M/S BATRA BUILDERS PVT LTD,BENGALURU vs. DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), BENGALURU

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ITA 25/BANG/2018Status: DisposedITAT Bangalore11 June 2020AY 2013-143 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that if the recipients have disclosed and paid taxes on the received amounts, no disallowance is warranted. The issue was remanded to the CIT(A) for verification of tax payment by the recipients.

What were the facts?

The assessee made project development payments without deducting TDS, leading to a disallowance under Section 40(a)(ia). The assessee contended that the recipients had already paid taxes on these amounts, but this was not verified by the lower authorities.

What were the issues?

Whether disallowance under Section 40(a)(ia) is justified when the recipient has already paid taxes on the income, and whether the lower authorities properly verified this fact.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194C,Section 200

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE

Before: SHRI A.K GARODIA & SMT. BEENA PILLAI

For Appellant: Shri T Srinivasa, C.A
For Respondent: Shri Manjeet Singh, Addl. CIT – DR

ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal has been filed by assessee against order dated 31/08/2017 passed by Ld. CIT (A)-1, Bangalore for assessment year 2013-14.

2.

At the outset, Ld.AR submitted that the issue alleged is for addition made for non-deduction of TDS by applying provisions of section 40(a)(ia) of the Act, in respect of project development expenditure amounting to Rs.53,98,962/-. It was submitted that Ld. CIT (A)/AO held the payment in the nature of contract on which TDS under section 194C was liable to be deducted.

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