TaxTMI 
TaxTMI 
2015 (4) TMI 715
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....ows : "1. The order of the Commissioner of Income-tax (Appeals), Hubli is bad in law. 2. The order of the Commissioner of Income-tax (Appeals), Hubli is opposed to law and not on the facts and circumstances of the case. 3. The order of the Commissioner of Income-tax (Appeals), Hubli erred in deleting addition of Rs. 1,59,80,975 made by the Assessing Officer under section 40(a)(ia). 4. The order of the Commissioner of Income-tax (Appeals), Hubli has violated rule 46A of the Income-tax Rules....
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....75 (ii) Building grants given to Milk Producer's Society-Rs. 5,00,000. 3. Disallowance under section 40(a)(ia) : The assessee during the year under appeal had incurred expenditures, which were covered under the provision of Chapter XVII-B of the Income- tax Act. To ascertain the compliance with the provisions of Chapter XVII-B of the Income-tax Act by the assessee, the Assessing Officer directed the assessee to file the copies of the statement showing the details of TDS affected. Accordingly, the assessee filed a statement showing the expenditures under various heads together with the TDS made thereon. The details as per the statement (TDS quarterly returns) are as under : S. No. Nature of payment Amount (Rs.) TDS (....
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....4 8 Technical fee to VO and Tech officers 14,60,354 Total 3,82,78,347 3.3. According to the Assessing Officer the assessee instead of effecting the TDS on Rs. 3,82,78,347 had deducted the tax only on Rs. 2,22,97,372. Thus the Assessing Officer had concluded that the assessee has not affected the TDS on Rs. 1,59,80,975 and disallowed the entire expenditure under section 40(a)(ia) of the Income-tax Act. 3.4. Aggrieved, the assessee preferred an appeal before the first appellate authority. It was submitted before the Commissioner of Income-tax (Appeals) that due to paucity of time, the assessee could not reconcile the amount as per the TDS quarterly returns and the amounts mentioned in the profit and lo....
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....ere are some entries was wrongly made and the same was rectified by filing the revised return of Form 26Q4, considering the same as human error the disallowance made by the Assessing Officer is cancelled and the assessee's appeal is allowed." 3.6. The Revenue being aggrieved is in appeal before us. The learned Departmental representative submitted that the Commissioner of Income- tax (Appeals) has violated rule 46A of the Income-tax Rules. It was submitted that the Commissioner of Income-tax (Appeals) has not provided the Assessing Officer an opportunity to examine the additional evidence filed in the course of the appellate proceedings in the form of revised TDS return. Therefore, it was submitted that the issue should be restored t....
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....ssessee or to produce any evidence or document or any witness in rebuttal of the additional evidence produced by the assessee. 3.8.1. In the instant case the Commissioner of Income-tax (Appeals) has deleted the additions made by the Assessing Officer by admitting fresh evidence namely the revised TDS return wherein the figures have been reconciled with the expenditure debited in the profit and loss account. The revised TDS return in Form 26Q4 was filed much subsequent to the completion of the assessment order, therefore, the Assessing Officer did not have an opportunity/occasion to examine the same. In the interest of justice and equity, we are of the view that opportunity should be granted to the Assessing Officer to examine the evidenc....
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....ents were released to Milk Producers Cooperative Society after due inspection and certification of construction. It was submitted that no capital asset is created in the hands of the assessee, and the said sum of Rs. 5 lakhs is to be allowed as revenue expenditure. 4.3.. The Commissioner of Income-tax (Appeals) allowed the appeal of the assessee. The relevant findings of the Commissioner of Income-tax (Appeals) read as follows : "I have gone through the facts of the case, contents in the assessment order and the assessee's written submissions, that the amount of Rs. 5 lakhs given by the society to milk producers for construction of pukka bui....