Addition u/s. 40(a)(ia) on account of non-deduction of TDS u/s. 194J

This Income Tax Appellate Tribunal case concerns an appeal by Arvind Kaushik against additions made for non-deduction of TDS on consultancy charges under Section 194J. While the assessee failed to provide evidence of TDS, the Tribunal noted that the amount in dispute was Rs. 3,98,932. Ultimately, the appeal was allowed in part, with a direction to disallow only 25% of a larger sum of Rs. 39,84,917.

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH ‘ A’ NEW DLEHI
BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER
AND
SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER
ITA No.1256/Del/2017
Assessment Year: 2012-13

Arvind Kaushik,

WA-116, Shakarpur, Delhi

PAN : AJKPK8536G
(Appellant)

vs

Income-tax Officer,

Ward 60(5), New Delhi.

(Respondent)

Appellant by : Sh. Sameer Kapoor, Advocate
Respondent by: Sh. Jagdish Singh, Sr.DR
Date of hearing: 27/07/2021
Date of order : 27/07/2021
ORDER

Aggrieved by the order dated 10/01/2017 passed by the learned Commissioner of Income Tax (Appeals)-19, New Delhi ("Ld. CIT(A)") for the assessment year 2012-13, Arvind Kaushik (“the assessee”) filed this appeal.

2. Aggrieved by such additions, assessee preferred appeal before the ld. CIT(A) and by way of the impugned order, ld. CIT(A) granted partial relief to the assessee by deleting certain additions and remitting the amounts in respect of certain additions.

3.Coming to the addition in respect of section 40(a)(ia) of the Act, the assessment order speaks that the assessee failed to furnish evidences of TDS in respect of the payments made to the consultancy charges u/s. 194J of the Act and, therefore, addition was made to the extent of Rs.10,39,141/-.

4.We have gone through the records in the light of submissions made on either side. Amount of the subject matter of disallowance is not in dispute, which is Rs.3,98,932/-. However, the question is whether entire amount has to be disallowed or only 30% thereof has to be disallowed.

5. Therefore, direct the Assessing Officer to disallow 25% out of the disallowance of Rs.39,84,917/-. Subject to this observation, ground No. 2 is allowed in part.

6. In the result, appeal of the assessee is allowed in part.

Order pronounced in the open court on this the 27th day of July, 2021. 

Please find attached the enclosed file for the full judgement