The Income Tax Appellate Tribunal (ITAT), Raipur bench consisting of Ravish Sood, Judicial Member and Rathod Kamlesh Jayantbhai, Accountant Member confirms the order of Assessing Officer (AO) initiating proceedings u/s 40(a)(ia) of Income Tax Act as assessee failed to deduct tax at source u/s.194A AO initiated proceedings u/s 40(a)(ia) of ITA.
The assessee firm, M/s. Swaraj Builders had failed to deduct tax at source u/s.194A of the Act on interest payment of Rs.7,46,025/-, therefore, the Assessing Officer had disallowed the said amount by triggering the provisions of section 40(a)(ia) of the Act. Aggrieved, the assessee carried the matter in appeal before the Commissioner of Income Tax (CIT). However, not finding favour with the contentions advanced by the assessee the CIT upheld the addition of Rs.7,46,025/- made by the AO. The assessee being aggrieved with the order of the CIT has carried the matter in appeal before ITAT. As the assessee appellant despite having been intimated about the hearing of appeal had failed to put up an appearance before us, therefore, we are constrained to proceed with and dispose off the appeal as per Rule 24 of the Appellate Tribunal Rules, 1962 i.e, after hearing the respondent revenue and perusing the orders of the lower authorities.
The Tribunal observed that” On a perusal of the orders of the lower authorities, it transpires that the assessee had failed to comply with the mandate of law and had failed to deduct tax at source u/s.194A of the Act on the aforesaid amount of interest payment of Rs.7,46,025/-. Accordingly, the A.O had disallowed the amount of Rs.7,46,025/- u/s.40(a)(ia) of the Act which was thereafter, upheld by the CIT. As nothing has been placed on record which would evidence that the view arrived at by the lower authorities is either perverse or incorrect, therefore, we are of the considered view that as no infirmity emerge from the order passed by the CIT(Appeals) who had rightly upheld the disallowance made by the A.O u/s.40(a)(ia) of the Act, therefore, uphold the same.”
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