TaxTMI 
TaxTMI 
2015 (4) TMI 715
X X X X Extracts X X X X
X X X X Extracts X X X X
....sp; "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 as he has not provided the Assessing Officer an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y-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 (Rs.) 1 Truck hire PTC/DTC 4,14,89,034 9,29,842 2 Car hire charges 1....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 loss account. It was submitted that this was due to the fact that various expenditures debited in the profit and loss account of the assessee-company, regrouped and re-arranged for convenience, for the purpose of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sessee'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 to the Assessing Officer for de novo consideration, more so when the revised TDS return was filed only on January 28, 2011, i.e., subsequent to the assessment order dated October 28, 2010. 3.7. The learned authorised....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 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 evidence filed by the assessee in the course of appellate proceedings. Therefore, the issue of disallowance of expenditure under section 40(a)(ia) is restored to the Assessing Officer. He shall dispose of the matter in accordance....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 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 building and balance amount has to be organised by the milk producers. The contribution is part of bye-laws and approved by the board of directors in meeting. Moreover, the assessee not acquired any capital asset. Hence, the same may be ....