BEWEALTHY PROPERTIES P.LTD,NEW DELHI vs. ACIT, CIRCLE-4(2), NEW DELHI

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ITA 3242/DEL/2018Status: DisposedITAT Delhi19 May 2023AY 2014-152 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the issue needed re-examination by the CIT(A). Therefore, the matter was remanded to the CIT(A) to adjudicate the issue afresh, including the TDS aspect, after providing an opportunity to the assessee.

What were the facts?

The assessee appealed against the CIT(A)'s order. The CIT(A) enhanced an addition under Section 36(1)(iii) and directed the AO to report late TDS payments. The assessee argued that the issue of disallowance was pressed before the CIT(A).

What were the issues?

Whether the CIT(A) erred in enhancing the addition without proper notice and in directing action for late TDS payments without affording the assessee an opportunity.

Which sections of the Income-tax Act were involved?

Section 36(1)(iii),Section 251

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHIBENCH ‘A’, NEW DELHI

Before: Dr. B. R. R. KumarSh. Yogesh Kumar US

Hearing: 23.02.2023Pronounced: 19.05.2023

Per Dr. B. R. R. Kumar, Accountant Member:

1.

The present appeal has been filed by the assessee against the order of ld. CIT(A)-2, New Delhi dated 05.01.2018.

2.

The operative grounds raised by the assessee are as under:

“3. That the CIT(A) has grossly erred in law and on facts in enhancing the addition made by an AO U/s 36(1)(iii) to the tune of Rs. 10,64,98,550/- without giving notice of enhancement U/s 251 of the Act. 4. That the CIT(A) has grossly erred in law and on facts making the direction to the assessing officer to report the late payment of TDS to the TDS wing of the Department for appropriate action as per provisions of the I.T. Act, 1961.”

3.

Heard the arguments of both the parties and perused the material available on record.

4.

We have gone through the para no. 10 of the ld. CIT(A) order wherein the ld. CIT(A) categorically mentioned that the issue of disallowance of interest made by the Assessing Officer u/s 36(1)(iii) has not been pressed and then the the ld. CIT(A) enhanced the disallowance from Rs.6,41,21,719/- to Rs.10,64,98,550/-. The ld. AR submitted that the issue has been pressed before the ld. CIT(A) as per the additional grounds taken before the ld. CIT(A). Since, the issue needs to be re-examined at the end of the revenue de novo, we hereby remand the matter to the file of the ld. CIT(A) to adjudicate the issue afresh including the issue of TDS after affording an opportunity to the assessee.

5.

In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 19/05/2023.

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