2026 (5) TMI 1557

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....arned Addl/JCIT (Appea10-2. Pune u/s 250 of the Income Tax Act, 1961 is illegal, unjustified, arbitrary and had in law. 2. That the Learned CIT(A) erred in confirming the disallowance of Rs. 4,42,040/- made by the Assessing Officer u/s 40(a)(ia) of the Income Tax Act on account of JCB rent payment. without properly appreciating the facts and submissions filed by the appellant. 3. That the Learned CIT(A) erred in law and on facts in confirming the disallowance of interest expenditure amounting to Rs. 6,51,615/- alleging diversion of interest-bearing funds for non-business purposes. 4. That the appellant craves leave to add, alter, amend or withdraw any of the above grounds of appeal at the time of hearing." 2. T....

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.... source is mandatory and failure to do so attracts disallowance under Section 40(a)(ia) of the act. Reference may be made to the decision of the Hon'ble Punjab and Haryana High Court in Rakesh Kumar & Co, v. Union of India And Others (2009) 178 Taxman 481/(2009) 15 CPT 158 (PUNIJ, & HAR.), wherein it was held that disallowance under Section 40(a)(ia) is valid where the assessee fails to comply with TDS provisions. 6.2.3 In view of the above facts and the settled legal position, the disallowance of Rs. 4,42,040/- made by the Assessing Officer under Section 40(a)(ia) is found to be justified, Accordingly, this ground of appeal is dismissed." 7. That neither before the first appellate authority nor before this Bench, any eviden....

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.... 8. That further the assessee has only made bare assertions that the payee had paid the due taxes. There is no evidence on record that payee [M/s. Fiza Traders] has paid the due taxes on the said rent received. Nothing has been brought on record either at the time of assessment proceedings or at the time of hearing before the first appellate authority nor evidence placed on record along with appeal memo before this Bench. Mere assertions therefore cannot take the place of true facts. That in absence of documentary evidence, I find no infirmity with the findings of the Ld. CIT(Appeals)/NFAC which is upheld. Thus, the Ground of appeal No.2 is dismissed. 9. Regarding the Ground of appeal No.3, the facts are that the A.O observed that the ....