SAMIUDDIN AHMED,KOLKATA vs. I.T.O.-WARD-28(2), KOLKATA

This Assessee’s appeal for assessment year 2008-09 arises against the CIT(A), 5, Kolkata’s order dated 01-11-2018 passed in case no. 262/CIT(A)-5/Wd-28(2)/18- 19/Kol. involving proceedings u/s 143(3) of the Income-tax Act, 1961 ( in short ‘Act’).

For the reasons stated in assessee’s condonation petition that he had suffered from illness and on account of no objection from the revenue’s side, I condone the impugned delay of 35 days in filing this appeal before this tribunal.

Coming to merits, I find that assessee’s twin substantive grounds seeking to challenge correctness of both the lower authorities’ action invoking section 40(a)(ia) disallowance of labour charges amounting to Rs.560970/- on account non deduction of TDS and latter disallowance of Rs.394850/- arising from original TDS Form 16A on various essential re-conciliation issue(s); require necessary factual verification. Coupled with this, assessee’s former grievance of labour expenditure disallowance of Rs.5,60,970/- also requires to be examined under second proviso to section 40(a)(ia) of the Act; that the same does not apply in case an assessee is not the assessee is default in the light of section 201/201A of the Act. Hon’ble Delhi high court’s landmark decision in CIT v/s. Ansal Landmark Township P. Ltd, & 161/2015 dt. 26-08- 2015 holds the above proviso to be having retrospective effect since curative in nature. I therefore deem it appropriate to restore the instant case back to the Assessing officer for fresh adjudication of both the issues raised within three effective opportunities of hearings as per law.

This Assessee’s appeal is allowed for statistical purpose in above terms. Order pronounced in the Court on 18-09-2019 Sd/- [ S.S.Godara ] Judicial Member Dated : 18-09-2019 **PRADIP, Sr. PS Copy of the order forwarded to: