M/S B.HIMMATLAL AGRAWAL ,NAGPUR vs. INCOME TAX OFFICER 4(4), NAGPUR

This is an appeal filed by the assessee directed against the order of ld. Commissioner of Income Tax (Appeals)-1, Nagpur [‘the CIT(A)’] dated 20.06.2019 for the assessment year 2014-15.

Briefly, the facts of the case are that the appellant is a partnership firm engaged in the business of transport contractor, civil and supply of labour. The Return of Income for the assessment year 2014-15 was filed on 29.11.2014 declaring total income of Rs.Nil. Against the said return of income, the assessment was completed by the Income Tax Officer, Ward-4(4), Nagpur (‘the Assessing Officer’) vide order dated 29.12.2016 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at a total income of Rs.1,22,14,639/-. While doing so, the Assessing Officer disallowed interest of Rs.1,21,29,696/- u/s 40(a)(ia) of the Act on the ground that the appellant had failed to deduct tax at source on the interest paid to the following parties :- Sr. No. Name Amount 01 Shriram Equipment Finance Company 1390928 Limited 02 Mahindra & Mahindra Finance Limited 4548361.36 03 Tata Motors Limited 5372440.69 04 India Bulls Housing Finance Limited (short 5641 interest shown) 05 Tata Capital Finance Limited (short 40020 interest shown) 06 SREI Equipment Finance Limited (short 772304.76 interest shown) 1,21,29,695.81 3. Being aggrieved by the above disallowances, an appeal was filed before the ld. CIT(A), who vide impugned order held that the in respect of the parties i.e. Tata Motors Limited and Shriram Equipment Finance Company Limited, the appellant had filed Form 26AS received from the said parties, therefore, directed the Assessing Officer to allow the same and addition in respect of balance parties was confirmed by the ld. CIT(A). 4. Being aggrieved, the appellant is in appeal before us in the present appeal.