VISWANADH KANDULA,HYDERABAD vs. DCIT., CIRCLE-6(1), HYDERABAD
Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”, HYDERABAD
PER LALIET KUMAR, J.M:
This appeal is filed by the assessee feeling aggrieved by the order passed by the Commissioner of Income Tax (Appeals), National
Faceless Appeal Centre (NFAC), Delhi dated 20/08/2024 for the AY
2018-19. 2. The grounds raised by the assessee read as under:
“1. The order of the Ld. CIT(A) in confirming the additions made by the Ld. AO is erroneous in law, contrary to the facts & probabilities of the case and against principles of equity and natural justice.
2. The Ld. CIT(A) erred in law & facts in holding that disallowance U/s. 40(a)(ia) is valid wherein the appellant has complied with the provisions of TDS which is fact evident from Form 3CA-3CB filed for the year under consideration and also from the quarterly TDS return filings made by the appellant.
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Viswanadh Kandula
3. The action of the Ld. CIT(A) in deciding the appeal ex-parte without examining the material already available on record is erroneous in acts. Further, non- compliance to hearing notice is only on account of fact that notice was served on email not regularly used by the appellant.
4. For these and other reasons that may be urged at the time of hearing, the appellant prays the Hon’ble Tribunal to kindly delete the addition made by AO and sustained by CIT(A).”
Brief facts of the case are that the Ld. AO had completed the assessment U/s. 144 r.w.s 144B of the Act and made certain additions in the hands of the assessee. Aggrieved by the order of the Ld. AO, the assessee preferred an appeal before the Ld. CIT(A). 4. It was submitted by the assessee that in the present case, the Ld. CIT(A) in para 3.5 of his order had sustained the addition made by the Ld. AO and the findings of the Ld. CIT(A) is to the following effect: “3.5. I have perused the grounds of appeal, facts of the case and the assessment order passed U/s. 144 r.w.s 144B of the Act. The appellant has not produced any material to controvert the finding of the AO with any document, evidence which he could rely upon. It has been recorded by the AO that notices U/s. 142(1) have been issued to appellant on various dates but the appellant has not responded or complied with the said notices. The appellant also did not respond to the show cause notice issued to him, before completion of assessment. On merit AO’s order appears to be reasonable and as per law. The appellant failed to provide any explanation with supporting documents / evidence during this appellant proceeding, too. No documents have been provided by the appellant in support of his contention regarding taxes deducted at source (and paid to government exchequer) on account of expenses booked on commission, freight, consultancy charges, salary, rent, etc. In the course of this appeal, despite repeated opportunities being provided from this end. From the above conduct of the assessee, it is clear that the appellant is not interested in prosecuting its appeal. In the event, I have no reason to interfere with findings of the AO as far as disallowance of expenses U/s. 40(a)(ia) is concerned. In such circumstance, Ground No.4 of this appeal is dismissed.”]
Aggrieved by the decision of the Ld. CIT(A), the assessee is in appeal before us with the above mentioned grounds of appeal.
At the outset, the Ld. AR submitted that the assessee had filed the additional evidence to prove that the TDS deducted was duly
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Viswanadh Kandula deposited by the assessee as per the requirement of law. The Ld. AR had also filed the documents to prove that the TDS deduction has been made and the same was deposited with Government exchequer.
It was also submitted that the additional evidence / documents now filed before the Tribunal may be admitted and the matter may be remitted back to the file of the Ld. Revenue Authorities for verification.
On the other hand, the Ld. DR had objected for the admission of the additional evidence and it was submitted that the assesse has not provided the documents either before the Ld. AO or before the Ld. CIT(A) as granted by the Statute and therefore, the documents / additional evidence submitted by the assessee should not be accepted at this stage.
We have heard both the rival contentions and the perused the material available on record. Admittedly, in the present case, the Ld. AO had passed the assessment order on 24/06/2021 and thereafter, the Ld. CIT(A) had passed the order on 20/08/2024. There was sufficient time for the assessee to produce all these documents which are in the form of Form 26AS and TDS Challan showing the deposit of tax as required in law. However, the assessee has submitted before us that these documents could not have been produced before the Ld. AO / Ld. CIT(A) as these documents were not available with the assessee at that point of time. Under these circumstances, we are of the opinion
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Viswanadh Kandula that invariably when the sufficient time has been granted by the Act for the assessee to produce the documents / evidence, then it is the duty of the assessee to produce all these documents before the concerned Ld. Revenue Authorities. However, there is a failure and negligence on the part of the assessee to produce the evidence and for that purpose the assessee is required to be burdened with the cost and accordingly, we hereby quantify the cost at Rs. 5,000/-. Subject to deposit of the said cost of Rs. 5,000/- in the Prime Minister’s Welfare
Fund, the additional evidence / documents filed by the assessee is hereby admitted. Having admitted the additional evidence, we deem it appropriate to remit the matter back to the file of the Ld. CIT(A) with a direction to decide the issue afresh after giving a reasonable opportunity to the assessee and consider the documents / evidences now produced before us after seeking remand report from the Ld. AO.
Accordingly, the issue is decided.
In the result, appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 07th January, 2025. /- (MADHUSUDAN SAWDIA)
ACCOUNTANT MEMBER (LALIET KUMAR)
JUDICIAL MEMBER
Hyderabad, dated 07/01/2025
OKK/sps
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Viswanadh Kandula
Copy to:
S.No Addresses
1
Viswanadh Kandula, Plot No. 161, Prashashan Nagar, Road
No.16, Jubilee Hills, Hyderabad, Telangana-500033. 2
DCIT, Circle-6(1), Hyderabad.
3
Pr. CIT, Hyderabad.
4
DR, ITAT Hyderabad Benches
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Guard File
By Order