Rajtech Infrastructure Pvt. Ltd. , Pratapgarh. V. ACIT, Circle, Chittorgarh

ITA 363/JODH/2018

• Counselvise Citation: [2023] 100 COUNSELVISE.COM (IT) 6016 (ITAT-JODHPUR)
• Duration Of Justice: 5 year(s) 3 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 10-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 17-07-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; TDS
• Section: 143(3); 40(a)(ia)

Judgement Text

आयकर अपीलीय अिधकरण Ɋायपीठ जोधपुर, जोधपुर मŐ। IN THE INCOME TAX APPELLATE TRIBUNAL, JODHPUR BENCH : : JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER आयकर अपील सं. / ITA No.363/JODH/2018 िनधाᭅरण वषᭅ / Assessment Year : 2014-15 Rajtech Infrastructure Pvt. Ltd., Arnod Road, Pratapgarh, Rajasthan. PAN: AADCR 5871 J V s The Assistant Commissioner of Income Tax, Circle Chittorgarh. Appellant / Assessee Respondent / Revenue Assessee by Shri Amit Kothari – AR Revenue by Ms. Nidhi Nair – JCIT(DR) Date of hearing 11/08/2023 Date of pronouncement 30/10/2023 आदेश/ ORDER PER DR. DIPAK P. RIPOTE, AM: This is an appeal filed by the assessee against the order of ld.CIT(A)-1, Udaipur dated 17.04.2018 emanating from assessment order under section 143(3) of the Income Tax Act, 1961 dated 27.12.2016. The grounds of appeal are as under : “1. THE LD CIT APPEALS HAS ERRED IN DISALLOWING THE INTEREST PAID TO BANKING FINANCE COMPANIES ON THE GROUND OF NON TDS. 2. THE LD CIT APPEALS IS NOT JUS3.TIFIED IN CONFIRMING THE ADDITION OF THE INTEREST ON IT REFUND THROUGH BOOK ADJUSTMENT WHICH WAS ITA No.363/JODH/2018 Rajtech Infrastructure Pvt. Ltd., [A] 2 NEVER INFORMED TO THE ASSESSEE. 3. THE APPELLANT CARVES TO ADD,AMEND,ALTER OR MODIFY ANY OF THE GROUNDS OF APPEAL. 4. THE ASSESSEE PRAY JUSTICE.” Submissions of ld.AR : 2. The ld.Authorised Representative(ld.AR) of the assessee stated that Hinduja Leyland Finance, Mahindra Finance are Non Banking Finance Companies(NBFC’s) registered under Reserve Bank of India(RBI) Act, 1934. The ld.AR filed copies of the print outs taken from the websites of the companies. Therefore, the ld.AR pleaded that as per section 194A(3)(iii), assessee is exempted from deducting tax at source as assessee has paid interest to Hinduja Leyland Finance and Mahindra Finance. Submission ld.DR : 3. The ld.Departmental Representative for the Revenue brought to our notice that these documents were not filed before Lower Authorities. The ld.DR read out para 7 of the ld.CIT(A)’s order in which it is categorically mentioned that no evidence has been filed by assessee to prove that Hinduja Leyland Finance and Mahindra Finance fall under the categories mentioned under section 194A(3)(iii) of the Act. ITA No.363/JODH/2018 Rajtech Infrastructure Pvt. Ltd., [A] 3 Findings & Analysis : 4. In this case, assessee has paid Rs.13,52,500/- to M/s.Hinduja Leyland Finance, Mahindra Finance and Indesand Finance. Since no TDS was made, Assessing Officer(AO) disallowed the said amount under section 40(a)(ia) of the Act. Aggrieved by the same, the assessee had filed appeal before the ld.CIT(A). 4.1 The relevant para of ld.CIT(A)’s order is reproduced here as under : “7. I have considered the submissions of the appellant and the relevant findings of the AO. The assessee has contended that interest of Rs.13,52,500/- was paid to Banking Finance Companies and therefore there was no requirement of deduction of TDS on such payment. Undisputedly, as per Section 194A(3)(iii)(a), TDS is not required to be made from income credited or paid to a “ any banking company to which the Banking Regulation Act, 1949 (10 of 1949), applies, or any co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank)". However, in-the instant case, the assessee has not furnished any evidence that M/s Hinduja Leyland Finance, Mahendra &Mahendra Finance and Indesand Finance, person to whom interest has been paid without deduction of tax at source, fall u/s 194A(3)(iii)(a). Accordingly, the disallowance of Rs.13,52,500/-, made by the AO u/s 40(a)(ia) is hereby confirmed. The ground of appeal is thus dismissed.” ITA No.363/JODH/2018 Rajtech Infrastructure Pvt. Ltd., [A] 4 5. Thus, it is categorically mentioned by the ld.CIT(A) that no evidence has been filed by assessee to prove that Hindustan Leyland Finance, Mahindra Finance, Indesand Finance fall under section 194A(3)(iii) of the Act. Before us, the ld.AR has filed printouts from websites. However, these evidences were not before the Lower Authorities. Since these evidences goes to the root of the issue, we admit them as additional evidences. Since these were not before Lower Authorities, we set-aside the issue to the Assessing Officer for verification in the light of submission made by assessee that Hinduja Leyland Finance, Mahindra Finance, Indesand Finance fall in the category of 194A(3)(iii) of the Act. The Assessing Officer shall give opportunity to the assessee. The assessee shall file all the necessary documents before the Assessing Officer. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purpose. 6. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 30 th October, 2023. Sd/- Sd/- (PAVAN KUMAR GADALE) (DR. DIPAK P. RIPOTE) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 30 th Oct, 2023/ SGR* ITA No.363/JODH/2018 Rajtech Infrastructure Pvt. Ltd., [A] 5 आदेश कᳱ ᮧितिलिपअᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT(A), concerned. 4. The Pr. CIT, concerned. 5. िवभागीयᮧितिनिध, आयकर अपीलीय अिधकरण, जोधपुर बᱶच, जोधपुर / DR, ITAT, Bench, Jodhpur. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // TRUE COPY // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे/ITAT, Pune.