KARMYOGI SHANKARRAOJI PATIL SSK LTD,PUNE vs. ASSISTANT COMMISSIONER OF INCOME TAX CIRCLE 7, PUNE

The sole issue for our consideration is that whether ld.CIT(A) erred in confirming the disallowance made by the Assessing Officer u/s.40(a)(ia) of the Act at Rs.2,89,72,480/-.

We have heard the rival submissions and perused the record placed before us. We notice that assessee is an Association of persons registered under the Maharashtra Cooperative Societies Act, 1960 and filed its return of income for A.Y. 2023-24 on 27.10.2023 declaring Nil income. Case selected for scrutiny through CASS followed by validly serving statutory notices for carrying out reassessment proceedings. In the course of assessment proceedings, after considering the submissions filed by the assessee, ld. Assessing Officer concluded the proceedings making disallowance u/s.40(a)(ia) of the Act for non deduction of tax at source u/s.194Q of the Act with regard to the purchase of goods, value of which exceeds Rs.50.00 lakh and that the tax @0.1% of such sum exceeding Rs.50.00 lakh is required to be deducted. Ld. Assessing Officer made disallowance for non-deduction of tax u/s.194Q of the Act at Rs.2,89,72,480/- being 30% of the purchase of Rs.9,65,74,932/-. Income assessed at Rs.2,89,72,840/-. We further observe that assessee preferred appeal before ld.CIT(A) but failed to respond to the notices of hearing on 18.07.2025, 23.09.2025, 08.10.2025. Assessee sought adjournment on two occasions however assessee did not file any details before ld.CIT(A) in support of its grounds of appeal and failed to discharge its burden. Thus, ld.CIT(A) affirmed the action of the Assessing Officer.

Before us, ld. Counsel for the assessee has prayed for affording one more opportunity so that the details can be submitted even though ld. DR has strongly opposed the submissions, we in the larger interest of justice deem it appropriate to restore the issues raised in the instant appeal to the file of ld.CIT(A) giving one more opportunity to the assessee. Needless to mention that ld.CIT(A) in the set aside proceedings shall afford reasonable opportunity to the assessee. Ld.CIT(A) shall call for a remand report from the ld. Juri ictional Assessing Officer and after giving opportunity of rebuttal to the assessee, shall adjudicate the issues in accordance with law. Assessee is directed to provide updated email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective grounds raised by the assessee are allowed for statistical purposes.

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

The Pr. CIT concerned. विभ गीय प्रतितनधि, आयकर अपीलीय अधिकरण, “A” बेंच, 4. पुणे / DR, ITAT, “A” Bench, Pune. ग र्ड फ़ इल / Guard File. 5. आिेश नुस र / BY ORDER,