M/S. KHANDELWAL STEEL & PIPES,BHUBANESWAR vs. DCIT, CIRCLE-4(1), BHUBANESWAR
What did the Tribunal hold?
The Tribunal found the CIT(A)'s order to be non-speaking and lacking reasons, violating principles of natural justice. Therefore, the matter was restored to the CIT(A) for a fresh, reasoned decision.
What were the facts?
The assessee appealed against the CIT(A)'s order concerning an addition of Rs. 4,78,213.00 for non-deduction of TDS on interest paid to unsecured loan creditors. The assessee claimed the interest was allowable if declarations like Form 15-G were submitted.
What were the issues?
Whether the CIT(A)'s order was a speaking and reasoned order, and if the addition made by the AO for non-deduction of TDS was justified.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, CUTTACK BENCH, CUTTACK
Before: S/SHRI N.S SAINI & PAVAN KUMAR GADALE
1 ITA No .239/ CTK/ 2017 Asse ssment Year : 20 12- 201 3
IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK
BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER
ITA No.232/CTK/2017 Assessment Year : 2012-2013
M/s. Khandelwal Steel & Vs. DCIT, Circle 4(1), Pipes, 614, Bomikhal, Bhubaneswar. Cuttack Puri Road, Bhubaneswar. PAN/GIR No.AAGFK 7718 R (Appellant) .. ( Respondent)
Assessee by : None Revenue by : Shri D.K.Pradhan, DR
Date of Hearing : 30 /01/ 2018 Date of Pronouncement : 31 /01/ 2018
O R D E R Per Pavan Kumar Gadale, JM This is an appeal filed by the assessee against the order of the
CIT(A)- 2, Bhubaneswar dated 16.2.2017 for the assessment year 2012-
2013.
The assessee has raised following grounds of appeal:
“1. For that the Learned Assessing Officer is wholly unjustified & wrong in adding a sum of Rs.4,78,213.00 on the alleged ground that no TDS has been deducted on interest paid to the unsecured loan creditors above Rs. 5,000/-, in as much as, the same is allowable under the provisions of the IT. Act when declaration From 15-G / 15-H, as the case may be, is submitted / produced before the Learned Assessing Officer or the Appellate Authority in the particular circumstances of the case.
3 ITA No .239/ CTK/ 2017 Asse ssment Year : 20 12- 201 3
We have heard ld D.R., perused the orders of lower authorities and
materials available on record. Prima facie, on perusal of the order of the
CIT(A), we find that the findings given by the CIT(A) in disposing the
appeal of the assessee are not a speaking and reasoned. The contention
of ld D.R is that the appeal be dismissed. We also find that the CIT(A) has
allowed part relief to the assessee and for further relief, the assessee has
filed appeal before the Tribunal. The non-speaking order by the CIT(A) is
vitiated due violation of the rules of natural justice. The requirement of
recording of reasons introduces clarity, checks the irrelevant
considerations and minimises arbitrariness in the decision-making
process. Considering the above facts in entirety, we feel that in the
interest of justice, this matter should go back to the file of the CIT(A) for
fresh decision by passing a speaking and reasoned order. Hence, we
restore the appeal to the file of CIT (A). While adjudicating the matter
afresh, the CIT(A) will deal with all the contentions of the assessee by
way of a speaking order in accordance with law. With these directions,
the matter is remitted to the file of the CIT(A) to pass a speaking and well
reasoned order after providing adequate opportunity of being heard to
both the parties. The assessee is directed to file all the details and
documents before the CIT(A) on which it wishes to rely upon as and
when called upon to do so.
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