material facts necessary f

The order continues below.

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