Karwat Steel Traders v. ITO

145 ITD 370Income Tax Appellate Tribunal2013#8590 most cited

What is Karwat Steel Traders v. ITO authority for?

Disallowance under section 40(a)(ia) for non-deduction of TDS on rent or interest payments is deleted if the recipient has furnished Form 15G, as this indicates no tax was deductible at source or tax was not required to be deducted.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,005 Indian tax judgments — from 2015 to 2025.

Also referred to as

Karwat Steel Traders v. ITO · 145 ITD 370 · section 40(a)(ia) · section 194A · section 197A · Form 15G · non-deduction of TDS · rent payment · interest payment · disallowance of expenditure

Also reported as

37 Taxmann.com 190

Sections most often in play

Section 40(a)(ia)Section 142(1)Section 143(2)Section 143(3)Section 194ASection 1961Section 197Section 201(1)

Issues it is cited on

section 40(a)section 40(a)(ia)section 40prescribed

Judgments citing Karwat Steel Traders v. ITO

Shri Ram Prasad Social Foundation, Bhind vs. Tio Ward-2(1), Gwalior

Appeal is allowed

ITA 771/AGR/2018[2014-15]Status: DisposedITAT Agra13 Feb 2025AY 2014-15

Bench: : Shri Satbeer Singh Godara & Shri Manoj Kumar Aggarwalassessment Year: 2014-15

Section 143(3)Section 40

…t 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. 5. This assessee’s appeal is allowed. Order pronounced in the open court on 13THFebruary, 2025. (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER Dated: 13THFebruary, 2025. *aks/-…

Kudale Agro Foods, Pune vs. Income Tax Officer, Circle-14, Pune

In the result, the appeal of the assessee is treated as allowed for statistical purposes

ITA 1619/PUN/2024[2017-18]Status: DisposedITAT Pune07 Feb 2025AY 2017-18

Bench: Shri R.K. Panda & Ms. Astha Chandra

For Appellant: Shri Pramod S. ShingteFor Respondent: Shri Ramnath P. Murkunde
Section 143(2)Section 143(3)Section 197Section 201(1)Section 40

…al in the case of Jai Mata Di Vs. ITO in ITA No. 508/CTK/2017 for AY 2014-15, dated 23.04.2018 wherein under the similar set of facts the Tribunal in turn relying on the decision of the Mumbai Bench of the Tribunal in the case of Karwat Steel Traders Vs. ITO, 145 ITD 370 (Mum) deleted the addition made by the Ld. AO on account of disallowance made u/s 40(a)(ia) of the Act on account of non- deduction of TDS on rent payment made to the payee. 5.1 As regards the interest payment to the fourth party i.e. M/s Religare Finvest Ltd., the Ld. AR admitted that the assessee failed to produce the necessary supporting docu…

Deputy Commissioner of Income Tax, Chandigarh vs. Essix Biosciences Limited, Chandigarh

In the result, the appeal filed by the Department is

ITA 534/CHANDI/2023[2014-15]Status: DisposedITAT Chandigarh12 Apr 2024AY 2014-15

Bench: SHRI A.D.JAIN (Vice President), SHRI VIKRAM SINGH YADAV (Accountant Member)

For Appellant: Shri Ved Jain, Advocate &For Respondent: Shri Rohit Sharma, CIT-DR
Section 14ASection 201Section 40

…with penalty as provided under the Income Tax Act, but no disallowance of the expenditure can be made u/s 40(a)(ia) of the Act. For holding so, the Bench followed the decision of the Mumbai Bench of the Tribunal in the case of “Karwat Steel Traders Vs ITO”, 145 ITD 370 (Mum)., wherein, it was held that the amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter VII-B and such tax has not been deducted or, after deduction, has not been paid; that the assessee was to deduct tax under the ITA 534/CHD/2023 & C.O. 08/CHD/2024 A.Y.2014-15 12 provisions of Section 194A;…

