Income Tax Appellate Tribunal - Chandigarh
Sh. Rana, Ludhiana vs Ito, Ludhiana on 20 December, 2021
आयकर अपील य अ धकरण,च डीगढ़ यायपीठ "बी", च डीगढ़
IN THE INCOME TAX APPELLATE TRIBUNAL,
CHANDIGARH BENCH 'B, CHANDIGARH
BEFORE: SHRI SUDHANSHU SRIIVASTAVA, JUDICIAL MEMBER
AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER
ITA No. 171/Chd/2020
(Assessment Year: 2013-14
Sh.Rana, बनाम Income Tax Officer,
Chawla Colonisers & Ward-6(2),
Builders, 2260 Phase II, Ludhiana.
Dugri, Ludhiana.
थायी लेखा सं./PAN NO: AEPPR0453K
नधा रती क ओर से/Assessee by: Shri Parikshit Aggarwal, CA
राज व क ओर से/ Revenue by : Shri Ashok Khanna, Addl. CIT
सन
ु वाई क तार ख/Date of Hearing: 07.12.2021
उदघोषणा क तार ख/Date of Pronouncement: 20.12.2021
(Hearing through Webex)
आदे श/ORDER
Per Vikram Singh Yadav, Accountant Member:
This is an appeal filed by the assessee against the order of Learned Commissioner of Income Tax ( Ap p e a l s) -3 [i n s hor t the 'Ld .C I T(A )' ], Ludhiana dated 15.11.2018 wherein the assessee has taken many grounds of appeal which effectively relate to challenging the order of the Ld.CI T(A) in confirming the addition of Rs.48,19,477/- u/s 40(a)(ia) of the Income Tax Act, 1961 (in short 'the Act').
2 ITA No.171/Chd/2020
A.Y.2013-14
2. A t the outs e t, it i s n ote d th a t t he re is a d e l ay i n fi l in g the p re se n t a ppe a l b y 3 5 8 d a ys . I n thi s re g a r d, the Ld. AR sub mi tte d th a t the a s se s se e had i n it ia l l y e ng a ge d an Ad voc a te Sh r i Vi j a y S ha rma f or fi l in g a nd a rg ui ng the pr e se n t a p pe a l an d a l l ne ce s sa r y d oc ume n ts in clu di n g th e imp ug ne d o rd e r w e re p r ovi de d to h im. H ow e ve r, the a dv oca t e fe l l ser i ou sl y i ll a n d w a s d i a gn ose d w it h b r a i n tumor a nd hi s h e a l th co nd i tio n con ti nu e d to re ma in ba d e ve n as on da t e . It was sub m i tte d tha t a l l- a lon g, th e a sse sse e w a s u nd e r the i mp r e s sion t ha t th e p re se n t a ppe a l ha d b ee n f i le d by th e A d voc a te , h ow e ve r , s ub se que ntl y o n re ce i p t of commu ni ca t ion f r om t he AO re ga r d in g in itia tio n of pe na l ty p r ocee d ing s, h e c a me to k n ow t ha t t he i mp ug ne d or de r ha s not be e n a p pe a le d a ga i ns t. S ub s e qu e nt ly , the a sse sse e c on ta cte d the C o un se l 's of fi ce a nd he w a s t old a bo ut th e i l l h ea l th of the C oun se l a n d th e fa ct th a t th e a pp e a l ha s n ot b ee n fi le d . The re a ft e r t he a s se s se e e ng a ged a noth e r C ou nse l to p r e p a r e a nd fi l e the p r e se nt a pp e a l wh i ch w a s th e rea fte r f ile d w ith in a pe r iod of 10 d ay s of a pp oi n tme n t of the ne w C ounse l. It was ac cor d in gl y sub mi tte d th a t th e de l a y so ha p p e ne d wa s tot a ll y un in te n ti ona l a nd d ue t o b ona f i de re a s ons the a pp e a l cou ld not b e f ile d a n d i n thi s r e g a r d, an a f fi d a vi t of the a sse ssee ha s a ls o bee n f il e d a l on g w i th con d ona ti on a p p li ca t ion . It 3 ITA No.171/Chd/2020 A.Y.2013-14 wa s a cc or di n gly su bmi tte d t ha t th e d e l a y s o ha p p e ne d i n fi li n g th e p re se nt a p p e a l be con don e d a nd the a pp e a l of the a sse sse e be he a rd on me r i ts.
