Case Law Details
ITO Vs Senthil Enterprises (ITAT Chennai)
Ld. counsel for the assessee only argued that in view of proviso added by way of amendment in section 40(a)(ia) of the Act, and insertion of second proviso which provides that in case the recipient has included the receipts in their income, no disallowance u/s.40(a)(ia) of the Act will be applicable. At this point, the ld. Senior DR stated that the assessee has not filed any evidence that the recipient has included the receipts in their income. The matter can be referred back to the file of the AO. Per contra, the ld.counsel stated that he is ready to file the details as prescribed under second proviso to section 40(a)(ia) of the Act, i.e., relevant certificate by the auditors of the recipient company that the receipt company has included the receipts in their income and the AO after verifying the same can decide the claim of assessee.
In view of the above fact that the assessee made statement at bar that the recipient has included the receipts in their return of income in regard to these expenses on which assessee has not deducted TDS, in term of second proviso to section 40(a)(ia) of the Act, we remit the matter back to the file of AO, who will consider the claim of assessee after taking relevant evidences.
FULL TEXT OF THE ORDER OF ITAT CHENNAI
These cross appeals are arising out of the order of Commissioner of Income Tax (Appeals)-2, Coimbatore in ITA No.13/14-15, dated 27.02.2017. The assessment was framed by the DCIT, Central Circle – 1, Coimbatore u/s.143(3) r.w.s.144 of the Income Tax Act, 1961 (hereinafter the ‘Act’) vide order dated 17.03.2014 for the assessment year 2011-12.
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