Karmyogi Shankarraoji Patil SSK Ltd. Vs ACIT (ITAT Pune)
Pune ITAT Restores Section 40(a)(ia) Disallowance for Fresh Adjudication After Assessee Seeks Opportunity to Contest TDS Liability Under Section 194Q
The Pune ITAT held that, in the interest of substantial justice, the assessee deserved one more opportunity to contest the disallowance of ₹2.89 crore under section 40(a)(ia) arising from the alleged failure to deduct tax at source under section 194Q on purchases exceeding the prescribed threshold. The Tribunal noted that the Assessing Officer had disallowed 30% of purchases aggregating to ₹9.65 crore on the ground that the assessee had failed to deduct TDS at 0.1% under section 194Q, while the CIT(A) had merely affirmed the disallowance because the assessee, despite seeking adjournments, failed to furnish supporting submissions during the appellate proceedings. Accepting the assessee’s request for a fresh opportunity, the Tribunal set aside the order of the CIT(A) and restored the matter for de novo adjudication, directing the appellate authority to call for a remand report from the Jurisdictional Assessing Officer, permit the assessee to rebut the findings, and thereafter decide the issue in accordance with law after granting a reasonable opportunity of hearing.
FULL TEXT OF THE ORDER OF ITAT PUNE
