Jharkhand State Beverages Corporation Limited Vs ACIT (ITAT Ranchi)
CIT(A) Failed to Adjudicate Ground on Subsequent TDS Compliance — Matter Remanded for Fresh Decision
The Ranchi Bench of the ITAT partly allowed the assessee’s appeal for statistical purposes and set aside the order of the CIT(A), Patna, remanding the matter for fresh adjudication of all grounds.
The assessee, a Government of Jharkhand undertaking entrusted with liquor marketing operations, had claimed certain expenditures by way of provisions. The Assessing Officer disallowed 30% of the expenditure on the ground of non-deduction of TDS. Before the CIT(A), the assessee had specifically raised a ground that if the disallowance for non-deduction of TDS is sustained, the expenditure should be allowed in the year in which the payments were actually made and TDS was subsequently deducted and deposited.
The Tribunal noted that the CIT(A) failed to adjudicate this specific ground (Ground No. 9) and did not examine the assessee’s contention regarding subsequent crystallisation of liability, payment, and TDS compliance. Since these issues went to the root of the matter and remained unexamined, the ITAT held that the appellate order suffered from non-adjudication of material grounds.
Accordingly, the ITAT set aside the CIT(A)’s order and restored the matter to his file for de novo adjudication after granting the assessee a personal opportunity of hearing.
FULL TEXT OF THE ORDER OF ITAT RANCHI
1. This is an appeal filed by the assessee against the order of the ld. CIT(A), Patna-3, Patna in Appeal No. CIT(A), Patna-3/10513/2017-18 dated 24/12/2024 for the A.Y. 2018-19.
