NIDRA HOSPITALITY GUJARAT PRIVATE LIMITED,VADODARA vs. THE ACIT, CIRCLE INTL. TAXN., VADODARA

ITA 882/AHD/2025Status: DisposedITAT Ahmedabad08 October 2025AY 2017-18Bench: Dr. BRR Kumar (Vice President), Ms. Suchitra Kamble (Judicial Member)5 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal observed that the assessee had submitted Form 15CB for payments to non-residents and duly deposited tax at source in accordance with the Income Tax Act and DTAA. Therefore, the Tribunal concluded that the assessee was not a defaulter for non-deduction of TDS.

What were the facts?

The assessee incurred commission expenses paid to non-residents but did not deduct TDS, relying on Double Taxation Avoidance Agreement (DTAA) and Form 15CB. The Assessing Officer treated the assessee as a defaulter under Section 201(1) and 201(1A) of the Income Tax Act, leading to a disallowance of Rs. 7,05,738/-, which the CIT(A) upheld.

What were the issues?

Whether the assessee was correctly treated as a defaulter for non-deduction of TDS on commission payments to non-residents, given that the assessee claimed compliance with DTAA and submitted Form 15CB.

Which sections of the Income-tax Act were involved?

Section 201(1),Section 201(1A),Section 250,Section 143(3),Section 40a(i),Section 195,Section 201

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH

Before: Dr. BRR Kumar & Ms. Suchitra Kamble

For Appellant: Ms. Kinjal Shah, A.R
For Respondent: Shri Kamal Deep Singh, Sr. D.R

Per Suchitra Kamble, Judicial Member:

This is an appeal filed against the order dated 20-02- 2025 passed by CIT(A)/Addl/JCIT(A)-2, Chandigarh for assessment year 2018-19. 2. The grounds of appeal are as under:- “1. Your Appellant submits that CIT (Appeals) i.e. National Faceless Appeal Centre (NFAC) Chandigarh erred in passing order by confirming the order passed u/s 201(1)/201(1A) of the Act.

2.

Your Appellant submits that the appellate order passed u/s 250 of the Act by the NFAC which is in haste and hurry and without giving reasonable opportunity of being heard to the appellant. The assessment was completed on presumption, guess work and the same be deleted.

I.T.A No. 882/Ah

The order continues below.

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