SHRI RAM PRASAD SOCIAL FOUNDATION,BHIND vs. TIO WARD-2(1), GWALIOR

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ITA 771/AGR/2018Status: DisposedITAT Agra13 February 2025AY 2014-15Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal noted that the assessee had collected Forms-15G from recipients. Citing the case of Karwat Steel Traders vs ITO, the Tribunal held that TDS liability cannot be fastened on the deductor if Forms-15G are collected.

What were the facts?

The assessee filed an appeal against the CIT(A)'s order, which confirmed proceedings under section 143(3) of the Income-tax Act, 1961. The lower authorities invoked section 40(a)(ia) for disallowance due to non-compliance with TDS provisions.

What were the issues?

Whether disallowance under section 40(a)(ia) is justified when the assessee has collected Forms-15G from recipients.

Which sections of the Income-tax Act were involved?

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

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Income Tax Appellate Tribunal, AGRA BENCH, AGRA

Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL

Hearing: 13.02.2025Pronounced: 13.02.2025

ORDER

Per Satbeer Singh Godara, Judicial Member:

1.

This assessee’s appeal for assessment year 2014-15, arises against the Commissioner of Income Tax (Appeals) [in short the “CIT(A)], Gwalior’s order in appeal no. CIT(A),Gwlior/10329/2016-17 dated 05.10.2018, involving proceedings under section 143(3) of the Income- tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

Heard both the parties at length. Case file perused.

3.

We note at the outset that both the learned lower authorities have invoked section 40(a)(ia) disallowance in the assessee’s hands on the ground that it had not complied with the TDS deduction provisions whilst making specific payments to the recipients concerned.

4.

It is in this factual backdrop that our attention is invited to para 3 of the assessment order that the assessee had stated all along to have collected the relevant Forms-15G from its recipients. That being the case, we quote Karwat Steel Traders vs ITO, (2013)145 ITD 370 (Mum) that no such TDS liability could be fastened at deductor’s hands once it collects prescribed Forms-15G from the recipients. We accordingly delete the disallowance herein.

5.

This assessee’s appeal is allowed. Order pronounced in the open court on 13THFebruary, 2025.

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