SVC CO-OPERATIVE BANK LIMITED,MUMBAI V. DCIT, CIR-1(3)(1), MUMBAI

ITA 4603/MUM/2023

AI Insights

The case involves SVC Co-operative Bank Limited appealing against the order of the Commissioner of Income-tax (Appeals), which upheld certain disallowances made by the assessing officer during the assessment year 2018-19. The primary issues in the appeal were the disallowance of 30% of expenditure due to alleged non-deduction of taxes under section 40(a)(ia) of the Income Tax Act, 1961, and the disallowance of employees' contribution to provident fund under section 36(1)(va). The Tribunal found that the assessee had indeed deducted the taxes as required by law, based on the evidence provided, and thus allowed the first ground of appeal. The second ground regarding the provident fund contributions was not pursued by the assessee and was consequently dismissed.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 33771 (ITAT-MUMBAI)
• Duration Of Justice: 10 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: G
• Next Hearing Date: 06-08-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 15-12-2023
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: KISHOR DHULE
• Assessee Lawyers: RA JEEV WAGLAY
• Keywords: Non-deduction of tax
• Section: 40(a)(ia); 194C

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “G”, MUMBAI BEFORE SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND MS. KAVITHA RAJAGOPAL, JUDICIAL MEMBER ITA No.4603/Mum/2023 Assessment Year: 2018-19 SVC Co-operative Bank Limited SVC Tower Nehru Road, Santacruz (East), S.O. Mumbai- 400055. PAN: AAAAT 0177 C vs. DCIT, Circle-1(3)(1), Mumbai (Appellant) (Respondent) Present for: Assessee by : Shri Rajeev Waglay, Advocate Revenue by : Dr. Kishor Dhule, CIT, DR Date of Hearing : 06.08.2024 Date of Pronouncement : 21.10.2024 O R D E R PER AMARJIT SINGH, ACCOUNTANT MEMBER: This appeal of the assessee for the assessment year 2018-19 is directed against the order dated 19.10.2023 passed by the ld. Commissioner of Income-tax (Appeal), NFAC, Delhi. The assessee has raised the following grounds of appeal: 1. The ld. Assessing officer erred in disallowing 30% of expenditure of Rs. 1,35,443/- due to non-deduction of taxes u/s 40(a)(ia) of the I.T. Act, 1961 when tax is deducted by the appellant. 2. The ld. Assessing officer erred in disallowing employees contribution to provident fund u/s 36(1)(va) of Rs. 2,94,443/-. 3. The appellant craves, leave to add, alter, amend or delete all or any of the grounds of appeal either before or during the course of appellate proceedings.” ITA No.4603/Mum/2023 SVC Co-operative Bank Limited A.Y. 2018-19 2 2. Fact in brief is that return of income declaring total income of Rs. 1,52,94,09,590/- was filed on 29.09.2018. During the course of assessment, assessing officer has disallowed contractual payment of Rs. 4,51,477/- for not deducting tax as per section 194C of the Act. In the appeal, the ld. CIT(A) has restricted the disallowance to the extent of proportionate disallowance of Rs. 1,35,443/- (30% of Rs. 4,51,477/-) made by the assessing officer u/s 40(a)(ia) due to default u/s 194C in respect of payment to contractor made by the assessee. 3. Heard both the sides and perused the material on record. The ld. Counsel submitted that in respect of expenses totaling to Rs. 4,51,477/- taxes has been deducted in accordance with law and in support of its contention, the assessee has filed copies of two challans of Rs. 2,241/- and Rs. 2,240/- to substantiate that due taxes of Rs. 4,516/- in respect of payment of expenses of Rs. 4,51,477/- was deducted by the assessee. In support of its claim, the assessee has also filed detail of tax deducted at source in respect of payment of Rs. 4,51,477/- made on account of service charges of premises paid to Mrs. Matilda D’Souza. 4. Considering the above facts and relevant supporting evidences, we direct the assessing officer to delete the impugned disallowance after verification of the copies of challans furnished by the assessee. Therefore, ground no. 1 of the appeal of the assessee are allowed for statistical purposes. ITA No.4603/Mum/2023 SVC Co-operative Bank Limited A.Y. 2018-19 3 5. Ground no. 2 in respect of disallowing employee’s contribution to PF u/s 36(1)(va) of Rs. 2,94,443/- is not pressed before us therefore the same stand dismissed. 6. In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open court on 21.10.2024. Sd/- Sd/- (MS. KAVITHA RAJAGOPAL) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated: 21.10.2024 Biswajit, Sr. P.S. Copy to: 1. The Appellant: 2. The Respondent: 3. The CIT, 4. The DR //True Copy// [ By Order Assistant Registrar ITAT, Mumbai Benches, Mumbai ITA No.4603/Mum/2023 SVC Co-operative Bank Limited A.Y. 2018-19 4 1. Date of Dictation………………………………………. 2. Date on which the typed order is placed before the dictating Member and other Member…………………………………………….. 3. Date on which the order came back to Sr. PS…………………………………… 4. Date on which file goes to the Bench Clerk...................................... 5. Date of which the file goes to the O.S………………………………… 6. Date of dispatch of the order……………………………………… "