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Income Tax Appellate Tribunal, DELHI BENCH “C” New Delhi
Before: SHRI N.K. BILLAIYA & MS. SUCHITRA KAMBLE
आदेश /O R D E R
PER N.K. BILLAIYA, A.M. 1. This appeal by the assessee is preferred against the order of the Ld. CIT(Appeals)-1, Noida dated 27.03.2017 pertaining to AY 2012-13.
The solitary grievance of the assessee is that the Ld. CIT(A) erred in confirming the addition of Rs. 5,16,179/- made by the AO invoking the provisions of Section 40(a)(ia) of the Income Tax Act, 1961.
Briefly stated the facts of the case are that during the course of scrutiny assessment proceedings the AO noticed that the assessee has H-One India Pvt. Ltd. vs. DCIT/ I.T.A.No.2385/Del/2017/A.Y.2012-13 Page 2 of 4 debited Rs. 34,48,797/- in the profit and loss account towards rent expenses. The assessee was asked to file the details of rent paid and whether TDS has been deducted or not?
Assessee filed a detailed reply vide letter dated 22.12.2014 giving the details of rent expenses. On perusal of the details the AO found that the rent of Rs. 5,16,179/- has been paid to Greater Noida Industrial Development Authority of which no tax was deducted at source u/s 194 I of the Act. The AO was of the opinion that provisions of Section 40(a)(ia) of the Act squarely apply on this payment and, accordingly, added the sum of Rs. 5,16,179/-.
Assessee carried the matter before the Ld. CIT(A) but without any success.
None appeared on behalf of the assessee in spite of notice we decided to proceed ex parte and heard the DR at length.
The DR strongly supported the findings of the Ld. CIT(A).
We have carefully considered the orders of the authorities below.
There is no dispute that rent of Rs. 5,16,179/- has been paid to Greater Noida Development Authority on which no tax was deducted at source.
However, there is no evidence on record to show that Greater Noida Industrial Development Authority has included this rent in its income and has paid taxes accordingly. Since, complete facts are not coming out
H-One India Pvt. Ltd. vs. DCIT/ I.T.A.No.2385/Del/2017/A.Y.2012-13 Page 3 of 4 from the orders of the authorities below, in the interest of justice, we restore this issue to the files of the AO. The assessee is directed to furnish necessary evidence to demonstrate that Greater Noida Industrial Development Authority has included the rent in its income and has paid taxes thereon. The assessee shall also file a certificate from a Chartered Accountant as provided in the IT Rules. The AO is directed to examine the same and decide the issue afresh as per the provisions of law.
In the result, the appeal filed by the assessee is treated as allowed for statistical purpose.
The order pronounced in the open court on 26.11.2019