TaxTMI 
TaxTMI 
2021 (10) TMI 206
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.... circumstances of the case and in law, the learned CIT(Appeals), Surat erred in confirming the order of DCIT, Circle 3(2), Surat (for the sake of brevity "the AO") making disallowance of Rs. 7,48,492/- u/s 40(a)(ia) of the Act, treating the cost of purchase of milk and quality maintenance charges paid to the members society as the rent income u/s 194-I of the Act and hence, not justified. (2) On the facts and in the circumstances of the case and in law, the learned CIT(Appeals)ought to have appreciated that the claim of expenditure ofRs. 7,48,492/- is being towards the purchase cost of milk on purchase of milk from members society and not for the alleged quality maintenance charges, but the transaction in question falls within the ambit o....
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....e was selected for scrutiny. During the assessment, the Assessing Officer on the basis of information gathered from the office of Income Tax Officer Ward-2 Bardoli that the assessee has paid rent of Rs. 7,48,492/- to Shri Bandharpada Dudh Utpadak Sahakari Mandli Ltd. On account of bulk chilling unit (for the sake of brevity "BCU") has not deducted tax while making payment. Shri Bandharpada Dudh Utpadak Sahakari Mandli Ltd. has shown the said amount as rent in its return of income. Therefore, the Assessing Officer issued show cause notice as to why the said rent expenses of Rs. 7,48,492/- should not be disallowed by the provision of section 40(a)(ia) of the Act and added income of assessee. The assessee filed its reply dated 21.10.2016. In r....
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.... in case the payer failed to deduct the whole or any part of tax in accordance with the provision of Chapter- XVII-B of the Act on the sum paid to a resident or on the sum credited to the account of a resident (payee) shall not be deemed to be an assessee in default in respect of such tax, if such resident has furnished his return of income under section 139 of the Act, has taken into account such sum for computing income of such return of income and has paid the tax due on the income declared by him and the person furnishes a certificate to this effect from an accountant in such form as may be prescribed. The assessee further explained has furnished the certificate of Chartered accountant in Form-26A (under Rule 31ACB) that the recipient a....
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....ed that assessee is free to make suitable application under section 154 of the Act with prescribed document before Assessing Officer and it would dispose of the same as per law. Aggrieved by the order of Ld. CIT(A) the assessee has filed present appeal before this Tribunal. 6. We have heard the submission of both the Ld. Authorized Representative (AR) for the assessee and the Ld. Senior Departmental Representative (DR) for the Revenue. The Ld. AR of the assessee submits that assessee has not paid any amount on account of rent or there is no written contract or written agreement between the assessee and the Shri Bandharpada Dudh Utpadak Sahakari Mandli Ltd. (Dudh Utpadak Sahakari Mandli), about the payment of the alleged rent. The Ld. AR fo....
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....at the assessee may raise such plea before Assessing Officer. The Ld. AR of the assessee submits that assessee has furnished the certificate of chartered accountant and relevant document of certifying the payee has included the impugned receipt in their gross total income and therefore no additions were sustainable against the assessee. The Ld. AR for the assessee submits that the assessee is entitled to succeed on primary as well as on alternative submissions. 9. On the other hand, Ld. Senior DR for the Revenue has supported the order of lower authorities. 10. We have considered the rival submission of both the parties and have gone through the order of lower authorities. We find that the Assessing Officer made disallowance of Rs. 7,48,4....
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....assessee has not made any claim before the Assessing Officer by filing relevant documents. It is settled law that no fresh relief can be raised before the Assessing Officer except by filing revised return of income as has been held by Hon'ble Supreme Court in Goetze India Limited Vs CIT (2006) 284 ITR 323-SC. However, these restrictions are not applicable on appellate authority as held by Hon'ble Bombay High Court in case of CIT Vs Pruthvi Broker Shareholder Limited 349 ITR 336 (Bom). Further, the scope of application under section 154 is limited for rectification of mistake in the order which is apparent. In our view the Ld. CIT(A) was not justified in rejecting the alternative claim of the assessee. Considering the fact that appel....