It is ambitious to expect the work bills, confirmations from the goldsmiths for their work, since payment were not suspected, there is no reason to apply the provisions of section 194C and the 40(a)(ia) of the Act.

Last updated: 20 January 2021

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This Income Tax Appellate Tribunal ruling clarifies the application of Sections 194C and 40(a)(ia) of the Income Tax Act. The tribunal found it unreasonable to expect work bills or confirmations from goldsmiths when payment for services was not anticipated. Consequently, the provisions of these sections were deemed inapplicable in this specific case.

Court :
ITAT Visakhapatnam

Brief :
This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Vijayawada in Appeal No.10149/CIT(A)/VJA/2019-20 dated 30.07.2020 for the Assessment Year (A.Y.) 2010-11.

Citation :
ITA 179/VIZ/2020

IN THE INCOME TAX APPELLATE TRIBUNAL,
VISAKHAPATNAM BENCH, VISAKHAPATNAM
(through web-based video conferencing platform)

BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER&
SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER

I.T.A.No.179/Viz/2020
Assessment Year:2010-11)

M/s Tummidi Brothers Jewellery Shop No.196, MGWCC Thadithota Rajamahendravarm [PAN :AAFFT5256N]
Appellant

Vs.

Income Tax Officer Ward-3 Rajamahendravaram
Respondent

Appellant by :Shri G.V.N.Hari, AR
Respondent by: Shri B.Rama Krishna, DR

Date of Hearing :26.11.2020
Date of Pronouncement : 23.12.2020

O R D E R

Per Shri D.S.Sunder Singh, Accountant Member :

This appeal is filed by the assessee against the order of the Commissioner of Income Tax (Appeals) [CIT(A)], Vijayawada in Appeal No.10149/CIT(A)/VJA/2019-20 dated 30.07.2020 for the Assessment Year (A.Y.) 2010-11.

2. Ground No.1 and 6 are general in nature which does not require separate adjudication.

3. During the appeal hearing, the assessee did not press ground No.2 which is related to disallowance of Rs.4,70,309/- made u/s 40(a)(ia) of the Income Tax Act, 1961 (in short ‘Act’). Therefore ground No.2 is dismissed as not pressed.

To know more in details find the attachment file

FAQ :

The judgement discusses Section 194C and Section 40(a)(ia) of the Income Tax Act, 1961.

These sections were considered inapplicable because payment for the work was not suspected, making it unreasonable to expect specific documentation like work bills or confirmations from goldsmiths.

The appeal number was I.T.A.No.179/Viz/2020 for the Assessment Year 2010-11.

Yes, Ground No.2, related to a disallowance of Rs.4,70,309/- made under Section 40(a)(ia), was dismissed as the assessee did not press it.