Shri. Khadari Syyeadhusenpeera Syyeadkhajaamin, Bagalkot vs. Assistant Director of Income Tax, Central Processing Centre, Bengaluru

In the result, both appeals of the assessee are allowed

ITA 1172/BANG/2022[2019-2020]Status: DisposedITAT Bangalore23 Jan 2023AY 2019-2020

Bench: Shri Chandra Poojariassessment Year: 2019-20

For Appellant: Shri Siddesh Nagaraj Gaddi, A.RFor Respondent: Shri Ganesh R. Gale, Standing Counsel for Department
Section 143(1)Section 201Section 250Section 40

…e in favour of the assessee which reads as under:- “7. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. We find that the Mumbai Bench Á' of the Tribunal in the case of Karwat Steel Traders vs ITO, 145 ITD 370 (Mum) has held as under: "The amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid. In this case, the assessee was to deduct tax under provisions of section 194A. Section 194A is further qualified by the provisions of…

Sanjay Kumar Agrawal, Rourkela vs. ITO, Ward-2, Rourkela

In the result, both appeals of the assessee are allowed partly

ITA 16/CTK/2020[2013-14]Status: DisposedITAT Cuttack24 Jun 2020AY 2013-14
For Appellant: Shri Shri B.Panda, Sr. AdvocateFor Respondent: Shri Ashim Ku. Chakraborty, DR
Section 143(1)Section 201Section 40

…in favour of the assessee which reads as under :- “7. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. We find that the Mumbai Bench Á' of the Tribunal in the case of Karwat Steel Traders vs ITO, 145 ITD 370 (Mum) has held as under: "The amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid. In this case, the assessee was to deduct tax under provisions of section 194A. Section 194A is further qualified by the provisions of…

Sanjay Kumar Agrawal, Rourkela vs. ITO, Ward-2, Rourkela

In the result, both appeals of the assessee are allowed partly

ITA 15/CTK/2020[2012-13]Status: DisposedITAT Cuttack24 Jun 2020AY 2012-13
For Appellant: Shri Shri B.Panda, Sr. AdvocateFor Respondent: Shri Ashim Ku. Chakraborty, DR
Section 143(1)Section 201Section 40

…in favour of the assessee which reads as under :- “7. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. We find that the Mumbai Bench Á' of the Tribunal in the case of Karwat Steel Traders vs ITO, 145 ITD 370 (Mum) has held as under: "The amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid. In this case, the assessee was to deduct tax under provisions of section 194A. Section 194A is further qualified by the provisions of…

M/S. Rajasthan State Mines & Minerals Ltd., Udaipur vs. ACIT, Circle-TDS, Udaipur

In the result, appeals of the assessee are allowed

ITA 343/JODH/2019[2013-14]Status: DisposedITAT Jodhpur26 Nov 2019AY 2013-14

Bench: Shri N.K. Saini & Shri Sandeep Gosain

For Appellant: Shri P.C. ParwalFor Respondent: Shri Girish Mehta JCIT DR
Section 206Section 206CSection 206C(7)Section 2O

…IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, JODHPUR BEFORE SHRI N.K. SAINI, VICE PRESIDENT AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER ITA No. 343 & 344/Jodh/2019 Assessment Year: 2013-14 & 2014-15 M/s Rajasthan State Mines & Vs. The ACIT Minerals Ltd., 4, Meera Marg Circle, TDS Udaipur Udaipur PAN No. AAACR7857H (Appellant) (Respondent) Assessee by : Shri P.C. Parwal Department by: Shri Girish Mehta JCIT DR Date of hearing : 26/11/2019 Date of Pronouncement : 26/11/2019 O R D E R PER N.K.SAINI,VICE PRESIDENT : These two appeals by the Assessee are directed against the separate orders each dated 25…

