PNC SPSCPL (JV) Vs DCIT (TDS) (ITAT Agra)
ITAT Agra held that evidences with regard to deposit of income tax deducted at source (TDS) filed for the first time before ITAT hence appeal allowed with direction to AO to verify the documents.
Facts- The assessee is engaged in the business of road construction. It acquires road construction contracts and further sub contracts them to other concerns. AO observed from the documents furnished online i.e. Form No. 3CB Report Point No. 34 ,furnished by the assessee that the assessee has not deducted any TDS in respect of any of the transactions for F.Y. 2016-17. From the perusal of P&L Account of the audit report, the AO observed that the assessee has provided sub-contracts amounting to Rs.1,69,73,793/- to M/s. PNC Infratech Limited and S.P. Singla Constructions Pvt. Ltd. without deducting TDS on the payments. AO asked the assessee to submit the details, but no explanation were furnished. AO treated the assessee as assessee-in-default u/s. 201(1) and 201(1A) of the Act for non-deduction of TDS on the sub-contract payments and assessee was directed to pay demand of Rs. 4,99,030/-.
CIT(A) dismissed the appeal. Being aggrieved, the present appeal is filed.
Conclusion- Held that the assessee has duly filed before ITAT, evidences in the form of copy of challan for depositing income-tax deducted at source(TDS) u/s 194C along with interest. These documents/evidences are filed for the first time before ITAT. Thus, based upon these documents /evidences , which are now filed before me for the first time and the statement made by ld. Counsel for the assessee before the Bench, I am of the considered view that the assessee must succeed in this appeal. However, since the documents are filed for the first time before me, they require verification. I allow the appeal of the assessee and direct AO to grant appropriate credit for TDS/Interest deposited by the assesse after verifying the documents.
