Date of Order: July 27, 2023
Case Number: ITA 2828/DEL/2022
Assessment Year: 2018-19
This case involves an appeal filed by Modlite Communications, Delhi, challenging the order of the ITO, Ward-27(1), Delhi, which disallowed an amount of Rs.6,15,000 on account of late deposit of TDS under Section 40(a)(ia) of the Income Tax Act, 1961, for the assessment year 2018-19.
The Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘SMC’, consisting of Judicial Member Shri Challa Nagendra Prasad, reviewed the case. The appellant filed its return of income for the assessment year under dispute, and an intimation order was passed on May 31, 2019, disallowing Rs.6,15,000 due to an alleged belated payment of TDS.
The appellant contended that there was no belated payment of TDS and that all payments were made within the stipulated period for filing the return of income under Section 139(1) of the Act. The disallowance occurred due to the incorrect filling of columns in the return form.
The appellant, represented by Shri Vivek Bansal, Adv., and Shri Sanjay Jain, CA, argued that all TDS payments were made on time and provided the relevant challans as evidence. The appellant claimed that the figures were incorrectly submitted in the return form, leading to the disallowance. They requested that the disallowance be overturned as the TDS payments were made within the due date for filing the return.
The respondent, represented by Shri Om Prakash, Sr. DR, suggested that the matter be restored to the Assessing Officer (AO) for verification.
The tribunal found substantial force in the appellant’s submissions and noted that the columns were incorrectly filled up in the return. The tribunal observed that all TDS remittances were made before the due date for filing the return of income, and therefore, there was no question of disallowance under Section 40(a)(ia) of the Act.
The tribunal decided to restore the matter to the AO for verification, instructing the AO to examine the evidence and contentions of the appellant and pass an appropriate order after providing adequate opportunity for the appellant to be heard.
The ITAT allowed the appeal for statistical purposes, emphasizing procedural fairness and the importance of verifying the appellant’s claims accurately.
This case highlights the significance of correct documentation and procedural compliance in tax filings. The tribunal’s decision ensures that taxpayers are not unduly penalized due to clerical errors and underscores the necessity for thorough verification by tax authorities.
Order pronounced in the open court on July 27, 2023.
Judicial Member: Shri Challa Nagendra Prasad
Assessee Representation: Shri Vivek Bansal, Adv., and Shri Sanjay Jain, CA
Department Representation: Shri Om Prakash, Sr. DR
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