SH. SUDHIR VIG,NEW DELHI vs. ACIT, NEW DELHI
What did the Tribunal hold?
The Tribunal, following a precedent from a subsequent assessment year where similar additional evidence was admitted and the matter was restored to the AO, decided to remit the current case to the AO for a fresh decision.
What were the facts?
The assessee paid interest of Rs. 7,67,147/- to Tata Capital Ltd. without deducting tax at source. The Assessing Officer (AO) disallowed this amount under Section 40(a)(ia) of the Income Tax Act, which was upheld by the CIT(A).
What were the issues?
Whether the disallowance of interest paid without TDS is justified when similar issues in subsequent years were remitted to the AO for fresh consideration based on additional evidence.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCHES : SMC-I : NEW DELHI
Before: SHRI R.S. SYAL
ORDER This appeal filed by the assessee is directed against the order passed by the CIT(A) on 27.8.2014 in relation to the assessment year 2011-12.
The only issue raised in this appeal is against the sustenance of disallowance of Rs.7,67,147/- made by the AO u/s 40(a)(ia) of the Act.
Succinctly, the facts of the case are that the assessee paid interest amounting to Rs.7,67,147/- to Tata Capital Ltd., without deduction of tax at source. The AO made disallowance of this sum u/s 40(a)(ia), which came to be upheld in the first appeal.
At the outset, the ld. AR submitted that similar issue was raised in the assessee’s appeal for the immediately succeeding assessment year in which the assessee placed certain additional evidence in the form of certificate, that was admitted by the Tribunal as additional evidence and the matter restored to the file of AO for a fresh decision. A copy of this order dated 12.1.2016 has been placed on record. On the other hand, the ld. DR relied on the impugned order.
After considering the rival submissions and perusing the relevant material available on record, I find that the assessee has placed on record a similar certificate relevant for the year under consideration, which is an additional evidence. In the absence of any distinguishing features pointed out by the ld. DR in relation to the year under consideration vis- à-vis the immediately succeeding year, respectfully following the precedent, the matter is remitted to the file of the AO for a fresh decision in accordance with the directions given by the Tribunal in its order for the assessment year 2012-13.
In the result, the appeal is allowed for statistical purposes.
The order pronounced in the open court on 23.06.2016.
More judgments on Section 40(a)(ia)
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- J.D. Marketing, Kolkata vs ITO, Ward 37(1), KolkataITA 1492/KOL/2026[2013-2014]Status: Disposed15 Oct 2026AY 2013-2014
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