ASIA PACIFIC INTERNATIONAL,TIRUPUR vs. DCIT CIRCLE 1, TIRUPUR

This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals) -3, Coimbatore, dated 23.05.2016 and pertains to assessment year 2012-13.

There was a delay of 471 days in filing the appeal before this Tribunal. The assessee has filed a petition for condonation of delay.

Now coming to the merit of the appeal, the only issue arises for consideration is disallowance made by the Assessing Officer under Section 40(a)(ia) of the Income-tax Act, 1961 (in short 'the Act').

Shri V.S. Jayakumar, the Ld.counsel for the assessee, submitted that the recipient has already paid tax. Therefore, according to the Ld. counsel, in view of proviso to Section 40(a)(ia) of the Act, there cannot be any disallowance.

We heard Shri AR.V. Sreenivasan, the Ld. Departmental Representative also. The fact whether the recipient has paid the tax has to be verified and ascertained by the Assessing Officer. Therefore, this Tribunal is of the considered opinion that the Assessing Officer shall re-examine the matter in the light of the material that may be filed by the assessee. Accordingly, orders of both the authorities below are set aside and the issue of disallowance made by the Assessing Officer under Section 40(a)(ia) of the Act is remitted back to the file of the Assessing Officer. The Assessing Officer shall re-examine the matter and find out whether the recipient has paid the tax on the amount received from the assessee and thereafter decide the issue afresh in accordance with law, after giving a reasonable opportunity to the assessee.

In the result, the appeal filed by the assessee is allowed for statistical purposes.