ALKAM LICENCE PRODUCTS PRIVATE LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX-15(1)(1), MUMBAI

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ITA 6087/MUM/2017Status: DisposedITAT Mumbai23 March 2018AY 2013-144 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee's documentary evidence might not have been properly appreciated by the lower authorities. Therefore, the matter was restored to the AO for re-adjudication to allow the assessee an opportunity to substantiate their case.

What were the facts?

The assessee made payments for additional trade support and window display charges without deducting TDS. The AO disallowed these expenses under Section 40(a)(ia), and the CIT(A) confirmed the addition. The assessee contended that their explanations and evidence were not properly considered by the lower authorities.

What were the issues?

Whether the payments made for additional trade support and window display charges were subject to TDS under Section 194C and if the disallowance under Section 40(a)(ia) was justified. Whether the assessee was provided with adequate opportunity to present their case.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 194C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI

Before: SHRI C.N. PRASAD, JM & SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: DR Assessee by :

आदेश /O R D E R

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2013-14 contest the order of the Ld. Commissioner of Income-Tax (Appeals)-24 [CIT(A)], Mumbai, Appeal No.CIT(A)-24/DCIT-15(1)(1)/IT-123/2016-17 Alkam Licence Products Pvt.Ltd Assessment Year: 2013-14 dated 28/06/2017 qua confirmation of certain additions u/s 40(a)(ia) for Rs.58,22,011/- paid by the assessee as additional trade support and window display charges. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax -15(1)(1), Mumbai [AO] u/s 143(3) of the Income Tax Act,1961 on 29/02/2016 where the income of the assessee has been determined at Rs.6.67 Lacs as against returned loss of Rs.51.54 Lacs e-filed by the assessee on 29/09/2013. The assessee has suffered disallowance of Rs.58.22 Lacs u/s 40(a)(ia) and the same is the sole subject matter of this appeal.

2.

During assessment proceedings, it was noted that the assessee made contractual payments termed as additional trade support and window display charges aggregating to Rs.58.22 Lacs without deduction of tax at source [TDS] u/s 194C which resulted into impugned additions. The same, upon confirmation by first appellate authority, is being contested before us.

3.

The Ld. Authorized Representative for assessee [AR], drawing our attention to the documents placed in the paper book contended that various details and explanations furnished by the assessee during quantum proceedings as well as during appellate proceedings have not been considered by the lower authorities and the assessee has not been provided with adequate opportunity of being heard. In view of the stated facts, Ld. AR pleaded for another opportunity to substantiate his case before lower authorities. Per Contra, Ld. Departmental Representative [DR] opposed the same and justified the action of the Lower Authorities.

1.

Alkam Licence Products Pvt.Ltd Assessment Year: 2013-14 4. We have carefully heard the rival contentions and perused the relevant material on record including documents placed in the paper book. Prima facie, it appears that the assessee has filed some documentary evidences to explain the nature of the transactions during quantum proceedings as well as during appellate proceedings, which has not been properly appreciated by the lower authorities, which is evident from their respective orders. Therefore, without delving much deeper into the issue and keeping in view the principle of natural justice, we deem it fit to restore the matter back to the file of Ld. AO for re-adjudication with a direction to the assessee to substantiate to his case failing which Ld. AO shall be at liberty to decide the same as per law on the basis of material available on record.

5.

Resultantly, the assessee’s appeal stands allowed for statistical purposes. Order pronounced in the open court on 23rd March , 2018.

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