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Income Tax Appellate Tribunal, DELHI BENCH “SMC” NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD
सुनवाईक�तारीख/ Date of hearing: 12.07.2023 27.07.2023 उ�ोषणाक�तारीख/Pronouncement on आदेश /O R D E R
This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)- National Faceless Appeal Centre(NFAC), Delhi dated 26.08.2022 for the AY 2018-19. Assessee raised the following grounds: - 1. “That the facts and in the circumstances of the case and in law, the Ld.CIT(A), New Delhi has erred in dismissing the appeal without giving sufficient opportunity and deciding the case before time given in notice of hearing.
2. That the facts and in the circumstances of the case and in law, the Ld.CIT(A), New Delhi has erred in confirming
I.T.A.No.2828/Del/2022 an addition of Rs.6,15,000/- on account of late deposit of TDS as there was no delay and without discussing the same in the order.
3. The addition/disallowance made are perverse, not based on evidence, opposed to evidence record, and are based on surmises and conjectures.
4. Assessee prays for leave to add, alter, amend or vary any of the grounds either before or at the time of hearing the appeal.”
Ld. Counsel for the assessee submits that the present appeal is filed for assailing order of the CIT(A) dated 26-08-2022 for AY 2018-19 passed u/s 250 of the Act.
2.1 While processing the return an intimation order was passed on 31-05-2019 wherein a sum of Rs. 6,15,000/- was disallowed on account of alleged belated payment of TDS. There is no belated payment of TDS which entails for disallowance as all the payments of TDS are made within the stipulated period for filing the return of income u/s 139(1) of the Act which in the present case is 30-09- 2018. The disallowance was made due to the filling of figures in the incorrect column of the return. The figures regarding payment of the income and TDS thereon were required to be submitted in column at Sr. no. 34a which is at page no. 13 of the paper book
I.T.A.No.2828/Del/2022 instead these were filled in column at Sr. no. 21 B at pg. no. 7 of the paper book. The disallowance has been upheld by the Id. CIT(A) without application of mind.
2.2 Ld. Counsel submits that the details of TDS and payment made thereon along with copies of return of TDS are all enclosed in the paper book and all the payments of TDS challans would reveal that none of the payment made by the assessee is beyond the period of due date of filing the return. The relevant challans are placed at: -
(i) Pg. 40 of the paper book which is of an amount of Rs. 6,502/- and the tender date of the same is 08-04- 2018, this TDS payment relates to payment of rent amount aggregating to Rs. 65,000/- and can be seen from page no. 8 of the paper book.
(ii) Pg. 59 and 60 of the paper book of Rs. 18,000/- and Rs. 4,000/- respectively and the tender dated is 06-01- 2018 and 17-04-2018 respectively as can be seen from pg. 8 of the paper book relating to salary.
2.3 Further, Ld. Counsel submits that all the payments are made to the residents, therefore, section 40(a)(ia) of the Act is applicable. However, due to figures being submitted in an incorrect column disallowance is made u/s 40(a)(i) of the Act which is I.T.A.No.2828/Del/2022 applicable to payment of royalty, etc. made to non-residents and cannot be applied to the case of the assessee.
On the other hand, the Ld. DR submits that the matter may be restored to the Assessing Officer for verification.
Heard rival submissions, perused the orders of the authorities below and the paper book filed before me. I find substantial force in the submissions of the Ld. Counsel for the assessee that while filling up the return the columns were wrongly filled up. It is the contention of the Ld. Counsel that all the TDS remittances were made before due date of filing of return of income and, therefore, there is no question of disallowance u/s 40(a)(ia) of the Act. The matter is hereby restored to the file of the Assessing Officer, who shall examine the evidences and contentions of the assessee and pass appropriate order after providing adequate opportunity of being heard to the assessee.
In the result, appeal of the Assessee is allowed for statistical purpose.
Order pronounced in the open court on 27/07/2023