2023 (11) TMI 642 - AT - Income Tax

Tribunal Affirms CIT(A) Ruling, Dismisses Revenue Appeals on Tax Deduction Issues for 2008-11 Assessment Years.

The Income Tax Officer, Ward – 1, Akola Versus M/s. Balkrishna Traders, C/o G.M. Kothari, Vaidya Nagar, Akola

The Income Tax Officer, Ward – 1, Akola Versus M/s. Balkrishna Traders, C/o G.M. Kothari, Vaidya Nagar, Akola - TMI Issues involved: Appeal by Revenue against CIT(A) order for assessment years 2008-09, 2009-10, and 2010-11.Issue 1: Assessment Year 2008-09The main question is whether the CIT(A) was justified in deleting the addition made by the AO for violation of non-deduction of tax u/s. 194C, resulting in disallowance u/s. 40(a)(ia) of the Act. The assessee, an AOP and civil contractor, had its income reassessed due to non-deduction of TDS on payments to members. The AO added the amount to the total income, but the CIT(A) disagreed, stating that the relationship between the assessee and its members was not that of contractor-subcontractor. The Tribunal, considering similar cases, upheld the CIT(A)'s decision, finding no fault in it.Issue 2: Assessment Years 2009-10 & 2010-11The issues raised in these appeals are identical to the one in the assessment year 2008-09. The facts and circumstances being the same, the Tribunal applied the reasoning and decision from the earlier appeal to dismiss the appeals for these years as well.In conclusion, all the appeals by the Revenue were dismissed based on the findings and decisions made for the assessment year 2008-09. The Tribunal found no infirmity in the CIT(A)'s order and upheld the deletion of the addition made by the AO. The appeals for the subsequent years were also dismissed following the same reasoning.