MR. SHEKHAR DADARKAR PROP. M/S. S.D CONSTRUCTION ,MUMBAI vs. ASSTT. COMMISSIONER OF INCOME TAX 31(1), MUMBAI

ITA 3341/MUM/2024Status: DisposedITAT Mumbai24 October 2024AY 2009-10Bench: SMT. BEENA PILLAI (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the second proviso to Section 40(a)(ia) allows for deduction if the payees have disclosed the income and paid taxes. The assessee submitted a certificate in Form 26A, but the AO required further evidence like ITRs and audit reports. The Tribunal found that while the assessee discharged the primary onus by submitting Form 26A, the AO has the power to examine the veracity of these forms and seek information from the payees. Therefore, the matter was restored to the AO for further inquiry.

What were the facts?

The assessee, Mr. Shekhar Dadarkar (Proprietor of M/s. S.D. Construction), appealed against disallowance of interest payments made to Non-Banking Financial Companies (NBFCs) and an exempt trust. The Assessing Officer (AO) disallowed the payments under Section 40(a)(ia) of the Income Tax Act for failure to deduct TDS. The Commissioner of Income Tax (Appeals) confirmed the disallowance.

What were the issues?

Whether the disallowance of interest payments under Section 40(a)(ia) for non-deduction of TDS is justified when the payee has disclosed the income and paid taxes, and what evidence is required to prove such disclosure and payment.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 143(3),Section 254,Section 201(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SMT. BEENA PILLAI & SHRI PRABHASH SHANKAR

For Appellant: Shri Ashish A. Thakurdesai & Sunil Desai,CAs
For Respondent: Shri B.P. Ramesh,Sr.DR
Hearing: 23.10.2024Pronounced: 24.10.2024

Per Bench All the above titled appeals filed by the assessee, emanate from the appellate orders passed by the Ld. Commissioner Of Income Tax (Appeals)/NFAC,Delhi dated 27.04.2024 with regard to the assessment order passed under

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 40(a)(ia)

All 7,300 judgments and leading authorities on Section 40(a)(ia) →

Recent GST High Court judgments

Search GST case law →