Debjyoti Dutta v. ITO - Taxpublishers.in

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INCOME TAX ACT, 1961

Section 40(a)(ia)

Where department could not controvert the situation that payment to person was made in a small amount which was less than Rs. 20,000 in a day and it was also not in dispute that amount was paid by assessee as per the requirement of use of machine hire charges, therefore, matter was remanded back to AO for re-adjudication.

Business disallowance under section 40(a)(ia) - Non-deduction of TDS - Payment made for machine hire charges -

AO made disallowance under section 40(a)(i) alleging that an amount was paid to Mr. K as machine hire charges and no tax has been deducted. Assessee submitted that payments were made in small amounts which are less than Rs. 20,000 in a day. Therefore, the provisions of section 40(a)(ia) could not be applied. Held: Department could not controvert the situation that payment to Mr. K was made in a small amount which was less than Rs. 20,000 in a day and there was no contract or sub-contract between the assessee and Mr. K. It was also not in dispute that amount was paid by assessee as per the requirement of use of machine hire charges. AO had not examined and verified the contention and explanation of the assessee, thus, matter was remanded back to AO for re-adjudication.

REFERRED :

FAVOUR : In assessee's favour by way of remand

A.Y. :

IN THE ITAT, CUTTACK BENCH

CHANDRA MOHAN GARG, J.M. & LAXMI PRASAD SAHU, A.M.

Debjyoti Dutta v. ITO

ITA No. 390/CTK/2014

2 January, 2020

Assessee by: P.C.Sethi, AR

Revenue by: Subhendu Dutta, DR

ORDER

C.M. Garg, J.M.

This is an appeal filed by the assessee against the order of the Commissioner (Appeals), Cuttack dated 7-7-2014 for the assessment year 2008-2009.

2. The assessee has raised the following grounds of appeal:

1. That, the learned Commissioner (Appeals) has committed serious error in not quashing the assessment order passed under section 143(3)/ 263 of the Income Tax Act, 1961 (Hereinafter referred as 'the Act') in accordance with prayer of the appellant and for which said assessment order is liable to be quashed.