TaxTMI 
TaxTMI 
2020 (8) TMI 596
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....serted in the year 2014 thus the said provision is not applicable to the appellant case, thus disallowed the claim of the appellant by the assessing authority is against the law and liable to be set aside. 3. On fact of the circumstances of the case, the learned Commissioner of Income Tax (Appeals) ought to have appreciated that the appellant made payment to artist and claimed benefit under the Act are correct, thus the disallowance made by the appellant is against the principle of natural justice and made additions are liable to be set aside. 4.On fact of the circumstances of the case, the learned Commissioner of Income Tax (Appeals) ought to have appreciated that the judgment relied by the appellant which are squarely applicable in the appellant case and judgment relied by the CIT(A) and fact of the case is difference from of appellant fact of the case, thus the learned CIT(A) ought to have been allowed the appeal in the interest of justice. 5. Without considering the fact and merit of the case the learned CIT(A) confirming the disallowances made by the assessing authority and confirming interest under Section 234(B) 8s 234 (C) and the same is upheld by the CIT(A) is excess....
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....s noted by learned CIT(A) that the assessee has not produced the relevant evidences in support of the assessee's claim mainly the certificate of the Chartered Accountant as required. He submitted that earlier the assessee was not properly advised by the counsel and the assessee has come to the present counsel very recently and thereafter, the assessee was advised by the present counsel to bring on record various documents / evidences mainly the CA's certificate but because of the ongoing Covid pandemic since March 2020, no evidence could be brought on record by the assessee. He submitted that under these facts and in the interest of justice, the assessee should be provided with one more opportunity to bring these evidences on record and the matter may be restored back to the file of the AO for a fresh decision. As against this, learned DR of the Revenue supported the order of CIT(A). He also submitted that the issue was already restored back by the Tribunal earlier and therefore no further opportunity should be provided to the assessee. 3. We have considered the rival submissions. First of all, we reproduce paras 5 to 5.4 of the order of CIT(A) for ready reference: "5. I have co....
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....) of the Act, 1961 on the ground of failure to deduct tax at source. During the appellate proceedings the appellant submitted that Sec.191 of the Act provides, for direct payment of income tax by the assessee ire cases where provision for deduction of tax at source is not made under the Chapter XVII-B. The liability of deducting at source is in the nature of vicarious liability which pre-supposes existence of primary liability. The said liability is a vicarious liability and the principal liability is of the person who is taxable. Thus, both the conditions i e.,(i) in the case of income in respect of which provision is not made under Chapter XVII for deducting income tax at the time of payment and (ii) in case where income tax has not been deducted in accordance with the provisions of Chapter XVII, the deductor is deemed to be assessee in default within the meaning of Sub-Sec (1) of Sec.201 in respect of such tax. The explanation to Sec.191 thus has to be read into Sec.201(1). The appellant placed reliance on the decision of the Hon'ble Supreme Court in the case of Hindustan Coca Cola Beverage (P.) Ltd. Vs CIT, ITR 216. Further submitted that the amendment of Sec.40(a)(ia) of t....
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....ed and paid the tax on such sum on the date of furnishing of return of income by the resident. payee referred to in the said proviso Proviso to Sec.201(1): Provided that any person, including the principal officer of a company, who fails to deduct the whole or any part of the tax in accordance with the provisions of this Chapter on the sum paid to a resident or on the sum credited to the account of a resident shall not be deemed to be an assessee in default in respect of such tax if such resident- (i) has furnished his return of income under section 139; (ii) has taken into account such sum for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a -:.certificate to this effect from an accountant in such form as may be prescribed: Provided further that no penalty shall be charged under section 221 from such person, unless the Assessing Officer is satisfied that such person, without good and sufficient reasons, has failed to deduct and pay such tax. Further, Sec.221 also reproduced which is as under (1) When an assessee is in default or is deemed to be in default i....
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.... Report vide clause No.21B(iiA). Now the proviso to the Sec.4e(a)(ia) inserted by Finance Act, 2012, w.e.f.01-04-2013 applicable for A.Y.2013-14 which is subservient to the main provision which says that the assessee is not deemed to be an assessee in default uls.201(1) of the Act on fulfilling certain conditions, it shall he deemed that the assessee has deducted and paid the tax on such sum, would be the subsequent event which has to be read separately and in consonance with the main provision. Now the proviso under sub-section (1) to Sec.201 clearly says that the assessee shall not be deemed to be an assessee in default in respect of such tax if such resident (i) has furnished his return of income under section 139; 00 has taken into account such sure for computing income in such return of income; and (iii) has paid the tax due on the income declared by him in such return of income, and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed. 5.3Now I would like to analyze the provisos given under both the sections correlating with the fact of the case. First of all the purpose of the introduction of Sec.40(a)(ia) was to ensure t....
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....case 1 hold that the Assessing Officer has rightly invoked the provisions of Sec.40(a)(ia) of the Act and disallowed the same based on the tax audit report. In view of the same the appeal on this ground is hereby dismissed both on legal ground as well as factual ground." 4. From the above paras reproduced from the order of CIT(A), it is seen that this is the finding of learned CIT(A) in para 5.4 of his order that although the assessee has submitted confirmation letter from the deductees but mere submission of confirmation letter is not enough and the assessee is required to establish that the deductees have filed the return of income showing the payments received from the assessee and taxes are paid thereon and most importantly, the assessee could not furnish the certificate to this effect from the Accountant. Hence, it is seen that the main reason for confirming the disallowance is this that the assessee has not produced a CA certificate in which it is certified by the CA that the deductee has filed the return of income, after including the amount received from the assessee and paid taxes. Before us, this was the main argument of the learned AR of the assessee that the assessee w....