M/S KOHINOOR EDUCATIONAL SERVICES PVT.LTD.,BHOPAL vs. THE ACIT-2(1), BHOPAL

Briefly stated facts are that the case of the assessee was picked up for scrutiny assessment and the assessment u/s 143(3) of the Income Tax Act 1961(hereinafter called as ‘the Act’) was framed vide order dated 07.03.2016 while framing the assessment, the assessing officer made addition of Rs.1,55,00,000/- by invoking provisions of section 40(a)(ia) on account of non deduction of tax at source. 3. Aggrieved by this the assessee preferred an appeal before the Ld. CIT(A) who after considering the submissions dismissed the appeal. Now the assessee is in appeal before this Tribunal.

The only effective ground is disallowance made u/s 40(a)(ia) on the rent paid to Airport Authority of India. 5. At the outset, the Ld. Counsel for the assessee Shri S. S. Deshpande, submitted that authorities below were not justified in making the disallowance. He submitted that payee is a Government organization and has duly disclosed this payment in their receipts therefore, the addition made at the hands of the assessee be deleted. 6. He further submitted that the issue may be restored to the AO for verification whether Airport Authority of India has disclosed in their return of income or not. The Ld. Departmental Representative (DR) submitted that he has no objection at the issue is restored to the extent of verification by the AO whether the payment made by the assessee has been disclosed in the return of income of the payee. 7. We have heard the rival contentions and perused material on record. After considering the facts of the present case, we deem it proper to restore this issue to the file of the AO for verification in respect of the payment made by the assessee whether such receipts have been disclosed by the payee in its return of income. The grounds raised in this appeal are allowed for statistical purposes. 3

In the result, the appeal filed by the assessee is