S ANAND L/H OF LATE V SAMPATH,CHENNAI vs. ACIT NON CORPORATE CIRCLE 2 , CHENNAI

आदेश/ O R D E R

PER S. JAYARAMAN, ACCOUNTANT MEMBER:

The assessee filed this appeal against the order of the Commissioner of

Income Tax (Appeals)-2, Chennai in ITA No. 90/16-17/AY 2010-11/CIT(A)-2,

dated 27.02.2018 for assessment year 2010-11.

:- 2 -: ITA No. 1231/Chny/2018 2. While making the assessment for assessment year 2010-11, in the case

of late Shri Vasudevan Sampath, represented by legal heir Shri S. Anand, the

Assessing Officer, inter alia, disallowed Rs. 77,65,747/- paid to M/s. Anand and

Venkatesh, a partnership firm, without deducting tax at source u/s. 40a(ia).

Aggrieved against that order, the assessee filed an appeal before the Ld.

CIT(A) pleading, inter alia, that the payments made to M/s. Anand and

Venkatesh was accounted and offered by them and they have paid the taxes

due thereon. However, the Ld. CIT(A) dismissed the appeal. Against which

the assessee filed this appeal.

the hearing notice was served on assessee on 29.06.2018 and the

acknowledgment was placed on the record.

Anand and Venkatesh, towards which a confirmation letter was also filed

before the Ld. CIT(A) have not been considered duly, in accordance with

second proviso to section 40a(ia) and hence, we set aside the order of the

Ld. CIT(A) on this issue alone and remit this issue back to the Assessing

Officer for a fresh examination. The assessee shall place all the materials in

its support before the AO and comply to the AO’s requirements as per law.

The A O is also free to conduct appropriate enquiry as deemed fit, but he

shall furnish adequate opportunity to the assessee on the material etc to be

:- 3 -: ITA No. 1231/Chny/2018 used against it and decide the matter in accordance with law. Subject to

this findings, the assessee’s appeal is treated as allowed.

In the result, the assessee’s appeal is treated as allowed. 5.

Order pronounced on Tuesday, the 25th day of September, 2018 at Chennai.

Sd/- Sd/- (एन.आर.एस .गणेशन) (एसजयरामन) (N.R.S. GANESAN) (S. JAYARAMAN) �या�यकसद�य/Judicial Member लेखासद�य/Accountant Member

चे�नई/Chennai, )दनांक/Dated: 25th September , 2018 JPV आदेशक$*�त+ल,पअ-े,षत/Copy to: 1. अपीलाथ//Appellant 2. *0यथ//Respondent 3. आयकरआयु1त ) अपील(/CIT(A) 6. गाड4फाईल/GF 4. आयकरआयु1त/CIT 5. ,वभागीय*�त�न�ध/DR