UDAIPUR CEMENT WORKS LIMITED,UDAIPUR RAJASTHAN vs. PCIT, UDAIPUR

ITA 366/JODH/2024Status: DisposedITAT Jodhpur31 August 2026AY 2018-1922 pages
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What did the Tribunal hold?

The Tribunal held that the assessee was not obligated to deduct TDS on the interest payment as it was a reimbursement of interest cost. The Tribunal also found that the other issues raised by the PCIT were either unsubstantiated or already addressed by the assessee, thus quashing the PCIT's order.

What were the facts?

The assessee filed its return of income, which was accepted by the Assessing Officer. The PCIT initiated revision proceedings under Section 263, citing deficiencies in the assessment order, including non-deduction of TDS on interest payments and discrepancies in profit figures. The assessee argued that the interest payment was a reimbursement and not income, and that the PCIT's assumptions were incorrect.

What were the issues?

Whether the PCIT correctly assumed jurisdiction under Section 263 and whether the assessee was liable for TDS on interest payments considered as reimbursement.

Which sections of the Income-tax Act were involved?

Section 263,Section 194A,Section 201(1A),Section 193

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, JODHPUR BENCH, JODHPUR

For Appellant: Shri Gautam Jain Advocate And Shri Lalit Mohan, Advocate, (Virtually)
For Respondent: Ms. Shivani Bansal, CIT-DR (Physically)

Per: Shri Saktijit Dey, Vice President : In the present appeal, the assessee has called into question the validity of the order dated 18.03.2024 passed by learned Principal Commissioner of Income Tax (PCIT), Udaipur under Section 263 of the Income Tax Act, 1961 (in short ‘the Act’) pertaining to Assessment Year 2018-19. 2. Multiple grounds have been raised by the assessee challenging the impugned order of learned PCIT, both on the issue of assumption of juri iction as also on 2 merits. Before we proceed to deal with the substantive issues arising in the appeal, it is necessary to briefly describe the relevant facts.

3.

The assesse

The order continues below.

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