PUSHPA SHARMA,HARYANA vs. ITO WARD 2(1), FARIDABAD

ITA 2742/DEL/2026Status: DisposedITAT Delhi09 July 2026AY 2023-244 pages
AI SummaryAllowed

What were the facts?

The assessee claimed salary expenses, but the AO disallowed a portion for failure to deduct TDS. The CIT(A) confirmed this disallowance.

What did the Tribunal hold?

The Tribunal held that after considering standard deduction and tax rebate, the salary paid to most employees did not exceed the taxable threshold. Therefore, TDS was not mandatory.

What were the issues?

Whether disallowance under Section 40(a)(ia) is justified when salary payments, after considering deductions and rebates, do not attract TDS obligations.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 16(1),Section 87A

AI-generated summary — verify with the full judgment below

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

For Appellant: Shri. Tarun Sarda, Sr. DR
For Respondent: Shri. Tarun Sarda, Sr. DR
Hearing: 07/07/2026Pronounced: 07/07/2026

PER MANISH AGARWAL, AM: This appeal is filed by the Assessee against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [Ld. CIT(E)] dated 25.05.2026 u/s 250 of the Income Tax Act, 1961 (“the Act” in short) arising out of the assessment order passed u/s 143(3) of the Act for Assessment Year 2023-24. 2. Brief facts of the case are that the assessee is an individual and filed her return of income on 12.09.2023 declaring total income at Rs.32,85,260/-. The case of the assessee was selected for scrutiny and the income was assessed in terms of the order passed u/s 143(3) dated 19.03.2025 at Rs.1,68,48,462/- by making various additions and disallowance.

3.

Aggriev

The order continues below.

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