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2020 (12) TMI 185 - HC - Income TaxAddition u/s 40A(3) - Disallowance u/s 40(a)(ia) - payment in cash to SNBT for raw material purchases and SNBT making the said amount to the suppliers - HELD THAT:- Since the matter stood remitted by the learned Tribunal with regard to Section 40A(3) of the Act, to first determine whether there was a contract of Agency Agreement between the Appellant/Assessee, an individual viz., Mr.R.Venugopal and the Company by name M/s.Srinivas Buildtech Pvt Ltd (SNBT) where the Assessee was the Managing Director, therefore, unless such contractual relationship is established, both the issues with regard to disallowance under Section 40A(3) of the Act for Assessee having made cash payments to the Company for the alleged purchases of raw materials and building materials and also applying Section 40(a)(ia) of the Act for Service Charges paid by the Assessee to the Company for such agency work of purchasing those materials without deduction of Income Tax at Source cannot be determined. Since both the issues are inter-related and since the matter stood remitted by the learned Tribunal vide para 12 aforequoted for Section 40A(3), the issue with regard Section 40(a)(ia) of the Act also ought to have been restored to the file of the CIT (A). No substantial question of law.
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