Tulsi Infrastructure vs. The ITO, Ward-1(3)(1), Vadodara

Parties Involved

Facts Summary

The Assessee, Tulsi Infrastructure, a partnership firm engaged in construction business, was assessed under Section 143(3) r.w.s. 263 of the Income Tax Act, 1961 for the Assessment Year 2014-2015. The Assessing Officer made a disallowance of INR 2,81,70,098/- invoking the provisions contained in Section 40(a)(ia) of the Act for failure to deduct tax on payments made to sub-contractors. The Assessee appealed against the order passed by the National Faceless Appeal Centre (NFAC), Delhi, which dismissed the appeal. The Assessee raised several grounds of appeal, including the claim that the order passed by lower authorities is bad in law and required to be quashed, and that the order pursuant to section 263 order is without jurisdiction. The Assessee also argued that the order passed by the Assessing Officer and confirmed by NFAC is required to be quashed as it was issued without issuance of show cause notice by violating the principle of natural justice.…

Legal Issues

• 1. Whether the order passed by lower authorities is bad in law and required to be quashed.
• 2. Whether the order pursuant to section 263 order is without jurisdiction.
• 3. Whether the order passed by the Assessing Officer and confirmed by NFAC is required to be quashed as it was issued without issuance of show cause notice by violating the principle of natural justice.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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