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TMI Blog2024 (11) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... so the payee should file his return of income including such income in return. For this a certificate in Form 26A is required to be furnished. This form issued by an Accountant gives the said information that the payee has filed the return of income, the income paid by the payer is included therein and amount of tax paid by it. Accordingly, the assessee furnished relevant details in Form 26A.The certificate of an Accountant was also filed. CIT(A) has laid emphasis on production of ITRs, audit report, proof of tax payment etc as well which according to him, the assessee failed to produce leading to upholding the disallowance made by the AO. The assessee furnished the certificate of Chartered Accountant (Form 26A) under first proviso to Secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee : Shri Ashish A. Thakurdesai Sunil Desai, CAs For the Revenue : Shri B.P. Ramesh, Sr. DR ORDER PER BENCH All the above titled appeals filed by the assessee, emanate from the appellate orders passed by the Ld. Commissioner Of Income Tax (Appeals)/NFAC,Delhi dated 27.04.2024 with regard to the assessment order passed under section 143(3)/254 of the Income Tax Act,1961(henceforth the Act ) passed for the Assessment Years 2007-08, 2009-10, 2010-11, 2011-12, 2012-13, 2013-14. Since the grounds of appeal in all these cases are common apart from slight variations in figures, and have been decided by the ld.CIT(A)/NFAC giving the same finding, they are being adjudicated vide a composite order for the sake of brevity. 2. It may be stated a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... payees of the interest in above stated NBFCs have disclosed the said income in their respective returns of income and paid income tax as per applicable provisions of law, then there was no requirement of TDS as the payees have already paid the tax. 3.1 The Assessee has raised following grounds of appeal : 1. On the facts and in the circumstances of the case and in law, the learned CIT erred in confirming disallowance of Rs. 821,658. 4. Facts of the case as culled from the records reveal that the assessee is an Individual. As the business receipts exceeded the threshold, he was required under the Act to deduct TDS under respective provisions. The AO observed that the appellant failed to do so in matters of payment to NBFCs and to an exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Appellate Tribunal (ITAT) though accepted liability of TDS in this case, remanded the case to the AO to verify if the NBFCs had disclosed the said income and paid taxes on the income. Subsequently, the assessee was asked to submit the necessary evidence, in response the assessee provided only a certificate from an accountant. As per the Finance Act 2012, failure to deduct tax without meeting specific conditions results in the assessee being deemed in default. Accordingly, in the set-aside assessment order passed u/s 143(3) rws 254 dated also the same addition was made. 4.2 It was observed by the ld.CIT(A) that in the set aside assessment the AO was directed to verify whether the interest payment has been included in the Income a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... carefully considered all the relevant facts of the case. The assessee before the CIT(A) claimed that in view of the 2nd proviso the payee should file his return of income including such income in return. For this a certificate in Form 26A is required to be furnished. This form issued by an Accountant gives the said information that the payee has filed the return of income, the income paid by the payer is included therein and amount of tax paid by it. Accordingly, the assessee furnished relevant details in Form 26A.The certificate of an Accountant was also filed. The ld.CIT(A) has laid emphasis on production of ITRs, audit report, proof of tax payment etc as well which according to him, the assessee failed to produce leading to upholding the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d amount of interest in its income and paid due taxes. As per Rule 31ACB, assessee is required to furnish Annexure A alongwith Form 26A.It is undisputed fact that the assessee is liable to deduct TDS on payments made to NBFC on interest payments. However,2nd proviso does reduce the rigours of section 40(a)(ia) where the payee has disclosed the said interest and paid taxes thereon by filing its return. The assessee in this case, has duly submitted Form no.26A evidencing such disclosures by the payees. However, the AO was not amused and needed further details such as relevant ITRs, audit report, tax challans etc. Evidently, the assessee has discharged the primary onus in the matter as neither the AO nor CIT(A) have doubted the correctness of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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