HIMANSHUSINHJI JYOTENDRASINHJI JADEJA,GONDAL vs. DCIT/ACIT CIRCLE-1(1), RKT, RAJKOT

ITA 325/RJT/2026Status: DisposedITAT Rajkot29 September 2026AY 2018-194 pages
AI SummaryRemanded

What were the facts?

The assessee filed a return of income, which was processed by the CPC. The CPC made an addition of Rs. 4,50,000/- under section 40(a)(ia) for non-deduction of TDS on brokerage expenses, citing a discrepancy with the audit report. The CIT(A) confirmed this addition.

What did the Tribunal hold?

The Tribunal noted that the Finance Act, 2012 amended sections 201 and 40(a)(ia) to allow the payer if the recipient has included the income and paid taxes. The Tribunal set aside the CIT(A)'s order and remanded the issue to the Assessing Officer to verify if the payee included the income and paid taxes.

What were the issues?

Whether the disallowance under Section 40(a)(ia) is sustainable when the recipient has already paid taxes on the income. Whether the adjustment made by CPC under Section 143(1) was within its jurisdiction.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 143(1),Section 201

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
आयकर अपीलीय अिधकरण, राजकोट "यायपीठ, राजकोट। In The Income Tax Appellate Tribunal, Rajkot Bench, Rajkot Before Dr. Arjun Lal Saini, Accountant Member And Shri Sonjoy Sarma, Judicial Member आयकर अपील सं./ITA No. 325/RJT/2026 [ "नधा"रण वष"/Assessment Year: 2018-19 ] Himanshusinhji Jyotendrasinhji DCIT/ACIT Circle-1(1), RKT, Jadeja, IT Office, New Aayakar Vs. Hajur Palace, Gondal, Bhawan, Vatiaka, Gujarat-360311 Rajkot, Gujarat-360001 "थायीलेखासं./जीआइआरसं./PAN/GIR No.: ACHPJ2275K (अपीलाथ"/Assessee) (""यथ"/Respondent) Assessee by : Shri G. R. Sanghavi, Ld. AR Respondent by : Shri Ganesh Iyer, Ld. Sr. DR Date of Hearing : 14/07/2026 29/09/2026 Date of Pronouncement :

:: ORDER :: Per,Dr. Arjun Lal Saini, AM: Captioned appeal filed by the assessee, pertaining to assessment year (AY) 2018-19, is directed against the order under section 250 of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by the National Faceless Appeal Centre (NAC) Delhi/Commissioner of Income-tax (Appeals) [in short ‘NFAC/Ld.CIT(A)’], dated 23.01.2026, which in turn arises out of an order passed by the Assessing Officer u/s 143(1) of the Act, dated 11.06.2019. 2. The grounds of appeal raised by th

The order continues below.

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