The Tax Publishers2021 TaxPub(DT) 0289 (Karn-HC)

INCOME TAX ACT, 1961

Section 40(a)(ia)

Where issue which arose for consideration before the Tribunal have not been dealt with on merits and the Tribunal had dealt with the appeal on a technical issue, therefore, it would be appropriate to quash the order passed by Tribunal and Tribunal was directed to adjudicate the appeal on merits.

Business disallowance under section 40(a)(ia) - Non-deduction of TDS under section 194-I - Tribunal held that disallowance ought to be restricted to amounts remaining outstanding -

Assessee claimed to be involved in civil contract work. AO by an Order made addition under section 40(a)(ia). During the course of the proceedings of assessment, it was noticed by AO that assessee had not deducted the TDS under section 194-I. Held: From a perusal of the order passed by the Tribunal, it was evident that the issues which arose for consideration before Tribunal have not been dealt with on merits and the Tribunal had dealt with the appeal on a technical issue. Therefore, it would be appropriate to quash the order passed by Tribunal and Tribunal was directed to adjudicate the appeal on merits.

REFERRED :

FAVOUR : Matter remanded.

A.Y. : 2006-07



IN THE KARNATAKA HIGH COURT

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