SONAM JAIN,DELHI vs. ITO WARD 58(1), DELHI

ITA 7323/DEL/2025Status: DisposedITAT Delhi23 December 2025AY 2020-21Bench: Sh. Satbeer Singh Godara (Judicial Member)2 pages
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What did the Tribunal hold?

The Tribunal held that the disallowance under Section 40(a)(ia) should only be applied to the actual commission fee of Rs.7,90,536/-, excluding other charges like collection, fixed, listing, and shipping fees. The Assessing Officer was directed to re-compute the disallowance based solely on the commission fee.

What were the facts?

The assessee appealed against the CIT(A)/NFAC's order which partly restricted an assessment disallowance of Rs.10,30,996/- under Section 40(a)(ia) of the Income Tax Act for failure to deduct TDS on commission paid to e-marketing companies. The Revenue contended the disallowance was correctly invoked.

What were the issues?

Whether disallowance under Section 40(a)(ia) for non-deduction of TDS should apply only to the actual commission fees paid to e-marketing companies, or also include other related charges.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘SMC’, NEW DELHI

Before: Sh. Satbeer Singh Godara

For Appellant: Adv. &
Hearing: 23.12.2025Pronounced: 23.12.2025

This assessee’s appeal for Assessment Year 2020-21 arises against the CIT(A)/NFAC, Delhi’s DIN & order No. ITBA/NFAC/S/250/2025-26/1081007249(1) dated 22.09.2025, in proceedings u/s 143(3) of the Income Tax Act, 1961 (in short “the Act”).

2.

Heard both the parties at length. Case file perused.

3.

It emerges at the outset during the course of hearing that the assessee/appellant challenges the learned CIT(A)/NFAC’s action partly restricting assessment findings invoking section 40(a)(ia) disallowance of Rs.34,36,654/- @30% thereof; coming to Rs.10,30,996/-, in the lower appellate discussion.

2 Sonam Jain

4.

That being

The order continues below.

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