3. Th e Ld . D R s ub mi tte d t ha t the re i s a sub s ta nt ia l d e l a y in f i li ng t he p res e n t a p pe a l a nd th e a sse ssee ha s not bee n a bl e to e x pl a i n th e re a so na b le cau se f or the de l ay i n fi l in g the p re se nt a p pe a l. H e a cco rd i ng ly op p ose d the co nd on a ti on pe ti tio n fi le d b y th e a sse ssee .
4. Heard b oth the p a r ti e s and pur u se d the ma t e r ia l a va i la b l e on re cor d. The re i s no d i sp ute th a t the re ha s bee n a d e la y i n f i li n g th e p re se nt a p pea l a nd th e pe r i od of d e l ay a s co mpu te d b y the Re gis tr y c ome s to 3 5 8 d a ys. The r e i s a ls o no di sp u te th a t u nd e r se ct ion 2 5 3( 5 ) of t he Act , th e Tr i b un a l ma y a d mi t a n a p p e a l fi le d be yon d the p e r i od of li mi ta ti on w h e r e it is sa ti s fie d th a t t he re w a s s uf fi ci e nt ca us e on t he p ar t of the a sse ssee f or n ot p re sen tin g th e a pp e a l w ith i n the p re s cr i be d ti me . The e xpl a n a ti on of th e a sse sse e the re f or e be come s re leva n t to d e te r mi ne w he the r the sa me r e fle cts suf f ic ie nt ca us e on h is part in n ot pr e se n ti ng the p re se n t a p pe a l w i th in th e pre scr i bed ti me . I n the i nst a nt ca s e , it ha s b e e n c on te n de d b y th e ld A R a n d a s a ls o sta te d i n t he a f fi d a vi t so s ub mi tte d b y th e a sse sse e tha t the a sse ssee wa s un de r a b e l ie f th a t the ap p e al w a s 4 ITA No.171/Chd/2020 A.Y.2013-14 fi le d by his C oun se l , ho we ve r, l a te r on , on re ce i p t of com mun i ca ti on f ro m th e AO r e g ar di n g i n iti a ti on of p e n a l ty pr oc ee d i ng s, he e nq u i re d a nd ca me to k now th a t th e C oun se l ha s be e n d i a gn ose d wit h b r a in t umor a nd hi s he a l th c ont in ue s t o b e ba d a nd d u e t o i ll -h e a lth of th e C oun se l, the a pp e a l wa s n ot f i le d. I t ha s b ee n f ur t he r sta te d th a t the as se s se e e ng a ge d a no the r C ou nse l to p r e p are a nd f i le the p re se n t a p pe a l w h i ch w a s the re a fte r f ile d w ith i n a p e r iod o f 1 0 d ays of a pp oi n tme n t of th e ne w C ouns e l . Th e con te n ts of t he a ff i da v i t h a ve not b ee n d is p ute d b y the Re ve nue . We th e re f ore fi n d tha t t he re is no cu l pa b l e ne g li ge nce or ma l a fi d e on th e pa r t of t he a ss e ssee i n d e l a ye d fi li n g of th e p re se nt a p pe a l a nd he wa s un de r t he b on a fide be lie f th a t the a pp e a l h a s bee n f ile d b y h is C ou nsel w h o h a s be e n e n ga ge d f or t he p ur p ose s of fi l in g a nd a rg ui ng the pr e se n t a p pe a l . W h e re so in str u cte d, it was th e re sp on si bi l it y of th e C o un se l t o fi l e t he a p pe a l a nd w h e re the re w a s i na b i lity on h i s p a r t in f i li n g the a p peal th oug h du e t o h is i ll -h ea l th , i t w a s e xp e cte d th a t he sho ul d ha ve a tle a st c ommun i c a te d the sa me to t he a s se sse e so th a t the