ATHINAMILAGI LAKSHMANAN, NARAYANAPURAM V. ITO, NON CORP. WARD 2(3) MADURAI, MADURAI

ITA 383/CHNY/2023

AI Insights

The case involves Mr. Athinamilagi Lakshmanan, the appellant, contesting an assessment order from the Income Tax Officer, Non-Corporate Ward-2(3), Madurai, for the Assessment Year 2014-15. The dispute arose from a disallowance of Rs. 82.31 Lacs under Section 40(a)(ia) of the Income Tax Act, due to the absence of Tax Deducted at Source (TDS) on certain interest payments. The appellant initially failed to provide Form 26A, which is crucial for claiming exemption under the second proviso to Section 40(a)(ia). The Commissioner of Income Tax (Appeals) upheld the AO's decision, leading to this appeal. The Tribunal, acknowledging the principles of natural justice, provided the appellant another opportunity to submit the required form and substantiated the disallowance to the AO for further examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 133931 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-04-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 25-04-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 22-03-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; TDS
• Section: 40(a)(ia)

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी मनोज कु मार अ/वाल ,लेखा सद4 एवं माननीय +ी मनोमोहन दास ाियक सद4 के सम8। BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM, AND HON’BLE SHRI MANOMOHAN DAS, JUDICIAL MEMBER आयकर अपील सं./ ITA No.383/Chn y/2023 (िनधा@रण वष@ / Assessment Year: 2014-15) Mr.Athinamilagi Lakshmanan 3/412, Pillayar Koil Street, Indian Bank Colony, Narayanapuram, Madurai-625 014. बनाम / V s . Income Tax Officer Non-Corporate Ward-2(3), Madurai. था यी ले खा सं. /जीआ इ आ र सं. /P AN / G I R No . ABV P L-06 12-M (अ पीलाथ%/Appellant) : (&'थ% / Respondent) अपीलाथ% की ओरसे/ Appellant by : Shri T.Vasudevan (Advocate)-Ld. AR &'थ% की ओरसे/Respondent by : Shri D.Hema Bhupal (JCIT) –Ld.DR सुनवाई की तारीख/Date of Hearing : 26-04-2023 घोषणा की तारीख /Date of Pronouncement : 26-04-2023 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2014-15 arises out of order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 20-02-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s.143(3) r.w.s 263 of the Act on 28-12-2019. In the assessment order, the assessee has been saddled with disallowance u/s 40(a)(ia) for Rs.82.31 Lacs for want of TDS on certain interest payments as tabulated on page nos. 2 and 3 of the ITA No.383/Chny/2023 - 2 - assessment order. Before Ld. AO, the assessee took shelter of 2 nd proviso to Sec.40(a)(ia) but failed to file requisite Form 26A in support of the same. The Ld. CIT(A) upheld the action of Ld. AO against which the assessee is in further appeal before us. 2. Before us, Ld. AR has pleaded for another opportunity and undertook to file the requisite forms in support of the claim. The Ld. Sr. DR has submitted that without furnishing of this form, no relief could be granted to the assessee. 3. We find that it is mandatory for assessee to file Form 26A in support of its claim. Keeping in mind the principle of natural justice, we deem it fit to provide another opportunity to the assessee and restore the impugned disallowance to the file of Ld. AO with a direction to the assessee to substantiate its claim. 4. The appeal stand allowed for statistical purposes. Order pronounced in open court on 26 th April, 2023. Sd/- (MANOMOHAN DAS) ाियक सद4 / JUDICIAL MEMBER Sd/- ( MANOJ KUMAR AGGARWAL ) लेखा सद4 / ACCOUNTANT MEMBER चे6ई / Chennai; िदनांक / Dated : 26-04-2023 DS आदेश की Sितिलिप अ /ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त/CIT 4. वभागीय त न ध/DR 5. गाड फाईल/GF