Commissioner of Income-Tax (Appeals) erred in confirming the action of the AO in initiating proceedings u/s 147 of the IT Act

Last updated: 18 May 2021

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The Income Tax Appellate Tribunal (ITAT) in Hyderabad has ruled that the Commissioner of Income-Tax (Appeals) was mistaken in upholding the Assessing Officer's decision to initiate proceedings under Section 147 of the Income Tax Act. This appeal, concerning the assessment year 2009-10 for Kiran Infertility Centre Private Limited, found that the initial action to reassess the case was not justified. The tribunal also reviewed grounds related to disallowances under Section 40(a)(ia) and the applicability of Sections 194C/194J to payments made.

Court :
ITAT Hyderabad

Brief :
This assessee’s appeal for AY.2009-10 arises from the CIT(A)-12, Hyderabad’s order dated 17-07-2019 passed in case No.10289/2018-19, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

Citation :
I.T.A. No. 1537/HYD/2019

IN THE INCOME TAX APPELLATE TRIBUNAL
HYDERABAD BENCHES “SMC”, HYDERABAD
(THROUGH VIDEO CONFERENCE)

BEFORE SHRI S.S.GODARA, JUDICIAL MEMBER

I.T.A. No. 1537/HYD/2019
Assessment Year: 2009-10

Kiran Infertility Centre
Private Limited,
HYDERABAD
[PAN: AABCK6053F]
(Appellant)

Income Tax Officer,
Ward-2(1),
HYDERABAD
(Respondent)

For Assessee : Shri S.Rama Rao, AR
For Revenue : Smt. N.Swapna, DR

Date of Hearing : 23-02-2021
Date of Pronouncement : 27-04-2021

O R D E R

This assessee’s appeal for AY.2009-10 arises from the CIT(A)-12, Hyderabad’s order dated 17-07-2019 passed in case No.10289/2018-19, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard both the parties. Case file perused.

2. The assessee’s has canvassed the following substantive grounds in the instant appeal:

“1.The order of the learned Commissioner of Income-Tax (Appeals) is erroneous both on facts and in law.

2.The learned Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in initiating proceedings u/s 147 of the I.T.Act.

3.The learned Commissioner of Income-Tax (Appeals) erred in confirming the addition of Rs.8,15,000/- representing disallowance u/s 40(a)(ia) of the I.T.Act.

4.The learned Commissioner of Income-Tax (Appeals) ought to have considered the fact that the provisions of Sec.194C/194J have no application to the payments made and that, therefore, the addition is not justified.

To know more in details find the attachment file

FAQ :

The primary issue was whether the Commissioner of Income-Tax (Appeals) correctly confirmed the Assessing Officer's decision to start proceedings under Section 147 of the Income Tax Act.

This appeal concerns the assessment year 2009-10.

The appellant was Kiran Infertility Centre Private Limited.

The appeal also addressed the Commissioner's confirmation of an addition of Rs. 8,15,000/- due to disallowance under Section 40(a)(ia) and whether Sections 194C/194J applied to the payments made.

The tribunal found that the Commissioner of Income-Tax (Appeals) erred in confirming the action of the Assessing Officer in initiating proceedings under Section 147.