Dillip Kumar Nayak, Bhubaneswar vs. JCIT, Range-2, Bhubaneswar

In the result, the appeal of the assessee is partly allowed

ITA 330/CTK/2017[2011-12]Status: DisposedITAT Cuttack31 Jul 2019AY 2011-12

Bench: Shri Chandra Mohan Garg, Jm & Shri L.P. Sahu, Am आयकर अऩीऱ सं./Ita No.330 & 339/Ctk/2017 (नििाारण वषा / Assessment Year :2011-2012 & 2012-2013) Shri Dilip Kumar Nayak, Vs. Jcit, Range-2, Bhubaneswar Plot No.270/A, Saheed Nagar, Bhubaneswar, Dist: Khurda, Odisha-751016 स्थायी ऱेखा सं./ Pan No. : Aahpn 0352 M (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee By : Shri P.K.Mishra, Advocate राजस्व की ओर से /Revenue By : Shri Subhendu Dutta, Dr

For Appellant: Shri P.K.Mishra, AdvocateFor Respondent: Shri Subhendu Dutta, DR
Section 40

…in favour of the assessee which reads as under :- “7. We have heard the rival submissions, perused the orders of lower authorities and materials available on record. We find that the Mumbai Bench Á' of the Tribunal in the case of Karwat Steel Traders vs ITO, 145 ITD 370 (Mum) has held as under: "The amount cannot be allowed as deduction only in the event when tax is deductible at source under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid. In this case, the assessee was to deduct tax under provisions of section 194A. Section 194A is further qualified by the provisions of…

M/S Danish Pvt. Ltd., Jaipur vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur

In the result, appeal of the assessee is allowed for statistical purposes

ITA 623/JPR/2018[2014-15]Status: DisposedITAT Jaipur10 Jul 2019AY 2014-15
For Appellant: Shri Rohan Sogani (CA) &For Respondent: Shri K.C. Meena (Addl. CIT )
Section 139Section 194CSection 40

…5G from the recipients and produced before the AO, then no disallowance is called for under section 40(a)(ia) of the Act. In support of his contention, he has relied upon the decision of Mumbai Benches of the Tribunal in case of Karwat Steel Traders vs. ITO, 145 ITD 370 and submitted that the Tribunal 6 M/s. Danish Pvt. Ltd., Jaipur. has held that for the purpose of deducting the tax at source under section 194A, if the assessee has obtained the Form No. 15G/15H, then as per the provisions of section 197A(1A), no disallowance is called for under section 40(a)(ia). The default for not furnishing of declaration…

I.T.O., Ward-35(3), Kolkata vs. Shri Kamal Kishore Toshniwal, Kolkata

In the result, the appeal filed by the Revenue (in Ground no

ITA 1841/KOL/2016[2012-13]Status: DisposedITAT Kolkata29 Nov 2017AY 2012-13
For Appellant: Shri V. N. Purohit, FCAFor Respondent: Shri Sallong Yaden,ACIT
Section 143(1)Section 143(2)Section 143(3)Section 36(1)(iii)Section 40

…appeared that there was no need for the assessee to deduct taxes at source from the cases, and therefore it cannot be said that there was any default on the part of the assessee. The ld CIT(A) also relied on the case of M/s Karwat Steel Traders Vs ITO (2013) 145 ITD 370/37 taxmann.com 190, wherein it was held that in a similar situation that non-filing or delayed filing of the forms cannot result in the disallowance u/s 40(a)(ia) of the Act. Therefore, the ld. CIT(A) deleted the addition Rs.11,97,624/-. 4.3.Not being satisfied with the order of the ld. CIT(A), the Revenue is in appeal before us. The ld. DR for t…

DCIT (TDS), Gurgaon vs. The Sonipat Central Co-Op Bank Ltd., Sonepat

In the result, the appeal filed by the Revenue stands dismissed

ITA 706/DEL/2015[2011-12 (F.Y. 2010-11)]Status: DisposedITAT Delhi02 Aug 2016

Bench: Shri H.S. Sidhua.Y. : 2011-12

For Appellant: Sh. Gautam Jain, CAFor Respondent: Sh. A Srinivasa Rao, Sr. DR
Section 1Section 133ASection 194ASection 197ASection 201(1)Section 206A

