M/s Batra Builders pvt Ltd, Bengaluru V. Deputy Commissioner of Income tax, Circle-1(1)(2), Bengaluru

ITA 25/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0669 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 5 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2013-2014
• Appeal Filed On: 03-01-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJEET SINGH
• Keywords: TDS
• Section: 40(a)(ia); 194C

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH : BANGALORE BEFORE SHRI A.K GARODIA, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.25/BANG/2018 ASSESSMENT YEAR : 2013 14 M/S BATRA BUILDERS PVT. LTD., 2 ND FLOOR, BATRA CHAMBERS, CUNNINGHAM ROAD, BENGALURU-560 052. PAN AADCB 1867 G VS. THE DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(1)(2), BENGALURU. ASSESSEE RESPONDENT ASSESSEE BY : SHRI T SRINIVASA, C.A RESPONDENT BY : SHRI MANJEET SINGH, ADDL. CIT DR DATE OF HEARING : 08-06-2020 DATE OF PRONOUNCEMENT : 11-06-2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER DATED 31/08/2017 PASSED BY LD. CIT (A)-1, BANGALORE FOR ASSESSMENT YEAR 2013-14. 2. AT THE OUTSET, LD.AR SUBMITTED THAT THE ISSUE AL LEGED IS FOR ADDITION MADE FOR NON-DEDUCTION OF TDS BY APPLY ING PROVISIONS OF SECTION 40(A)(IA) OF THE ACT, IN RESP ECT OF PROJECT DEVELOPMENT EXPENDITURE AMOUNTING TO RS.53,98,962/- . IT WAS SUBMITTED THAT LD. CIT (A)/AO HELD THE PAYMENT IN THE NATURE OF CONTRACT ON WHICH TDS UNDER SECTION 194C WAS LIABLE TO BE DEDUCTED. PAGE 2 OF 4 ITA 25/BANG/2018 ` 3. IT HAS BEEN SUBMITTED BY LD.AR THAT, CONTENTIONS OF ASSESSEE REGARDING TAXES HAVING PAID BY RECIPIENTS, WERE NOT BEEN VERIFIED EITHER BY LD.CIT (A) OR LD.AO. EVEN T HOUGH SPECIFIC CONTENTIONS WERE RAISED BY ASSESSEE BEFORE BOTH AUTHORITIES BELOW. IT IS ALSO BEEN SUBMITTED THAT R ELEVANT DOCUMENT FOR VERIFYING THE SAME WERE PROVIDED BY AS SESSEE BEFORE AUTHORITIES BELOW. HE PLACED RELIANCE UPON D ECISION OF COORDINATE BENCH OF THIS TRIBUNAL IN CASE OF GE SHANKAR VS CIT IN ITA NO. 1832/B/2013 FOR ASSESSMENT YEAR 2005-06 BY ORDER DATED 10/10/2014 . 4. IT HAS BEEN SUBMITTED BY LD.AR THAT, GROUND NO.6 RAISED IN PRESENT APPEAL IS IN RESPECT OF NON-DECID ING THE ISSUE BY LD. CIT (A). 5. LD.SR.DR SUBMITTED THAT THE ISSUE MAY BE SENT BA CK TO LEARNT CIT (A) FOR DUE VERIFICATION. 6. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SID ES IN LIGHT OF RECORDS PLACED BEFORE US. WE FIND FORCE IN THE CONTENTION OF ASSESSEE AS IN THE EVENT THE RECIPIEN TS HAVE PAID TAXES ON SUCH AMOUNT IS RECEIVED FROM ASSESSEE AND HAS SHOWN IN THEIR RETURN OF INCOME, THEN NO DISALL OWANCE IS WARRANTED IN THE HANDS OF ASSESSEE UNDER SECTION 40 (A) (IA) OF THE ACT. WE ARE THEREFORE INCLINED TO SEND BACK THIS ISSUE BACK TO LD.CIT(A) TO VERIFY THE DETAILS FROM THE RE SPECTIVE RECIPIENTS. IN THE EVENT, SUCH INCOME IS FOUND TO B E DISCLOSED IN THE RETURN OF INCOME OF RECIPIENTS AND CONDITION S STIPULATED UNDER SECTION 200 STANDS SATISFIED, NO PAGE 3 OF 4 ITA 25/BANG/2018 ` DISALLOWANCE SHALL BE MADE IN THE HANDS OF ASSESSEE UNDER SECTION 40(A)(IA) OF THE ACT. ACCORDINGLY, THESE GROUNDS RAISED BY ASSESSEE STAND S ALLOWED FOR STATISTICAL PURPOSES. IN THE RESULT, APPEAL FILED BY ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH JUNE 2020 . SD/- SD/- (A.K GARODIA) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 11/06/2020 /VMS/ COPY TO: 1. ASSESSEE 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL. BANGALORE