2026 (2) TMI 1373

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....ER M. BALAGANESH, AM 1. The appeal in ITA No.5115/Del/2025 for AY 2018-19, arises out of the order of the ld. Commissioner of Income Tax (Appeals)/ Addl/ JCIT(A), Bhubaneswar [hereinafter referred to as 'ld. JCIT(A)', in short] dated 25.06.2025 against the order of assessment passed u/s 201 of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 31.10.2023 by the Assessing Offi....

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....is a company engaged in the business of manufacturing of Switch gears and UPS systems. It is not in dispute that the assessee had made certain provision for expenses by not crediting to the concerned account of the payees or by identifying the names of the payees. But since those expenses have been debited in the profit and loss account, the assessee voluntarily disallowed 30% of those expenses u/....

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....ious Tribunals favouring the assessee which had held that since the account of the payee is not identifiable and since there was no credit to the account of the payee as at the end of the previous year in respect of provision for expenses, there would be no obligation on the part of the payer to deduct tax at source and consequently, there would be no disallowance u/s 40(a)(ia) of the Act. Despite....

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....01(1) of the Act and consequently of interest u/s 201(1A) of the Act. This action of the ld AO was of upheld by the ld CIT(A). 5. The facts narrated above are not in dispute before us. The assessee had indeed given the complete details of amounts being credited to the account of the concerned payee in subsequent year after due deduction of tax at source and remittance of the said TDS to the acc....