TaxTMI 
TaxTMI 
TaxTMI 
2024 (11) TMI 683
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....rd to the assessment order passed under section 143(3)/254 of the Income Tax Act,1961(henceforth the 'Act') passed for the Assessment Years 2007-08, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14. Since the grounds of appeal in all these cases are common apart from slight variations in figures, and have been decided by the ld.CIT(A)/NFAC giving the same finding, they are being adjudicated vide a composite order for the sake of brevity. 2. It may be stated at the outset here that vide a composite order dated 9.4.2018,the Coordinate 'E' bench of ITAT, Mumbai in ITA No.7642/M/2012 and ors. on the issues involved in appeals for AY 2009-10/2010-11/2012-13/2013-14 had remitted the matter back to the ld.AO to examine afresh in the light of 2nd Provi....
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....ing grounds of appeal : "1. On the facts and in the circumstances of the case and in law, the learned CIT erred in confirming disallowance of Rs. 821,658. 4. Facts of the case as culled from the records reveal that the assessee is an Individual. As the business receipts exceeded the threshold, he was required under the Act to deduct TDS under respective provisions. The AO observed that the appellant failed to do so in matters of payment to NBFCs and to an exempt trust. Accordingly, the AO disallowed the payment u/s 40(a)(ia) of the Act. The ld.CIT(A) confirmed the additions. However, in the first round of appeal, the ITAT set aside the matter back to the file of the AO for fresh adjudication after proper verification. In the de novo asse....
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.... the assessee provided only a certificate from an accountant. As per the Finance Act 2012, failure to deduct tax without meeting specific conditions results in the assessee being deemed in default. Accordingly, in the set-aside assessment order passed u/s 143(3) rws 254 dated also the same addition was made. 4.2 It was observed by the ld.CIT(A) that in the set aside assessment the AO was directed to verify whether the interest payment has been included in the Income and the taxes have been paid thereon by the respective deductees. The AO allowed sufficient opportunity to the appellant to submit the documentary evidence to verify the truth in question. The Appellant however filed only a certificate from chartered accountant in form no-26A b....
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....rm issued by an Accountant gives the said information that the payee has filed the return of income, the income paid by the payer is included therein and amount of tax paid by it. Accordingly, the assessee furnished relevant details in Form 26A.The certificate of an Accountant was also filed. The ld.CIT(A) has laid emphasis on production of ITRs, audit report, proof of tax payment etc as well which according to him, the assessee failed to produce leading to upholding the disallowance made by the AO. 6.1 It would be relevant to reproduce the extract of Section 40(a)(ia) of the Income Tax Act,1961 which reads as under - "Section 40(a) (ia) thirty per cent of any sum payable to a resident, on which tax is deductible at source under Chapter ....
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....terest payments. However,2nd proviso does reduce the rigours of section 40(a)(ia) where the payee has disclosed the said interest and paid taxes thereon by filing its return. The assessee in this case, has duly submitted Form no.26A evidencing such disclosures by the payees. However, the AO was not amused and needed further details such as relevant ITRs, audit report, tax challans etc. Evidently, the assessee has discharged the primary onus in the matter as neither the AO nor CIT(A) have doubted the correctness of the said form duly certified by the Chartered Account. However, the AO is well within his powers to examine the veracity of the said forms and for which he is adequately empowered under the Act and to seeks relevant information fr....