TaxTMI 
TaxTMI 
2025 (5) TMI 2151
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.... condonation petition supported by an affidavit, stating that the appeal was migrated from physical to virtual mode due to the COVID-19 lockdown. Therefore, the assessee was not aware of the notices issued by the learned CIT(A) or of the fact that the learned CIT(A) had passed the order. 3. The assessee became aware of the passing of the order by the learned CIT(A) only upon receiving a penalty notice under section 271(1)(c) of the Act. Thereafter, the assessee immediately preferred an appeal to the ITAT. However, in this process, a delay of 279 days occurred. 4. Besides, the learned Authorized Representative (AR) also contended that the assessee has a strong case on merits. Accordingly, the learned AR prayed for the condonation of th....
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....was debited in the profit loss account as interest payable and an amount of Rs. 39,35,397/- was shown in balance sheet as interest payable outstanding. The assessee was asked to provide detail about these amounts shown in profit and loss and balance sheet as interest payable and the detail of TDS deducted on the same. But the assessee failed to provide any detail. Accordingly, the AO, in the absence of tax deducted and Form- 15G/H, vide show cause noticed dated 10th December 2018 purposes to make disallowance the payment of interest of Rs. 40,50,511/-, interest payable of Rs. 23,85,931/- debited in the profit and loss account and interest payable of Rs. 39,35,397/- shown in balance sheet as per the provision of section 40(a)(ia) of the Act.....
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....t of Rs. 491160. This is also given credit. The remaining amount which has to furnish Form 15G and Form 15H is Rs. 323234. 4.2 There is an addition made by the assessing authority at Rs. 2386391 which is interest payable debited to P and L account. Out of that Rs. 1549466 is opening balance. Interest on securities. 193. The person responsible for paying [to a resident] any income [by way of interest on securities] shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax at the rates in force on the amount of the interest payable : 4.3 As per the provisions in secti....
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....ons of law. 15. On the other hand, the learned DR before us did not raise any objection if the matter is set aside to the file of the AO for fresh adjudication as per the provisions of law. 16. We have heard the rival contentions of both the parties and perused the materials available on record. It is noted that the primary issue under consideration revolves around the disallowance of interest payments and interest payable under section 40(a)(ia) of the Act, on the ground of non-deduction of tax at source (TDS) and non-furnishing of requisite Form 15G/15H declarations. The AO, in the course of the assessment proceedings, disallowed amounts aggregating to Rs. 40,50,511/-, Rs. 23,85,931/-, and Rs. 39,35,397/-, respectively, due to the a....
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....est paid debited in P&L account included in payable. Without a clear and comprehensive verification of these facts, any adjudication on merits would risk causing injustice either to the assessee or to the revenue. Therefore, we are of the considered opinion that the ends of justice would be best served by setting aside the matter to the file of the AO for fresh examination, with clear directions to provide the assessee reasonable opportunity to submit all necessary details, explanations, and documentary evidence, including reconciliations, TDS challans, Forms 15G/15H, and explanations regarding the opening balances and the actual amounts of liability crystallized or paid during the year. The AO is further directed to verify these details th....