THE KTM JEWELLERY LIMITED,COIMBATORE vs. DCIT, COIMBATORE

This appeal filed by the assessee is directed against the order of the learned Commissioner of Income Tax (Appeals)-1, Coimbatore in Appeal No.129/15-16 dated 28.02.2017 relevant to the Assessment Year 2012-13.

The only issue involved in this appeal in respect of disallowance made u/s. 40(a)(ia) of the Income Tax Act, 1961 (hereafter ‘the Act’). In the assessment order, the A.O has noted that on perusal of the 2 -: assessment records, it is seen that the assessee has debited an amount of Rs. 49,20,688/- in the profit and loss account towards assessee’s share of common expenses. During the course of assessment proceedings, the A.O has asked the assessee to produce proof of having deducted taxes at source on the expenditure incurred.

On appeal before us, the Ld. Counsel for the assessee has filed a paper book consisting of 21 pages pointed out that the TDS deducted by the sister concerns and submitted that these details already filed before the Ld. CIT(A) and the Ld. CIT(A) without considering the same confirmed the order of the A.O and submitted that the issue may be remitted back to the A.O.

On the other hand, the Ld. D.R has not raised any objection to remit the matter back to the A.O.

We have heard both the sides through video conferencing, perused the materials available on record and gone through the orders 3 -: of the authorities below. In this case, the assessee has not filed TDS as deducted by the sister concerns before the A.O. He has only filed details before the Ld. CIT(A). The Ld. CIT(A) without considering the details in respect of TDS, confirmed the order of the A.O. In view of the above facts and circumstances of the case, we are of the opinion that one more opportunity should be given to the assessee to substantiate it’s case before the A.O. Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of A.O and direct the A.O to consider the details filed by the assessee in respect of TDS deducted by sister concerns and pass fresh assessment de novo in accordance with law. Accordingly, this appeal is allowed for statistical purpose.

In the result, the appeal filed by the assessee is allowed for statistical purpose.