…ry, Ld. Authorised Representative of the Assessee relied upon the order of the Ld. CIT(A) and stated that the issue in dispute is squarely covered by the following cases and requested that by following the same, the Appeal of the Revenue may be dismissed. - 145 ITD 370 (Mum) Karwat Steel Traders vs. ITO - 46 SOT 71 (Mum) Vipin P. Mehta vs. ITO - 66 SOT (Del) Vijaya Bank vs. ITO - 152 ITD 497 (Bang.) Capital Pharma vs. ITO - 157 ITD 512 (Chennai) Narasu’s Spinning Mills vs. ACIT - CIT vs. State Bank of Patiala reported in 277 ITR 315 (P&HC). 7. I have heard both the parties and perused the records availa…

Shri. Parasmal Dhanraj, Bangalore vs. ITO, Bangalore

In the result, the appeal is allowed for statistical purposes

ITA 357/BANG/2014[2008-09]Status: DisposedITAT Bangalore14 Jan 2016AY 2008-09

Bench: Smt. Asha Vijayaraghavanassessment Year : 2008-09

For Appellant: Shri K. Kiran Kumar, AdvocateFor Respondent: Dr. P.K. Srihari, Addl. CIT(DR)
Section 143(1)Section 143(3)Section 194ASection 40

…IN THE INCOME TAX APPELLATE TRIBUNAL SMC “A” BENCH : BANGALORE BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER Assessment year : 2008-09 Shri Parasmal Dhanraj, Vs. The Income Tax Officer, Prop. Aluminium Alloys & Allied, Ward 1(4), No.20, N.R. Road, Bangalore. Bangalore – 560 002. PAN: ACAPD 2130N APPELLANT RESPONDENT Appellant by : Shri K. Kiran Kumar, Advocate Respondent by : Dr. P.K. Srihari, Addl. CIT(DR) Date of hearing : 22.12.2015 Date of Pronouncement : 14.01.2016 O R D E R This appeal by the assessee is directed against the order dated 09.12.2013 of the CIT(Appeals)-I, Bangalore for the assessmen…

Narasu'S Spinning Mills, Salem vs. ACIT, Salem

In the result, the appeal of the assessee is partly allowed

ITA 957/CHNY/2015[2011-12]Status: DisposedITAT Chennai09 Dec 2015AY 2011-12

Bench: Shri N.R.S. Ganesan & Shri A. Mohan Alankamonyआयकर अपील सं./Ita No.957/Mds/2015 "नधा"रण वष" / Assessment Year : 2011-12 M/S Narasu’S Spinning Mills, The Assistant Commissioner Of 9-E, Gandhi Road, V. Income Tax, Salem – 636 007. Circle –I(2), 3, Gandhi Road, Salem-636 007. Pan : Aabfn 5747 L (अपीलाथ"/Appellant) (""यथ"/Respondent)

For Appellant: Shri G. Baskar, AdvocateFor Respondent: Sh. P. Radhakrishnan, JCIT
Section 194ASection 40

…there cannot be any disallowance. The Ld.counsel placed his reliance on the decision of the Jodhpur Bench of this Tribunal in ITO v. Pearl Organic Coatings (2004) 4 SOT 755, the decision of Mumbai Bench of this Tribunal in Karwat Steel Traders v. ITO (2013) 145 ITD 370 and Delhi Bench of this Tribunal in Vijaya Bank v. ITO (2014) 31 ITR(Trib) 427. 3 I.T.A. No.957/Mds/15 3. On the contrary, Sh. P. Radhakrishnan,the Ld. Departmental Representative, submitted that the assessee at the time of crediting the interest income has to deduct tax as required under Section 194A of the Act. In this case, admittedly, the…

Karwat Steel Traders v. ITO (145 ITD 370) — Cited in 13 Judgments | BharatTax