la tt e r cou ld h a ve t a ke n a p p r op r iat e a l te r n a te me a sur e s a nd ste p s to f i le the a p pe a l w hi ch un for tu na t e l y ha s n ot ha p p e ne d in thi s i n sta n t ca s e . The a sse sse e th e r e f ore ca n not b e pe na l ize d for la c k of com mun ic a ti on or i na c ti on 5 ITA No.171/Chd/2020 A.Y.2013-14 on pa rt of th e C oun se l. At the sa me ti me , i t w a s al so e xpe c te d on p a rt of t he a sse sse e to fol l ow up on t he ma tte r wi th hi s C oun se l f r om ti me to t ime , h ow e ve r , ther e a ga i n i s a n un sp ok e n an d ge ne r a ll y u nd e r s tood be l ie f w h ic h the a sse sse e ca r r ie s th a t on ce the C ou nse l i s e n ga ge d an d h a s be e n gi ve n p r oper i ns tr uc io ns, th e C o un se l w i ll ta ke ca re of the ma tte r a nd n ee d f or c ommu n ic a ti on a ri se s onl y w h ere the re i s ne e d f or a n y fr e s h i nst r uct ion s. O n b a l a nc e , we fi nd tha t th e re e xi sts s uf fi ci e n t an d r e a s ona b le ca u se for con do ni ng th e d e la y i n f i li n g th e p r e se n t a p pe a l an d a s he ld by th e H on'b l e Su p r e me C our t, w he re s ub sta n ti a l j us ti ce a nd te c hn ic a l cons id e r a ti on s a re p it te d a ga i ns t e a ch o the r, the ca use of s ubs ta nt ia l j u sti ce de se r ve d to be p re fe r re d a nd the a s se s se e d e se r ve to b e he ar d o n me r it s of th e ca se . Th e r e for e , i n e xer ci se of po we r s und e r se cti on 2 53( 5 ) o f th e Act , w e he re b y c ond on e the de l a y i n f i li ng the pre se nt a pp e a l a s we a re s a ti sf ie d th a t t he re w a s s uf fi cie n t ca us e for not p r e se n ti ng the a p pe a l w i thin t he pre scr i be d ti me a nd the a p pe a l i s he re b y a d mit te d f or a dj u di ca t ion on me r i ts.
5. N ow , comi ng t o the me r i ts of the ca se . B r i e f ly , th e fa ct s of th e c a se a re t ha t the ass e s see i s c a rr y in g on th e pr op e r t y b u si ne ss i n the n a me a nd styl e of M/ s C h a w la B ui ld e rs and Col on is e r s a nd wh i le f il i ng hi s r e tu r n of in come , he has cl a i me d an a moun t of Rs. 4 8 , 19 , 4 77 /- 6 ITA No.171/Chd/2020
A.Y.2013-14 tow a r ds in te re st p a i d to M/s I nd i a I nf oli ne F i na n ce Limi te d a nd M /s Re l ig a r e F in ve st Li mi t e d . Du r in g t he cou r se of a sse ssme nt p ro cee d in gs, t he in f or ma ti on wa s c a ll e d f or b y the A O a n d h e ob se r ve d t ha t the a ss e ssee h a s cl a ime d th e a for e s a i d e xpe n se s wi th out d e d ucti on of ta x a t s our c e u /s 19 4 A of t he Act a n d a sh ow ca u se noti ce w a s i ss ue d to the a sse sse e . I n re sp on se , t he a ss e ssee s ub mit te d t ha t he h as pa i d th e to ta l inte re st o n t he loa n r a i se d du r in g t he ye a r un de r con si d e r ati on a nd no i n te re s t is o uts ta nd i ng as pa y a bl e a s on th e ye a r e n d a n d, th e re f ore , the p r ov is ion s of se c tio n 4 0( a ) (i a ) o f the A ct a re not a p p li c a bl e .
