Course 5 Intelligent Ltd Vs PCIT (ITAT Bangalore)
No Escape from 36(1)(va): Assessee Concedes, Tribunal Confirms PCIT’s Revision; Revision Sustained Due to Non-Verification of TDS on Major Payments; PCIT Correct in Reopening Assessment Where Employee PF/ESI Was Remitted Late; Assessee’s Concession on PF/ESI and TDS Verification Leads to Confirmation of 263 Order; AO’s Lack of Enquiry on TDS Deduction Justifies Section 263 Invocation; Claim of Section 10AA Exemption Rejected as It Was Never Raised Before PCIT; Verification of TDS on Professional Fees and Rent Mandated—263 Revision Stands; Section 263 Valid Where AO Allowed Expenditure Without TDS Compliance Checks
Assessee filed return declaring income of Rs.6.16 crore. AO completed assessment u/s 143(3) on 28.09.2022 after disallowing education cess of Rs.6,59,463/-.
PCIT invoked revision u/s 263 on examining records & noted three issues: (i) possible short-deduction of TDS on professional services of Rs.8.92 crore, (ii) TDS deduction issues on land / building / furniture / rent payments of Rs.6.36 crore where some payments were covered by lower deduction certificates, & (iii) employees’ PF/ESI contribution of Rs.20,74,567/- not remitted within statutory due dates attracting disallowance u/s 36(1)(va). PCIT held that AO had not carried out requisite enquiry & set aside assessment with directions to verify TDS compliance & to apply disallowance of employees’ contribution.
