M/S CONSTRUCTION ENGINEERS,SRINAGAR vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 3, SRINAGAR

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ITA 29/ASR/2018Status: DisposedITAT Amritsar30 December 2019AY 2014-153 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal noted the assessee's honest admission of a bonafide mistake and the fact that the CIT(A) had not adjudicated the issue on merits. Therefore, the Tribunal decided to remand the issue back to the CIT(A) for a fresh decision.

What were the facts?

The assessee claimed expenditure on sub-contract works but failed to deduct TDS on a payment of Rs. 59,93,900/-. The Assessing Officer disallowed this amount under Section 40(a)(ia). The CIT(A) confirmed the disallowance as the assessee did not press the relevant ground in its written submissions.

What were the issues?

Whether the disallowance under Section 40(a)(ia) for non-deduction of TDS on sub-contract payments is justified, and whether the assessee should be allowed to argue the ground afresh before the CIT(A) due to a bonafide mistake.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR

Before: SH. N.K.CHOUDHRY & DR. A.L.SAINI

Hearing: 28.11.2019Pronounced: 30.12.2019

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR

BEFORE SH. N.K.CHOUDHRY, JUDICIAL MEMBER AND DR. A.L.SAINI, ACCOUNTANT MEMBER ITA No.29/Asr/2018 Assessment Year: 2014-15

M/s. Construction Engineers, Asst. CIT, 54-IE, Baghat Barzullah, Circle-3, Srinagar. Srinagar. Vs. [PAN:AABFC 7715P ] (Appellant) (Respondent)

Appellant by: Sh. M.A. Mir, (Ld. Cost Accountant) Respondent by: Sh. Charan Dass (Ld. DR)

Date of hearing: 28.11.2019 Date of pronouncement: 30.12.2019

ORDER PER N.K.CHOUDHRY, JM: This appeal has been preferred by the assessee against the impugned order dated 28.11.2017 passed by the Ld. CIT(A)- Jammu, u/s 250(6) of the Income Tax Act, 1961 (hereinafter called as ‘the Act’).

2.

In the instant case, the assessee has challenged the only addition of Rs.59,93,900/- qua sub-contract works by applying the provisions of Sec.40(a)(ia) of the Act. The assessee has claimed the expenditure on account of sub-contract works to the tune of

2 ITA N0.29/Asr/ 2018 (A.Y.2014-15 ) M/s Construction Engineers Vs. ACIT

Rs.7,83,46,901/- and made a payment of Rs.59,93,900/- to sub- contractors without deducting the TDS. Consequently, the Assessing Officer disallowed Rs.59,93,900 u/s 40(a)(ia), against which the assessee has preferred first appeal before the Ld.CIT(A) who vide impugned order, confirmed the disallowance of Rs.59,93,900/- on the ground that in the written submissions filed by the appellant, the ground No.1 was not pressed.

3.

The assesse preferred the instant appeal against the affirmation of said disallowance and honestly admitted its mistake, in not pressing the ground No.1 in written submissions, due to inadvertence and misguidance and prayed for remittance of the issue to the file of the Ld. CIT(A) for decision afresh. On the other hand, the Ld. DR, refuted the claim of the assessee and raised the objection.

4.

Having considered the submissions of the parties and the issue raised and honest admission of bonafide mistake by the assessee. As the Ld. CIT(A) did not adjudicate the issue under hand on merit on the ground that the assessee could not pressed the ground No.1 in its written submission, therefore considering the peculiar facts and circumstances and for the end of litigation and just decision of the case, we are inclined to allow the appeal of the assessee but subject to deposit of Rs.10,000/- in the Income Tax Department within one month from the receipt of this order. Consequently, the issue is remanded to the file of the Ld. CIT(A) for decision afresh, suffice to say while affording proper and reasonable opportunities of being heard to the assessee.

3 ITA N0.29/Asr/ 2018 (A.Y.2014-15 ) M/s Construction Engineers Vs. ACIT

5.

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

Order pronounced in the open Court on 30/12/2019.

Sd/- Sd/- (DR. A.L.SAINI) (N.K.CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 30/12/2019. /PK/ Ps. Copy forwarded to: 1. The Appellant 2. The Respondent 3. The CIT 4. Then CIT(Appeals) 5. SR DR, I.T.A.T. Amritsar 6. Guard File True Copy By Order

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