6. Th e re p ly so f i le d by the a ssess ee was n ot fou nd a cce pt a ble to the A O . A s p e r th e A O , th e ma t te r i s s q ua r e l y cove re d b y the d e c is io n of the H on 'b le Pu nj a b & Ha ry a na Hi gh C ou r t i n the ca se o f P . M.S . D ie se l V s. CI T 3 7 4 I TR 5 62 wh e re in it ha s been he l d tha t the te r m ' pa y a bl e ' is de scr i p ti ve of the p a yme n t w h ic h a ttr a ct the lia b i l ity to de du ct ta x a t sou rc e a nd it d oe s n ot ca te g or ize d e f a ul t on the b a si s w he n the p a yme n ts a re a ctu a ll y ma de to th e p a yee wh i ch a t tr a ct l i abi l it y to de d uc t ta x a t s our ce . A cco rd i ng ly , the AO ma d e a n a dd i ti on o f Rs .4 8,1 9 , 47 7 /- b y i nv ok in g th e pr ov is io ns of s e ct ion 40 ( a ) (i a ) of t he A ct. 7 ITA No.171/Chd/2020
A.Y.2013-14
7. B e i n g a g gr ie ve d , th e a sse ssee ca r r ie d the ma tt e r i n a pp e a l be f ore t he Ld. C I T( A) . I t w a s con te n de d be f ore the Ld. C I T( A) th a t th e re h a s be e n a n a me n d me n t b y t he F in a nce Act , 20 1 2 t o t he p r ovi si on s of se cti on 2 0 1 (1 ) of the A ct as we ll se c tio n 4 0 ( a)( i a ) of th e A ct by vi r tu e of w h ic h w he re the a sse sse e f ur n is he s ce rt if i ca te i n the re q ui si te for ma t t ha t the p a ye e h a s tak e n i n to a ccou nt s uch sum fo r c omp u tin g the i nc ome in its r e tur n of i n come a n d h a s pa i d t he ta xe s du e on t he i n come d e c la re d by h im i n su ch r e tur n of in come , the a s se sse e w il l n ot be he l d a s a n a ss e ssee in de fa u lt . I t w a s sub mit te d t ha t th e a s se s se e h a s a lr e a dy f iled a l e t te r w it h both th e p a rt ie s f or p r ov id i ng t he s aid ce r ti f ic a te a n d he i s re gu la r l y f ol lo wi n g u p for t he sa me a nd it w a s a c cor d in gl y r e q ue s te d t ha t some ti me ma y b e gr a n te d so th a t the a sses see is a ble t o ob ta i n th e ce r ti fi ca t e a nd fu rn i sh th e sa me b e f ore the Ld . C IT( A) .
8. Th e sub mi ss ion s so fi le d by t he a s se s se e w e re con si de re d b ut n ot f oun d a c ce pt a bl e b y t he Ld . C I T( A) . A s pe r the Ld .C I T(A ), th e a s se s se e h a d suf f ic ie nt t ime a t the time of a sse ss me n t p r oce e d i ngs to sub mi t th e ne ce s sa r y ce r ti f ic a te a nd e ve n a fte r a g a p of mor e th a n tw o y e a r s of fi li n g th e a p pe a l, th e a ss e s see has not b e e n a b le to g e t the ne ce s sa r y ce r ti fic a te s fr om the p a r ti e s i n sup por t of his con te n ti on t ha t t he pa yee s ha ve f ur n is he d t he ir r e t ur n o f 8 ITA No.171/Chd/2020 A.Y.2013-14 in come a nd ha v e ta k e n i n to c ons id e ra t ion the sa me a nd h a s pa i d ta xe s t he re on. I t w a s a c cor d i ng ly he ld b y the Ld .C I T(A ) tha t th e a sse ssee h a s fa il e d to pr od u ce ne ce ssa ry e vi de nce wi th re ga r d t o the fa ct t ha t th e ta xe s h a ve b ee n d ul y de po si te d b y t he p a yee s a n d cor r e s po nd i ng income ha ve be e n ta ke n in to c ons id e ra t io n wh il e f i li ng the i r r e spe c tive re tur n s a n d me re fi li n g of u nd a te d le t te r s of th e con ce rne d pa r ti e s d oe s not su pp or t t he ca se of the a ss e ssee . I t w a s fu rt he r he ld by th e Ld .C I T( A ) th a t th e a me n dme nt b r ough t in by the Fi na nc e Act , 2 01 2 is p r os pe cti ve and n ot re tr ospe c ti ve i n n a tur e a n d , the re f ore , the a sse s see c a nn ot be a l l owe d to tak e she l te r un de r the s a id a me n dme nt. Th e Ld. C I T( A) a cco r d i ng ly con fi r me d the or de r pa s se d b y the AO . Ag a in st th e s a i d fi nd i n g a n d or d e r of th e Ld .CI T( A ), th e a sse sse e is i n a pp e a l be fore u s.
