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Income Tax Appellate Tribunal, RAIPUR BENCH, RAIPUR
Before: SHRI RAVISH SOOD & SHRI RATHOD KAMLESH JAYANTBHAI
आदेश / ORDER PER RAVISH SOOD, JM: The present appeal filed by the assessee firm is directed against the order passed by the CIT(Appeals), Bilaspur (C.G.) dated 21.05.2018, which in turn arises from the order passed by the A.O under Sec. 143(3) of the Income Tax Act, 1961 (for short ‘the Act’), dated 25.03.2015 for assessment year 2012-13. Before us the assessee has assailed the impugned order on the following grounds of appeal:
“1. That under the facts and the law, the learned Commissioner of Income Tax (Appeals) erred in confirming the disallowance of Rs.7,46.025/- made by the learned Assessing Officer u/s.40(a)(ia) for non-deduction of tax at source on finance charges paid to NBFC namely M/s. Religare Finvest Limited by passing ex-parte order. Prayed to delete the disallowance of Rs.7,46,025/-“
On a perusal of the records, we find that as the assessee firm had failed to deduct tax at source u/s.194A of the Act on interest payment of Rs.7,46,025/-, therefore, the Assessing Officer had disallowed the said amount by triggering the provisions of section 40(a)(ia) of the Act, observing as under:
“6. Disallowance u/s.40(a)(ia) On going through P & L it is found that the assessee has debited interest payment amounting to Rs.16,58,501/- out of which 7,46,025/- was paid to Religare Finvest Ltd. a Non-Banking Finance Company and the payment was made in contravention of provision of section 40(a)(ia) of the Income Tax Act, 1961. On querying about this, the counsel of the assessee could not provide any satisfactory
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reply and hence the whole payment of Rs.7,46,025/- is disallowed and added back to the total income of the assessee.”
Aggrieved, the assessee carried the matter in appeal before the CIT(Appeals). However, not finding favour with the contentions advanced by the assessee the CIT(Appeals) upheld the addition of Rs.7,46,025/- made by the A.O.
The assessee being aggrieved with the order of the CIT(A) has carried the matter in appeal before us. As the assessee appellant despite having been intimated about the hearing of appeal had failed to put up an appearance before us, therefore, we are constrained to proceed with and dispose off the appeal as per Rule 24 of the Appellate Tribunal Rules, 1962 i.e, after hearing the respondent revenue and perusing the orders of the lower authorities.
We have heard the Ld. Departmental Representative (for short ‘DR’) and perused the orders of the lower authorities a/w. the material available on record. On a perusal of the orders of the lower authorities, it transpires that the assessee had failed to comply with the mandate of law and had failed to deduct tax at source u/s.194A of the Act on the aforesaid amount of interest payment of Rs.7,46,025/-. Accordingly, the A.O had disallowed the amount of Rs.7,46,025/- u/s.40(a)(ia) of the Act which was thereafter, upheld by the CIT(Appeals). As nothing has been placed on record which would evidence that the view arrived at by the lower authorities is either perverse or incorrect, therefore, we are of the
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considered view that as no infirmity emerge from the order passed by the CIT(Appeals) who had rightly upheld the disallowance made by the A.O u/s.40(a)(ia) of the Act, therefore, uphold the same.
In the result, appeal filed by the assessee is dismissed in terms of our aforesaid observations. Order pronounced in open court on 25th day of May, 2022.
Sd/- Sd/- RATHOD KAMLESH JAYANTBHAI RAVISH SOOD ACCOUNTANT MEMBER JUDICIAL MEMBER रायपुर/ RAIPUR ; �दनांक / Dated : 25th May, 2022 SB आदेश क� ��त�ल�प अ�े�षत / Copy of the Order forwarded to : 1. अपीलाथ� / The Appellant. 2. ��यथ� / The Respondent. 3. The CIT(Appeals) Bilaspur (C.G) 4. The Pr. CIT, Bilaspur (C.G) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण,रायपुर ब�च, रायपुर / DR, ITAT, Raipur Bench, Raipur. गाड� फ़ाइल / Guard File. 6. आदेशानुसार / BY ORDER, // True Copy // �नजी स�चव / Private Secretary आयकर अपील�य अ�धकरण, रायपुर / ITAT, Raipur.
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Date 1 Draft dictated on 25.05.2022 Sr.PS/PS 2 Draft placed before author 25.05.2022 Sr.PS/PS 3 Draft proposed and placed JM/AM before the second Member 4 Draft discussed/approved by AM/JM second Member 5 Approved draft comes to the Sr. Sr.PS/PS PS/PS 6 Kept for pronouncement on Sr.PS/PS 7 Date of uploading of order Sr.PS/PS 8 File sent to Bench Clerk Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order