ITA No.3429/M/2024 & CO No.152/M/2024

Parties Involved

Facts Summary

The Assessee had declared its income at 'Rs. Nil' by filing its return of income on 30.03.2013 which was processed under section 143(1) of the Income Tax Act, 1961. Subsequently, the case was selected for scrutiny, resulting in an assessment order dated 30.03.2014 under section 143(3) of the Act, whereby the income of the Assessee was assessed at Rs.35,25,77,840/-. The case was re-opened under section 147 of the Act by issuing a notice dated 31.03.2019 under section 148 of the Act. The Assessee filed its return of income on 21.05.2019 declaring total income at 'Rs.Nil'. The Assessee also filed an objection against the reopening of the case, which was disposed of by passing a speaking order dated 09.11.2018 by the Assessing Officer (AO). The Assessee accepted that it made a payment of Rs.6,87,26,000/- to slum dwellers for enabling them to meet the expenditure incurred towards rent during the year under consideration. The AO disallowed the claim of expenses to the tune of Rs.2,33,65,500/- under section 40(a)(ia) of the Act. The Assessee challenged this addition by filing an appeal before the Commissioner of Income Tax (Appeals), who allowed the appeal and deleted the addition.…

Legal Issues

• 1. Whether the disallowance of expenses of Rs.2,33,65,500/- on account of non-deduction of TDS qua rent paid to the tenants is justified.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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