9. D ur i ng th e co urse of he a r in g, the Ld . A R s ub m i tte d tha t the a me n dme nt w hi ch ha s b ee n b r oug ht in b y th e Fi na n ce Ac t, 2 01 2 i n se cti on 4 0( a ) (i a ) b y v ir tu e o f w h ic h 2 n d pr ov is o has b ee n in tr od uce d , has be e n hel d to be de cl a r a tor y and cu r a tor y in na t ur e and to be gi ve n re tr ospe c ti ve e f fe ct fr om 1 s t Ap r i l, 2 0 0 5, a s h e l d b y th e Hon 'b l e P un ja b & H a r ya n a Hi gh C our t i n the ca se of Pr . CI T Vs. Sh i vp a l S i ng h C h a ud h ry (20 1 8 ) 4 0 9 I TR 8 7 . I t w a s fu rt he r sub mi tte d tha t in a ny ca s e , the qu e s tio n of 9 ITA No.171/Chd/2020 A.Y.2013-14 re tr ospe c ti ve or pr os p e cti ve n a tu r e o f a me n dme nt d oe s n ot a ri se i n the f a ct s of the p re se n t ca se a s the a s se s sme nt ye a r un de r con si de ra ti on is a s se ssme nt year 2 0 13 -1 4 a nd a me nd me nt is cl e a r l y a p p lic a bl e in t he i mp ug ne d a sse ssme nt ye a r. I t w a s s ub mit te d th a t t he pa yee e n titie s a re k now n N B F Cs a nd i t i s u nl i ke ly th a t the y ha ve n ot f iled the ir re spe c ti ve r e tu r ns of i nc ome a nd ha v e not i nc lu de d the imp ug ne d p a ym e n ts and paid t a xe s the re on. It was a ccor d i ng ly su bmi tt e d th a t th e a sse sse e ma y b e a l l ow e d one mor e op p or tun i ty to sub mi t th e r e q ui si te ce r ti fi ca te s a nd i n the a l te r n a te , th e A O i s we l l e mp ow e re d to ca l l f or the in for ma t ion fr o m th e p a ye e s a n d th e ma tte r ma y thu s b e se t- a si de t o the fil e of the AO t o ve r i fy the sa me . 9A . Al te r na ti ve ly , i t w a s co nte nde d th a t b y vi r tue of the a me nd me nt i n se c ti on 40 ( a ) (i a ) b ro ugh t i n b y the F in a nce Act , 2 0 1 4 , on l y 3 0 % of a n y s u m p a ya b l e to a res id e n t on wh i ch ta x is de du cti b le a t sou r ce a nd s uc h ta x h as no t bee n de du cte d or a fte r d e du cti on ha s not b e e n p a i d on or b e f ore du e d a te s p e cif ie d i n se c ti on 1 3 9 (1 ) of th e A ct c a n b e di sa l l ow e d . I t w a s sub mi tte d th a t b y vi r tue o f the s a id a me nd me nt, on ly 3 0 % of th e s um p a ya b l e c a n be dis a ll ow e d in ste a d of 1 0 0 % a s done b y the A O . I t w a s su bmi tte d th at thou gh the sa i d a me n dme nt h a s b e e n b r ou ght in w .e .f . 01 . 04 . 2 01 5 , how e ve r , it has b ee n con si ste ntly he l d by 10 ITA No.171/Chd/2020 A.Y.2013-14 va r io us B e n che s of the Tr ib un a l th a t th e s a id a me nd me nt nee d s to be re a d r e t r ospe c tive in n a tu re a nd our at te n ti on wa s in vi te d to th e de ci si on of th e C oor d i na te Ja i p ur B e n che s of Tr ib u na l i n t he ca se of M /s N a ta n i Rol li n g Mi ll s Pv t. Ltd . V s. I TO i n C O N os. 29 & 3 0 / JP /20 1 8 a r i s i ng out of I TA N os .5 3 7 &5 3 8 / JP /2 0 1 8 , d a te d 0 2 .0 9 .2 0 1 9 r e la t in g to a sse ssme nt ye a rs 2 0 1 0 -1 1 & 2 0 11 -1 2 w h e re i n th e re le va n t fi nd i ng s re a d a s u nd e r :
"11. During the course of hearing, the AR submitted that an amendment has been made by the Finance Act, 2014 w.e.f. 01.04.2015 in Section 40(a)(ia) whereby it is provided that 30% of any sum payable to a resident shall be disallowed if tax is not deducted at source under Ch. XVIIB as against the 100% disallowance presently made. The purpose of this amendment was explained in the memorandum as under:-
"the disallowance of whole of the amount of expenditure results into undue hardship and therefore In order to reduce the hardship, it is proposed that in case of non- deduction or nonpayment of TDS on payments made to residents as specified in sect/on 40(a)(ia) of the Act, the disallowance shall be restricted to 30% of the amount of expenditure claimed. "
12. The Finance Minister while introducing the amendment in Para 207 of the Budget Speech has stated as under:-
"207, Currently, where an assessee falls to deduct and pay tax on specified payments to residents, 100 percent of such payments are not allowed as deduction while computing his income. This has caused undue hardship to taxpayers, particularly where the rate of tax is only 1 to 10%. Hence, I propose to provide that instead of 100 percent, only 30% of such payments will be disallowed."
