2018 (9) TMI 706

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....and 2 are not pressed by the Ld. AR during the appeal hearing, therefore Ground Nos. 1 and 2 are dismissed as not pressed. 3. Ground Nos. 3 to 8 are against the order passed by the Pr. CIT u/s 263 of the Income Tax Act, 1961 (hereinafter called as 'Act'). In this case, assessment was completed u/s 143(3) determining the total loss of Rs. 45, 12, 981/- on 09. 03. 2015. Subsequently, the Ld. Pr. CIT found that the assessee had debited a sum of Rs. 9, 02, 287/- towards the interest payment but not deducted the tax at source. Similarly, the assessee also debited a sum of Rs. 9, 14, 594/- towards the service tax payable for the assessment year 2012-13. The Ld. CIT(A) observed that out of the service tax, only a sum of Rs. 3, 95, 274/- was paid ....

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....ot deducted the TDS on a sum of Rs. 58, 350/- and the same was added back to the income u/s 40(a)(ia) of the Act. As per the details submitted by the Ld. AR during the hearing, the total amount of interest paid was Rs. 9, 02, 287/- out of which for the sum of Rs. 7, 18, 508/- the provisions of section 194A are applicable and the assessee had M/s Ardee Hi-Tech Private Ltd. , Visakhapatnam deducted the TDS on the payment of Rs. 6, 60, 159/- and the remaining amount of Rs. 58, 350/- was disallowed by the AO in the assessment proceedings. Therefore, there is no error in the assessment order which is prejudicial to the interest of the revenue. Hence, the order of the Ld. CIT(A) passed u/s 263 on this issue is set aside and the assessee's appeal ....

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....ttracts the disallowance u/s 43B of the Act and the AO has not verified issue therefore, there was an error in the assessment order passed by the AO u/s 143. However, the Ld. AR argued that though there was an error in the assessment order for nondisallowance of unpaid service tax but the same is not prejudicial to the interest of the revenue since the return of income of the assessee resulted into loss and even after making disallowance of the service tax, the taxable income would be Nil reducing the loss. Therefore, the Ld. AR was of the view that the disallowance which reduces the loss does not result into positive income and cannot make the assessment prejudicial to the interest of the revenue, hence, requested to set aside the order of....