Suryam Diagnostic Centre, Ahmedabad V. The Income Tax Officer, Ward-3(3)(5), Ahmedabad

ITA 42/AHD/2023

AI Insights

Suryam Diagnostic Centre appealed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which had disallowed Rs. 641,264 under Section 43B of the Income Tax Act for late payment of TDS for the financial year 2019-20, despite the payment being made before the due date for filing the return. The Tribunal noted that the Department had rectified this disallowance under Section 154, and the appellant chose not to press the appeal further. The Tribunal's decision to dismiss the appeal was based solely on the appellant's request for withdrawal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 125679 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-07-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Next Hearing Date: 18-07-2023
• Assessment Year: 2020-2021
• Appeal Filed On: 19-01-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: TDS
• Section: 154; 15; 43B; 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE SHRI WASEEM AHMED, ACCOUNTANT MEMBER & SHRI SIDDHARTHA NAUTIYAL, JUDICIAL MEMBER I .T .A . No .4 2/ A h d / 2 02 3 ( A s se ss m e nt Y e a r : 20 20- 21 ) Su r ya m D i a g no st ic C e ntr e , 2- 3 S h i ta l V ar s h a C o m ple x , Nr . S hi vr an j a n i C r o ss R oa d , A m ba wa di, A h m ed ab a d- 3 8 00 15 V s. I nc o m e Ta x O f fic er , Wa r d - 3( 3) ( 5 ) , A h m e da ba d [ P AN N o. A D DF S 3 69 6N ] (Appellant) .. (Respondent) Appellant by : Shri Sunil Maloo, A.R. Respondent by: Shri Ashok Kumar Suthar, Sr. D.R. D a t e of H ea r i ng 19.07.2023 D a t e of P r o no u n ce me nt 26.07.2023 O R D E R PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax(Appeals), (in short “Ld. CIT(A)”) National Faceless Appeal Centre (in short “NFAC”), Delhi vide order dated 30.11.2022 passed for Assessment Year 2020-21. 2. The assessee has taken the following grounds of appeal:- “1. The Learned CIT(A), NFAC, Delhi has allowed Rs. 22776/- of late payment of PF and ESIC of employees contribution considering the payment in due time on providing the challan by the assessee. ITA No. 42/Ahd/2023 Suryam Diagnostic Centre vs. ITO Asst.Year –2020-21 - 2 - 2. The Learned CIT(A), NFAC, Delhi has disallowed Rs. 641264/- u/s 43B of the Income Tax act on the ground that TDS is payable for FY 2019-20 and the same has been disclosed in Profit & Loss account for the said financial year 2019-20 but the payment of TDS challan of Rs. 641264/- after 01/04/2020 i.e. FY 2020-21. The Learned CIT(A) NFAC, Delhi has wrongly interprited the law of TDS payment under the Income Tax Act. TDS amount of Rs. 641264/- is unpaid of TDS amount as on 31/03/2020 and it is shown in audited balance sheet of FY 2019-20 and the said TDS payable amount as on 31/03/2020 was paid on 30/04/2020 under the due date allowed under the Income Tax Act hence accordingly the appellant has not made any default of payment of TDS amount as per law of Income Tax Act. Under section 40(a)(ia) of the Income Tax Act, 30% of on which tax is deductable at sources under Chapter XVII-B and such tax has not been deducted or, after deduction has not been paid on or before the due date specified in sub section (1) of section 139. The appellant has paid the TDS amount of Rs. 641264/- on 30/04/2020 i.e. before due date of filing i.e. 31/01/2021 hence the no disallowance of any expenditure or TDS amount Rs. 641264/- We attached herewith documents of audited balance Sheet along with schedules in which annexure "D" the amount TDS on interest of Rs. 436661/-, TDS on professional of Rs. 179711/-, TDS on Salary ITA No. 42/Ahd/2023 Suryam Diagnostic Centre vs. ITO Asst.Year –2020-21 - 3 - Rs. 2000/- and TDS on Rent 22892/- total TDS payable Rs. 641264/-. We also attached the quarter - 4 TDS return 26Q & 24Q filed with the department along with details and its challans. 3. The appellant craves leave to add, amend, delete or alter one or more ground of appeals.” 3. The brief facts of the case are that various additions on account of late payment of PF and ESIC (amounting to ₹ 22,776/-) and under section 43B of the Act (amounting to ₹ 6,41,264/-) were made to the returned income of the assessee. While the Ld. CIT(Appeals) allowed the assessee’s appeal with respect to the sum of ₹ 22,776/ - on account of payment of EPF and ESIC by holding that the assessee had made payment within due timelines as provided under the respective Act, however, Ld. CIT(Appeals) confirmed disallowance of ₹ 6, 41,264/- under Section 43B of the Act on the ground that TDS is payable for Financial Year 2019-20 but the payment of TDS has been made in financial year 2020-21, and accordingly sustained the addition u/s 43B of the Act. 4. Before us, the Counsel for the assessee submitted that the assessee had also filed application under Section 154 of the Act with respect to the aforesaid disallowance and vide order dated 11-07-2022 passed under Section 154 of the Act, the mistake with respect to the disallowance made under Section 43B of the Act has since been rectified by the Department, and accordingly, the assessee shall not be pressing for the ITA No. 42/Ahd/2023 Suryam Diagnostic Centre vs. ITO Asst.Year –2020-21 - 4 - aforesaid addition in the present appeal. Accordingly, in view of the submission made by the counsel for the assessee requesting for withdrawal of appeal, the appeal of the assessee is hereby being dismissed as “not pressed”. 5. In the result, the appeal of the assessee is dismissed. This Order pronounced in Open Court on 26/07/2023 Sd/- Sd/- (WASEEM AHMED) (SIDDHARTHA NAUTIYAL ) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad; Dated 26/07/2023 TANMAY, Sr. PS TRUE COPY आदेश क त ल प अ े षत/Copy of the Order forwarded to : 1. अपीलाथ / The Appellant 2. यथ / The Respondent. 3. संबं धत आयकर आय ु त / Concerned CIT 4. आयकर आय ु त(अपील) / The CIT(A)- 5. वभागीय त न ध, आयकर अपील!य अ धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड' फाईल / Guard file. आदेशान ु सार/ BY ORDER, उप/सहायक पंजीकार (Dy./Asstt.Registrar) आयकर अपील य अ धकरण, अहमदाबाद / ITAT, Ahmedabad 1. Date of dictation 24.07.2023 (Dictated in his Dragon Software) 2. Date on which the typed draft is placed before the Dictating Member 24.07.2023 3. Other Member..................... 4. Date on which the approved draft comes to the Sr.P.S./P.S 24.07.2023 5. Date on which the fair order is placed before the Dictating Member for pronouncement .07.2023 6. Date on which the fair order comes back to the Sr.P.S./P.S 26.07.2023 7. Date on which the file goes to the Bench Clerk 26 .07.2023 8. Date on which the file goes to the Head Clerk.......................................... 9. The date on which the file goes to the Assistant Registrar for signature on the order.......................... 10. Date of Despatch of the Order..........................................