13. It was submitted that from the above, it can be noted that the amendment made by FA (No.2) Act, 2014 w.e.f. 01.04.2015 is to 11 ITA No.171/Chd/2020 A.Y.2013-14 remove unintended and undue hardship and therefore this amendment should be give retrospective effect as per the various decisions stated above, The Ld. CIT(A) has incorrectly stated that amendment is not retrospective. Reliance is placed on the five member Bench decision of the Hon'ble Supreme Court in case of CIT Vs. Vatika Township Pvt. Ltd. 109 DTR 33 where it has been held that legislations which modify accrued rights or which impose obligations or impose new duties or attach a new disability have to be treated as prospective unless the legislative intent is clearly to give the enactment a retrospective effect. However, if legislation confers a benefit on some persons but without inflicting a corresponding detriment on some other person or on the public generally and where to confer such benefit appears to have been the legislators object, then the presumption would be that such legislation, giving it a purposive construction, would warrant it to be given a retrospective effect. Therefore even in a case it is held that the disallowance u/s 40(a)(ia) is warranted, same should be restricted to only 30% of the amount of interest paid.
14. It was further submitted that the Hon'ble Supreme Court in case of CIT Vs. Calcutta Export Company (2018) 165 DTR 321/ 255 Taxman 293 has also held that "the purpose of the amendment made to sec. 40(a)(ia) by the Finance Act, 2010 is to remove the anomalies that the section was causing to the bona fide taxpayers and therefore, the amendment being curative in nature is required to be given retrospective operation i.e., from the date of insertion of the said provision w.e.f. AY 2005-06". This ratio laid down equally applies to the amendment made by Finance Act, 2015.
15. It was further submitted that Jaipur Tribunal in case of Shri Rajendra Yadav vs. ITO Ajmer order dated 29.01.2016 in ITA no. 895/JP/2012 after considering the amendment made by Finance Act 2014 in section 40(a)(ia) has held as under :-
" --In the present case, the authorities below has added the entire sum of R.s.7,51,322/- by disallowing the whole of the amount. Though the substitution in section 40 has been made effective from 1.04.2015, in our view the benefit of the amendment should be given to the assessee either by directing the AO to confirm from the contractors, namely M/s. Garvit Stonex, M/s. Chanda Marbles and M/s. Nidhi Granites as to whether the said parties have deposited the tax or not and further or restrict the addition to 30% of Rs.7,51,322/-. In our view it will be tied of justice if the disallowance is only restricted to 30% of Rs.7,51,322/-,"
16. We have heard the rival contentions and pursued the material available on record. In the instant case, there is no 12 ITA No.171/Chd/2020 A.Y.2013-14 dispute that the assessee is liable to deduct IDS on interest payment to Shri Ramesh Chand and non-deduction of the TDS will entail disallowance u/s 40(a)(ia) of the Act, However, in view of the consistent position taken by the Coordinate Benches of the Tribunal wherein the amendment in section 40(a)(ia) has been held retrospective in nature, the disallowance is restricted to 30% of the total amount. In the result, the cross- objection is partly allowed. 10 . P e r c ont r a , t he Ld . D R re l ie d on the or de r s of the low e r a uth or it ie s.
