M/S. BHOOMI & ARKADE ASSOCIATES ,MUMBAI vs DCIT , CIR, 32(1) , MUMBAI

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI AMIT SHUKLA, JM & SHRI PRASHANT MAHARISHI, AM

For Appellant: Shri Charmi Shroff, CA, Shri Chetan M. Kacha

For Respondent: Shri Chetan M. Kacha

O R D E R

Per Amit Shukla, Judicial Member:

The aforesaid appeal has been filed by the assessee against the impugned order dated 22.09.2021, passed by National Faceless Appeal Centre (NFAC), Delhi for AY 2019-20 u/s 143(1). The assessee has raised the following grounds of appeal:-

M/s. Bhoomi & Arkade Associates.

That on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in confirming the addition made under section 40(a)(ia) read with proviso to section 201(1) of the Income Tax Act in the intimation order u/s 143(1).

2. That on the facts and circumstances of the case and in law, the Ld. CIT (A) erred in confirming the addition made under section 40(a)(ia) read with proviso to section 201(1), despite of the fact that when the other party has already offered the said income in his Return of Income and paid taxes on the same, then no addition can be made once again.

The brief facts of the case are that, assessee is engaged in the real estate business and has filed its return of income for AY 2019- 20 on 28.09.2020 declaring total income of Rs. 13,34,43,880/-. Thereafter, intimation u/s 143(1) was issued for proposal of adjustment relating to 30% disallowance u/s 40(a)(ia) amounting to Rs. 1,09,62,094/- and disallowance u/s 43B amounting to Rs. 2,62,662/-.

Ld. NFAC held that it is not clear whether the certificate in the prescribed Form 26-A was filed alongwith return income in terms of the proviso 201(1) and accordingly, he has confirmed the M/s. Bhoomi & Arkade Associates. disallowance u/s 40(a)(ia). However, in so far as the disallowance u/s 43B, he accepted the assessee’s claim.

Before us, Ld. Counsel for the assessee submitted that the CA certificate under the proviso of section 201(1) is now available which can be verified.

After considering the aforesaid submission as well as documents placed on record, we are remitting the issue back to the file of Ld. AO for fresh adjudication and if the party has paid the taxes in accordance with section 201(1), then no disallowance should be made u/s 40(a) (ia). The assessee directed to furnish the documents before the AO for verification.

In the result, the appeal filed by the assessee stands allowed for statistical purposes.

M/S. BHOOMI & ARKADE ASSOCIATES ,MUMBAI vs. DCIT , CIR, 32(1) , MUMBAI