2022 (12) TMI 1491 - AT - Income Tax

TDS u/s 195 - Disallowance u/s 40(a)(i) - payment made to non residents - HELD THAT - Disallowance made u/s 40(a)(i) of the Act, vide order 2015 (2) TMI 1400 - ITAT CHENNAI the Tribunal has noted that neither the Assessing nor the ld. CIT(A) discussed the factual aspects of the issue and therefore, the issue has been remitted back to the file of the Assessing Officer to examine all the facts and decide the issue afresh in accordance with law. It appears according to the submissions made by both the parties that the AO has already passed the order for the assessment year 2009-10 and the appeal is pending before the ld. CIT(A). We are of the considered opinion that similar issue raised in the appeals for the assessment year 2014-15 and 2011-12 should also go back to the ld. CIT(A) to a decision on facts and also on law. In view of the above, we set aside the order of the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh in accordance with law. Disallowance u/s 14A - CIT(A) is directed to decide the issue afresh after obtaining remand report on the fresh evidences produced by the assessee during the course of appellate proceedings. Both the grounds raised by the assessee are also remitted back to the file of the ld. CIT(A) for fresh adjudication.

Summary

Issues:
- Delay in filing the appeal by the Revenue for the assessment year 2014-15
- Disallowance of expenses under section 40(a)(i) of the Income Tax Act for the assessment years 2011-12 and 2014-15
- Disallowance under section 14A of the Act for the assessment year 2014-15
- Appeal filed by the assessee for the assessment year 2011-12 challenging disallowances under section 14A and 40(a)(ia) of the Act

Analysis:

1. Delay in Filing Appeal (2014-15):
The Revenue filed an appeal for the assessment year 2014-15, delayed by four days. The Department submitted a petition for condonation of the delay, which was not objected to by the assessee's counsel. The Tribunal, considering sufficient cause, condoned the delay, allowing the appeal for adjudication.

2. Disallowance of Expenses (2011-12 and 2014-15):
The assessee claimed expenses for professional charges for the assessment years 2011-12 and 2014-15. The Assessing Officer disallowed significant amounts under section 40(a)(i) of the Income Tax Act. However, the CIT(A) deleted the additions after considering the submissions made by the assessee. The Tribunal remitted the issue back to the CIT(A) for fresh adjudication considering similar issues in previous years.

3. Disallowance under Section 14A (2014-15):
For the assessment year 2014-15, the CIT(A) directed the Assessing Officer to recompute the disallowance under section 14A of the Act concerning interest expenditure. The Tribunal instructed the CIT(A) to decide the issue afresh after obtaining a remand report on new evidence presented during the appellate proceedings.

4. Appeal by Assessee (2011-12):
In the appeal filed by the assessee for the assessment year 2011-12, challenging disallowances under sections 14A and 40(a)(ia) of the Act, the Tribunal remitted both grounds back to the CIT(A) for fresh adjudication. Ultimately, all appeals by both the Revenue and the assessee were allowed for statistical purposes.

In conclusion, the Tribunal addressed issues related to delays in filing appeals, disallowance of expenses under specific sections of the Income Tax Act, and directed for fresh adjudication by remitting matters back to the CIT(A) for proper examination and decision in accordance with the law.