11 . We h a ve h ea r d th e r iv a l con te nti on s a nd p u r use d the ma te r i a l a va i la b l e on re co rd . We f in d th a t a n ame nd me n t ha s b ee n br ou gh t i n b y the F i na n ce A ct, 2 0 1 2 w .e .f 1 . 4 .2 0 1 3 by vi rt ue of w hi ch 2 n d p r ov is o ha s be e n pr ov id e d to se c tio n 40 ( a )( i a ) w h ic h r ea d s a s un de r :
" Prov id ed f u rth er th a t wh ere an a sse sse e f ail s to d ed uc t th e wh o l e or a n y p ar t of th e ta x in ac cord an ce wi th th e prov i s io n s of Ch apter X V II- B on an y su c h su m bu t i s n o t d eeme d to be an a sse ssee in d ef au l t u n d er th e f irst prov iso to su b- se c tio n ( 1 ) of sec tio n 2 0 1 , the n, f o r th e pu r po se of th i s su b- cl au se, i t s h al l be d ee med th at th e a sse ssee h a s d e d u c ted an d p a id th e ta x on su ch su m on th e d ate of f u rn ish in g of re turn of in co me b y the re side n t p aye e ref erred to in th e sa id prov iso. "
12 . Th e i mp ug ne d a ss e ss me n t ye a r is a s se s sme n t ye a r 20 1 3 -1 4 a nd ther e ca n not be a n y d i sp ute th a t the a f or e s a id a me nd me nt is a p p l ic a bl e in t he i ns ta n t c a se . I t has b e e n con te n de d th a t th e p a ye e s a re p ubl i cl y k n ow n N B FC s a nd i t is un l ik e l y th a t t he y h a ve n ot c ons i de re d the p a yme n ts so ma de b y th e a s se s se e wh i le c omp uti ng th e i r i nc ome and 13 ITA No.171/Chd/2020 A.Y.2013-14 fi li n g the ir re spe cti ve t a x re tur n s a nd th e a sse ssee ma y be a ll ow e d a n op p or tun it y t o f ur n is h th e re q ui si te c e r ti fi ca te s in s up p or t of th e sa me . We fi nd tha t the le gi sl a tive ma nd a te so p r ov i d e d b y the a fo re sa i d a me n d me nt sh oul d b e a ll ow e d to re a ch its l ogi c a l con cl us io n a nd con si d e r i ng the sa me a nd i n th e in te re st o f sub s ta nt ia l j us ti ce , w e he re b y a ll ow th e a s se ssee one mor e opp or tu ni ty to f ur ni sh the re q ui si te ce r ti fi ca te s fr om th e resp e cti ve p a r tie s a n d w h ere the ce r tif ic a te s ar e so f ur n is he d b y t he a sse sse e c onta i n in g the re q u is ite in fo rma t ion , a l low the ne ce ss a r y re li e f to the a sse sse e . Th e a l te r n a te co nte nti on is ther e fore n ot con si de re d a nd l e f t ope n . Th e ma tte r i s a c cor d i ngl y s e t- a si de to the fi le of the A ss e ssi ng off i ce r f or the l imi te d pu r po se s of e xa mi ni n g a nd c o ns id e ri n g the ce r ti fi cate s wh i ch s ha l l b e fu r ni sh e d b y the a ss e ssee wi th i n r e as ona b le pe r iod of ti me a s so sp e c if ie d b y th e Asse s si ng of fice r . 13 . I n the r e s ul t, the a p pe a l of th e a s se sse e i s a l l ow ed for sta ti st ic a l p ur p ose s.
O r d e r p r on o u n ce d o n 2 0 .1 2 . 2 0 21 .
Sd/- Sd/-
(SUDHANSHU SRIVASTAVA) (VIKRAM SINGH YADAV)
याय क सद य/Judicial Member लेखा सद य/Accountant Member
Dated: 20.12.2021
*रती*
14 ITA No.171/Chd/2020
A.Y.2013-14
आदे श क % त&ल'प अ*े'षत/ Copy of the order forwarded to :
1. अपीलाथ+/ The Appellant
2. %,यथ+/ The Respondent
3. आयकर आयु-त/ CIT
4. आयकर आयु-त (अपील)/ The CIT(A)
5. 'वभागीय % त न0ध, आयकर अपील य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH
6. गाड फाईल/ Guard File आदे शानस ु ार/ By order, सहायक पंजीकार/ Assistant Registrar