M/s. SPL Realtors Pvt. Ltd. Vs. The Deputy Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, M/s. SPL Realtors Pvt. Ltd., a private limited company, filed their return of income on 30/10/2017 declaring a loss of Rs. 3,10,95,721/-. The case was selected for scrutiny and the assessment was completed on 15/06/2019. Subsequently, the Assessing Officer (AO) issued a notice under section 154 of the Act to rectify some mistakes, disallowing 30% of Rs. 1,82,33,223/- since TDS was not deducted. The assessee filed objections, contending that the disallowance under section 40(a)(ia) of the Act was unwarranted as they had complied with the conditions specified in the second proviso to section 40(a)(ia) of the Act. The assessee also furnished Form 26A and challans for the payment of interest along with the objections. Despite this, the AO confirmed the disallowance. The assessee filed an appeal before the Ld.CIT(A), which was also dismissed. Hence, the assessee approached the Tribunal.…

Legal Issues

• 1. Whether the order of the learned Assessing Officer is bad in law and against the facts of the case.
• 2. Whether the learned Assessing Officer erred in rectifying the assessment order under section 154 by disallowing Rs. 54,69,967/- under section 40(a)(ia) of the Act.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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