HONEYWELL INTERNATIONAL INDIA PRIVATE LIMITED,DELHI vs. DCIT CIRCLE-10(1), DELHI

ITA 2933/DEL/2024Status: DisposedITAT Delhi17 April 2025AY 2018-19Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANISH AGARWAL (Accountant Member)6 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal directed the Assessing Officer to recompute the disallowance under Section 40(a)(ia) at 30% for resident payments. For the LWF amount, the Tribunal directed the AO to ensure no double addition is made in the assessee's hands.

What were the facts?

The assessee appealed against the CIT(A)'s order confirming the disallowance of INR 56,916,238 under Section 40(a)(ia) of the Income Tax Act, 1961, and the disallowance of INR 8,930 for employee's contribution to Labour Welfare Fund. The assessee argued that the disallowance under Section 40(a)(ia) should be 30% for resident payments, not 100%, and the LWF disallowance resulted in double disallowance.

What were the issues?

Whether the disallowance under Section 40(a)(ia) for resident payments should be 30% or 100%, and whether the disallowance of employee's contribution to LWF amounts to a double disallowance.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 36(1)(va),Section 143(1),Section 250,Section 253(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI MANISH AGARWAL

Hearing: 17.04.2025Pronounced: 17.04.2025

PER SATBEER SINGH GODARA, JM This assessee’s appeal for assessment year 2018-19, arises against the Commissioner of Income Tax (Appeals)/Addl./JCIT(A)- 12, Mumbai’s DIN and order no. ITBA/APL/S/250/2023- 24/1061122525(1), dated 19.02.2024, involving proceedings under section 143(1) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

This assessee’s appeal raises the following substantive grounds: “Appeal under section 253(1)(a) of the Income Tax Act, 1961 (hereinafter referred to as the "Act"), against the order dated 19 February 2024 passed by National Faceless Appeal Centre, Commissioner of Income Tax (Appeal

The order continues below.

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