Neelanchal High Rise LLP Vs ACIT (ITAT Bangalore)
Only TDS Issue Scrutinised— CPC Adjustments on 36(1)(va), 43B & 40(a)sustained Without Enquiry- Remanded for Proper Verification
Assessee LLP filed return on 30.05.2021. CPC made adjustments u/s 143(1) amounting to Rs.32,15,117/-. Case was later selected for scrutiny under CASS to examine business receipts subject to TDS. Notices u/s 143(2) & 142(1) were issued on 29.06.2021 & 27.10.2021. Assessee responded on 01.12.2021 with documents. AO accepted the CPC-determined income & completed assessment u/s 143(3) on 02.09.2022 but retained CPC’s disallowances u/s 36(1)(va), 43B & 40(a).
Assessee appealed before CIT(A)/NFAC, disputing the above disallowances. CIT(A) partly upheld AO’s findings. Assessee thereafter filed appeal before Tribunal with a delay of 345 days, explaining non-receipt of NFAC order. Application for condonation explained that Assessee became aware of the order only upon meeting the tax authorities on 15.05.2025. Tribunal found explanation reasonable, noted absence of prejudice to Revenue, & condoned the delay.
On merits, Tribunal examined the synopsis & documents filed by Assessee. Tribunal observed that AO issued notices only on TDS-related business-receipt verification & neither AO nor CPC had raised queries on the disallowances u/s 36(1)(va), 43B & 40(a). Therefore, Assessee had no opportunity to furnish details. CIT(A) also confirmed disallowances without properly dealing with these contentions or examining documents.
