Nirav Mahendrabhai Tamboli Vs ITO (ITAT Panaji)
Panaji ITAT Remands ₹42.45-Lakh TDS Demand Computed on Gross Salary, Rent and Staff-Accommodation Payments
Summary: The assessee, a partnership firm engaged in the hotel business in Goa, challenged a demand of ₹42,45,351, comprising ₹23,07,236 under Section 201(1) for non-deduction of tax at source and ₹19,38,079 under Section 201(1A) as interest, for Assessment Year 2018-19.
The TDS Officer had issued a compliance notice under Section 133(6) on 16.11.2022. The assessee did not comply, stating that the hotel was not operational when the notices were issued. The Assessing Officer, based on information appearing in the balance sheet, computed the TDS liability on salary, rent and staff-accommodation payments. The CIT(A) subsequently passed an ex parte order confirming the demand after the assessee did not respond to notices fixed for 17.07.2025, 27.08.2025 and 24.10.2025.
Before the Tribunal, the assessee submitted that it could not respond to the notices due to bona fide and reasonable cause. On merits, it contended that the TDS liability had been calculated on the gross amounts of salary, rent and staff accommodation, whereas payment-wise details were available to establish that payments to individuals and accommodation providers did not exceed the applicable limits requiring deduction of tax at source. The assessee therefore sought another opportunity to furnish the relevant details.
