PR COMMISSIONER OF INCOME TAX RAJKOT 1 vs. RAMESH RANCHHODBHAI PATEL

Revenue is in appeal against the judgment of the Income   Tax   Appellate   Tribunal   dated   17.08.2017 raising following question for our consideration: “Whether, the Appellate Tribunal is right in law and on facts in deleting the addition made by the AO under section 40(a)(ia) of the Act ?”

Issue   pertains   to   disallowance   under   section 40(a)(ia) of the the Income Tax Act, 1961 ('the Act' for short).   The Assessing Officer having made such addition, the assessee carried the issue in appeal before   the   Commissioner.     Before   the   Commissioner, the assessee raised two contentions.  First was that the tax was deducted at source and deposited before the due date of filing of return.  Second contention C/TAXAP/347/2018 ORDER of the assessee was that the Assessing Officer having rejected the book results and made additions on GP basis,   further   addition   under  section   40(a)(ia) cannot   be   made.     The   Commissioner   seems   to   have accepted both the contentions.   The Revenue carried the matter in appeal before the Tribunal.   Tribunal proceeded only on one ground viz. that the Assessing Officer having made additions on the estimate basis, further addition under section 40(a)(ia) would not be permissible.

We would keep this question open, however, when the Commissioner has accepted the assessee's factual stand that tax was deducted at source and deposited with the Government Revenue with interest before the due date of filing of return and when the Revenue is unable   to   dispute   these   facts,   Tax   Appeal   is dismissed. (AKIL KURESHI, J) (B.N. KARIA, J) ANKIT SHAH