DHARRIT SHAH,PUNE V. ACIT CIR-6 PUNE, PUNE

ITA 2260/PUN/2024

AI Insights

The case involves Dharrit Shah, an individual engaged in the business of turnkey contracts for interior works and supplying building material, who appealed against the order of the National Faceless Appeal Centre, Delhi. The appeal was directed against the additions made to his income for the Assessment Year 2017-18, which included unsubstantiated agricultural income and non-deduction of TDS on interest paid on unsecured loans. The Tribunal found merit in the assessee's request for a factual verification of these issues by the jurisdictional Assessing Officer.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 474127 (ITAT-PUNE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VISHAL A. MAKAWANE
• Assessee Lawyers: RAJIV THAKKAR
• Keywords: TDS
• Section: 142(1)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “SMC”, PUNE BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER आयकर अपील सं. / ITA No.2260/PUN/2024 Assessment Year : 2017-18 Dharrit Shah, 155, Kamla Park Society, Bhawani Peth, Pune – 411 042 Maharashtra PaN : ADLPS5102M Vs. ACIT, Circle-6, Pune Appellant Respondent आदेश / ORDER PER DR. MANISH BORAD, ACCOUNTANT MEMBER : The captioned appeal at the instance of assessee is directed against the order dated 30.08.2024 framed by National Faceless Appeal Centre, Delhi passed u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) which inturn is arising out of the Assessment Order dated 24.12.2019 passed u/s.143(3) of the Act. 2. Facts of the case are that the assessee is an individual engaged in the business of Turnkey contracts for Interior works as a contractor and also supplying Building Material. Income of Rs.4,95,480/- declared in the return filed for the A.Y. 2017-18 on 07.11.2017. Return was processed u/s.143(1) of the Act. After the case selected for scrutiny and validly serving of notices u/s.143(2) and 142(1) of the Act, the assessee uploaded the requisite details viz., income-tax return, computation of income Appellant by : Shri Rajiv Thakkar Revenue by : Shri Vishal A. Makawane Date of hearing : 16.01.2025 Date of pronouncement : 20.03.2025 ITA No.2260/PUN/2024 Dharrit Shah 2 etc. Against the said return of income, the Assessing Officer completed the assessment u/s.143(3) of the Act by making the following additions aggregating to Rs.35,62,320/-, the details of which are as under : 1. Addition of Rs.11,979/- on account of interest on refund. 2. Addition of Rs.3,78,940/- on account of Agricultural income not supported by any evidences. 3. Addition of Rs.25,716/- u/s.36(1)(va) of the Act on account of failure to deposit the employees contribution to PF/ESI within the stipulated date. 4. Addition of Rs.15,21,766/- u/s.69C on account of non deduction of TDS on the interest paid on unsecured loans. 5. Addition of Rs.11,18,439/- u/s.41(1) on account of cessation of liability in the case of sundry creditor namely M/s. Flex Officer Manufacturer SDS BHD 3. Aggrieved assessee preferred appeal before the ld.CIT(A) who gave part relief to the assessee but sustained the action of the Assessing Officer in respect of two additions, namely Agricultural income and non deduction of TDS u/s.194A while paying interest on unsecured loans. 4. Being further aggrieved, the assessee is now in appeal before this Tribunal assailing the above two additions confirmed by the ld.CIT(A). 5. Before us, Ld. Counsel for the assessee submitted that the assessee has shown the agricultural income which is exempt and which was duly reflected in the return of income, however, details of land, 7/12 extract and bank statement etc. were not submitted during the assessment proceedings which led to confirmation of addition in respect of Agricultural income. In respect of unsecured loans, it is submitted that the assessee paid ITA No.2260/PUN/2024 Dharrit Shah 3 interest of Rs.15,21,766/- on the unsecured loans but it has not debited to the profit and loss account being personal expense. Given an opportunity, the assessee is in a position to explain the same by producing cogent evidences. Therefore, a prayer is made to send both the issues for factual verification to ld. Jurisdictional Assessing Officer to which the Ld. Departmental Representative did not object. 6. Having heard both the sides and perusing the record placed before us and the submissions made by the ld. counsel for the assessee during the course of present hearing, we are of the considered opinion that the end of justice would meet adequately if the issues are remitted back to the file of ld. Jurisdictional Assessing Officer for factual verification of the above two issues. The AO shall verify the said claims made by the assessee and decide in accordance with law after affording reasonable opportunity of hearing to the assessee. Effective grounds of appeal raised by the assessee are allowed for statistical purposes. 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced on this 20th day of March, 2025. Sd/- Sd/- (ASTHA CHANDRA) (MANISH BORAD) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; \u0001दनांक / Dated : 20th March, 2025. Satish ITA No.2260/PUN/2024 Dharrit Shah 4 आदेश क\u0002 \u0003ितिलिप अ\tेिषत / Copy of the Order forwarded to : 1. अपीलाथ\f / The Appellant. 2. \r\u000eयथ\f / The Respondent. 3. The Pr. CIT concerned. 4. िवभागीय \rितिनिध, आयकर अपीलीय अिधकरण, “SMC” ब\u0014च, पुणे / DR, ITAT, “SMC” Bench, Pune. 5. गाड\u0004 फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. "