2026 (4) TMI 1458

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....2018-19. 2. The brief facts of the case are that, the assessee AMRCL KCL (JV) filed its return of income for A.Y. 2018-19 on 22.10.2018 declaring total loss of Rs. 15,10,040/-. The case was selected for scrutiny and during the course of assessment proceedings, the A.O. noticed that the assessee has claimed major expenses on account of subcontract expenses of Rs. 10,91,01,703/-, whereas the assessee has filed confirmation from one subcontractor AMR India Limited for an amount of Rs. 10,40,24,688/-. Therefore, the difference of Rs. 50,77,015/- has been treated as unexplained expenditure under Section 69C of the Income Tax Act, 1961. The A.O. further noted that, the assessee has failed to deduct tax at source on subcontract expenditure of R....

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....allowance under Section 40a(ia) of the Act, for non-deduction of tax at source under Section 194C of the Act, on the ground that the assessee could not file relevant Form 26A from the accountant, certifying the payments considered by the recipient in the ITR filed for the relevant assessment year. 5. Aggrieved by the order of the Ld. CIT(A), the assessee is now in appeal before the Tribunal. 6. The first issue that came up for our consideration from Ground Nos. 2 to 4 of assessee's appeal is disallowance of subcontract expenditure under Section 40a(ia) of the Act, for non-deduction of tax at source under Section 194C of the Act. 7. The learned counsel for the assessee, Shri A.V. Raghuram, Advocate, referring to petition filed by th....

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.... to verify the claim of the assessee in light of relevant Form No. 26A filed by the assessee and decide the issue in accordance with law. 10. The next issue that came up for our consideration from Ground No. 5 of assessee's appeal is addition of Rs. 50,77,015/- under Section 69C of the Act, towards the difference in subcontract expenditure debited to the profit and loss account and confirmation filed by the subcontractor. The A.O. made addition of Rs. 50,77,015/- on the ground that the assessee claimed subcontract expenditure of Rs. 10,91,01,703/- and as per the confirmation filed by the subcontractor, AMR India Limited, they have shown receipts of Rs. 10,40,24,688/-. The arguments of the assessee that the A.O. has wrongly considered onl....