Loading judgment…
Facts
The assessee filed an appeal against the order of the CIT(A) which upheld the assessment order making a disallowance of Rs. 10,18,007/- under Section 40(a)(ia) for non-deduction of TDS on interest payments amounting to Rs. 33,93,359/- made to Non-Banking Finance Companies. There was also a delay of 2 days in filing the appeal which the assessee sought to condone due to illness.
Held
The Tribunal condoned the delay in filing the appeal. It allowed the assessee's prayer to remand the matter back to the Assessing Officer, directing the AO to provide an opportunity to the assessee to submit Form No. 26A to claim the benefit of the 2nd Proviso to Section 40(a)(ia) read with the 1st Proviso to Section 201(1) and then pass a fresh order.
Key Issues
Whether the disallowance u/s Section 40(a)(ia) for non-deduction of TDS on interest payments was correct, and whether the assessee is entitled to claim the benefit of the provisos to Section 40(a)(ia) and Section 201(1) by submitting Form 26A.
Sections Cited
143(3), 40(a)(ia), 201(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI DINESH MOHAN SINHA
आदेश/ O R D E R
Per Dinesh Mohan Sinha, JM:
Feeling aggrieved by order of first appeal dated 29.02.2024 passed by learned Commissioner of Income-Tax (Appeals)-Addl./JCIT(A)-1, Bengaluru [“CIT(A)”] which in turn arises out of assessment-order dated 26.12.2017 passed by learned ITO-4(2), Bhopal [“AO”] u/s 143(3) of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2015-16, the assessee has filed this appeal on the grounds mentioned in Form No. 36.
Page 1 of 3 an affidavit stating that due to his illness, there occurred small delay. The assessee prays to condone the same. Taking a judicious call of the averment made by assessee in affidavit, the delay is condoned, the appeal is admitted and taken for adjudication.
The assessee’s sole grievance relates to the disallowance of Rs. 10,18,007/- [30% of 33,93,359/-] made by AO u/s 40(a)(ia) on account of non-deduction of tax at source (TDS) out of payment of interest of Rs. 33,93,359/- to certain Non-Banking Finance Companies as detailed in Para 5.2 to 5.4 of assessment-order. During hearing before us, Ld. AR’s limited prayer is such that the assessee wants to claim the benefit of 2nd Proviso to section 40(a)(ia) read with 1st Proviso to section 201(1) by filing the prescribed certificate in Form No. 26A. Accordingly, Ld. AR prays to remand this matter to the file of AO for a fresh adjudication.
Ld. DR for revenue does not have any objection to the submission and prayer of Ld. AR.
Page 2 of 3 AO is directed to give opportunity to the assessee to submit the Form No.
26A and consider such Form, if submitted by assessee, and take a fresh call on the issue.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced by putting on notice board as per Rule 34 of ITAT Rules, 1963 on 30/01/2025