SAMARTH SAHAKARI BANK LTD, SOLAPUR V. ASST . COMMISSIONER OF INCOME TAX , CIRCLE -2 , SOLAPUR, SOLAPUR

ITA 826/PUN/2022

AI Insights

The case involves Samarth Sahakari Bank Ltd., a cooperative bank, appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed certain disallowances made by the Assessing Officer under the Income Tax Act, 1961 for the assessment year 2013-14. The main issues in the appeal were the disallowance of AMC charges paid to Dibold Systems Private Limited for non-deduction of tax at source, and the disallowance of 20% of miscellaneous expenditure due to lack of supporting bills and vouchers. The Tribunal found merit in reconsidering the disallowance of AMC charges based on new evidence but upheld the decision regarding the miscellaneous expenditure.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 137486 (ITAT-PUNE)
• Duration Of Justice: 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-02-2023
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: B
• Next Hearing Date: 13-02-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 17-11-2022
• Laws Referred To: Income Tax Act, 1961, Maharashtra Cooperative Societies Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Additional evidence; Non-deduction of tax
• Section: 143(3); 40(a)(ia)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “B”, PUNE BEFORE SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER AND SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER आयकर अपील सं. / ITA No.826/PUN/2022 िनधाᭅरण वषᭅ / Assessment Year : 2013-14 Samarth Sahakari Bank Ltd., First Floor, Antolikar, Shopping Center Datta Chowk, Solapur- 413006. PAN : AAAJS1390P Vs. ACIT, Circle-2, Solapur. Appellant Respondent आदेश / ORDER PER INTURI RAMA RAO, AM: This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi [‘NFAC’] dated 21.09.2022 for the assessment year 2013-14. 2. Briefly, the facts of the case are that the appellant is a cooperative society formed under the Maharashtra Cooperative Societies Act, 1961. It is engaged in the business of banking. The Assessee by : None Revenue by : Shri M. G. Jasnani Date of hearing : 14.02.2023 Date of pronouncement : 14.02.2023 ITA No.826/PUN/2022 2 Return of Income for the assessment year 2013-14 was filed on 26.09.2013 disclosing total income of Rs.5,02,68,179/-. Against the said return of income, the assessment was completed by the Assistant Commissioner of Income Tax, Circle-2, Solapur (‘the Assessing Officer’) vide order dated 28.03.2016 passed u/s 143(3) of the Income Tax Act, 1961 (‘the Act’) at total income of Rs.6,08,74,350/-. While doing so, the Assessing Officer made addition of Rs.97,03,902/- u/s 40(a)(ia) of the Act in respect of interest paid on deposits from members for non-deduction of tax at source. The Assessing Officer also made disallowance of Rs.3,37,080/- on account of AMC charges paid to Dibold Systems Private Limited for non-deduction of tax at sources. Further, the Assessing Officer disallowed 20% of the miscellaneous expenditure for failure of the assessee to produce the bills and vouchers in support of the expenditure. 3. Being aggrieved by the above order of assessment, an appeal was filed before the ld. CIT(A), who vide impugned order deleted the addition of interest u/s 40(a)(ia) by holding that the interest paid to the nominal members does not attract the provisions of section 194A of the Act, therefore, no disallowance can be made. However, the ld. CIT(A) confirmed the addition of AMC charges paid to ITA No.826/PUN/2022 3 Dibold Systems Private Limited. Similarly, the ld. CIT(A) confirmed the disallowance of 20% of the miscellaneous expenditure of Rs.28,25,949/- for failure of the assessee to furnish the necessary evidence etc. 4. Being aggrieved by the decision of the ld. CIT(A), the appellant is in appeal before us in the present appeal. 5. When the appeal was called on, none appeared on behalf of the appellant-assessee. However, the written submissions were filed challenging the decision of the ld. CIT(A) confirming the disallowance of AMC charges paid to Dibold Systems Private Limited on the ground that the payee had already offered the receipts, as taxable income along in return of income and also filed Form No.26A dated 24.01.2023 praying to allow the deduction in terms of proviso to section 40(a)(ia) of the Act. 6. On the other hand, ld. Sr. DR had no serious objection to remand the matter to the file of the Assessing Officer to consider the additional evidence furnished in the Form No.26A. 7. Having heard the rival submissions, we are of the considered opinion that the matter requires remand to the file of the Assessing Officer to decide the issue of disallowance of AMC charges paid to Dibold Systems Private Limited considering the Form No.26A ITA No.826/PUN/2022 4 furnished by the payee i.e. Dibold Systems Private Limited. The second ground of appeal is dismissed as not pressed during the course of hearing of the appeal. 8. In the result, the appeal filed by the assessee stands partly allowed. Order pronounced on this 14 th day of February, 2023. Sd/- Sd/- (S. S. VISWANETHRA RAVI) (INTURI RAMA RAO) JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / Pune; ᳰदनांक / Dated : 14 th February, 2023. Sujeet आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच, पुणे / DR, ITAT, “B” Bench, Pune. 4. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Senior Private Secretary आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.