2023 (3) TMI 616 - AT - Income Tax

Addition u/s 40(a)(ia) - Non deduction of TDS on commission and professional fees - assessee claims exemption for non deduction of TDS under Form 26A r.w. Rule 31ACB - HELD THAT:- Assessee has not filed Form–26A as per Rule 31ACB to prove that the payee has furnished its return of income u/s. 139 of the Act; and the payee has taken into account the amount paid by the assessee while computing the income in such return of income; and the payee paid the tax due on the income declared by it in such return of income. When the assessee files Form -26A before the authorities, it proves that assessee is not in default. Further, in the present case it is fact on record that assessee has not deducted TDS while making the payment to above said two parties. However, assessee has acquired the Form – 26A. However, failed to submit the same before CPC as well as Ld.CIT(A).

As per the submissions of the assessee due to system glitch it could no upload the same in time and it has submitted a copy of Form -26A before us in the form of Paper Book. Therefore, it clearly indicates that assessee has genuinely possesses the Form – 26A at its disposal and as per the Rule 31ACB it has to be submitted to the DGIT(Systems). Since the case of the assessee is falling in the above category and there is no restriction that assessee has to file within such a period, that is, there is no bar on the assessee to file such form within such period. Therefore, the case seems to be genuine and assessee should be given one more opportunity for the sake of overall justice.

Thus we remit this issue back to the file of Ld.CIT(A) and to consider the Form – 26A, adjudicate the same after considering the above said Form–26A and as per law. Appeal filed by the assessee is allowed for statistical purpose.