DURJAYA KUMAR NATH,DHENKANAL vs. ITO, WARD-4(1), BHUBANESWAR

आयकर अपीऱीय अधिकरण, कटक न्यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI N.S.SAINI, AM & SHRI PAVAN KUMAR GADALE, JM ITA No.126/CTK/2018 (नििाारण वषा / Assessment Year :2014-2015) Shri Durjaya Kumar Nath, Vs. ITO, Ward-4(1), C/o- Sarbeswar Nath, Bhubaneswar Vill.-Kadala, PO-Kadala, Meramondali, Hindol, Dhenkanal, Odisha-759121 स्थायी लेखा सं./जीआइआर सं./ PAN/GIR No. : AEYPN 7958 L (अऩीलाथी /Appellant) (प्रत्यथी / Respondent) .. ननधाारिती की ओर से /Assessee by : Shri Nihar Ranjan Biswal, AR िाजस्व की ओर से /Revenue by : Shri D.K.Pradhan, DR सुनवाई की तािीख / Date of Hearing : 10/05/2018 घोषणा की तािीख/Date of Pronouncement 14/05/2018 आदेश / O R D E R Per Shri Pavan Kumar Gadale, JM: The assessee has filed an appeal filed against the order of CIT(A)- 2, Bhubaneswar, dated 21.12.2017, passed in I.T.Appeal No.0192/2016- 17, u/s.143(3)/250 of the I.T.Act for the assessment year 2014-2015. 2. The assessee has raised the following grounds :- 1. For that, the Ld. CIT(A) is illegal and unjustified towards addition, of interest on vehicle loan of Rs. 9,91,554/- paid to different NBFCs u/s 40(a)(ia) without deduction of Tax at source, without considering the second proviso to Sec. 40(a)(ia). The assessee is not deemed to be an assessee in default under the first proviso to Sec/ 201(1) . Therefore disallowing interest of Rs. 9,91,554/- u/s 40(a)(ia) is arbitrary, unjustified, illegal on the facts & circumstances of the case and the same should be deleted in full. 2. For that, the Ld. CIT(A) is illegal and unjustified towards addition of saving bank interest of Rs. 4,689/- without considering the deduction u/s 8OTTA. The assessee has shown the interest of Rs. 21,72,343/- under the head income from other sources. However the Ld. A.O. had wrongly mentioned the same as Rs. 21,72,242/-. The assessee has omitted to disclose Rs. 4,589/- which is earned as saving bank interest since the same is deductible u/s 8OTTA. Therefore addition of saving bank interest of Rs. 4,689/- without considering Sec. 8OTTA is arbitrary,

2 ITA No.126/2018 unjustified, illegal on the facts & circumstances of the case and the same should be deleted in full. 3. For that, the Ld. CIT(A) is illegal and unjustified towards addition of vehicle maintenance charges expenses of Rs. 14,96,757/- without verifying the said vouchers since the Ld. AO did not require to produce the said vouchers which is otherwise available with the assessee. Therefore addition of vehicle maintenance charges expenses of Rs. 14,96,757/- is arbitrary, unjustified, illegal on the facts & circumstances of the case and the same should be deleted in full. 4. For that , the appellant may add, alter, amend any other grounds of appeal at time of hearing. 3. At the time of hearing the assessee has filed addition evidence explaining that the CA certificate issued in respect of NBFCs is being filed for the first time and prayed to admit the same. 4. Brief facts of the case that the assessee is engaged in the civil contract works and filed the return of income electronically on 03.11.2014 for the assessment year 2014-2015 with total income at Rs.28,46,010/-. Subsequently, the case was selected for scrutiny under CASS and notice u/s.143(2) and 142(1) of the Act was issued to the assessee. In compliance the ld. AR of the assessee appeared and filed written submissions over a period of time. The AO on perusal of the documents with respect to the wage, fuel & lubricant, vehicle maintenance and list of sundry creditors, found that the assessee has obtained vehicle loan as on 31.03.2014 to the tune of Rs.63,55,458/- and also claimed in profit and loss account of Rs.25,50,610/- under the head bank interest & charges. The AO found that the assessee has made a payment of interest to NBFCs aggregating to Rs.10,25,141/- on account of vehicle loan and applied the provisions of Section 40(a)(ia) of the Act. The AO dealt on this issue in respect of each NBFC at at page 4 & 5 of the order and

3 ITA No.126/2018 considering the tax audit report made the addition of Rs.9,91,554/-. Similarly, the AO found that the assessee has not disclosed the interest on bank interest to the extent of Rs.4,689/- and added the same to the total income. Further the AO sought clarification in respect of bills and vouchers and found that the amount of Rs.14,96,757/- remained unexplained without any documentary evidence, therefore, did not accept the amount and made the addition and assessed the total income at Rs.53,39,010/- and passed order u/s.143(3) of the Act, dated 14.12.2016. 5. On appeal, the CIT(A) found that the assessee is not interested in pursuing the appeal and, therefore, dismissed. 6. Aggrieved thereby the assessee has filed further appeal before the Tribunal. 7. Before, us, the ld. AR submitted that the ld. CIT(A) has erred in dismissing the appeal, whereas the assessee during the course of appellate proceedings was seeking adjournment for submitting of details of CA certificate in respect of NBFCs which could not be available at that time and they were obtained subsequently after the disposal of the appeal. Therefore, ld. AR prayed for admitting the additional evidence and allow the grounds of appeal. 8. Ld.DR objected to the admission of additional evidence filed for the first time and relied on the order of lower authorities. 9. We have heard rival submissions and perused the material available on record. On the first disputed issue of non-deduction of TDS u/s.194 r.w.s 40(a)(ia) of the Act, we found that the assessee has made

4 ITA No.126/2018 interest payments to NBFCs in respect of vehicle loans and no TDS has been deducted. In the course of the hearing proceedings ld. AR further submitted that the assessee has now obtained the CA certificate under the provisions of Section 201(1) of the Act where the recipient has included the interest income in their income tax assessments, which the ld. DR has not disputed. Therefore, we considering the apparent facts and in the interest of substantial justice, remit this disputed issue to the file of CIT(A), who shall verify and consider the submission of the assessee and dispose off the appeal. Further since we have remitted the issue to the file of CIT(A), other grounds of appeal are also remitted to the file of CIT(A) and the assessee shall be provided adequate opportunity of hearing and shall cooperate in submitting the information for disposal of the appeal. 10. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 14/05/2018. Sd/- Sd/- (N. S. SAINI) (PAVAN KUMAR GADALE) ऱेखा सदस्य / ACCOUNTANT MEMBER न्यानयक सदस्य / JUDICIAL MEMBER कटक Cuttack; ददनाांक Dated 14/05/2018 प्र.कु.मि/PKM, Senior Private Secretary आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : अपीलाथी / The Appellant- 1. Shri Durjaya Kumar Nath, C/o- Sarbeswar Nath,Vill.-Kadala, PO-Kadala, Meramondali, Hindol, Dhenkanal, Odisha-759121 प्रत्यथी / The Respondent- 2. ITO, Ward-4(1), Bhubaneswar आयकर आयुक्त(अपील) / The CIT(A), आदेशािुसार/ BY ORDER, 3. आयकि आयुक्त / CIT 4. विभागीय प्रविविवि, आयकर अपीलीय अविकरण, कटक / DR, ITAT, Cuttack 5. (Senior Private गार्ा पाईल / Guard file. 6. Secretary) सत्यापऩत प्रनत //True Copy// आयकर अपीऱीय अधिकरण, कटक / ITAT, Cuttack