Income Tax Appellate Tribunal - Raipur
M/S Mohan Poddar, vs Jcit, Range 2M, Bilaspur(Cg) on 16 April, 2018
IN THE INCOME TAX APPELLATE TRIBUNAL
RAIPUR BENCH, RAIPUR
(BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
& SHRI RAM LAL NEGI, JUDICIAL MEMBER)
ITA. No: 92/RPR/2015
(Assessment Year: 2010-11)
Mohan Poddar Agrawal V/S JCIT, Range 2M Mahima
Lodge Road P.O. Complex, Vyapar Vihar,
Mahendragarh Distt. Bilaspur (C.B)
Korea
(Appellant) (Respondent)
PAN: AAJFM8244P
Appellant by : Shri S. R. Rao, Adv.
Respondent by : Shri Sanjay Kumar, D.R.
(आदे श)/ORDER
Date of hearing : 09-03-2018
Date of Pronouncement : 16 -04-2018
PER N.K. BILLAIYA, ACCOUNTANT MEMBER:
1. This appeal by the Assessee is directed against the order of the Ld. CIT(A)- Bilaspur, dated 30.01.2015 pertaining to A.Y. 2010-11.
2 ITA No. 92/RPR/2015. A.Y. 2010-11
2. The only grievance of the assessee is that the ld. CIT(A) erred in confirming the disallowance of Rs. 4,72,019/- made by the A.O. u/s. 40(a)(ia) of the Act.
3. The assessee is engaged in the business of Civil Contract and has obtained contract works during the year from State Government, CSIDC, Prime minister Gramin Sadak Yojana, SECL and WCL for construction of Building & Roads. The return for the year was filed on 15.10.2010 declaring total income of Rs. 75,52,120/-.
4. During the course of the scrutiny assessment proceedings, the A.O. noticed that the assessee has paid Rs. 4,72,019/- being finance charges to MAGMA Shrachi Finance Ltd. and Tata Capital Finance Ltd. The A.O. found that no TDS has been made on this amount. The A.O. accordingly disallowed Rs. 4,72,019/- u/s. 40(a)(ia) of the Act.
5. Assessee carried the matter before the ld. CIT(A) but without any success.
6. Before us, the ld. counsel for the assessee stated that finance charges have been paid to NBFCs who have shown the finance charges as income in their respective returns and therefore the assessee is not liable to deduct tax at source as per the amendment brought in the relevant provisions of the Act.
7. We have carefully considered the orders of the authorities below. There is no dispute that the finance charges have been paid to NBFC. Drawing support from the decision of the Hon'ble High Court of Delhi in the case of Ansal Housing Finance and Leasing Company Ltd. in 354 ITR 180. We deem it fit to restore the matter to the files of the A.O. The assessee is directed to furnish 3 ITA No. 92/RPR/2015 . A.Y. 2010-11 necessary details to show that the NBFCs have included the finance charges in their respective returns of income. The A.O. is directed to verify the same and decide the issue afresh as per the provisions of the law.
8. In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.
Order pronounced in Open Court on 16 - 04- 2018
Sd/- Sd/-
(RAM LAL NEGI) (N. K. BILLAIYA)
JUDICIAL MEMBER True Copy ACCOUNTANT MEMBER
RAIPUR: Dated 16/04/2018
Rajesh
Copy of the Order forwarded to:-
1. The Appellant.
2. The Respondent.
3. The CIT (Appeals) -
4. The CIT concerned.
5. The DR., ITAT, Ahmedabad.
6. Guard File.
By ORDER
Sr. P.S.
ITAT,Raipur