MUKESH BABULAL SHAH,MUMBAI vs. ITO WD 17(2)(4), MUMBAI
What did the Tribunal hold?
The Tribunal noted that the assessee had submitted crucial evidence before the CIT(A) which was not considered. Therefore, the matter was remitted back to the Assessing Officer for fresh consideration.
What were the facts?
The assessee appealed against the CIT(A)'s order confirming disallowances and additions. The assessee had submitted PAN of transporters and confirmations of loans before the CIT(A), which were allegedly overlooked.
What were the issues?
Whether disallowances and additions were justified when the assessee provided supporting evidence to the CIT(A) that was not considered.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCHES “SMC”, MUMBAI
Before: Shri Shamim Yahya
O R D E R This appeal by the assessee is directed against order of learned CIT(A) dated 01.12.2016 and pertains to assessment year 2012-2013.
Grounds of appeal
read as under:- “1. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) has erred in confirming the disallowance u/s 40 (a) (ia) of Rs. 3,26,205/- being payment made to two transporter operators without deduction of IDS u/s 194C, whereas both the transporter operators are holding PAN and hence TDS is not deductible.
2. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) has erred in confirming the disallowance of Rs. 22,813/- out of interest expenses by calculating notional interest on two interest free advances.
. Shri Mukesh Babulal Shah. 3. On the facts and circumstances of the case and in law, the learned Commissioner of Income Tax (Appeals) has erred in confirming addition u/s 68 for Rs. 23,00,000/- being loans and advances received from 8 parties. Your appellant craves to consider each of the above grounds of appeal without prejudice to each other and craves leave to add, to alter, to amend or to furnish fresh and / or detailed grounds of appeal.”
3. In this case I note that assessee has duly submitted Permanent Account Number of two transport operators before the learned CIT(A). The assessee has also submitted confirmation of loans from 8 (eight) parties before the learned CIT(A). It was in the absence of above evidences which has led to the addition in this case. The assessee had not submitted the details before the Assessing Officer. However, the details were submitted before the learned CIT(A). The learned CIT(A) has erroneously observed that no such details has been submitted before him by the assessee. However, the statement of facts submitted before the learned CIT(A) support the contention of the assessee that the said details were submitted and the learned CIT(A) failed to note the same. In these circumstances, both the Counsel fairly agreed that the issue raised in this appeal needs to be remitted to the file of the Assessing Officer. Accordingly, I remit the issue raised to the file of the A.O. The Assessing Officer shall consider the issue afresh after considering the new evidences submitted by the assessee before the learned CIT(A). Needless to add, the assessee should be granted adequate opportunity of being heard.
In the result, this appeal filed by the assessee stands allowed for statistical purposes.
More judgments on Section 40(a)(ia)
- Rekha Agarwal, Jaipur vs ITO WD 4(1), JaipurITA 844/JPR/2025[2021-22]Status: Disposed21 Oct 2026AY 2021-22
- Cdg Petchem Limited, Hyderabad vs ITO, Ward - 1(1), HyderabadITA 1900/HYD/2025[2018-2019]Status: Disposed16 Oct 2026AY 2018-2019
- M/S. Shree Laminators Ltd., Kolkata vs DCIT, Circle 4(4), KolkataITA 1534/KOL/2026[2011-2012]Status: Disposed15 Oct 2026AY 2011-2012
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1493/KOL/2026[2015-2016]Status: Disposed15 Oct 2026AY 2015-2016
- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
Recent GST High Court judgments
Search GST case law →- Ritu Gautam Proprietor Of Ms Heritage International vs. Additional Commissioner Central Goods And Services Tax Appeals Ii Delhi & Anr.Delhi · 27 Oct 2026
- Sutha vs. The State Tax Officer(Inspection-3)Madras · 27 Oct 2026
- M/S.Sri Satya Sai Constructions vs. The State Of Andhra PradeshAndhra Pradesh · 27 Oct 2026
- Anisha Busa vs. Sibar Institute Of Dental SciencesAndhra Pradesh · 27 Oct 2026
- M/S.Sri Satya Sai Constructions vs. The State Of Andhra PradeshAndhra Pradesh · 27 Oct 2026