NIMMAGADDA RAMESH,HYDERABAD vs. THE ACIT,, VIJAYAWADA

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM BEFORE SHRI V. DURGA RAO, HON’BLE JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH, HON’BLE ACCOUNTANT MEMBER ITA No. 54/VIZ/2015 (Asst. Year : 2010-11) Nimmagadda Ramesh, vs. ACIT, Circle-1(1), Prop. : Srinivasa Stone Crusher, Vijayawada. 6-126, Ibrahimpatnam, Krishna District. PAN No. ADSPN 8553 G (Appellant) (Respondent)

Assessee by : Shri G.V.N. Hari – Advocate. Department By : Smt. Suman Malik – Sr.DR

Date of hearing : 21/03/2019. Date of pronouncement : 23/04/2019.

O R D E R PER V. DURGA RAO, JUDICIAL MEMBER

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), Vijayawada, dated 28/11/2014 for the Assessment Year 2010-11. 2. Facts of the case, in brief, are that the assessee is an individual carrying on business of stone crushing and transport, filed his return of income admitting total income of Rs.15,45,640/- The return filed by the assessee was processed and after following

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due procedure, assessment was completed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as "Act") on 18/03/2013. In the assessment order, the Assessing Officer has noted that the assessee is a proprietor of Srinivasa Stone Crusher which is a stone crushing unit located at Mulapadu village and the assessee also running business under the name and style of Srinivasa Heavy Transport and Contractors. During the course of hearing, the assessee’s AR submitted the details of secured loans, unsecured loans, confirmations, details of other income & expenses, details of interest paid and TDS made and also the party wise details of transport charges. The details of blasting and labour charges, details of additions made to fixed assets, details of plant & machinery maintenance, details of finance charges paid etc. have been examined by the Assessing Officer. Books of account produced, verified and returned. On verification of the ledger account of Financial Charges paid, it is noticed that the assessee has not deducted TDS on financial charges paid to the non-banking financial institutions, which are as follows:- S.No. Name Amount paid. 1 Sri Rama Finance Rs. 1,63,800 2 L & T finance Rs. 2,52,000 3 Sri Infra Structure Finance Ltd. Rs. 7,81,219.84 (F.Y. 2008-09, A/c No.HL0014119) 4 Sri Infra Structure Finance Ltd., Rs. 5,19,847.91 (F.Y. 2009-10) 5 Sri Infra Structure Finance Ltd., Rs. 11,17,371.69

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(F.Y. 2008-09, A/c. No. HL 0016045) 6 Total Rs. 28,34,239

Hence, the provisions of section 40(a)(ia) of the Act are invoked and the amount of Rs. 28,34,239/- is disallowed and added to the total income returned. 3. On appeal before us, ld. counsel for the assessee has submitted that payee have already paid taxes and he has also filed the details of the payments made by the payee and submitted that there is no obligation on the part of the assessee to deduct TDS. 4. On the other hand, ld. Departmental Representative strongly supported the orders of the authorities below. 5. We have heard both the parties, perused the material available on record and gone through orders of the authorities below. 6. It is a fact that the assessee has paid an amount of Rs.28,34,239/- to five parties, no TDS is deducted. Before the Assessing Officer and the ld. CIT(A) no details were filed. For the first time before us, the assessee has filed the details. We therefore are of the opinion that in the interest of justice, these details filed by the assessee have to be examined and issue has to be decided in accordance with law. Therefore, we set aside the

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order passed by the ld. CIT(A) and remit the matter back to the ld. CIT(A) to consider the details in respect of the taxes paid by the payee and if necessary, call the remand report and decide the issue in accordance with law. Accordingly, this appeal filed by the assessee is allowed for statistical purposes. 7. In the result, appeal filed by the assessee is allowed for statistical purposes. Order Pronounced in open Court on this 23rd day of April, 2019.

Sd/- sd/- (D.S. SUNDER SINGH) (V. DURGA RAO) Accountant Member Judicial Member Dated: 23rd April, 2019. vr/- Copy to: 1. The Assessee – Nimmagadda Ramesh, Prop. : Srinivasa Stone Crusher, 6-126, Ibrahimpatnam, Krishna District. 2. The Revenue – ACIT, Circle-1(1), Vijayawada. 3. The CIT, Vijayawada. 4. The CIT(A), Vijayawada. 5. The D.R., Visakhapatnam. 6. Guard file. By order

(VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.