Loading judgment…
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.
Held
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.
Key Issues
Whether disallowance under section 40(a)(ia) is justified when the assessee has collected Forms-15G from recipients.
Sections Cited
40(a)(ia), 143(3), Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SATBEER SINGH GODARA & SHRI MANOJ KUMAR AGGARWAL
ORDER
Per Satbeer Singh Godara, Judicial Member:
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’).
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.
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.
This assessee’s appeal is allowed. Order pronounced in the open court on 13THFebruary, 2025.
Sd/- Sd/- (MANOJ KUMAR AGGARWAL) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 13THFebruary, 2025. *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
2 | P a g e